3-D Printing Spurs a Manufacturing Revolution

Interesting article on 3D Printing/Rapid Prototyping from NYT, by ASHLEE VANCE:

SAN FRANCISCO — Businesses in the South Park district of San Francisco generally sell either Web technology or sandwiches and burritos. Bespoke Innovations plans to sell designer body parts.

Scott Summit, co-founder of Bespoke Innovations, with a prosthetic limb.

The company is using advances in a technology known as 3-D printing to create prosthetic limb casings wrapped in embroidered leather, shimmering metal or whatever else someone might want.

Scott Summit, a co-founder of Bespoke, and his partner, an orthopedic surgeon, are set to open a studio this fall where they will sell the limb coverings and experiment with printing entire customized limbs that could cost a tenth of comparable artificial limbs made using traditional methods. And they will be dishwasher-safe, too.

“I wanted to create a leg that had a level of humanity,” Mr. Summit said. “It’s unfortunate that people have had a product that’s such a major part of their lives that was so underdesigned.”

A 3-D printer, which has nothing to do with paper printers, creates an object by stacking one layer of material — typically plastic or metal — on top of another, much the same way a pastry chef makes baklava with sheets of phyllo dough.  The technology has been radically transformed from its origins as a tool used by manufacturers and designers to build prototypes.

These days it is giving rise to a string of never-before-possible businesses that are selling iPhone cases, lamps, doorknobs, jewelry, handbags, perfume bottles, clothing and architectural models. And while some wonder how successfully the technology will make the transition from manufacturing applications to producing consumer goods, its use is exploding.

A California start-up is even working on building houses. Its printer, which would fit on a tractor-trailer, would use patterns delivered by computer, squirt out layers of special concrete and build entire walls that could be connected to form the basis of a house.

It is manufacturing with a mouse click instead of hammers, nails and, well, workers. Advocates of the technology say that by doing away with manual labor, 3-D printing could revamp the economics of manufacturing and revive American industry as creativity and ingenuity replace labor costs as the main concern around a variety of goods.

“There is nothing to be gained by going overseas except for higher shipping charges,” Mr. Summit said.

A wealth of design software programs, from free applications to the more sophisticated offerings of companies including Alibre and Autodesk, allows a person to concoct a product at home, then send the design to a company like Shapeways, which will print it and mail it back.

“We are enabling a class of ordinary people to take their ideas and turn those into physical, real products,” said J. Paul Grayson, Alibre’s chief executive. Mr. Grayson said his customers had designed parts for antique cars, yo-yos and even pieces for DNA analysis machines. “We have a lot of individuals going from personal to commercial.”

Manufacturers and designers have used 3-D printing technology for years, experimenting on the spot rather than sending off designs to be built elsewhere, usually in Asia, and then waiting for a model to return. Boeing, for example, might use the technique to make and test air-duct shapes before committing to a final design.

Depending on the type of job at hand, a typical 3-D printer can cost from $10,000 to more than $100,000. Stratasys and 3D Systems are among the industry leaders. And MakerBot Industries sells a hobbyist kit for under $1,000.

Moving the technology beyond manufacturing does pose challenges. Customized products, for example, may be more expensive than mass-produced ones, and take longer to make. And the concept may seem out of place in a world trained to appreciate the merits of mass consumption.  But as 3-D printing machines have improved and fallen in cost along with the materials used to make products, new businesses have cropped up.

Freedom of Creation, based in Amsterdam, designs and prints exotic furniture and other fixtures for hotels and restaurants. It also makes iPhone cases for Apple, eye cream bottles for L’Oreal and jewelry and handbags for sale on its Web site.

Various designers have turned to the company for clothing that interlaces plastic to create form-hugging blouses, while others have requested spiky coverings for lights that look as if they could be the offspring of a sea urchin and a lamp shade.

“The aim was always to bring this to consumers instead of keeping it a secret at NASA and big manufacturers,” said Janne Kyttanen, 36, who founded Freedom of Creation about 10 years ago. “Everyone thought I was a lunatic when we started.”

His company can take risks with “out there” designs since it doesn’t need to print an object until it is ordered, Mr. Kyttanen said. Ikea can worry about mass appeal.

LGM, based in Minturn, Colo., uses a 3-D printing machine to create models of buildings and resorts for architectural firms.

Charles Overy, founder of LGM, with a model of a resort in Vail, Colo. “We used to take two months to build $100,000 models,” he said, adding that now they cost about $2,000.

“We used to take two months to build $100,000 models,” said Charles Overy, the founder of LGM. “Well, that type of work is gone because developers aren’t putting up that type of money anymore.”

Now, he said, he is building $2,000 models using an architect’s design and homegrown software for a 3-D printer. He can turn around a model in one night.

