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of Pages 7

Business Horizons (2014) xxx, xxx—xxx

Available online at www.sciencedirect.com

ScienceDirect
www.elsevier.com/locate/bushor

MARKETING & TECHNOLOGY

Disruptions, decisions, and destinations:

a
Beedie School of Business, Simon Fraser University, Vancouver, BC V6C 1W6, Canada
b
McCallum Graduate School of Management, Bentley University, Waltham, MA, U.S.A.

KEYWORDS Abstract Until recently, most manufacturing processes have been ‘subtractive’ in
3-D printing; that matter is removed (e.g., scraped, dissolved, turned, machined) from a substance
Additive in order to produce the desired product. 3-D printing turns traditional manufacturing
manufacturing; on its head in that it uses an ‘additive’ process. Similar to laser and inkjet printers, 3-D
Intellectual property; (three-dimensional) printers produce pieces by depositing, or adding, layers of
Ethics material–—plastic, polymer filaments, metals, and even foodstuffs–—until the desired
product is realized. This means that the creation and production of ‘one-offs’ is not
only easy, it is also economically viable. 3-D printers are becoming ever more
affordable, and it is not hard to envision them being as common in most homes in
the near future as their two-dimensional counterparts are today. This article presents
a 3-D printing primer for non-technical managers. It then considers the profound
impact that 3-D printing will have on firms of all kinds as well as on individual
consumers. In addition, it raises the substantial questions that 3-D printing will pose to
policy makers from both intellectual property and ethical standpoints.
# 2014 Kelley School of Business, Indiana University. Published by Elsevier Inc. All
rights reserved.

1. An invention that could remake the public awareness changed when the first 3-D printed
gun was announced and the code for its production
world was shared online by Cody Wilson, a 25-year-old law
student at the University of Texas. The so-called
Before May 2013, 3-D printing had not been a topic of
‘Liberator’ is still the world’s most notorious 3-D
many conversations, at least not outside the circles
printed object to date. The news that anyone could
of committed technophiles who had already hailed
buy a relatively inexpensive 3-D printer–—Wilson
it as the future–—or the end–—of manufacturing. Low
bought his on eBay–—and produce a functioning gun
at home made 3-D printing a very hot topic. Discus-
* Corresponding author
sion revolved around personal liberties and the ‘‘right
E-mail addresses: jan_kietzmann@sfu.edu.cn (J. Kietzmann), to print arms,’’ gun control, homeland security
lpitt@sfu.edu.cn (L. Pitt), pberthon@bentley.edu (P. Berthon) (whether the plastic gun could be detected by airport

0007-6813/$ — see front matter # 2014 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.
http://dx.doi.org/10.1016/j.bushor.2014.11.005
BUSHOR-1192; No. of Pages 7

