EXPANDING OPPORTUNITIES

FOR PHILIPPINE ARCHITECTS

THROUGH CREM

MARGARITA GANCAYCO BARCIA

DELFT UNIVERSITY OF TECHNOLOGY
FACULTY OF ARCHITECTURE AND THE BUILT ENVIRONMENT
E X PAN DI N G OPPO RTU NI TI E S
FO R PHI LI PPI NE A R C H I TE C TS
T HR OUGH CREM

A qualitative comparative multi-case study approach on adapting

business models that integrate corporate real estate management
services used by Dutch architects in the Philippine context.

Author: Margarita Ines Gancayco Barcia

Delft University of Technology

Faculty of Architecture and the Built Environment
Master of Architecture, Urbanism & Building Sciences
Master track of Management in the Built Environment
Author
Margarita Ines Gancayco Barcia
Student number 5064902
Delft, Netherlands

P5 Presentation: July 5, 2021

Graduation Committee:

Prof. dr.ir. Hans Wamelink

(First Mentor)

Ir. Monique Arkesteijn MBA

(Second Mentor)

Ir. ACH van den Breemer

(Chair)
Preface

This report is the final requirement which concludes my master’s degree in the track of Management in the Built
Environment under the Faculty of Architecture at the Delft University of Technology. After ten months of
conducting desk research, interviews, and data analysis, I wholeheartedly present my thesis, “Expanding
Opportunities for Philippine Architects through CREM”. The focus of this research was stirred by my background
as an architecture professional, entrepreneur, and the overall desire to improve the opportunities for architects in
the Philippines.

I would like to express my deepest gratitude to both my mentors, Hans and Monique. Hans, your guidance, and
insight on the business aspects of my thesis, entrepreneurship, mindset to simplify, and trust in myself provided
me with the direction to finish this report. Monique, your attention to detail, patience in explaining abstract
concepts, and guidance on the research process allowed me to systematically progress and create a clear vision
for my thesis from the onset.

I would like to thank all the interviewees, from the case study companies and the experts from the Philippines.
Willeke, Pierre, and Jos, thank you so much for contributing your time to my research and your openness
throughout the process. Your companies are inspirational, and I hope to one day be able to impact society and
the profession as you have. Sir Jimmy and Sir Jojo, thank you for sharing your insights in the industry, going over
my report, and providing me with expert insight for the second portion of the thesis.

As an international student in Delft, I would like to thank my amazing friends; Akshit, David, Ashley, Jamila, Ziyao,
Gaby, Rafa, Adriana, Manuela Alejandro, Danica, Kristi, Fabra, Carlos, and Leenke. You have made the
Netherlands feel like home for the past two years and have provided me with the support that I needed to finish
this master program.

This thesis was driven to improve the opportunities of architects in the Philippines, I dedicate this to the next
generation of architects. Jaime, Chesca, Manolo, Mari, Ysa, Ken, Felix, Josh, and Gas, I hope this helps you one
way or another develop your future practices and open your eyes to the vast possibilities of how you can
strengthen your position within the larger architecture and construction industry.

I would especially also like to thank my family for always being a video call away during the entirety of my masters
and supporting me throughout. Mama, Liana, and Jaco, your support means the world.

Most importantly, I would like to thank my dad for introducing me to the wonderful world of architecture and
instilling in me the drive to seek for unique opportunities that improve myself not only as a designer but as an
architecture professional.

To everyone, Maraming Salamat! (Thank you very much!)

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 “We are called to be architects of the future,
not its victims.”

- R Buckminster Fuller

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Abstract

Architects contribute to the cultural, social, economic, environmental, and technological aspects of society.
However, architects face several challenges due to high levels of urbanization, lower financials for projects and
the emergence of new professionals and contracts, that lessen the scopes of architects. Architects in developing
nations face additional problems due to lower financial capacity, weak governance, and political instability. The
vulnerable nature of the construction industry along with additional problems faced by developing countries
paralyze the development of architecture practices in the Philippines. There is a need to adjust traditional
professional practices to create more opportunities for Architecture Engineering and Construction professionals.
This research focuses on how architecture professional practices in the Philippines create future-proof business
models by integrating corporate real-estate management services.