Next, the company plans to design and print doorknobs and other fixtures for buildings, creating unique items. “We are moving from handcraft to digital craft,” Mr. Overy said.

But Contour Crafting, based in Los Angeles, has pushed 3-D printing technology to its limits.

Based on research done by Dr. Behrokh Khoshnevis, an engineering professor at the University of Southern California, Contour Crafting has created a giant 3-D printing device for building houses. The start-up company is seeking money to commercialize a machine capable of building an entire house in one go using a machine that fits on the back of a tractor-trailer.

The 3-D printing wave has caught the attention of some of the world’s biggest technology companies. Hewlett-Packard, the largest paper-printer maker, has started reselling 3-D printing machines made by Stratasys. And Google uses the CADspan software from LGM to help people using its SketchUp design software turn their creations into 3-D printable objects.

At Bespoke, Mr. Summit has built a scanning contraption to examine limbs using a camera. After the scan, a detailed image is transmitted to a computer, and Mr. Summit can begin sculpting his limb art. He uses a 3-D printer to create plastic shells that fit around the prosthetic limbs, and then wraps the shells in any flexible material the customer desires, be it an old bomber jacket or a trusty boot.

“We can do a midcentury modern or a Harley aesthetic if that’s what someone wants,” Mr. Summit said. “If we can get to flexible wood, I am totally going to cut my own leg off.”

Mr. Summit and his partner, Kenneth B. Trauner, the orthopedic surgeon, have built some test models of full legs that have sophisticated features like body symmetry, locking knees and flexing ankles. One artistic design is metal-plated in some areas and leather-wrapped in others.

“It costs $5,000 to $6,000 to print one of these legs, and it has features that aren’t even found in legs that cost $60,000 today,” Mr. Summit said.

“We want the people to have input and pick out their options,” he added. “It’s about going from the Model T to something like a Mini that has 10 million permutations.”

*****

For more on Rapid Prototyping, go here.

Solar Impulse Completes 26-hour Flight

In another example of the potential for zero-pollution electric vehicles, a solar-powered airplane has been able to stay aloft for more than 24 hours, powered by nothing but the sun.  The Solar Impulse, an experimental plane with a wingspan of 207 feet, larger than that of a Boeing 777, has over 12,000 solar cells to power its 4 electric motors and charge its lithium batteries.  It flew for 26 hours and 9 minutes in the skies over Switzerland and reached altitudes of over 28,000 feet, with an average speed of 23 knots.  OK, not real speedy, but a pretty amazing feat nonetheless.

Future plans for the Solar Impulse team are to fly across the Atlantic, then circumnavigate the globe (planned for 2013).  More info on this incredible innovation is available here.

Dynamic Apps and the Real-Time Web

A new class of dynamic applications is coming to the fore which leverages the ubiquitous nature of the web and its increasing accessibility to software developers and users worldwide.  Though the web started as a fairly static platform, new interfaces and capabilities are allowing real-time, “many-to-many” communication and data transfer around the globe.  This real-time web acts as a global party line where anyone or any application can “speak”, and anyone or any application can “listen”.

Key to these new trends is an explosion of data sources and standards, and platforms that can generate and consume them.  Inexpensive cell phones with GPS now allow members of a group to track each other in real time through the web and other methods; Twitter and Facebook make it trivial for an individual to communicate with an unlimited number of followers; mapping applications can show the locations of trains, planes, and automobiles in real time, overlaid with up-to-date weather or any other critical data.  In combination, these capabilities and data sources open up an entirely new realm in real-time global communication and collaboration.

London Underground

One such example is a simple application that shows a map of the London Underground with each train’s current position and scheduled arrival time in station.  The application was written taking scheduling and status information from a publicly-available data store, and integrating it with Google Maps.  Analogous online maps are available in the US and abroad showing current locations of airline flights based on FAA data, updated in real time. 

Gulf Oil Spill

Another impressive and valuable application, quoting from ReadWriteWeb:  ”In the wake of the BP oil disaster, real-time mapping technologies have been recruited to improve communication and promote collaboration between people in local communities, as well as federal, state and local responders. Last week NOAA released GeoPlatform.gov to provide near-real-time mapping data to those connected to the crisis.

The site lets you track everything from daily spill positions to the locations of ships responding to the crisis. State and non-governmental organizations are also collecting and mapping real-time information. In some instances the efforts include citizen-generated data from iPhone apps and photos mapped on sites like Flickr.

GeoPlatform.gov, which is designed to be a one-stop access point for location data, uses a Web-based mapping system called ERMA (Environmental Response Management Application). Its list of data layers includes spill trajectories, shoreline conditions, and the current positions of ships registered as responders. NOAA hopes to add things like wildlife impacts, field photos, and agency analysis to the site in the near future.”

Real-time sports updates

Even sports reporting is taking advantage of the new technology.  For example, some sites show real-time updates of MLB games with not only current scores, but constantly updated graphics of key stats, where the ball was hit, and “Who’s on first”.

