3D Printing & PGA TOURA Partnership with T3D
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3D Printing
THE NEXT REVOLUTION.The 5th Industrial Revolution
Technology is constantly evolving and pushing the boundaries
on what we as a society create, but also the manner in which
it is created. Throughout history we have witnessed certain
technological breakthroughs, that have changed the dynamic of
entire industries.
3D Printing will be the next game changer, disrupting almost
every industry. It is only a matter of time before it starts
to revolutionize whole production processes and redefine
distribution. The possibilities and capabilities of 3D Printing are
truly mind blowing. And it will happen much quicker than all
advances before it.
T3D, with its background in Medical Imaging and Medical 3D
printing is at the cutting edge of these developments. Today,
we offer the PGA TOUR the opportunity to come with us on this
journey of transformational technology.
3D Printing has the potential to revolutionize the way we make almost everything. The next industrial revolution in manufacturing will happen.
- US President, Barack Obama (State of the Union Address,
November 2013)
telephone
50 years
25 years
12 years
7 years
internet
television
cellphones/pc
“Timeframes for Mass Adoption of Technological Advances
“The question is not
whether every home will have a 3D printer but which room it will
be in.
1.1 1.3 1.7
2.2
3.07
4.0
6.0
7.9
10.8
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 2015 Forecast
2017 Forecast
2019 Forecast
2020 Forecast
Billion
s (USD
)
Consumer Products 20%
Automotive 20%
Medical 15%
Aerospace 12%
Other 33%
3D Printing Industry Split (By value US$; October 2014)
Wohlers Associates
3D Printing Industry Size (By value US$; October 2014)
T3D CAPABILITIESOur Medical Origins
Understanding the real capabilities and expertise
of T3D requires an understanding of our origins in
medial imaging and medical 3D printing - a genesis
through our lineage of Capitol Health Limited and 3D
Medical Limited.
Capitol Health Limited (ASX:CAJ) is an Australian
public company providing medial diagnostic imaging
services. Established some 14 years ago and co-
founded by 333D Pty Ltd (T3D) Chairman, John
Conidi, Capital Health Ltd has grown to become one
of the leading diagnostic imaging service providers
in Australia with over 70 clinics and revenues
approaching $100m per annum. Capitol Health Limited
has a market cap of approximately AU$450 million.
It was through research undertaken by Capitol Health
into the application of 3D printing technology to
the diagnostic imaging sector that the significant
potential in applying the technology to the medical
and healthcare sector was identified. Along with the
potential application of 3D printing to fulfill the macro
medical and healthcare trend towards personalized
medical solutions, it became clear that 3D printing
offered the opportunity for healthcare providers and
enterprises to gain systemic efficiencies, improved
work flow and improved patient outcomes.
3D Medical Limited (ASX:3DM) was born with the
clear ambition of providing specialist 3D printing
services to the medical and healthcare sector.
What was thought impossible mere years ago is
now a reality - from the printing of 3D body parts for
observation or pre-operation practice, to the printing of
operational, bespoke patient limbs or implants.
The medical industry represents the cutting edge of
what is possible with 3D printing, and it is our proud
birthplace.
The creation of T3D
Leveraging off the research undertaken, consequent deeper
understanding of 3D printing and ancillary technology, 333D
Pty Ltd (T3D), a multi-faceted integrated 3D technology
company was founded.
T3D Limited is Australia’s leading integrated multi-platform 3D
printing company.
Our upstream and downstream lines of business include the
following:
• Designing and manufacturing a range of 3D printers,
including the worlds largest fused filament fabrication
(FFF) printer;
• Development of a 3D printing service bureau;
• Creation of an online marketplace of digital files which
are 3D print ready either by the purchaser at home or by
3DG as a print & post service;
• Research and development around scanning
technology and the use of graphite and graphene in 3D
printing; and
• An education initiative and platform throughout
secondary schools in Australia promoting the
technology and its capabilities (in partnership with the
Victorian Government).
T3D is a highly ambitious, integrated and multi-platform 3D printing
company. Our lines of business are both upstream and downstream around 3D printing technology, making T3D
truly uniquePrinter Bureau
3D Scanning & imaging
Education
Online Platform
Graphene
“Consumer &
industry printing
bureau with the
ability to print in all
materials
Ability to scan &
digitize all forms
& structures. End
product are STL
files ready to print
Working alongside
Schools nationally.
