Question

Task: The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.
Assessment Criteria:
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).

Answer

Introduction
Executive Summary This report focuses on idea generation and development of 3D printing business model based on the idea of using 3D printers in the construction industry. This report provides that the usage of 3D printers will result in more accurate and faster construction of complexes and will lower the associated labour costs. Unbundled 3D printing business model has been used in the report which divides the business into three separate entities namely infrastructure, product innovation and customer relationship. It further provided that there is a key interrelationship between the components of the 3D printing business model. The critical success factors required to be taken into consideration for successful implementation of the idea are time, cost, quality, resources and environment. The report also identified that Australian market suffers from the risk of high prices and variable customer demand. The overall evaluation of the idea provided that it is feasible and should be executed in the market.

Introduction
3D printing in construction has started to gain importance as it allows more accurate construction at low labour costs. Also, this technology helps in completing the construction faster with less wastage. This report focuses on 3D printing business model development on the basis of observational insights and research. The idea is linked to the use of 3D printer in the construction industry. A detailed 3D printing business model (BM) canvas has been developed on the basis of the idea and the interrelationships among its components have been discussed. Furthermore, it highlights the critical success factors, risks, assumptions and the overall idea feasibility.

Problem Identification/ Reason behind this Innovation
The main reason behind this innovation of using 3D printers in construction industry is that it will provide assistance in more accurate and faster construction of complexes and will play a great role in lowering the associated labour costs. Along with this, the innovation will also support the market by enabling the construction in dangerous and harsh environments which are considered to be unsuitable for the human workforce. Also, the market suffered from the problem of high number of accidents during the construction process which required an effective solution. This innovation not only reduces the number of accidents or risk of injury at work but also supports the construction of complex architectural shapes at lesser costs.

The usage of 3D printing in construction has the most essential characteristic of saving the time. In particular, this technology has the potential of reducing the time period required for construction from 2 week to just 3- 4 days. It also reduces the waiting time as the working doesn’t stop till the time the project is completed. As far as the usage of materials is concerned, the usage of 3D printing is very economical. It utilizes fewer materials as compared to the traditional construction processes and creates less impact on the environment due to reduced wastage (Perkins & Skitmore, 2015).

Benefits
This idea of utilizing 3D printing in construction as mentioned in the 3D printing business model will benefit the customers as they will not be required to wait for a longer period of time for the construction of their desired structures as it can get ready in few days. It can further be argued in regards to the 3D printing business model that the clients will also get improved designs and structures with the help of this technology which were not possible earlier through the use of traditional processes. In simple words, the clients will get the benefit of unique designs that are designed entirely for them. Not only this, it will also bring financial benefit to the clients. This is because the usage of 3D printers lessens the overall cost of construction for the contractors and therefore, it will lead to reduced costs for the customers as well. The evaluation further provides that 3D printers also contribute towards the durability of structural elements which is beneficial for the clients.

Proposed 3D printing business model
Osterwalder & Pigneur’s (2010) provided nine building blocks for the 3D printing business model canvas which are mentioned below in case of the aforesaid innovation. Unbundled 3D printing business model will be of great help as it performs the function of dividing the business into three separate entities namely infrastructure, product innovation and customer relationship. This model will be selected out of the five business models (i.e. free business model, long tail, open business model, unbundling and multi-sided platform) because it helps to eliminate unwanted trade-offs and clashes and assists to focus on a particular activity. This is the main reason which makes it better from other models as the customer acquisition entity will help to adopt customer-comes-first mentality, product innovation entity helps in ensuring early market entry along competing for the right talent and infrastructure management entity allows to attain economies of scale through efficiency and cost focused culture.

Key Partners- Quantity surveyors, building contractor, designers and project managers are the key partners in this case.

Key Activities- The key activities in product innovation area will involve management of R&D. Infrastructure management area will include development and management of infrastructure while the customer relationship area will cover the acquisition and retention of the customers.

Value Propositions- It will provide value to the customers by building the desired structures within few days in an innovative way which was not possible earlier.

Customer Relationships- The customer relationship will be made stronger by ensuring the uniqueness and durability of the structures. Moreover, the desired satisfaction will be provided to them by co-creating the structures with the customers (Lafhaj & Dakhli, 2019).

Customer Segments- The customer segment of this business will be diversified market where the needs of diverse customers will be met.

Key Resources- The key resources required involves talented human resources for R&D, finance, technology and material.

Distribution Channels- The business will use owned channels in the form of company website, social media, advertisements through TV, newspapers, etc. for reaching out to the customers.

Cost Structures- The business will involve an initial investment of $ 180K to $ 1 million. However, other costs (fixed cost and labour cost) will be 70% less than the traditional method fixed cost and labour cost.

Revenue Streams- The generation of revenue will take place through asset sales and maintenance services (Appendix 1).

Key interrelationships in the 3D printing business model
The idea will be successfully accomplished through the by key interrelationships in the 3D printing business model. It can be identified that the value proposition of the business is unique which will help the business in reaching out to diverse customer segments easily as it is capable of meeting the diverse needs of the customers. This satisfaction will help in forming strong customer relationships.

Also, the key partners will make their contribution towards the value proposition and make efforts for keeping the cost structures low for increasing the revenue for the business. Furthermore, the key resources will ensure that the key activities of the business are undertaken flawlessly. The revenue streams will further be supported by the distribution channels which will be used for reaching out to the customers such as website of the company, social media sites, advertisements, etc. Therefore, all these components are interrelated and will support the idea success (Uppala & Tadikamalla, 2017).