One of the most compelling advances with the Real Time Web is the relatively new capability to incorporate data both from established sources on the internet sent ”out” to the user, as well as sent “in” from any number of individual contributors.  With the proliferation of location-aware camera phones and other consumer-level devices, SMA, Twitter, etc, this provides an unprecedented level of interactivity and a breadth of real-time information that could only have been imagined a few years ago.

GIS and location-aware apps. An accelerating trend, with an unlimited horizon.

One of the most exciting trends in technology these days is in “location-aware” systems, which provide specific information to the user based on his or her current location.  These are often encompassed generally into what are called GIS (Geographic Information Systems) applications.   Some can be simple, such as search engines that find retail stores or movie theaters nearby, others can be much more complex and dynamic.  The potential for these apps is exploding as more types of diverse data become available and the devices that can support them become ever-smaller and less expensive, with built-in GPS and hi-resolution graphics, as we are seeing with smart phones and other handhelds.

 

Some examples of location-aware applications making inroads into our daily lives include:    

• “Static” mapping  (Google, MapQuest, etc.)
• Dynamic auto navigation (TomTom, Garmin, etc)
• Aviation “glass cockpit” navigation and communication systems
• Marine navigation
• Operations management for delivery, material tracking, transportation, maintenance, etc
• Safety systems for locating children, the elderly, pets, etc
• Geographic/resource exploration systems with data presentation and analysis
• Disaster/emergency management (oil spill, volcanic eruption, etc)
• Tactical military applications 

 Although most of these applications are designed in such a way that the user need not be aware of the internal workings, an understanding of common concepts can be interesting from a technology perspective.  In general, most location-aware systems (and many mapping systems in general) are comprised of a number of basic components:      

• graphical map: to provide context to the user, the foundation of the system is often a graphical map over which application-specific data is displayed.  The map may take many different forms, depending on the application.  With auto navigation systems or MapQuest, for example, the graphical representation is a roadmap upon which other data (route markings, traffic, local waypoints, etc) are superimposed.  With marine navigation systems, the underlying map may be a traditional nautical chart showing water depths, navigational hazards, and adjacent coastal areas.  For geological studies, aviation navigation, or military applications, a 3D topographical map or color contour map may be appropriate. 

 

• location data: “location-aware” systems, by definition, present data to the user based on a particular location.  The actual location may be specified explicitly (as with Google Maps where address, zip code, or lat/long coordinates are entered by the user), or determined dynamically by one of a number of methods, such as cell tower triangulation or GPS coordinates. With aviation/military or geographic exploration systems, the third dimension of altitude or depth may also be included.  This data provides the basis for application behavior, filtering relevant data, and allowing the map display to be automatically updated with changes in position. 

 

•  “overlay” data sources:  

  

  Gulf oil spill

  much of the value of newer systems is being realized as a wide range of location-specific data becomes available and can be presented in more meaningful and sophisticated ways.  Different data sets are often presented as individual graphical “layers” which can be selectively added or removed from the displayed image.  The data itself may come from a wide variety of sources, such as from Google “Street View” or the local Chamber of Commerce for auto navigation, the FAA for flight systems, US Coast Guard or NOAA for marine navigation, US Geological Survey or energy companies for resource exploration, AWACS or satellite imagery for military planning and response, etc.  Some of this data is static, coming from an established database or other source, while some is dynamically updated, such as with current traffic or weather.  Aviation navigation and control systems, arguably among the most complex of these applications, may include topographical information and hazards (mountains, rivers, towers, power lines, etc), severe weather maps, radar traffic avoidance information, flight paths, restricted airspace, approach/departure protocols, magnetic deviation, and relevant communication frequencies. 

• application logic: once the basic components are in place, different applications apply specific programming logic to provide the user with the information and experience they want.  Perhaps the most common example is an automotive navigation system where the optimal route is calculated and presented to the user, and the display is dynamically updated based on the driver’s current position.  Oftentimes the systems can identify where the closest gas stations or hospitals are, and how to get there most quickly.  With aviation systems, the system may tie into other flight systems to determine the attitude of the aircraft (pitch, roll, yaw, climb/descent rates, etc) as it maneuvers, and use that information to display a 3D image of the surrounding terrain and obstructions in their appropriate orientations, even in zero-visibility conditions.  In this case the system also allows other important information such as local traffic, controlled airspace, severe weather, or other operational information to be presented to the pilot immediately, and in context, and allows “one button” directions to the nearest airport or presentation of other procedures in the case of an in-flight emergency.  Yet another example would be for FedEx or UPS, where delivery routes can be tied directly to business information systems to provide drivers with optimal delivery routes, track merchandise, update inventories, and update online customer reporting systems.

