BUSINESS MODEL INNOVATION FOR ARCHITECTURE FIRM (CASE STUDY: WOLLEY ARCH AND INTERIOR)

• Main Author: Rizqia Rahmawati, Anisa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45785
• Institution: Institut Teknologi Bandung

The purpose of this thesis is to emphasize the strategy to get a business model innovation for architecture firm. Business model innovation is the conscious change of an existing business model that better satisfies the needs of the customer and more profitable than existing business models. The traditional business model of architects is a service-based model. Architects get a fee for their service that their provide to the client. Many architects got depressed due to client’s demand in changing the design and not valuing the architects work or exhibits bad payment behaviour. Moreover, not all people consider architectural service is important. According to their opinion, they can design their project themselves, instead of invest a huge amount of money to the architects. These actions makes demand for architectural design is relatively low. People who work in this field admit that architecture is one of the most difficult fields to monetize. Many independent architects are obsessed on the architecture and the design aspect rather than the business side of architecture. This kind of behaviour will not take long before their overtaken by architects who are mediocre in design yet do work on their business. This thesis objective can be achieved by creating a new Business Model Canvas (BMC) for WOLLEY, the architecture firm who focuses on small projects. BMC is a strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s external value, infrastructure, customers, and finances. In a service based model, the firm put frontline workers and customers as the center of management concern, yet in fact the main concern in business is to maximize the monetizing. For certain, if the firm relies on a few clients, then they need to expand their client base and think about how to market their services. Hence, this study will need the consumer preferences in choosing an architect for their small projects. The applicability of Analytical Hierarchy Process (AHP) is needed to solve the problem. AHP is a multicriteria decision tool to put a prioritization of criteria available that will be shown as a set of weighted criteria. From the interview and the forum group discussion with architects’ results, there are 8 criteria of consumer perception in choosing architect: know in person, experience, package option, price, portfolio, partnership, well-known, and location. These criteria will be directed into 4 alternatives strategy, which are: offering strategy, customer strategy, infrastructure, and financial viability. Afterwards, the result will be utilized into a new business model canvas.