‘Necessity is the mother of invention’ as the old saying goes. And as, historically, disruptive technologies have turned into real business opportunities in tough economic times, I wonder if 3D printing, which makes three dimensional parts from digital data, could parallel the shift to digital photography. Think Kodak. Their recent filing for bankruptcy protection shows how iconic brands can become unstuck when disruptive technologies radically change markets. Adapting from servicing a huge, near monopoly in industrial film processing to providing low-volume in-home and high street print on demand proved to be unsustainable. Other businesses could soon face similar challenges.

Therefore marketers, entrepreneurs and business leaders may need to consider the implications now if their organisations are to survive.

Over the last 25 years, 3D printing technologies have revolutionised new product development, particularly prototyping. Before, it took weeks for models to be made. Now, thanks to a variety of technologies that make three dimensional shapes to replicate computer design data, they can be done in a matter of hours. Best of all, just like in the photography sector, there are numerous commercial bureaux that provide printing services, so businesses don’t have to invest in their own 3D printer to benefit.

Now technology developers are moving the same 3D printing processes into manufacturing. Where there’s a need for speed and short run production it can be an economic choice, particularly for high-value products. For example, at GE, electronic transducers are being developed, made using 3D print. This will reduce production costs and allow new, inexpensive portable scanners to be developed, for medical use and to inspect critical aerospace and industrial structures for cracks. At Lucid, we are using 3D printing to accelerate the production of low volume medical devices - which means that, effectively, we are becoming flexible, mini-manufacturers.

Renephra, a spin-out from the University of Manchester, is using our printed devices in clinical trials, accelerating its development of ground-breaking treatments for end-stage renal disease. Managing Director Philip Charlton comments: “3D printing enables businesses to think big yet stay agile, on small budgets. With no tooling, or lead times, it’s a perfect production technique for us, enabling rapid design customisation and eliminating the need to hold stock.

But is it just another niche manufacturing process for specialists? Why should marketers, financiers and corporate management care? With our 3D printer whirring away in the background, the team at Lucid Innovation got thinking about the opportunities for a technology that is reaching a tipping point.

Just as digital photography opened up new commercial avenues, offering consumers the opportunity to customise a variety of products such as cards, t-shirts, ceramics and so on, we believe that the availability of cheaper 3D printers could have a similar impact.

Printer manufacturers see huge potential now that 3D printing is becoming cheap enough to appeal to consumers - allowing them to print out replacement parts rather than having to buy them, and also to create toys and other small objects.

“If we can democratise access to the toolbox, our user base will increase,” says Abraham Reichental, CEO of US company 3D Systems. “This technology is going to end up in your kids’ bedrooms and on the factory floor.” 1.

Industry commentators agree that the toy market is a prime target. As the technology inevitably gets cheaper, home or in-store 3D printers could change the way we develop, market, distribute and buy toys. After all, designers already use component files downloaded off the web, so why not consumers? It can’t be long before toys are available to make on cheap home printers, enabling a host of new product opportunities. Accessories for Barbie? More Lego? Replace Bob the Builder’s broken tools? Why not connect digital content back to the real world, download characters from video games, perhaps to print as trophies as we progress to levels in games?

A word of caution, however: it may transform consumer choices, but it could challenge the careful control that brands managers exert over intellectual property - as could current toy safety regulations.

For marketers, this may not be just engaging consumers in fun choices - there’s also an opportunity to link a relatively high ticket price 3D printer into their product range.

Toys are a potential opportunity on a colossal scale.

In September 2011, over 60 000 twenty foot equivalent containers of toys landed in the USA alone, 89% of which originated in China2. China's impressive manufacturing infrastructure, relatively low production set-up and labour cost are major factors in enticing so much production.

With 3D printing at home, labour costs disappear. Many design restrictions disappear when unlike moulding plastics, virtually any shape, mechanism, or assembly of shapes can be made at once. You no longer need elaborate protective packaging. Lose the cartons, pallets, distribution and retail costs. Forget the finance for tooling, stock, insurances and the long lead times.

All of a sudden, agile, design led market entrants have the option to adopt a different, perhaps more sustainable business model; the infrastructure of bigger businesses and advantages of low cost economies look less critical to mass-market product launch.

Entrepreneurial organisations could perhaps take more risks - developing more customised products, exploiting the opportunity to bypass the biggest block to product launch - banks and their stranglehold on finance for growth.

This disruptive business model won’t make sense for all markets, products or organisations. However the potential applications will grow far beyond mechanical parts. Multi-component mechanisms, multi-material and multi-part products can be made - right now. Designers have created fabric and researchers are developing integrated printed electronics and even buildings.

Of course, all opportunities are associated with risks. Virtually anybody will be able to access the technology to make many things immediately, given a design file. So the potential for piracy is immense - look what happened in the entertainment industry.

This is a technology that won’t go away. I believe it offers a real opportunity to thrive - and bypass the bank in the process.

1 http://www.businessweek.com/technology/3d-printer-makers-aim-at-home-market-01092012.html

2 http://www.prnewswire.com/news-releases/us-toys-imports-drop-9-percent-despite-coming-holidays-132787153.html

3 http://investors.stratasys.com/releasedetail.cfm?ReleaseID=659142

Contact: Alistair Williamson, MD, Lucid Innovation

+44(0)161 860 0058, [email protected], www.lucidinnovation.com

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