GIS mapping applications are advancing at an incredible pace, and are providing users with easy-to-use applications that were unimaginable just a few years ago.  Costs are plummeting, and new platforms are being developed every day that bring these sophisticated capabilities within reach of more and more consumers.  And, no doubt, there’s more to come!  Keep your eyes peeled!

Some interesting links:

www.garmin.com

www.tomtom.com

https://www.bendixking.com/apexedgeseries/index.html

www.terrago.com

www.teleatlas.com

Going digital with document and records management

Document and Records Management (DRM) is a burgeoning industry, as the need to control, share, and maintain mountains of information becomes ever more important.  This technology is being adopted in numerous situations, including geographically distributed enterprises, where collaboration and access to current documents are key to operations (legal, engineering, real estate, business, etc); for consolidation, archiving, and access to important historical data (government, research, financial, regulatory, etc); and for cases where digital documents and information must be shared immediately for critical response (law enforcement, transportation, medical/health care, etc.).  When evaluating needs for developing or implementing a DRM system, there are a number of key considerations:

What type of documents are being managed, and why?   ”Live” documents (spreadsheets, presentations, contracts, etc.) often originate and are managed digitally to allow remote collaboration during creating and editing of the document.  ”Static” documents are those which are stored for access and retention, but are not expected to change.  These may originate in digital form, such as a PDF file, or may digitized by scanning from paper or film.  ”Semi-static” documents are those where the document itself (or its image) cannot be changed, but the metadata associated with the document for searching or process automation may be free to change, such as may be the case with a mortgage agreement, personnel file, or signed financial application.   “Dynamic” documents may be generated automatically from a digital source, such as a medical scanner or a financial database, and are often time-sensitive.  Different types of systems may be appropriate depending on the type of documents being managed and their intended use. 

How will the documents be created?  An important aspect of any document or records management system is how it will be incorporated into the business process, including creation and input to the system.  If the primary purpose of the system is to enable collaboration on live documents, simple interfaces should be provided between the creating application (Word, Excel, etc) and the DRM system to allow easy storage and retrieval.  If the goal is to capture existing documents for future access or archiving, a scanning/imaging capability may be important for digitizing existing paper documents.  This capability should include the ability to define the document’s metadata, which may be done manually, with optical barcode or character recognition, or in some other way.  In cases where the system is intended to provide documents or images generated automatically by one or more external devices or data sources (camera, medical scanner, financial database, print stream, etc), direct interfaces to those systems should be provided to automate the process and ensure that all documents are current and accurate.

How secure and accessible is the system?  Some of the most important aspects of a DRM system involve its accessibility and security.  Security includes both protection of the data from theft or destruction, as well as ensuring that the data can be recovered in the event of a disaster.  This is often primarily an issue of physical infrastructure, namely redundant systems (computers, power, A/C, etc), a secure data center (guards, surveillance, etc), and rigorous backup/archiving and restoration procedures.  Data encryption is also frequently used to ensure that, even if the data were to fall into the wrong hands, it could not be viewed or used.  Accessibility involves ensuring that data is available when needed, often 24×7, and that it can be accessed only by those permitted to do so.   This is a factor both of the physical facilities as well as the software system itself, which must provide capabilities to define the appropriate levels of access for any authorized users.  DRM systems may be installed on the customer site, or may be provided over a network (often the internet) from a remote location.  Onsite installations provides a level of operational control for the customer, but can be costly and require proprietary expertise.  Web-based solutions (often called SaaS, or software as a service) are often installed and maintained at a secure data center, and can be easily accessed from anywhere in the world where there is an internet connection.  Security concerns for this type of system have largely been addressed with advanced technologies, although there continue to be instances where sensitive data is compromised or stolen.  A thorough analysis of the DRM system and all of its components, including supporting personnel, should be undertaken before making any final determinations about suitability.

Digital document and records management provides myriad advantages over traditional “hard” media, including elimination of physical media (paper, film, etc.) and its associated storage costs, immediate access from any location, ease of collaboration, enhanced security, regulatory compliance, and recovery from disasters.  Although initial implementation of a comprehensive DRM system may require a substantial investment in time and money, the long-term benefits in competitiveness, cost, and security ensure that the future lies with digital.

BP Oil Spill – Oil Recovery and Containment

 Clamshell Oil Recovery and Containment Assembly (C-ORCA)

C-ORCA

In an attempt to stem the flow of oil into the Gulf of Mexico from BP’s Deep Horizon rig, BP and the government have been soliciting design concepts from industry experts and the public for new approaches.  To date, all approaches attempted by BP have failed for a variety of reasons, including buoyancy of containment vessels, freezing, creation of hydrate crystals, difficulty affixing the sytem to the well pipe and creating a firm seal, etc.   