We aim to train &
provide hardware
across Australia
Repository of 3D
files (STL) which
can be downloaded
or streamed
securely (home or
delivery service)
Strong focus
on research &
development.
Formed a JV with
Kibaran Resources“T3D has an ambitiousplan to place a 3D printer in every primary school in Australia and we intend to develop an educational program around the technology to skill today’s children for the jobs of tomorrow.
How Does 3D Printing Work?
3D Printing is the process of making a physical
object from a three dimensional digital file
(known as an STL). This usually takes the form
of laying down many successive thin layers
of material. This new technology provides us
with the opportunity to do for manufacturing
what computers and the internet have already
done for the creation, processing and storage of
information.
The 3D printing process, has three main steps,
but depending on the course of action may
involve some additional items. Please see these
illustrated opposite.
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3
2
3
Make the file> Construct a Computer Aided Design (CAD)> Or, use a 3D Scanner
'slice' the file> Put STL file through to slicer to achieve layers> Use
print at home> Own and operate your own machine
Download or buy the file> From an platform online> File in STL format
Print> At a 3D printing company> Pick up or deliver
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WHAT IS 3D printing? 3D PRINTING TIMELINE.
PRESENT DAY
• 3D Printing broken into hobbyists and amateur artists/ designers
• 3D Printing bureaus springing up across major cities
• Community based and file sharing digital platforms growing in momentum
• Awareness of the technology more prevalent across society with media publications such as the Economist regularly reporting on 3D Printing
2015
US $4bn - Estimated 3D market (Deloitte)
Officeworks selling a range of 3D Printers across their national network of stores
3D PRINTING TIMELINE.
12 MONTHS 24 MONTHS 36 MONTHS 48 MONTHS 60 MONTHS
• Prosumer type printers more affordable & home printers
• Increased functionality
• Printer prices continue to fall
• Online marketplaces expand
• Increasing strategies around localising high value, high complexity, low volume production
• Greater shift towards design driven manufacturing
• Brands & companies using 3D printing to offer limited edition collectibles
• Previously noted trajectory continues
• Physical devices become embedded devices
• A convergence between different technologies including augmented reality (AR) virtual reality (VR) and 3D (both screen and printing)
• STL file purchase./ streaming widely adopted
• 3D printers of varying qualities will be found in almost all schools and homes across the
developed world.
• Greater retail/consumer penetration and take up
• Probably some disappointment at the limitations retail printers have
• Growing and expanding online marketplace
• The application and incorporation of 3D printing into conventional manufacturing as a way to offer added personalisation
• Consolidation of online marketplaces
• Prices continue to fall & addressable market expands
• Printer feedstock materials expands allowing 3D printing to be even more broadly applied
• Printer technology continues to improve
• Hewlett-Packard’s multi jet fusion technology openly available to the market.
• Technology 10x faster than existing printers
• Expected to be affordable
US $6bn - Estimated 3D market (Deloitte)
US $7.9bn - Estimated 3D market (Deloitte)
US $10.8bn - Estimated 3D market (Deloitte)
Victorian Government, Australia - has promised 3D printers for all state schools by 2017
2016 2017 2018 2019 2020
WHAT IT MEANS FOR PGA TOUR?Firstly: Creating the Long Tail of Merchandise
The Pareto principle (also known as the 80–20 rule or the law of the vital few)
states that, for many events, roughly 80% of the effects come from 20% of the
causes. Pareto developed the principle by observing that 20% of the pea pods in his
garden contained 80% of the peas. The 80–20 rule is roughly followed by a power
law distribution for a particular set of parameters, and many natural phenomena
have been shown empirically to exhibit such a distribution. It has since become a
common rule of thumb in business, with many critical areas often displaying a similar
distribution, namely:
- 80% of a company’s profits coming from 20% of its customers
- 80% of a company’s sales come from 20% of its products
This is essentially the basis for hit driven economics - in an age where there just
wasn’t enough room to carry everything for everyone: not enough shelf space for
all the CD’s, DVD’s and video games produced, not enough radio waves to play all
the music created, and nowhere near enough time in any day to squeeze available
content through television slots - we need to choose those in highest demand.
