Combining Agile Hardware Development with Additive Manufacturing: Implications for a Manufacturing Firm’s Business Model

Abstract

AbstractManufacturing firms are increasingly adopting Agile approaches for the development of physical products. In combination with advanced production technologies such as Additive Manufacturing (AM), Agile offers unprecedented opportunities to cope with increasing uncertainties, risks and complexities involved in hardware development operations. Following the case study method, this paper sets out to investigate the implications of combining Agile hardware development (AHD) and AM for the business model of a high-end manufacturer of photography equipment. A comparison of the business model canvas for plan-driven versus Agile development at the case company revealed that the two approaches featured significant differences, which required adaptations in every building block of the canvas. This study’s implications are threefold. First, this study empirically examines the potential of AHD approaches and highlights that the adoption of AHD engages with virtually all organizational functions of a manufacturing firm. Thus, AHD calls for holistic approaches during implementation. Second, this study shows that regular product take-backs are required to account for product iterations becoming frequently outdated. This result implies a closed-loop manufacturing system for operations and supply chain management. Third, this paper discusses strategies for both product design and product take-back processes, which could further enhance companies’ AHD operations.KeywordsAgile hardware developmentAdditive manufacturingBusiness model canvasClosed-loop manufacturing system