The following is an original design for a system to capture and contain the oil flow until more-permanent solutions can be enacted.  Relief wells, generally accepted to be the only permanent solution, will not be completed for at least the next several months, so an interim solution is needed to mitigate the ongoing damage.  The concept is intended to overcome past difficulties, and is based on basic mechanical principles, but without detailed knowledge or consideration of the unique conditions encountered with deep-water drilling.  I would be interested in anyone’s feedback and critique on the viability of this approach. For a printable version, click here.

Definitions: 

For the sake of brevity and clarity in the following description, the following terms and acronyms are used: 

• Well head:  existing, broken well pipe through which oil and gas are escaping
• C-ORCA:  Clamshell Oil Recovery and Containment Assembly – to be affixed to broken end of the well head. Allow siphoning of escaping oil and gas, injection of mud/cement, and/or total capping of the well head.
• ITTP:  “internal to the pipe” – methods requiring feeding a containment apparatus inside the well head pipe to affect a seal.

Design Objectives: 

During the process of design, numerous objectives were considered for ease of construction and installation, and to overcome some of the difficulties encountered with designs used in previous capping attempts.  Key objectives included the following: 

• simplify attachment and sealing of the assembly to the well head
• allow affixing and sealing the assembly even if the well head is deformed
• do not rely on weight of the assembly or contact with sea bed to form an oil-tight seal
• avoid the need to overcome pressure of the escaping oil flow (inherent in ITTP methods) to affix the assembly
• avoid problems of bouyance/freezing/crystalization in the assembly prior to fitting
• eliminate need for precise alignment during attachment of the assembly
• apply even and only minimum necessary pressure to seal the assembly and affix it firmly to the well head
• avoid the potential of “blowing out” the well head which could result from ITTP methods.  Potential failure mode should be inward (crushing) rather than outward (blowout)
• to avoid shock of rapid pressure increase in the assembly when stopping the flow, separate the process of affixing the assembly to the well head from the process of capping the flow
• design the assembly to minimize forces required to overcome oil pressure to close off flow
• simplify the design with the fewest number of parts, and most easily fabricated

C-ORCA Design Description: 

The C-ORCA is comprised of 3 easily-fabricated components, as well as a hinge pin and 2 bladders. The image to the left shows the components in their open positions. 

Right and left shells (shown in grey and magenta) are half-cylinders with 2 internal flanges in the lower section. The flanges are located to position and contain expansion of the fitted air bladders (shown in cyan). 

The shells are joined with a hinge, allowing the clamshell assembly to be opened, positioned around the outside of the well head (shown in transparent green), then closed and welded or clamped tightly with bolts or some other means. The closing mechanism is not shown here, but may be hydraulic, pneumatic, electrical, or mechanical.  Likewise, the bladder inflation system is not shown. 

The open end of the well head extends beyond the upper flange to ensure maximum clamping pressure by the bladders. This overall approach allows the C-ORCA to be positioned and attached from the outside of the well head without having to be carefully aligned, and without having to overcome the force of the escaping oil (as is the case with an ITTP approach). 

Once the shells are in position and closed, the bladders can be inflated to provide clamping pressure and a leak-proof seal. Depending on the dimensions of the C-ORCA and bladders, enormous pressure can be generated and evenly distributed. In addition, the fact that the sealing pressure is applied from the outside of the well head imposes an inward “crushing” failure mode rather than an outward “blow out” failure mode. 

A small clearance is provided between the ID of the flanges and the OD of the well head to allow some leeway in positioning, accommodate distortion in the well head, and potentially enable welding of the C-ORCA to the well head at the lower flange once everything is in position. 

The top cone (shown in orange) is attached to the assembly along the shells’ common hinge line. This allows it to be rotated out of the way (and fully out of the pressurized oil flow) while the shells are being positioned and fixed, then rotated into position over the closed shell cylinder. Interlocking flanges are located both on the tops of the shells and the bottom of the cone to allow rotation of the cone, while providing positive mechanical support when fully closed. The geometry of the cone attachment is such that it can be slowly closed (rotating with minimal force about an axis parallel to the oil flow), which will minimize rapid changes in pressure or shock. A single or multiple valve assembly can be attached to the top of the cone to allow siphoning of escaping oil, injection of mud or cement, or fully stopping the flow. Currently available methods of preventing freezing and hydrate creation using nitrogen, methanol, and/or hot water can be fitted to the assembly as necessary. 

The figure below shows C-ORCA in its fully installed configuration. 

C-ORCA assembly installed

Sound bullets open new possibilities for 3D imaging

Fluid Flow Analysis

Advanced imaging is playing an increasingly important role in many different industries, allowing us to visualize and understand phenomena at both the micro and macro level.   With mechanical products, imaging provides insights into dynamic, thermal, fluid, or structural characteristics, as well as identifying possible damage or fatigue (which is especially important with aging infrastructure, the increasing use of composite materials in aircraft, etc.)   In conjunction with mapping applications, imaging allows us to understand population trends, weather patterns, navigation, and disaster response.  