So, in accordance with the Pareto Principle, for companies in the retail business,
focusing on the hits made sense. It was the lion’s share of the market after all. After
the top 5-10% of products in any given category, demand drops dramatically and
ultimately seems to get pretty close to zero.
This is the way in which licenced product markets have been viewed for the last
century. Every retailer (or licensee) has their own economic threshold - they all cut
off what they can’t carry somewhere. Things that are likely to sell in the required
numbers get carried; things that aren’t, don’t. We are obsessed with guessing what
will sell, and what will not.
And the industry of licensing has been much the same. The US$185 billion in licensed
retail sales in 2013 was dominated at the top end, by the leading brands, franchises and
sports. In fact, just the Top 10 brands in 2013 in terms of global licensing retail sales,
including Walt Disney (US$40.9 Billion), Mattel (US$8 Billion), Warner Bros (US$6 Billion)
and Major League Baseball (US$5.5 Billion), accounted for 48.1% of total global retail sales.
Traditional licensing exists largely in a world
of scarcity - a world where limited shelf space
dictates choosing just the hits. Even now with
the advent on online retail shops to a global
marketplace, and warehouses reducing storage
costs, pre-production decisions are still required
to determine what will sell and what wont.
It does not reflect a free market such as in
music, where the product itself is digital, only
manifesting itself at the purchaser end.
Top 5 Brands 48%
Brands 6 to 10 16%
Brands 11 to 20 19%
The Tail 17%
Breakdown Global Retail Licensing Sales
(By Licensor Brands; 2013)
Power Law Distribution(or Pareto Distribution)
Occ
urr
ence
s o
r V
alu
es
Categories or Classes
The HitsTypically 80% of the value measured will come from only 20% of the categories or classes
The TailConversely, in traditional markets the bottom 80% of Categories or classes contribute only 20% value
Extend that to just the top 20 brands - which then includes the
likes of Dreamworks (US$3.3 Billion) and the NFL (US$3.25
Billion) - and these account for 83.1% retail sales.
Top 5 Brands 48%
Brands 6 to 10 16%
Brands 11 to 20 19%
The Tail 17%
This is where 3D Printing changes the world of retail forever. In a more advanced
age of digital, with online retail and consumer driven distribution and creation, we
will exist in a world of abundance - where there are zero distribution costs and no
cost limitation - where everything changes. In a world of abundance, suddenly
right of the curve becomes very important.
In online retail - not constrained by the same space and geographic restraints -
more niche products can be offered and find a consumer, as the world is your
marketplace. So while Barnes & Noble, a Fortune 500 Company and the largest
bricks and mortar retail bookseller in the US, typically stocks around 100,000 titles,
Amazon has a total inventory of more than 10 million titles - and more than 30%
of its total sales is generated by titles not offered in the largest retail stores.
In the licensing space, the physical production of products still requires decisions
to be made about what will sell, and what won’t.
And this is where the true opportunity of 3D printing lies – the ability for
companies to produce a wide range of objects on demand – or allow
customization by the consumer themselves - with no inventory costs – to be
produced by the consumer as needed. Just as we have seen with books, music
and film, we will now see with objects in general.
“We sold more books today that
didn’t sell at all yesterday than we
sold today of all the books that did
sell yesterday.”
- an unnamed Amazon employee.
0.00
2,000,000.00
4,000,000.00
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
Barnes & Noble Amazon
Total Book Titles Stocked(Comparison; 2012)
Secondly: Building the PGA TOUR platform of the future
On April 28, 2003, Apple threw open the virtual doors to its iTunes store, and music - the music
industry hasn’t been the same since. Suddenly, an industry terrified of online piracy had a
legitimate place to earn money from the sale of digital music. Listeners no longer had to drive to
their neighborhood record store to buy that new album by Norah Jones or 50 Cent. A song cost
only 99 cents, a bargain next to an $18 CD. And iTunes powered iPods, with their signature white
earbuds, became a must-have mobile accessory.
Not everyone was thrilled. Record labels grumbled at being strong-armed over song prices by
Apple CEO Steve Jobs. Some musicians complained that they didn’t earn enough royalties from
digital-music sales.
But by 2010, iTunes was the largest music retailer on the planet. Today, it has 435 million
registered users in 119 countries and recently served up its 25 billionth song. iTunes also now
sells much more than music: Customers can download movies, TV shows, games, books,
podcasts and more.