2 MARKETING & TECHNOLOGY

scanners), and whether sharing the design online was cutting, drilling, filing, turning, or milling. Even
ethical, let alone legal (S. Brown, 2013). non-machined products are fabricated in a similar
While the 3-D printed gun got the world’s atten- fashion; for instance, maple syrup is made by boiling
tion, it also added confusion to public awareness of off water from the sap until the desired sugar
the 3-D printing process and the constructive oppor- concentration is reached. Subtraction is every-
tunities it presents. Our aim in this article is to alert where, and that’s why 3-D printing as an additive
executives to the potential of 3-D printing: to con- process is so revolutionary.
front them with the decisions that will need to be ‘Additive manufacturing,’ as the name suggests,
made, the disruptions they will face, and the desti- builds products from the bottom up, just as children
nations 3-D printing will take them to in the future. of all ages construct complex artifacts by combining
We proceed as follows: First, we provide a brief simple Lego blocks. Additive manufacturing is a little
user-friendly introduction to the phenomenon of 3-D more complex, but can be thought of as a computer-
printing, describing what it is, how it works, and controlled hot glue gun that uses a carefully calculat-
what it can do. We also discuss the pros and cons of ed and measured combination of basic elements that
3-D printing and address what it will mean to firms bond together as they are laid down, by adding each
and consumers. Next, we consider the substantial layer to the previous (Berman, 2012; H. J. Brown,
legal implications that 3-D printing will have, with 2012). With the 3-D printing mantra, ‘‘if you can draw
particular reference to intellectual property. We it, you can print it,’’ any computer generated 3-D
conclude by speculating how 3-D printing will evolve model can be produced. With a 3-D printer in-house,
in the future and how it might alter the manufactur- the substantial improvements in prototype produc-
ing, marketing, and strategic landscapes. tion speed for which Hull yearned 30 years ago can be
achieved today at a fraction of the cost. Indeed, it is
this combination of flexibility, speed, and low cost
2. 3-D printing: If you can draw it, you that makes this technology so disruptive.
can print it Nowadays, a variety of 3-D printers–—some as
small as a desktop paper printer–—are available to
For most technologies, the first working versions are anyone. They range in price from $300 for the
usually bulky, expensive, and slow. They initially re- cheapest option, to mid-range models between
main largely in the lab, unknown to the general public. $500—$2,000, and about $3,000 for high-end ver-
When these technologies become more affordable sions. Industrial 3-D printers and those that can use
and user-friendly, they enter the market as supposed- advanced materials, however, are much more ex-
ly new inventions. 3-D printing is no exception. It has pensive. Basic 3-D printers are no longer only avail-
stayed under the public radar since 1983, when design able in specialty stores: They can be purchased at
engineer Charles ‘‘Chuck’’ Hull was frustrated by the regular electronics retailers such as Amazon, Office
long wait time and expense of having new injection Depot, and Wal-Mart. There are even downloadable
molded parts produced. Even after design and blue- open-source instructions on how one can build a 3-D
prints were completed and the mold was made by a printer at home.
toolmaker, it would be weeks–—if not months–—until Admittedly, the use of the term ‘printing’ adds to
the part was delivered (Hessman, 2013). Hull’s ‘ster- the confusion that surrounds the 3-D phenomenon.
eolithography’ overcame these problems and allowed The etymology of the term suggests that printing is
rapid casting of metal parts for large manufacturers about making an impression or a mark–—for exam-
such as automotive companies. ple, by a stamp, a seal, a printing press, or a
Hull’s process, which forms the basis of 3-D print- computer-controlled printer. In these 2-D contexts,
ing today, differs from traditional production pro- similar techniques and materials were used. Type-
cesses in one fundamental way: it is not subtractive. writers used ribbons, ink-jet printers used car-
Traditionally, most production techniques create tridges, and laser printers require toner to print
three-dimensional products through ‘subtractive texts, images, or photographs onto paper, plastic,
manufacturing,’ whereby undesirable or superflu- and textiles. Additive 3-D printing, on the other
ous material is removed to arrive at the desired hand, uses filaments (i.e., input materials) to print
artifact. This is an age-old process. For example, a all sorts of products. Contrary to public belief, and
totem is carved by removing pieces of timber from possibly fueled by the Liberator, 3-D printing is not
the trunk of a cedar tree, and a wooden lamp stand just about producing products from plastic–—
is produced by using a lathe to cut superfluous wood although BS and PLA plastics are the cheapest raw
to arrive at the desired shape. Most artifacts today materials for 3-D printing. Various raw materials can
are still produced at least in part by means of be used by different 3-D printing methods, including
subtractive machining techniques such as grinding, polymers, epoxy resins, nylon, wax, powders, oils,
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MARKETING & TECHNOLOGY 3