The medical field is one of the leading areas where new scanning and imaging technologies are providing incredible benefits both in understanding and treating disease.  X-rays, MRIs, CAT scans, PET scans, and ultrasounds are commonly used; each relies on a particular set of technologies with its own unique advantages.  Now a new technology has been developed which extends existing imaging capabilities using acoustics (sound), and provides some unique benefits.  

Quoting a recent report:  

Sound Bullets

Researchers at Caltech have built a device that produces highly focused, high-amplitude acoustic signals dubbed “sound bullets.”   Chiara Daraio, assistant professor of aeronautics and applied physics at Caltech, and postdoctoral scholar Alessandro Spadoni, constructed the acoustic lens by assembling 21 parallel chains of stainless steel spheres into an array.  

The instrument has the potential to surpass the clarity and safety of conventional medical ultrasound imaging. The pulses produced by the acoustic lens – which are an order of magnitude more focused and have amplitudes that are orders of magnitude greater than can be created with conventional acoustic devices – “reduce the detrimental effects of noise, producing a clearer image of the target.” They also “can travel farther”—deeper within the body—”than low-amplitude pulses,” Daraio says.  

The device could even enable the development of a non-invasive scalpel that could home in on and destroy cancerous tissues located deep within the body.  Sound bullets could also offer a nondestructive way to probe and analyze the interior of non-transparent objects like bridges, ship hulls, and airplane wings, looking for cracks or other defects.  

Read the entire article here.

New Angel Investor Tax Credit Program passes in Georgia

The Georgia General Assembly recently passed an income tax credit for private investors.  The  Angel Investor Tax Credit program is good news for local entrepreneurs, as it should provide additional incentive for investement in early-stage technology companies.  House bills 1069 and 1023 now go to Governor Perdue for his signature. 

For an overview of this program, see http://tagthink.com/latest/historic-angel-investor-tax-credit-legislation-passes.html

The actual bills can be seen at http://www.legis.ga.gov/, or here:

HB1023

HB1069

Rapid prototyping as a design tool

Rapid prototyping technology has been around for a while, and continues to advance at a rapid pace.  It provides an extremely valuable tool to allow designers of mechanical products to confirm fit or function, as well as for architects who need to visualize complex ideas before committing to a final design.

Sometimes called 3D printing, there are a number of different technologies for rapid prototyping, but most rely on a similar concept.  The system builds an accurate scale model by taking 2D cross-sections from a CAD model and progressively “solidifying” thin layers of medium one after the other until a full 3D model is created.  Some systems use a photo-sensitive polymer that is solidified by a UV laser, others use sintering of solid metal or plastic powders, still others use a powder and binder.

Depending on the technology used, full-color models, and even functioning prototypes can be created in hours, rather than days or weeks, and is much less expensive than machining, injection molding, hand-modeling, or other techniques.  Costs and convenience are improving rapidly, and office-level machines are now available; there are also many service bureaus providing this service with fast turnaround.  Since most production and lifecycle costs are committed early in the design phase, rapid prototyping provides an excellent tool for design professionals in many different industries. 

And by the way, is this stuff cool, or what? 

.

Check out the following links to learn more.

ZCorp 3D Printing web site and blog

Quickparts Rapid Prototyping web site and blog

Getting Started

Many startup companies originate with founders who have an innovative idea for a new product, the knowledge of how to build it, and the entrepreneurial spirit to take a risk with a new business.  Oftentimes, however, they may not have a similar knowledge of the broader business planning process or unique challenges of a start-up.  These shortcomings can become painfully evident during the early stages, particularly when dealing with sophisticated investors who expect a robust business plan and strong management team.  It is for this reason that many first-time founders find partners with complementary skills, particularly those with successful start-up experience, to help refine the plan and objectives.  

So first and foremost, what kind of company will it be?  Some small companies are started as “lifestyle” companies, often self-funded, where the founders can make a comfortable living without the stress  of ensuring constant growth or return to investors.  Others are started with the goal of long-term business growth and profit-making, with no particular eye toward an exit strategy.  Yet others are intended to rapidly build value and quickly provide a return to investors, typically through an IPO or acquisition.  Each of these has its own business model, which must be clearly defined from the start, and every aspect of the plan should be directed toward the desired outcome.

In determining the growth plan for the company, a balance must be struck between level of investment and time to market.  In cases where there is a window of opportunity that may be limited, or if anxious investors are involved, more money means getting to market (and revenue) more quickly, and may be warranted.  More-rapid growth can in turn add to the company’s valuation, more than offsetting the extra investment.  A common concern among founders when soliciting outside funding is the amount of dilution they are willing to accept, i.e. how much of the company they are willing to give up in return for a certain amount of funding.  This is a valid concern, but there are additional, less-tangible benefits to early money, not least of which the ability to move quickly and to focus on running the business rather than constantly looking for money and worrying about making payroll.  Many experienced entrepreneurs would rather take additional investment, even at the cost of giving up more of the company.

