INTRODUCTION:
Recent observations at a digital manufacturing trade show painted a disconcerting image of the 3D printing industry: exhibitors offering steep discounts on floor model printers. While this might be viewed as a mere sales strategy, it reflects a deeper misalignment between the makers of 3D printers and their end-users. This paper posits that the existing business model might be broken, warranting a fresh look at how the industry operates and serves its clientele.
Trade Show Insights: A Symptomatic Perspective
1. Depreciation of High-Value Assets:
Steep discounts on advanced technology raise questions about the perceived value of these assets. Are they mere commodities now?
2. Consumer Electronics Syndrome:
Is 3D printing following the footsteps of tech gadgets, where rapid obsolescence forces quick turnover?
3. Financial Desperation:
Such fire-sales imply that manufacturers might be grappling with financial pressures, making swift sales crucial.
Broader Industry Implications:
1. Market Oversaturation:
Discounts and aggressive sales suggest a crowded marketplace, diluting individual product value propositions.
2. Technological Whirlwind:
The speed of technological advancements can make certain models obsolete in a brief time, leading to their premature devaluation.
3. Quality & Reliability Discrepancies:
Offloading equipment at trade shows could indicate that products might not be meeting industry standards consistently.
4. Broken Business Model:
The heart of the issue seems to revolve around a misaligned business model. 3D printer manufacturers primarily focus on selling printers, which may not always align with the evolving needs and challenges of their customers.
A Way Forward: Reimagining the Business Model
1. Shifting from Sales to Services:
Instead of selling 3D printers as standalone commodities, manufacturers could pivot towards a service-centric model. Licensing the underlying technology or offering 3D printing as a service (3DPaaS) aligns the success of equipment makers with the success of their users.
2. Deepening Collaborations:
To ensure that 3D printing solutions are tailored to real-world challenges, technology companies must foster deeper ties with manufacturers. Joint R&D can produce machines more in tune with market demands.
3. Licensing and Subscription Models:
Instead of selling equipment outright, a licensing or subscription model would ensure that users have access to the latest technology without obsolescence concerns. This would also create steady revenue streams for 3D printer manufacturers.
4. Value-Added Offerings:
Beyond just the machinery, a holistic approach encompassing software solutions, regular training, and post-sales support would strengthen the value proposition.
Conclusion:
The ‘used-car-lot’ perception at trade shows is a symptom of a deeper misalignment within the 3D printing industry. While the technology holds transformative potential, the business model is currently misaligned with the evolving market dynamics. By pivoting from mere sales to service-centric models and fostering deeper collaborations, the 3D printing industry can ensure its value proposition remains robust, relevant, and responsive to the needs of the market.
