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FROM PROTOTYPING TO FACTORY 4.0

2 STRATASYS / A GLOBAL LEADER IN APPLIED ADDITIVE TECHNOLOGY SOLUTIONS

Keith Kmetz | IDC

Program Vice President, Imaging, Printing &

Document Solutions programs

Tim Greene | IDC

Research Director – Hardcopy Solutions

Dr. Phil Reeves | Stratasys

Vice President, Consulting

The Role of 3D Printing in Factory 4.0

© IDC

Defining Factory 4.0 Six Fundamental Value Propositions of 3D Printing for

Manufacturing Challenges to Adoption Partner for the Future How Stratasys Is Preparing for Digital Manufacturing with 3D

Printing Conclusion

© IDC 4

Outline

3rd Platform & Innovation Accelerators Drive Digital Transformation

Digital Transformation

The application of 3rd

platform-related

technologies to

fundamentally change the

way something is done.

5

Growth Sustained from 3rd Platform and Innovation Accelerators

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

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2016 2017 2018 2019 2020 2021

$ T

rilli

on

2nd Platform ICT3rd Platform ICTInnovation Accelerators ICT

CAGR -6.8%

CAGR 6.9%

CAGR 17.2%

Overall 2016 - 2021 CAGR 6.4%

Source: IDC Worldwide Black Book: 3rd Platform Edition (October 2016 Preliminary)

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5

4

3

2

1

0

NEW OPPORTUNITY

POLL Questions

Where are you on your 3D printing journey?

a) Use for concept models and prototypes

b) A cornerstone of our prototyping activity

c) Use for prototypes and some shop floor applications (jigs, fixtures, tools)

d) Experienced 3D Printing user for shop floor application and prototypes

e) 3D Printing is used to make the products that we sell

f) Don’t use 3D Printing

g) I don’t know

Automation and data exchange in manufacturing technologies, including cyber-physical systems, the Internet of things and cloud computing

3D Printing is the ultimate touch point in converting ideas to products

© IDC 8

What is Factory 4.0

Cloud computing

Proven production technologies

Advanced materials

Business Intelligence/Big Data

Factory 4.0

3D Printing - Contributing to Factory 4.0

9© IDC

1. Mass personalization• Customized version of existing products• New products

2. Design Freedom• Customer-focused, collaborative design

© IDC 10

Fundamental Value Propositions of 3D Printing for Manufacturing

3. Managing the Supply Chain

© IDC 11

Fundamental Value Propositions of 3D Printing for Manufacturing

Traditional supply chain

A leaner zero-inventory supply chain enabled by 3D printing

Design Iterate Production Warehouse Distribution Customer

Design Iterate Production Distribution Customer

4. Enabling flexible manufacturing & reducing equipment down time

• Short to medium-sized production runs• Parts for tools & testing equipment• Changing the 3D print crossover point

© IDC 12

Fundamental Value Propositions of 3D Printing for Manufacturing

The 3D Printing Economic Crossover Point

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Co

st p

er

pie

ce

Number of pieces

Crossover point

10-1000-10 100 – 1,000 1,000+

POLL Question

What is prevents you from increasing your use of 3D printing?

a) Lack of understanding of the business benefits

b) Technology has not reached a suitable level of maturity

c) Materials available are not suitable for our applications

d) Productivity of 3D printing doesn’t match our business

e) 3D printed parts are too expensive for our use

f) I don’t know

g) Do not use 3D Printing

5. Speed• Enabling services with capacity & automation• Automation = Always-on = Faster cycle times

6. Intelligence of the system• Cloud connected• Two-way communication

© IDC 15

Fundamental Value Propositions of 3D Printing for Manufacturing

Getting past "only for prototyping"

Time to go mainstream

Incomplete solutions

Beyond the niche

Materials limitations

© IDC 16

Challenges to Adoption

© IDC 17

Top Frustrations with 3D Printers

9%

10%

13%

13%

16%

16%

17%

18%

19%

21%

23%

25%

32%

44%

0% 10% 20% 30% 40% 50%

Low safety/cleanliness

Poor part finish

Machine size is too big

Low color accuracy

Lack of color capabilities

Lack of materials support/properties

Build size is too small

High level of post-processing requirements

Low machine reliability

High materials waste

Low part quality

High level of pre-processing requirements

Slow build speed

High operating/materials costs

Please indicate your company's top frustrations with your company's current use of 3D printing technology

n = 300 manufacturing companies with 3D printersSource: 2017 IDC 3D Printing in Manufacturing Study

Understand that quality and reliability are the foundations for moving 3D printing into production. No manufacturer is willing to sacrifice these key product characteristics for the potential

benefits of digital transformation.

