Business Model Innovation for Additive Manufacturing

Abstract: Metal additive manufacturing is a rapidly emerging technology, with a growing number of companies interested in its implementation. The technology can have several positive effects, such as more efficient production, reduced transports, more focus on circular economy and reduced costs. However, the manufacturing process is still relatively slow, where components require extensive post-processing and new knowledge in the companies involved. For a broad implementation, support functions need to be developed for, amongst others, selection processes, order handling, design, and post-processing. To investigate possible uses for additive manufacturing, a case study was conducted at Alfa Laval. Their current conditions were mapped so that a new business model, specially designed for additive manufacturing, could be developed. Through interviews, future opportunities for the technology were identified, as well as problems related to these. Each possibility was examined related to how the company’s external and internal processes would be affected and changes that could occur in the value chain. The business model blocks that would need to be innovated to support this development, while simultaneously contributing to UN's sustainable development goals, were discussed. Furthermore, these scenarios were evaluated on the basis of viability, feasibility, and desirability. The report indicates that Alfa Laval should implement additive manufacturing for new products via R&D and for certain spare parts, and in line with this change, adjust their value creating processes, value proposition, and value capture. The two applications utilize different advantages of the technology, and which is best suited for Alfa Laval, and other manufacturing actors, needs to be evaluated during a longer test period within the business.