Technology: Something old, something new…

Most new products are not based on fundamentally new technology, but rather use and improve on existing technologies to embody a new idea.  Using existing technology may be viewed by some as less exciting or glamorous, but it lends itself to pragmatic and effective product development.  Product developers should be mindful that most often their main responsibility is in fact not to develop a new solution, but to deliver one, so their priorities should be to “borrow it, buy it, or build it – in that order”.  At the end of the day, the customer is buying the “solution”, not the technology that enables it.  The true elegance of the solution lies in what it does, not how it does it.

This is not to say that new technology development cannot represent an outstanding business, just that with the opportunity comes additional risk and unpredictability.  It is best used in those cases where the technology itself is the unique value without which the ultimate solution cannot be created.   Using existing technology where possible carries a number of other benefits.  Basing the new product on existing standards or tools can limit the risk of development and open up new marketing and distribution partnership opportunities.  It can remove barriers to entry with the customer by minimizing implementation risks, simplifying the sales message, and ensuring long-term viability, which can be especially important for an early-stage company.

It’s about the solution, stupid!

Technology and product development form the basis for many innovative new companies, and there are  a number of related issues that define the value, viability, and sustainability of the business.  These issues should be taken into account when planning, developing, and promoting a technology-oriented venture, and always should be viewed through the lens of providing a real market solution, rather than simply developing new technology.  “If you build it, they will come” worked for Kevin Costner, but is not such a great philosophy for the entrepreneur.

The bottom line is that regardless of how sophisticated any new technology is, outside of academia and research, the sole reason for an entrepreneur to develop new products and technology is to make money by addressing (or building) a market need.  The most successful entrepreneurs are those who know how to capitalize on a good idea by delivering new solutions as quickly, inexpensively, and predictably as possible to support the requirements of the business.

The Competition

Who is the competition?   It is tempting (and not unusual) to feel that the new idea is so good, there is no real competition.  This can be good and bad.  Having no competition leaves a wide-open playing field, with seemingly unlimited potential.  On the other hand, the fact that there is no competition may indicate that there is no viable market for the product, or at least that no one has figured out how to capitalize on it yet.  Developing an entirely new market can be a risky and costly business, and many investors will be hesitant to get involved if there are no established competitors or markets.  In the case of some truly revolutionary ideas, there may in fact be no real competition.  In most cases, however, the competition, their products, and their businesses,  should be identified and well understood.

Focus, focus, focus

Is the target market sufficiently focused?  In conjunction with other market considerations, it is extremely  important to have a highly focused target market and end-user profile.  Since many technologies can be used to address a wide range of problems, it may seem counterintuitive to limit it to a small subset of its potential.  However, the mantra of many marketing experts and investors is “focus, focus, focus”, and for good reason.  While seemingly attractive, the “sure, it can do anything” approach to marketing and sales is most often not a good idea. 

By focusing the product and business on a well-defined and targeted market (and explicitly rejecting others), numerous benefits accrue.  It is much easier to build a commanding market share.  Product marketing can better define new product requirements, with the assurance that the users will understand and appreciate it.  Developers know exactly who the users will be, and can spend their time delivering more relevant functionality more quickly.   Marketing and sales collaterals can “speak the language of the customer”, simplifying and expediting sales.  Promotion and advertising can be directly targeted to the appropriate audience.  Internal industry expertise can be developed, and the company can become recognized within the industry as a thought and technology leader.  Best of all, it’s faster and cheaper.   Adopting the attitude of disciplined focus can be a cultural challenge, but one worth accepting.

Market Size vs. Market Share

Is the market for the new idea large enough, and does it show sufficient growth, to support the revenue goals of the company?   Regardless of how good the product is, it must have sufficient applicability for a large enough population of customers to create a viable business. The longer-term health of a company is dependent on its ability to continue to provide compelling benefits to both existing and new customers.  This can be achieved either within the customer base by “going deeper” with new functionality, or by extending the customer base outward by “going broader” into new markets.  The former is primarily a development exercise, while the latter is primarily a marketing and sales exercise.  Both are valid approaches, but reflect a different approach with different criteria, and should be planned for accordingly. 

