Richard D’Aveni

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">Idea in Brief</h4>
 <div class="ideainbrief-contents">
  <h5>The Breakthrough</h5>
  <p>Additive manufacturing, or 3-D printing, is poised to transform the industrial economy. Its extreme flexibility not only allows for easy customization of goods but also eliminates assembly and inventories and enables products to be redesigned for higher performance.</p>
  <h5>The Challenge</h5>
  <p>Management teams should be reconsidering their strategies along three dimensions: (1) How might our offerings be enhanced, either by us or by competitors? (2) How should we reconfigure our operations, given the myriad new options for fabricating products and parts? (3) How will our commercial ecosystem evolve?</p>
  <h5>The Big Play</h5>
  <p>Inevitably, powerful platforms will arise to establish standards and facilitate exchanges among the designers, makers, and movers of 3-D-printed goods. The most successful of these will prosper mightily.</p>
 </div>
</article-ideainbrief><p>Industrial 3-D printing is at a tipping point, about to go mainstream in a big way. Most executives and many engineers don’t realize it, but this technology has moved well beyond prototyping, rapid tooling, trinkets, and toys. “Additive manufacturing” is creating durable and safe products for sale to real customers in moderate to large quantities.</p>

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<p>The use of 3-D printing, also known as additive manufacturing, has moved well beyond prototyping, rapid tooling, trinkets, and toys. Companies such as GE, Lockheed Martin, and BMW are switching to it for industrial production at scale. More companies will follow as the range of printable materials continues to expand. Already available are basic plastics, photosensitive resins, ceramics, cement, glass, numerous metals, thermoplastic composites (some infused with carbon nanotubes and fibers), and even stem cells. In this article the author makes the case that additive manufacturing will gain ground quickly, given advantages such as greater flexibility, fewer assembly steps and other cost savings, and enhanced product-design possibilities.</p>
<p>Managers, D&#8217;Aveni writes, should now be engaging with strategic questions on three levels: Sellers of tangible products should ask how their offerings could be improved, whether by themselves or by competitors. Industrial enterprises should revisit their operations to determine what network of supply chain assets and what mix of old and new processes will be optimal. And leaders must consider the strategic implications as whole commercial ecosystems begin to form around the new realities of 3-D printing.</p>
<p>Many of the biggest players already in the business of additive manufacturing are vying to develop the platforms on which other companies will build and connect. Platform owners will be powerful because production itself is likely to become commoditized over time. Those facilitating connections in the digital ecosystem will sit in the middle of a tremendous volume of industrial transactions, collecting and selling valuable information.</p>
<p class="reprint">HBR Reprint R1505B</p>

The 3-D Printing Revolution

The use of 3-D printing, also known as additive manufacturing, has moved well beyond prototyping, rapid tooling, trinkets, and toys. Companies such as GE, Lockheed Martin, and BMW are switching to it for industrial production at scale. More companies will follow as the range of printable materials continues to expand. Already available are basic plastics, photosensitive resins, ceramics, cement, glass, numerous metals, thermoplastic composites (some infused with carbon nanotubes and fibers), and even stem cells. In this article the author makes the case that additive manufacturing will gain ground quickly, given advantages such as greater flexibility, fewer assembly steps and other cost savings, and enhanced product-design possibilities. Managers, D’Aveni writes, should now be engaging with strategic questions on three levels: Sellers of tangible products should ask how their offerings could be improved, whether by themselves or by competitors. Industrial enterprises should revisit their operations to determine what network of supply chain assets and what mix of old and new processes will be optimal. And leaders must consider the strategic implications as whole commercial ecosystems begin to form around the new realities of 3-D printing. Many of the biggest players already in the business of additive manufacturing are vying to develop the platforms on which other companies will build and connect. Platform owners will be powerful because production itself is likely to become commoditized over time. Those facilitating connections in the digital ecosystem will sit in the middle of a tremendous volume of industrial transactions, collecting and selling valuable information. HBR Reprint R1505B

The 3-D Printing Revolution

Summary.

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