1.5. Efficiency Firm Model

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The strategic choice of an efficiency architecture firm is to minimize the cost of a project. The central varying choices are to hire efficiency-oriented staff, train them in the firms’ process, and to use best software for the cost-saving process. The unique choice is to establish and protect cost-saving design and construction process.

Hiring staff who are interested in learning the firm’s efficiency process is going to be vital to the firm’s success. While most architects want to be creative, some firm types have less creative opportunities than others. This is an example of a less design-oriented firm since the budget is a priority. This will repel many potential employees, but a larger salary may be the way to attract people. Once employees start working for this firm type and learn the established efficiency process, other skills are not developed further. Changing jobs will become more difficult the longer an employee’s stays with the firm. At this point, even though it was expensive to hire, the salary raises will not be needed often as means of keeping employees from leaving the office. However, there is a risk of employees taking off and becoming competition, but it is possible to patent the design and construction processes to avoid this.

To be efficient to the fullest extent, a firm should make a choice to use the software that supports this strategy and further program in cost estimating information and efficiency process details. And, most importantly the unique choice that is central to efficiency firm’s success is establishing and protecting this efficiency process. While the designs that the office produces are not the most creative, the efficiency process itself is very creative and interesting.

To give an example, a pre-fabricated building method is one way of being efficient. A pre-fab firm has kit of parts that it developed in the software they use. The employees put together this kit of parts as LEGO using the software. The information as to what parts are needed is sent to a warehouse/manufacturing facility where these parts are assembled. The building blocks are then ready to be put together just like LEGO but in full building site. Firms like GroupArchitects and LivingHomes are designing and building these types of houses. The CEO of Living Homes said “I still have my Legos and I still play them. Our modules are kind of like big, 10 000 pound Legos. Only they don’t snap together or come in bright colors” (Glenn, 2012).

Another example is tilt-up construction method that was established in the 1950s and is widely used in the US for supermarkets and warehouses. It involves pouring concrete walls flat on the ground right next to their final location. Once the concrete is solid, it is tilted up and connected with rebar metal at the corners. This process is not under a patent anymore but is still highly efficient.

This firm type can benefit from a reinforcing choice of advertising as their strategy to gain potential clients, since they are selling cost savings and can attract new price-conscious clients. The office location and type was not shown in the efficiency firm business model diagram because to cost-sensitive clients it will not matter greatly the type of office a firm has. Generally there is no need to make a high investment unless a firm is a hybrid with another firm type and will want to demonstration their work.

Finally, the virtuous cycle consequences resulting from making the central and reinforcing choices in this niche lead to gaining better reputation and more projects. Due to price sensitivity of the client, the fees cannot be raised. Doing so could cause the firm to lose clients. However, there is a possibility for higher return on investment if this firm types merges with a construction company and minimizes costs while keeping the price fixed.

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