Can you capture significant market share?  While no substitute for revenue and profit, market share is critical.   Although it may be possible to generate the same revenue by taking smaller bites out of many large markets, there are many benefits to being a big fish in a small pond (provided the pond is big enough).   Being among the market leaders allows the company to have a meaningful influence on pricing, market expectations, industry terminology, and standards, and to play offense to drive their corporate agenda.   Market leaders are often called on to contribute to preparation of RFPs (Requests for Proposal) for new contracts, which enables the company to steer the requirements in an advantageous direction.  Industry analysts and thought leaders seek out market leaders, which provides greater visibility and credibility for the company.  For these reasons, many investors consider market share to be a key criterion when determining whether or not to invest, and at what valuations.   Given all of these factors, the target market should be defined broadly enough to ensure sufficient opportunity, but narrowly enough to enable the company to take and maintain a strong leadership position.   To paraphrase Jack Welch from GE, if you can’t be among the market leaders, don’t be in that business.

Market Characteristics for the New Idea

In addition to the product or idea itself, identifying and understanding the characteristics of the target market, and positioning within that market, are critical when planning new innovation.  These are questions both of quantity and quality.

Does the market accept the problem being addressed and the need for a solution?  These are not the same thing, and both are important.   It is possible that the market may accept that a given problem exists, yet be hesitant or unable to embrace a solution to it.  This may be the case when a new solution would impose unacceptable risk or disruption to business-critical processes, and the benefits of the solution are outweighed by these or other factors.  The customer may accept the benefits, but not have the budget to purchase it, as often happens in industries undergoing a downturn, or which rely on strict budgeting or unpredictable funding (government, etc).  In the case of some revolutionary concepts, even the problem may not be broadly accepted.  This is not to say that the problem doesn’t exist or that the solution is not valuable, but that a certain amount of “missionary selling” is required early in the sales cycle.  This is sometimes necessary, and can be successful, but can be much more challenging and costly.

The Value

There are many considerations when determining the value of a new idea or innovation.   Does it provide the answer to an identified and accepted problem, or is it a solution in search of a market?  Does the idea represent an incremental and evolutionary improvement to what already exists, or is it a more radical and disruptive concept?

With evolutionary products, the problem and its solutions are more easily understood, the required technology is more likely to be available, proven business processes are more likely to exist, and the market is more likely to be accepting.  These factors provide a level of predictability in the business and reduce the risk of development and distribution for the company, as well simplifying sales by reducing the risk of implementation for the customer.  This predictability and limited risk add value to the idea and often require less investment, but at the same time, imply a certain constraint to anticipated growth and market impact.

With more revolutionary and disruptive technologies, the opposite circumstances exist.  Many are dependent on new or less-proven technologies.  New markets and business processes may have to be developed, and sales may be lengthier and more costly given the need to capture the imagination of the customer and overcome aversion to risk.  While revolutionary concepts may be less predictable and carry additional risk, the upside opportunity can be substantial and compelling.  They may require substantially more initial investment, but the most successful of these have the potential to revolutionize an industry or create an entirely new one (think lasers, the internet, personal computers, cell phones, etc), and the value of the idea will be affected correspondingly.

The New Idea – What it it (and Who Cares)?

Perhaps the most fundamental question about any innovative new product is “what is it?”, followed closely by “who cares?”.  While this may seem obvious, it is critical that there be a clear and concise description of what the product is, what it does, and for whom. 

In some cases this is straightforward, particularly if the new product represents an easily-understood extension or enhancement to an existing product or solution.  In other cases it can be much more challenging, particularly if the idea represents complex new technology, or a fundamentally different way to address a known problem.  If the idea provides a solution to a “new” problem, i.e. one that may not be generally understood or accepted, it can be more challenging still.  In any case, a clear description is absolutely key when soliciting investment, training the development team, preparing the marketing message,  supporting the sales force, and generally ensuring a common vision among key stakeholders within and outside of the company.

Once we understand what it is, the next question is “who cares?”.  This is not a facetious question.  If a small population cares deeply about the idea, that carries with it certain ramifications.  If a broad swath of a large market finds it attractive and compelling, that’s a different story.  The distinction between these two scenarios has important implications across virtually every aspect of the business.

For these reasons, it is critical that the entrepreneur construct a concise and compelling “elevator pitch”, describing what the product is, what it does, and why one should care.  Although it sounds simple, this can pose a particular challenge for highly technical people with complex ideas, but is nonetheless extremely important.  Clearly understanding who will find value in the product is the foundation for successful product development, marketing, and sales, and is key to determining the potential value of the idea (and the company) itself.

Innovation

Much of the innovation in the US is spurred by entrepreneurs starting companies to develop innovative new products.   Many of these entrepreneurs are extremely creative technical people or developers who have a concept that addresses a market need they are familiar with.  Not as many have management experience with early-stage ventures, or other aspects of business that are key to successfully starting and growing a business.

During the earliest stages of business planning for a new company, or before embarking on any major new product development, there is a wide range of issues beyond the technology that must be carefully considered.  Many are key not just to successful planning and operations, but are among the points that investors will be looking at when considering the value and viability of a new idea.