Contour Crafting for Home Construction

Post on 01-Jul-2015

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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.

Transcript of Contour Crafting for Home Construction

Business Model for Contour Crafting

• Timothee Francois Lanfranc Le Quesne A0133779• Daniel Berek Giuseppe Lollo A0133497• Huang Guozhu A0132443• Ho Dalun (Darius) A0129445

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Methods of Manufacturing

Subtractive Manufacturing

• Waste Material• Requires Skilled Labour to deliver a good job• Time Consuming

Additive Manufacturing

• Saves Material• Saves Time• Requires a good design drawn with CAD program• Cost of each part remains the same

Methods of Manufacturing

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

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

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

Contour Crafting

Disruptive Innovation

• 3D Printing Improved and Innovated• Able to overtake traditional forms of construction

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1900s 2008 20202014

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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Value Proposition

• Automation

• Reduction of Accidents

• Improved Quality of Work

• Reduce Wastage

• Stronger Structures Built as Compared to Traditional Construction

Value Proposition

Automation

• Makes use of CAD drawings• Little to No Supervision required• Saves Time• Saves Money

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 occuring

46,400 Deaths

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

Value Proposition

Reduce Wastage

• Structure is printed layer by layer• Saves Money

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

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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Addressable market

Construction and public work market :

$10,000 Billion per year

Addressable market

Addressable market

Our market : 3.4 $Trillion per year

Addressable market

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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Methods of value capture

Our proposition for a 1 storey house

• A few thousands dollars vs 100000$• Including :

Foundation Water + electricity Roof

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.

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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Barriers to Entry

Just need concrete mixed with composite fiber: not expensive, not rare

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

Barriers to Entry: Patents

Deployable contour crafting - US 7814937 B2

• Period of legal protection: 2006-2026

• Owner: Behrokh Khoshnevis -

University Of Southern California

• Composition:

Vehicle

Nozzle configured to extrude

cementitious material

Gantry system configured to be

collapsed on the vehicle

Barriers to Entry: Patents

Contour crafting extrusion nozzles - US 8801415 B2

• Period of legal protection: 2008 - 2028

• Owner: Behrokh Khoshnevis -

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

Barriers to Entry: Patents

Multi-chamber vibrating valve for cementitious material US 7878789 B2

• Period of legal protection: 2009 - 2029

• Owner: Behrokh Khoshnevis -

University Of Southern California

• Composition:

Outlet to extrude the cementitious material

Material flow pathway configured to channel

the cementitious material to the outlet

Vibration-actuated valve interposed in the

material flow pathway

Barriers to Entry: Patents

Professor Behrokh Khoshnevis

● 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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

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

Outline

Introduction

Value Proposition

Addressable Market

Methods of Value Capture

Barriers to Entry

Scope of Activities

Methods of Strategic Control

Methods of Strategic Control

First Mover Advantages

Economies of Scale in R&D

Legal Mechanisms of

Protection

Complementary Assets

Strategic Collaboration

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

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

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 craftingUS 8801415 B2 - Contour crafting extrusion nozzlesUS 7878789 B2 - Multi-chamber vibrating valve for cementitious mater

Methods of Strategic Control

Complementary Assets

• Consultation service• Maintenance service• Customized design of house for customers (CAD, BIM)• Online platform & community – sharing of designs

Methods of Strategic Control

Government Agencies

Property Developers

Construction Companies

Strategic Collaboration

Thank you

Q&A