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A Study on Business Ecosystem of 3D Printing Contents Distribution Platform : Using Service Value Network Analysis International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 24 (2017) pp. 15580-15591 © Research India Publications. http://www.ripublication.com A Study on Business Ecosystem of 3D Printing Contents Distribution Platform : Using Service Value Network Analysis Hyeog In Kwon 1, Seol Hee Kim2*, Jong-Seok Park3 and Moo Goong Hong3 1First Author, Professor, Chung-Ang University, Seoul, Korea. 2*Corresponding Author, Chung-Ang University, Seoul, Korea. 3Co-author, Chung-Ang University, Seoul, Korea. *Corresponding author ORCID 0000-0001-7179-8185 Abstract market showed a growth of 83.5% between the years 2014 and 2015, a significantly higher growth than the product-focused This study is a research on ecosystems focused on activating market, predicting the acceleration of the 3D printing industry the domestic 3D printing contents distribution platform and aims to promote the industry by suggesting service strategies would result in an amplified growth. Also, in international and an ideal ecosystem model for the platform. As the next markets, the service market show trends of increasing expansion, with service-focused markets more effective than generation growth power, 3D printing industry has low the product-focused markets in creating higher value added. In accessibility resulting from low demand and difficulties in such service-focused markets, 3D printing Contents market expansion due to its product-focused market. In order Distribution Platform will not only distribute its services but to solve these issues, high value service market expansion is necessary. 3D printing contents distribution platform is able to increase accessibility to consumers as a platform, a necessity in market expansion. 3D printing contents distribution platform is create the higher value in the service market by distributing its a new service model that is a convergence of 3D printing services while increasing consumer accessibility, a crucial technology and service, where it will positively affect sharing factor in market expansion. This study is comprised of two of 3D contents and providing relative information of 3D parts. First, current state of the 3D printing contents distribution platform ecosystem and its issues and problems are analyzed, printing to ease the access of consumers which then effectively then, Delphi survey and AHP were used to deduct service activates the market. strategies. Then by using the results from the analysis, the In response to the need for such a platform, Korean Ministry of current ecosystem of 3D printing contents distribution platform Trade, Industry and Energy created the “3D Printing Design was mapped, and as a solution, service strategies were Distribution Platform” in order to aid in the development of the implemented to deduct and map a future virtuous cycle of 3D printing industry. The platform allowed consumers to sell ecosystem using service value network model. It is expected or share 3D content, but it was never fully utilized. This that the result of this study will provide practical information movement in government support policies clearly shows the and the direction of ideal ecosystem for 3D printing contents importance of online platforms in Direct Digital Manufacturing distribution platform. industry and proves it is expanding as much as hardware Keywords: 3D Printing, 3D Printing Contents Distribution developments. On the other hand, the international 3D printing Platform, Service Value Network, Business Ecosystem, Delphi content distribution platform such as Shapeway has 130 thousand designer shops that produces over 10 million contents Survey, AHP a month, allowing it to be comparatively active to domestic distribution platforms. For 3D printing industry to expand in INTRODUCTION size, enabling 3D printing’s distribution platform is primarily crucial, but it has not been successfully implemented in the Developments in Information Technology caused domestic platforms. The causes include lack of demand and individualization of industries but recent phenomenon of promotion, issues with copyrights, and absence of related laws convergence is causing traditional industry boundaries to break and regulations amongst others in the industry itself. The down, resulting in paradigm shift of industries. These activation of the distribution platform would require such as convergences of industries have caused expansion of new copyright protection for 3D contents, cooperative networks, markets. The 3D printing industry has also implemented into a certification of products and related technology, educative variety of industries, which created various convergence contents development and etc. Thus, this study focuses on business models expected to create the higher value. The 3D analyzing the current ecosystem, the problems faced, and Printing Industry has gained attention as the next generation providing a service strategy as a solution. For this purpose, this growth power, but its low demand caused by its low study reviewed related literary research along with expert accessibility and product-focused market caused difficulties in interviews to analyze the current ecosystem. Then Delphi expanding its market. In order to solve this issue, the expansion survey and AHP were used to deduct service strategies which of high value service market is a necessity. In 2015, 68% of the then implemented mapping ideal ecosystem. domestic 3D Printing Industry was comprised of product- focused markets which is larger than the service market As the new generation growth power, this study aims to provide (Ministry of Science and ICT, 2017). However, the service future directions the industry must take and an ideal virtuous 15580 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 24 (2017) pp. 15580-15591 © Research India Publications. http://www.ripublication.com cycle of the 3D printing industry, by activation of 3D printing the market comprising of low priced equipment and educative contents distribution platform which possess potential for services. The recent trends in the domestic market shows the growth in service convergence model. establishment of 3D proxy printing services and other start-up ventures. 3D PRINTING CONTENTS DISTRIBUTION PLATFORM Table 1: Domestic Production and Service Market in 3D Printing Industry(MSIT, 2017) (unit : hundred million KRW) Definition and Characteristic Contents Distribution Platform has three factors; contents, Sector ’15 (A) ‘14 (B) (A-B) transaction, and consumers, where a transaction of contents is Product (Including distribution) 1,516 1,426 89 made with a consumer, for instance, Apple’s app store or (68%) (79%) Google’s Google Play. 3D Printing contents distribution Machine 1,212 1,189 23 platform is usually based online as a service platform where the manufactures·Distributions content is distributed. This definition and extent differs from Material 304 237 66 study to study. In 2015, Korea 3D Printing Association Manufatures·Distributions established the 3D Contents Bank and defined it as a service- Software·Service 714 389 325 focused distribution platform where 3D modeling contents are (32%) (21%) shared or transactions are made online, and information Software 366 258 107 regarding related industries, technology trends, and regulations Service(proxy printing service, 349 130 218 can be easily utilized. In Yoon(2015)’s research, an integrated production and distribution of 3D platform is defined as a service that provides information designs, regarding 3D printing and connections to other individual education·consulting·etc) platforms. Kwon(2016) defined it as a distribution platform that Total Amount 2,230 1,815 415 eases accessibility to consumers by sharing 3D design data. (100%) (100%) Song et al.(2016) stated it is an online marketplace where open designs are shared and manufactured with professional designers and amateur designers act both as producers and Although the domestic market is comprised mostly of product- consumers creating a concept of pro-sumers. The terminology focused businesses, the software service industries reached a also differs from researcher to researcher as Yoon(2015) used profit of 107 million KRW, and service-focused market, such the term 3D printing contents distribution platform, Cho(2016) as proxy printing, production and distribution of 3D designs, used the term 3D printing-based design, manufacturing and education·consulting and etc, reached a profit 218 million service platform, Song et al.(2016) used 3D printing online KRW, summing up to 325 million KRW, a 83.5% growth marketplace, Lee and Choi(2017) used 3D printing online compared to the previous year, showing a definite growth in the service platform and Kwon(2016) used the term 3D printing software services market. However, production of 3D designs, platform. Based on the previous studies, this study uses the providing linking services, compared to the international term 3D printing contents distribution platform from the study market with its professional manufacture-focused market, the of Yoon(2015) to define the concept of a platform-based extent of activation is much lower. In response, the business model that provides various services. The concept of MSIT(Ministry of Science and ICT) supported funds to online 3D contents sharing service was first used in 2008 when develop a 3D printing business model that focused on contents Zach Smith, the cofounder of the 3D printer manufacturing distribution and 3D printing service
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