An exploratory study of the effects of additive manufacturing as a disruptive innovation in the medical prosthetic industry

Abstract

The introduction of a new technology or innovation can have a profound effect on any industry; sometimes it can even be a disruptive one. This disruption can affect an industry at a number of levels, including the key drivers of an industry. Additive Manufacturing (AM) is one such technology. The technology does and has shown a propensity to disrupt and subvert various industries. The medical prosthetic industry is potentially one such industry. AM has the potential to disrupt the key drivers of the industry: economics, management, manufacturing, marketing, business models, strategy and regulations. By understanding the areas that AM is most likely to affect in the industry of medical prosthetics, and how it will do so, executives can understand, plan and execute their business strategies more effectively and efficiently. The research in this report examined the effects AM has, or would have, on the key drivers of the industry, as well as from a high-level, industry-wide perspective. A model (Table 6.9) was generated from the industry drivers that were established in Chapter 1. The model was supported by the concepts that emerged from the literature review, which also assisted in the formulation of the research schedule for the in-depth interviews. The model was effectively a guide or scorecard for assessing and grading the effects of AM on the key drivers of the industry and illuminating the key reasons and intensity for the score. Interviews were conducted with 14 interviewees who represented all areas of the industry, from academia to manufacturing. The outcomes of the interviews were processed through the model and presented both an overview of the technology s impact on the industry, as well as a more in-depth per-driver perspective. The interviewees provided their expert opinions on the effects the technology has, or is likely to have, on the industry, if any. The final model (Table 6.9) was produced based on their responses. The results demonstrated that the majority of interviewees believed the technology would be disruptive from an industry-wide, high-level perspective. The overall score of the model reinforced this. However the majority of the interviewees responses showed that the disruption would not be as apparent in the economics, management, manufacturing or marketing drivers of the industry, but rather in the business models, strategy and regulations. The outcomes of this research contribute to the understanding of AM and the medical prosthetic industry, and provide valuable insight to executives on how and in what driver AM technology is going to disrupt