and nutrients, as well as titanium, sterling silver, build layer upon layer until the final product is
stainless steel, leather, sandstone, and materials finished. The third method, called Selective Laser
that mimic human cells. Sintering (SLS), fuses layers of powdered material
But how exactly does one print three-dimensional such as stainless steel powder. After the powder is
products made out of any of these or other materi- preheated in the powder bed, the 3-D printer’s laser
als? 3-D printing follows the sequential stages of raises the powder temperature of the desired re-
design, printing, and post production, each of which gions to its melting point to create and join the
offers the user a number of alternatives. layers of the desired 3-D object.
Currently, many of these processes can be com-
2.1. Design pleted on 3-D printers at home, but that does not
mean that users have to own one. Printing metals,
Users can create new 3-D designs by means of a wide for instance, requires capital-intensive 3-D printers
range of computer aided design (CAD) or animation that are not feasible investments for the lay user.
modeling programs, ranging from free or fremium One printing alternative is to upload the design to
options like Google SketchUp, 3-DTin, or TinkerCAD printing sites like Shapeways or Kraftwurx, which
to relatively expensive but also more advanced print and ship 3-D objects much like online photo
programs like AutoCAD or Pro/Engineer. 3-D printers printing services. Another option is to consult the
can print with accuracy down to 16 micrometers, online service MakeXYZ to find neighbors who will
which is smaller than the finest human hair. Most share their 3-D printers for free or for a nominal fee.
printers still produce single-colored objects, but
this does not mean that all designs necessarily need 2.3. Post production
to be monochrome. Depending on the printing pro-
cess, the filament can be changed to change colors Today, the overall shape and mechanical fit of
for some multicolored objects, or so-called ‘dual printed objects seems to be the primary goal of
extruders’ can be used to print two-colored objects. 3-D printing. The surface treatment is often second-
Alternatively, users can 3-D scan existing prod- ary. However, for many products, such elements
ucts with simple but relatively inaccurate scanners matter, and ‘‘like builders of dollhouses and model
for mobile phones and tablets (e.g., 123-D Catch) or trains’’ (Griffin, 2014), many 3-D printers are busy
with larger and more powerful 3-D scanners. Once a deburring, sanding, polishing, sealing, and painting
product is scanned, it can be manipulated using the their new objects. Some require post-production
3-D design programs mentioned above. Unsurpris- soldering and friction-welding of separately 3-D
ingly, a number of online storefronts like MakerBot’s printed parts to create the final object. A 3-D
Thingiverse, Shapeways, or Ponoko have emerged printed metal door handle, for instance, could be
via which users can download–—either for free or for polished, painted, or gold-plated so that it is not
a fee–—the designs for all sorts of products. Once the just functional, but also aesthetically pleasing.
design stage is completed, its blueprint is exported
in the 3-D printer-readable SLG (for stereolithog- 2.4. Sharing
raphy) file extension.
Of course, while there is no need to make one’s 3-D
2.2. Printing printed project successes or failures publicly avail-
able, the small but rapidly growing community of
Once the design is completed, the printer will con- early adopters strongly supports a sharing mentality
vert it into individual 2-D layers. Its print head then across a number of social media choices (Kietzmann,
passes over a building platform to add, or lay down, Hermkens, McCarthy, & Silvestre, 2011). Users share
layers of the material, one at a time, to make the their progress on forums, offer videos of their prog-
3-D object–—hence additive manufacturing. Three ress on video-sharing sites, and upload their designs
methods are available for the different types of raw to the abovementioned 3-D content sharing sites
materials (physics.org, 2014). where they can be sold or shared freely.
The first method, the original Stereolithography
(SLA), uses light–—usually from an ultraviolet laser–—
to turn chemical resins like liquid plastics into sol- 3. Disruptions: What 3-D printing can
ids. The second method, known as Fused Filament mean to firms and consumers
Fabrication (FFF), does not require a light source: its
molten ink simply becomes solid when it emerges The original mother of invention for 3-D printing was
from the printer head, similar to how chocolate or Hull’s necessity for quicker prototyping. Today, the
cheese solidifies when it cools down. Both methods speed and convenience of rapid prototyping allows
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4 MARKETING & TECHNOLOGY