Here’s the way it used to work: You’d hear a song on the radio. You’d have to figure out what it
was (a challenge in the days before Shazam). You’d drive to a mall. You’d search for the record.
You’d buy the record -- if it was in stock. You’d put it in your CD player or on your turntable.
Finally, you’d get to listen.
Now: Hear song, download song. Instant gratification.
We believe 3D Printing will have an identical impact upon the licenced merchandise industry.
Desire Licenced Item, choose licenced product online, personalise, print. Simple.
THE NEXT STEPS
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Make the file (& Underlying strategy)> T3D will work with PGA TOUR to develop a robust 3 - 5 year 3D printing strategy , taking into account current licencing partnerships, and seeking to maximise revenues. > T3D will work with your team to identify the existing merchandise portfolio to be digitized, in addition to any additional items we can create, and the extent to which such items should be customizable to the end purchaser. > Using the latest in 3D imaging technology, and our team of designers, T3D will create a portfolio of 3D STL files for PGA TOUR to create your digital merchandise catalog.
'slice' the file> T3D will work with PGA TOUR to ensure end users have the ability, utilising our online tools and process, that they are capable of manipulating the PGA TOUR STL files consistent with agreed uses and in a way that adds ultimate value to value proposition.
print at home> Additionally, T3D will ensure at every stage best practice file security is employed to ensure that risk of cannibalization of value is minimized through multiple printing at home, or end user distribution of STL files.
Download or buy the file> T3D will build a secure online marketplace which will ultimately house the PGA TOUR Digital catalogue.> T3D will work closely with PGA TOUR to develop a robust pricing strategy that contemplates both simple file download for print at home, to printing by our distribution network and shipping to end user.
Print> Recognizing that in the short term penetration of 3D Printers into homes is low, T3D will establish a robust 3D printing distribution network, that feeds into the online site, allowing end users to have printed items shipped to them, or capable of delivery from a 3D Printing Bureau.
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Prepare PGA TOUR for the next Revolution
In order to simplify, we outline here (consistent with our diagram earlier
in term of How 3D Printing works?) how we can work alongside and
partner PGA TOUR to place you ahead of the curve in terms of 3D
printing, and prepare you for the next industrial Revolution.
OUR Proposed relationship
A Next Generation Licencing Relationship
Ultimately, T3D seeks to be a licensee of the PGA TOUR. The Official 3D Printing the
PGA TOUR.
However, this is a new generation of licensee.
Unlike your traditional, existing bricks and mortar licensees who are defined by the
product or category of product they wish to manufacture and distribute, we would
be a licensee categorized through the mode of distribution. Through the creation
and distribution of 3D STL digital files.
However we recognise there is currently little to no market for the sale and
distribution of PGA TOUR STL files, and accordingly we seek to work with PGA TOUR
to create this market. We seek to create this market jointly, consistently with the
steps outlined earlier, through:
• development of a long term PGA TOUR 3D Strategy;
• creation of a digitized PGA TOUR merchandise portfolio;
• creation of a short to medium term pricing strategy;
• creation of a secure PGA TOUR white labeled online marketplace
(accommodating features allowing end user to manipulate and customize STL
files consistent with the PGA TOUR strategy); and
• creation of a holistic distribution network (to cater for short term low
penetration of 3D printers in homes).
In recognition for the opportunity to explore this opportunity with the PGA TOUR,
and become the Official 3D Printing Licensee Partner of the PGA TOUR, the
above wholly represents an investment by T3D in the future of the PGA TOUR 3D
merchandising opportunity.
Our ultimate remuneration will come through the ability to receive a commission
or similar on sales of merchandise through the 3D platform, both from downloads
of STL files, or in the short term sales of 3D printable merchandise through the 3D
distribution network, printed on behalf of end users.
This remuneration structure would not be unlike what is currently in place with
traditional licensees, and we would sincerely appreciate the opportunity to speak
further with you regarding how this may operate.
We view this a long term partnership in which we are prepared to significantly
invest in the creation of a new platform in the short to medium term, to provide
the PGA TOUR with a long term commercial asset, and place you at the forefront
of a technology that will ultimately transform the retail and licenced merchandise
industry.
Frank PertileManaging Director
[email protected]. +61 403 439 466www.333d.com.au
333D Pty Ltd435 Williamstown Rd, Port Melbourne VIC , Australia