Business Model Design of Architectural Service Firms

Due to significant changes in the architecture, engineering and construction industry, architectural firms have to adapt quickly to stay competitive. They need to innovate not only their products and services, but also make more fundamental changes in the way they create and appropriate value, thereby replacing or innovating their business model design. In this research we address business model design of architectural firms following an activity system perspective. We aim to identify activity systems that are used within the architectural service sector to create and capture value. The research explores possibilities and restrictions within architectural practice to deliver value to actors in the business model and to capture a share of that value. Archival data and 20 explorative interviews with different architects, clients and contractors, contribute to the identification of emergent activity systems for current and future use. Four activity systems were identified: international market approach, BIM services, programming services and partnering. Since the activity systems include new activities, linkages and actors, they require managerial attention to enhance value creation and capture by the firm. By applying the concept of activity systems on the context of architectural services the importance of business model design for the field of architecture is showed. Furthermore, the activity system perspective provides insight in which activities, relations or actors are important for the delivery and capture of value and helps firms to rethink and redesign their business model.Real Estate and HousingArchitecture and The Built Environmen