firms, small and large, to be more nimble and to yield an attractive return on investment. What’s
produce different versions of a product overnight, more, without such a service, customers might
test them, and produce improved versions without simply reverse-engineer parts they need and share
delay. This not only improves the production pro- their instructions online. Manufacturers would lose
cess, but also has a profound impact on how creative control over the specifications of the instructions
inventors can be in their product development. A and the quality of the objects to be printed.
rejected part or a dud no longer costs a lot of money Of course, 3-D printing also presents enormous
or time, but can become a creative part of experi- opportunities for tailor-made, custom products to
mentation and research and development. However, be produced. Some will be high-end, like implants or
there are lots of other advantages for firms. prosthetics such as Handie, a 3-D printed hand that
From an inventory management perspective, for uses sensors to read brain impulses in order to
example, firms can save space and cost by on-de- control movement. With the help of a smart phone,
mand replication of stock items with a 3-D printer Handie computes the electrical impulses on the
rather than keeping items stockpiled in anticipation skin’s surface to grab objects of different shapes.
of a future need. Some examples are obvious, others The product Cortex addresses more common prob-
less so. For instance, under the Space Technology lems. After a traditional X-ray and a 3-D scan of a
Mission Directorate, NASA is already building some limb, a 3-D cast that provides lightweight, ergonom-
of its prototypes of tools and instrument parts for ic, waterproof, and ventilated support for the treat-
current or future missions using 3-D printing (Lipson ment of bone fractures can be printed.
& Kurman, 2013), and is supporting a study on 3-D 3-D printing also promises to reduce the ecological
printing of food in space (NASA, 2013). The same is footprint of today’s manufacturing systems and
true for instructions for vaccines, which could be their reliance on physical distribution channels.
distributed and 3-D printed quickly in case of a The positive impact of printing objects closer to
contagious virus outbreak–—like the pandemic the point of consumption, thereby reducing road
H1N1–—or more generally sent to areas in need and air miles, can be a substantial contribution to
throughout the world (Hernandez, 2012). For all solving today’s intensifying pollution problems. To
other industries, too, 3-D printing can become the ensure that the cure is not worse than the illness
new kanban, a true just-in-time inventory manage- and that 3-D printing does not create more waste
ment solution. (remember the promise of computers and the ‘pa-
From an industry supply chain perspective, con- perless office’?) through the numerous, rapidly de-
sider product warranties, component upgrades, re- veloped objects that end up in landfills around the
pairs, and recalls. What if firms enabled the world, new industries aimed at collecting 3-D printed
downloading of 3-D printing instructions closer to objects and recycling them into new filaments will
the point of purchase or consumption, eliminating emerge.
users’ need to order and wait? Twenty years ago, if a Aside from firms, the advantages for consumers
manual for a kitchen appliance was lost, a printed are attracting more and more people to 3-D print-
replacement manual had to be ordered and deliv- ing. Two dimensions seem to separate different
ered. Today, people simply download the pdf from a types of consumer-driven 3-D printing projects:
website. Tomorrow, with 3-D printing, they will the degree to which they work on existing or new
effectively download not only repair instructions, products, and the degree to which their printed
but also the parts needed. For most industries, such objects improve or sustain the functionality of the
a change from traditional supply chain to distributed original product experience. When combined, these
manufacturing will be very disruptive; for instance, two dimensions suggest that four different types of
3-D printing is bad news for parts suppliers that consumers will be active in 3-D printing (Figure 1).
capitalize on distributing highly marked-up replace- Many consumers will be drawn to 3-D printing’s
ment items. However, despite many projections, possibilities for working on existing offerings. 3-D
there could be good news in 3-D printing for man- tinkerers will help maintain existing products by
ufacturers. If manufacturers started thinking and developing 3-D printed objects for replacement or
acting more like service providers (Vargo & Lusch, repair (e.g., parts for a home appliance). On the
2004) and made their parts downloadable, they other hand, 3-D creative consumers (see, for exam-
would not only capture the market of parts suppli- ple, Berthon, Pitt, McCarthy, & Kates, 2007) are
ers, but also help speed up the abovementioned motivated by the possibilities of adapting, modify-
repair or replacement process for their customers. ing, or transforming existing proprietary products to
An appropriate revenue model for downloadable improve the associated experiences; for example, a
parts, 3-D instructions–—much like all digital goods 3-D creative consumer developed a converter brick
without a considerable cost of production–—could to connect the Duplo bricks from Lego and Brio
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MARKETING & TECHNOLOGY 5