Critical success factors
The management of the critical success factors is necessary at the time of idea execution.

Time- The first factor is time. The 3D printers should be capable of completing the project within the desired time frame as it is the key component of the value proposition of the idea (Osei-Kyei & Chan, 2015).

Quality- The second factor is quality as the quality of the structure constructed should not be compromised due to reduced time frame and should be such which increases the satisfaction of the customers.

Environment- The environment is harmed the most during the completion of the construction projects. It should be ensured that the usage of 3D printing in structure creation reduces the environmental impact of its activities (Yin, Qu, Zhang & Lim, 2018).

Cost- During the execution of the idea, cost should also be given due consideration as a critical success factor. The 3D printing technology should be under the budget and should be capable of reducing the overall costs of construction. Otherwise, it will result in huge losses and will not be demanded by the customers also as it will increase the overall cost for them as well.

Resources- The idea explored in the 3D printing business model will be successful only when it will reduce the wastage of resources. Also, it should be capable of complementing the efforts of human resources required for construction projects (Khaleefah & Alzobaee, 2016).

What are the critical risks and assumptions for 3D printing business model?
The Australian construction industry suffers from the risk of high costs of construction where the developers struggle for delivering the new homes to the customers at affordable prices. With the rise in prices and increasing contractual risk in Australia, it has become hard to make profits in such market conditions. The variable demand in the market has further increased the risk for the market players which can impact the execution of the idea.

The analysis of the industry forms the basis of the assumption that a strong innovation in the construction sector of Australia is required for reducing the costs involved. It can further be assumed that technology like 3D printing will reduce construction time and labour costs and will help to overcome the risks (Malaeb, et. al.2015).

Can you evaluate the feasibility of idea represented through 3D printing business model?
Strength of Business Idea- The evaluation provides that 3D printing in construction will increase the competitive advantage and reduce the environmental impact of such activities and will offer benefits to both the business and the clients in the form of reduced costs and unique designs (Hager, Golonka & Putanowicz, 2016).

Industry Related Issues- there are only few competitors in the market and by the industry is growing rapidly due to its high importance for the customers. However, the profit margins in construction industry is moderate.

Target Market and Customer Related Issues- With the increasing population of Australia, the growth potential of target market is also increasing. APAC (Asia- Pacific region), which covers Australia, is expected to be a big market for 3D printing construction by the end of 2024. The expectations of the target market are constantly increasing and they want customized structures which are co- created by them (Wu, Zhao, Baller & Wang, 2018). Customers can be made aware regarding this technology through social media and internet easily.

Founder Related Issues- The founder has only few years of experience and limited skills and network in this area. However, it is noted in the 3D printing business model that this 3D printer is capable of meeting the personal goals of founder. It is appears to be possible that the efforts of the team can with result in growth of the new venture (Sakin & Kiroglu, 2017).

Financial Issues- The capital investment for the venture is initially higher and there are only two ways through which the business drives revenue i.e. construction and maintenance. However, the founder is capable of provide the required funding. If the business succeeds the break-even will be achieved in less than one year. The financial benefit will result in reduced costs, less wastage and increased business due to this idea. It is also found that the similar businesses are performing well in the market.

Conclusion
This report on the development of 3D printing business model helps to conclude that the innovation of using 3D printers in construction will significantly help in the faster and accurate construction of the buildings and will reduce the overall costs involved in the process. Taking into consideration the expectations of the customers, requirements of Australian construction industry and forecasts relating to 3D printing, this idea represented through 3D printing business model appears to be feasible and should be executed.

References
Khaleefah, H. K. A. A. H., & Alzobaee, A. S. J. A. (2016). Critical success factors in construction projects (Governmental projects as a case study). Journal of Engineering, 22(3), 129-147.

Hager, I., Golonka, A., & Putanowicz, R. (2016). 3D printing of buildings and building components as the future of sustainable construction. 3D printing business model Procedia Engineering, 151(2016), 292-299.

Lafhaj, Z., & Dakhli, Z. (2019). Performance indicators of printed construction materials: A durability-based approach. Buildings, 9(4), 97.Malaeb, Z., Hachem, H., Tourbah, A., Maalouf, T., El Zarwi, N., & Hamzeh, F. (2015). 3D concrete printing: machine and mix design. International Journal of Civil Engineering, 6(6), 14-22.

Osei-Kyei, R., & Chan, A. P. (2015). Review of studies on the Critical Success Factors for Public–Private Partnership (PPP) projects from 1990 to 2013. International journal of project management, 33(6), 1335-1346.

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.

Perkins, I., & Skitmore, M. (2015). Three-dimensional printing in the construction industry: A review. International Journal of Construction Management, 15(1), 1-9.

Sakin, M., & Kiroglu, Y. C. (2017). 3D Printing of Buildings: Construction of the Sustainable Houses of the Future by BIM. Energy Procedia, 134, 702-711.

Uppala, S. S., & Tadikamalla, M. R. (2017). A review on 3D printing of concrete-the future of sustainable construction. I-Manager's Journal on Civil Engineering, 7(3), 49.

Wu, P., Zhao, X., Baller, J. H., & Wang, X. (2018). Developing a conceptual framework to improve the implementation of 3D printing technology in the construction industry. 3D printing business model Architectural Science Review, 61(3), 133-142.

Yin, H., Qu, M., Zhang, H., & Lim, Y. (2018). 3D printing and buildings: A technology review and future outlook. Technology| Architecture+ Design, 2(1), 94-111.

Appendix
1.Business Model Canvas

2.Feasibility Report

(Source: Created by the Learner)