The co-evolution of business models and eco-systems. A case study on the changing landscape within 3D-printing

Abstract

3D-printer manufacturers, the business model they uses as well as the industry structure are in general severely understudied, especially when comparing to the overall interest shown in 3D-printers lately. Previous research has shown, and emphasized, the importance of considering business model innovation together with eco-system development to understand the drivers for business model innovation. This study aims to investigate the change in business models for 3D-printer manufacturers when the 3D-printer becomes increasingly used for mass-production instead of prototyping. During this study I have been embedded in a 3D-printer manufacturer in the greater Boston area to understand the internal discussion within this company which aims to launch a 3D-printer for mass-production. For understanding the general 3D-printer manufacturer I have also drawn on experts advising the company I was embedded within. I have also used secondary sources to understand the industry. The result shows that there are three components of business models in this industry; the 3D-printer, the materials, and services provided. The main difference for companies with a 3D-printer aimed for mass-production compared to those which has a 3Dprinter mostly aimed for prototyping is the approach towards materials. For the materials the industry is moving towards becoming less vertical integrated where a greater emphasis is made on outside partners to produce the material used in a 3D-printer. This vertical disintegration is then affecting the business models. Therefore, I conclude that there is strong evidence for the interactive relationship between business model innovation, vertical disintegration, and eco-system development.