Essay Example on According to Afuah 2004 business model can be considered as a tool for making money









According to Afuah 2004 business model can be considered as a tool for making money To clarify it is a set of activities which a firm performs how it performs them and when it performs them so as to offer its customers benefits they want and to earn profit Afuah 2004 After 765 interviews with CEOs around the world IBM revealed that the companies were spending their innovation efforts on business model had improved faster than the competitors IBM Global Business Services 2006 Nunes and Breene 2011 believe they success in business by creating new business models after identifying the changes in customer needs Margetta 2002 claim a good business model start from observing human motivations and ending in plenty of value Currently 3D printing technology has a considerable number of characteristics that can be sources of value First of all it is a mass customization technology and offers personalized consumption experience for customers Hague et al 2003 Gibson et al 2010 Moreover 3D printing also allows companies to reduce overhead costs Hopkinson et al 2006 Furthermore due to its mass customization characteristics companies can quickly react to changes of market or trend Hopkinson et al 2006 

All of the above mentioned advantages can help a company open business by proposing value to customers and get a part of the value created Afuah 2014 Zott and Amit 2010 developed a business model as a system of interdependent activities within and across the company boundaries This system helps the company and its partners not only to create value but also to capture a part of that value As an illustration the personalization characteristic of 3D printing may transfer the productive activities from the manufacturer to the consumer Besides with the development of Web 2 0 manufacturers and consumers have more methods to direct connect with each other Wirtz et al 2010 The possibility of transferring value-adding activities from the manufacturer to the consumer is a significant implication of 3D printing Bogers et al 2016 In general it is essential to build a business model for 3D printing since a company would hardly create value if they could not commercialize that technology in an effective way Chesbrough and Rosenbloom 2002 

Unlike some new technologies which can be carried out by existent business models a company may have to modify or refashion the business model for 3D printing technology if they want to capture its value Chesbrough 2010 Johnson et al 2008 Specifically consumers have chances to involve directly in productive and value-adding activities when there is a transformation from a manufacturer centric to a consumer-centric value logic in the business model Bogers et al 2016 In order to specify the value creation logic Amit and Zott 2001 used a framework of four drivers efficiency complementarities lock-in and novelty Based on assessment at focal consumer goods manufacturer it is applied to compare a traditional manufacturer centric logic with a new consumer-centric logic within this business model framework Bogers et al 2016 In table 1 efficiency driver refers to cost reduction offered by the manufacturing platform Next complementarities represents to the possibility to offer the consumer products and packages together such as offering after-sale services or other products

The following driver lock-in refers to the possibility to gain loyalty from consumers for future transactions this can be done by rewarding customers through events Lastly novelty represents to the possibility to renew product offerings which means the first firm applied the technology can gain benefits ahead while it also can support consumer lock-in As mentioned earlier the advantages of 3D printing offer the consumer the chance to be active and take over productive activities of the manufacturer Toffler 1980 suggests calling this consumer as a prosumer who may take an important role in the digital and information era In addition Rennie 2007 refers this term to the use of media where consumers using the supports of social media and the Internet to take the role of producers of media With the specific potential for consumer-centric and personalized production systems 3D printing technologies allow a consumer to perform as users of the technologies in producing Moreover the fact customers of 3D printing can utilize the technology to create products for themselves and others may involve a primal change to the structure of manufacturing around the world

Wohlers 2013 points out there is a rapid change of the personal desktop printers since 2007 to 2012 It is safe to say that the prices of a personal 3D printer will reasonably decrease in the future so there will be more consumers who also owns a personal 3D printer Wohlers 2014 Moreover completely consumer-centric production systems can point out the personalization of manufacturing Bogers et al 2016 Particularly in order to increase the individualization of a unique consumer manufacturers can propose customers who own a 3D printer opportunities to produce their own portions With the advancements of the Internet manufacturers can provide an online service design to support and satisfy consumers Furthermore manufacturers may also suggest printing methods for consumers who have their own designs which may be shared with others giving a chance to form a dynamic community Lakhani and von Hippel 2003 Besides manufacturers can gain profit by charging for printing document since it may be shared and used by many users this also create high lock in definitely

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