Have developed printers, software and materials that are capable of significant performance benefits (e.g., lighter weight, lower cost, efficiency gains, more intricate part output, faster production, and automated processes) that are passed down through the supply chain, including to the end user.

Experience with a wide range of 3D printing materials and technologies There is no ‘one size fits all’ solution. Experience can both accelerate and help identify additional opportunities to realize the

benefits of digital transformation.

Extensive global service and support network help companies keep their systems operating at the optimal level and identify opportunities to leverage digital transformation in additional ways.

© IDC 18

Partner for the Future

Capacity = Speed• Scalable

• Proven production technology

Automation• Always-on

Cloud-connected

© IDC 19

How Stratasys Is Preparing for Digital Manufacturing with 3D Printing

Stratasys’ Continuous Build 3D Demonstrator

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POLL Question

What significant company barrier could be removed using 3D Printing?

a) Simplify our supply chain

b) Find cost effective ways to make low product volumes

c) Need for personalized and individual products

d) Reduce our stock holding and inventory

e) New ways of manufacturing differentiated products

f) Streamline our shop floor jigs, fixtures and tooling

Companies & Service providers to range of industries• Aerospace• Architectural & Engineering• Automotive• Defense• Education• Energy• Entertainment• Eyewear• Footwear• Industrial• Jewelry• Medical & Dental• Packaging• Retail/POP

© IDC 21

Factory 4.0/3D Printing Customers & Industries

Positioning Stratasys for

Factory 4.0

Dr. Phil Reeves | Stratasys

Vice President, Consulting

23 STRATASYS / A GLOBAL LEADER IN APPLIED ADDITIVE TECHNOLOGY SOLUTIONS

PROTOTYPING AND PRODUCTION ARE DIFFERENT

Prototyping Technology Platforms• Application agnostic

• Limited productivity

• Large pallet of materials

• Cross sectoral

• One or two sizes fits all

• Stand-alone hardware

Production Technology Platforms• Application specific

• Productivity matched to ROI

• Materials matched to application

• Vertical market focus

• Integrated machine, materials and

software solution

• ‘Use Case’ matched to market need

Both platform approaches will need to integrate into 4.0 workflow

CRITICAL TO UNDERSTAND WHAT THE USER REALLY WANTS

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8-axis 3D printing Industry standard

robotics and control with Stratasys FDM

knowhow

‘FACTORY READY’ HARDWARE DEVELOPMENTS

Continuous 3D Printing

Innovative FDM machine architecture with cloud-enabled

software

Infinite 3D printing New FDM material formats with new

machine architecture to break barriers

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‘SUPPLY CHAIN READY’ INTEGRATED SOLUTIONS

Process certification SW & HW modifications to achieve repeatability within the regulators specification

Material certification Fully traceable and certified

materials supply chain approved by regulator

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‘INDUSTRY SUPPORTING’ SOFTWARE & SERVICES

Workflow Software simplifying the interface

between the design environment and

production

Consulting services Driving topline growth and

bottom line productivity through appropriate applications

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POLL Question

How important is shop floor digitization to your business?

a. Already Industry 4.0 compliant integrating our shop floor, supply chain and customer journey.

b. Investing heavily in digitizing our factory and supply chain

c. Just starting to digitize our factory and supply chain

d. Discussing what industry 4.0 means to our business

e. Not an important key business consideration for us right now

f. I don’t know where we are

QUESTIONS?

30 STRATASYS / A GLOBAL LEADER IN APPLIED ADDITIVE TECHNOLOGY SOLUTIONS

KEEP THE CONVERSATION GOING…

The Role of 3D Printing in Factory 4.0

http://www.stratasys.com/challenges-we-solve

www.stratasys.com

THANK YOU