Contour Crafting for Home Construction
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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Contour Crafting in Home Construction. Contour crafting involves large-scale 3D printing of concrete homes. A machine is constructed for a specific design and the machine rapidly dispenses concrete for the home thus resulting in rapid construction of the concrete home. This technique is largely based on patents held by Behrokh Khoshenevis, a professor at the University of Southern California. These slides describe the specific value proposition for construction companies and home buyers and other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.
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Contour Crafting for Home Construction
- 1. Business Model for Contour Crafting •Timothee Francois Lanfranc Le QuesneA0133779 •Daniel Berek Giuseppe LolloA0133497 •Huang GuozhuA0132443 •Ho Dalun (Darius)A0129445
- 2. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 3. Methods of Manufacturing Subtractive Manufacturing •Waste Material •Requires Skilled Labour to deliver a good job •Time Consuming
- 4. Additive Manufacturing •Saves Material •Saves Time •Requires a good design drawn with CAD program •Cost of each part remains the same Methods of Manufacturing
- 5. Traditional Construction Disadvantages of Traditional Construction •Time Consuming 7 Months to build a house with traditional construction techniques •Not Scalable Logistics Issues Manpower Issues •Requires a huge workforce •Workers are usually unskilled •Quality Issues
- 6. Contour Crafting How it works •3D Printing on a larger Scale •Contours controlled by trowels Source: http://www.livearchitecture.net/wp-content/uploads/2010/01/khoshnevis_mega-scale-fabrication.pdf
- 7. Contour Crafting How it works •Patented Layerd Fabrication Technology •3D Printing on a larger Scale •Contour Crafting machine follows a path defined in a software just like 3D printing
- 8. Contour Crafting Disruptive Innovation •3D Printing Improved and Innovated •Able to overtake traditional forms of construction User Requirements 1900s 2008 2020 2014
- 9. Contour Crafting Disadvantage of Contour Crafting •The foundation has to be built using Traditional Methods •Existing engineering rules and practices •High Switching Costs for Construction Companies
- 10. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 11. Value Proposition •Automation •Reduction of Accidents •Improved Quality of Work •Reduce Wastage •Stronger Structures Built as Compared to Traditional Construction
- 12. Value Proposition Automation •Makes use of CAD drawings •Little to No Supervision required •Saves Time •Saves Money
- 13. Value Proposition Reduction of Accidents •Number of workplace deaths in the construction industry in Singapore in 2012 •Contour Crafting reduces human labour which reduces the risk of accidents occuring46,400 Deaths
- 14. Value Proposition Improved Quality of Work •CAD imported files tells Contour Machines exactly what to do •Very low margin of error •Saves Time •Saves Money
- 15. Value Proposition Reduce Wastage •Structure is printed layer by layer •Saves Money
- 16. Housing Structures Traditional Structures •Traditional wall built with Contour Crafting •Firstly, the external shell of the wall is built •Then, the void is filled by pouring concrete Source: http://www.livearchitecture.net/wp-content/uploads/2010/01/khoshnevis_mega-scale-fabrication.pdf
- 17. Housing Structures Honeycomb Structures •Used in industries such as aerospace, racing, furniture, etc •As strong as, if not stronger than traditional structures •Uses much lesser material •Saves Money
- 18. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 19. Addressable market Construction and public work market : $10,000 Billion per year
- 22. Our market : 3.4 $Trillion per year Addressable market
- 23. Our technology : one or two floor houses, that represents 30% of residential construction in the world •Total addressable market : 1 $ Trillion per year Addressable market
- 24. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 25. Methods of value capture Our proposition for a 1 storey house •A few thousands dollars vs 100000$ •Including : Foundation Water + electricity Roof
- 26. Methods of value capture •Build houses and sell it directly to customers. •Sell or rent contour crafting machines to construction firms. •Sell special cement to firms that have already bought contour crafting machines •Sell a software for easy contour crafting •Sell entire neighborhoods to governments. •Target countries with high growth: India, Indonesia, China, Nigeria.. •Sell contour crafting equipments to NGOs and governments for natural disaster zones.
- 27. Methods of value capture •Build higher buildings with contour crafting : target the other 70% of the residential market •Find new methods of contour crafting for more than 3 floors buildings •Invest in R&D
- 28. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 29. Barriers to Entry Just need concrete mixed with composite fiber: not expensive, not rare
- 30. Price of the machines •Investment required for companies •Easier for large companies Large companies has more resources •20% less expensive to finance •25% less expensive materials •45% less expensive labor But the technology is needed Barriers to Entry
- 31. Barriers to Entry: Patents Deployable contour crafting -US 7814937 B2 •Period of legal protection: 2006-2026 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: Vehicle Nozzle configured to extrudecementitiousmaterial Gantry system configured to becollapsed on the vehicle
- 32. Barriers to Entry: Patents Contour crafting extrusion nozzles -US 8801415 B2 •Period of legal protection: 2008 -2028 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: an extrusion nozzle a nozzle positioning system a controller configured to direct thenozzle positioning system to move the extrusion nozzle
- 33. Barriers to Entry: Patents Multi-chamber vibrating valve for cementitiousmaterial US 7878789 B2 •Period of legal protection: 2009 -2029 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: Outlet to extrude the cementitiousmaterial Material flow pathway configured to channelthe cementitiousmaterial to the outlet Vibration-actuated valve interposed in thematerial flow pathway
- 34. Barriers to Entry: Patents Professor BehrokhKhoshnevis ●Professor at University of South California ●Own almost every Contour Craftinng Patents ●Only his company is currently developing the technology with the support of the NASA Good Strategy: Work with him in order to get patent protection until late 2020’s
- 35. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 36. Scope of Activities Maintenance •Supported maintenance service for customers Fabrication & Installation •Build house and electrical &mechanical installation Design •Design of house or designs from customers Sales & Marketing •Contour crafting service & contour crafting machine for rent Manufacturing •Outsource manufacturing of machine and material R&D •Contour crafting machine(hardware &software) and material
- 37. Outline Introduction Value Proposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 38. Methods of Strategic Control First Mover Advantages Economies of Scale in R&D Legal Mechanisms of Protection Complementary Assets Strategic Collaboration
- 39. Methods of Strategic Control First Mover Advantages •Brand loyalty •Technological leadership •Secure scarce resources (contracts) •High switching cost for traditional construction companies Disadvantages •Uncertainty of customers’ requirements •Immature contour crafting market and complements
- 40. Methods of Strategic Control •Economies of Scale in R&D •R&D on contour crafting machine and contour crafting material for big firms (better products, higher profit) Improve the speed, reliability, accurracy, multi-functions of machine Improve the properties of material, such as waterproofing, fire-resistance
- 41. Methods of Strategic Control Legal Mechanisms of Protection Build patent portfolio for Contour Crafting technology Patents of Contour Crafting Technology: US 7814937 B2 -Deployable contour crafting US 8801415 B2 -Contour crafting extrusion nozzles US 7878789 B2 -Multi-chamber vibrating valve for cementitious mater
- 42. Methods of Strategic Control Complementary Assets •Consultation service •Maintenance service •Customized design of house for customers (CAD, BIM) •Online platform & community –sharing of designs
- 43. Methods of Strategic Control Government Agencies Property Developers Construction Companies Strategic Collaboration
- 44. Thank you Q&A