Figure 1. Consumer 3-D printing From a firm perspective, few managers raised in
New functionality a pro-producer climate have the consumer in-
stincts required to compete on customization
(D’Aveni, 2013). Firms will need to re-examine
their stances toward the consumer creativity en-
3-D
Creative 3-D abled by 3-D printing (Berthon et al., 2007): Will
Inventors they encourage and enable consumer creativity,
Consumers
Existing products New products will they actively resist and repress it, or will they
3-D 3-D simply ignore it? The intellectual property issues
Tinkerers Designers experienced by the producers of digital content,
such as music and film, will now come to the
physical world. While fake goods have long been
a problem, they have still typically relied on large
Existing functionality
manufacturing facilities, mostly in the developing
world. Now, rather than purchase the real thing or
a knockoff, a consumer can scan a friend’s original
wooden train tracks. 3-D designers are driven by and print his or her own–—and then make the scan
creating altogether new products that, by and large, available on the Internet so that anyone can simply
do not create new functional experiences but focus download the scan and print unlimited numbers of
on remodeling the form-factor of existing ones. As the object.
hobbyists, they may only design coat hooks, door- From a policy perspective, the general prognosis
stops, and backscratchers for fun, but those that are that creative consumers will make their own things
more serious design–—among other things–—jewelry presents thorny issues, not just to manufacturers,
and fashion items. 3-D inventors who think outside but also to legislators and policy makers. The ques-
the box will invent new 3-D printed products and tion of standards is a case in point: How will we deal
introduce new functionalities and new experiences. with standards, or rather, the potential threats that
For example, the aforementioned Handie prosthetic a lack of standardization brings? If we can print
hand and the Cortex cast for fractures were among objects, who tests the instructions for quality as-
the top three submissions to the 2013 James Dyson surance and the objects for quality control? There
Award for world-changing ideas. might be a new generation of viruses waiting, not
All these types of consumer 3-D printing will only for the equipment, but also possibly for peo-
require a lot of filaments for their projects. Similar ple. Bio 3-D printing of drugs and vaccines at a high
to the history of 2-D printing, 3-D printer hardware level, or even the simpler printing of foods–—despite
has already become more affordable, but through their enormous positive potential–—might have
the razor-blade revenue model (Teece, 2010), the scary implications. Dishonest individuals are al-
expensive ink makes printing intrinsically costly. To ready selling fake drugs for medical treatments;
alleviate this problem, 3-D inventors have devel- they might soon be selling manufacturing instruc-
oped products that extrude and reclaim High Densi- tions for fake drugs or for illegal recreational drugs
ty Polyethylene: in other words, machines that online.
‘reduce, reuse, recycle’ not only bad 3-D prints,
but also old plastic milk or shampoo bottles to allow
5. Destinations: The future of 3-D
users to make their own 3-D printer plastic while
saving money (3-D Printing for Beginners.com, printing
2014).
Trends alone suggest that 3-D printing is going to be
a very big deal. The sale of products and services
worldwide is expected to grow to $3.7 billion in
4. Decisions: Thorny ethical and legal 2015, and by 2019, the industry is forecasted to be
3-D printing issues worth over $6 billion. In terms of hardware, prices
will come down, printer features will continue to
Despite its obvious promise, 3-D printing will raise improve, and 3-D prints will become more sophisti-
many thorny legal issues for firms and ethical issues cated.
for policy makers. Just as the Internet brought the At the same time, the field is moving rapidly from
retail storefront onto the consumer’s computer the printing of relatively simple 3-D objects to
screen, 3-D has the potential to bring the factory applications in complex fields such as food and
into the consumer’s living room. health. 3-D printed meat promises to satisfy the
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6 MARKETING & TECHNOLOGY

human need for protein while simultaneously having we have outlined the basics of 3-D printing for
a far less detrimental impact on the environment managers as well as some of the decisions they
than poultry, pork, and beef production (Fox, 2012). will need to consider. We have noted disruptions
In addition, medical professionals have used 3-D that the technology might cause and what these
printing to create hearing aids, custom leg braces, mean to firms and consumers. In addition, we
and even a titanium jaw. In 2013, a team of re- highlighted legal and ethical issues that the tech-
searchers, engineers, and dentists created the nology has in store for policy makers. While we
world’s first prosthetic beak for a wounded bald have begun to speculate on the directions the
eagle (Li, 2012). 3-D printing ranges from very large technology will take in the future, astute managers
(e.g., the firm WinSun makes a 3-D printer large in almost every industry will want to keep a closer
enough to print entire houses), to small (dental eye on 3-D printing technology as it continues to
technicians are beginning to print tooth crowns evolve.
and implants), to ultra-small. For instance, geneti-
cist Craig Venter, of human genome fame, is working
on biological structures–—such as vaccines–—that can
be created in digital form, emailed to wherever they
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