The study creates a framework for Philippine architects to expand their business opportunities through adapting
practices and techniques used by Dutch architects. Through a qualitative multiple case-study approach, the
business model transitions between purely architectural firms to architecture-CREM practices of three Dutch
architecture firms are analyzed using the Business Model Canvas by Osterwalder et al. (2010). After which,
archetypes based on these three companies are created and then tested in the Philippine context through Expert
Interviews. Feedback on the adaptability of each archetype’s business model and profile are discussed. The results
indicate that the most adaptable architecture-CREM business models for the Philippines are those that focus on
CREM activities within the Construction and Maintenance quadrants within the Project Lifecycle (Emmitt, 1999).
While the strategies differ, the most important building blocks in the canvas present to be the Key Activities, Key
Resources, Key Partnerships, Cost Structure and Revenue Streams.

Keywords: Architecture firms, architectural business management, business models, business modelling, “value
added:”, business development, real-estate management services, programming, property management

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Table of Contents

Preface............................................................................................................................................................................ 1
Abstract .......................................................................................................................................................................... 3
Table of Contents .......................................................................................................................................................... 4
List of Figures ................................................................................................................................................................. 7
Chapter 1: Introduction ....................................................................................................................................... 8
1.1. Background........................................................................................................................................ 8
1.2. Problem Statement............................................................................................................................ 8
1.3. Critical Overview ............................................................................................................................... 8
1.4. Problems that remain to be solved ................................................................................................ 11
1.5. Research Objectives ........................................................................................................................ 11
1.6. Scientific & Societal Relevance ....................................................................................................... 12
Scientific Relevance ............................................................................................................................................ 12
Societal Relevance.............................................................................................................................................. 12
1.7. Deliverables ..................................................................................................................................... 13
1.8. Dissemination & Audiences ............................................................................................................ 13
Chapter 2: Research Questions & Methodology ............................................................................................. 14
2.1. Research Questions ......................................................................................................................... 14
2.2. Research Scope ............................................................................................................................... 15
2.3. Overview of Research Methodology .............................................................................................. 15
2.4. Case study Design ........................................................................................................................... 19
2.5. Empirical Research Design.............................................................................................................. 21
2.6. Operational Research Design ......................................................................................................... 21
2.7. Data Plan and Ethical Considerations ............................................................................................ 22
Chapter 3: Literature Review & Market Analysis .............................................................................................. 23
3.1. Method of Review ........................................................................................................................... 23
3.1. Literature Review ............................................................................................................................. 24
3.1.1. The Nature of the Architecture Industry ......................................................................................... 24
3.1.2. The Philippine Architecture Industry ............................................................................................... 24
3.1.3. Architects as Creative Professionals: Values & Drivers .................................................................. 26
3.1.4. The Business of Architecture ........................................................................................................... 27
3.1.5. Corporate Real Estate Management............................................................................................... 30
3.1.6. Business Models ............................................................................................................................... 35
3.2. Market Analysis ................................................................................................................................ 37
3.2.1. Dutch Context .................................................................................................................................. 37
3.2.2. Philippine Context............................................................................................................................ 41

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 3.3. Main Findings from Literature & Market Analysis.......................................................................... 43
3.4. Updated Framework........................................................................................................................ 45
Chapter 4: Empirical Research .......................................................................................................................... 47
4.1. Individual Case Analysis .................................................................................................................. 47
4.1.1. Case 1: Vakwerk Architecten ........................................................................................................... 47
4.1.2. Case 2: Rothuizen Architecten ........................................................................................................ 55
4.1.3. Case 3: PROCOS Group .................................................................................................................. 63
4.2. Cross-Case Analysis (Similarities & Differences to create archetypes) ......................................... 72
4.3. Empirical Research Findings ........................................................................................................... 76
4.3.1. Case Study 1..................................................................................................................................... 76
4.3.2. Case Study 2..................................................................................................................................... 76
4.3.3. Case Study 3..................................................................................................................................... 77
Chapter 5: Operational Research ...................................................................................................................... 80
5.1. The Architecture-CREM Archetypes............................................................................................... 80
5.1.1. Archetype 1: Strategy Oriented Novice ......................................................................................... 81
5.1.2. Archetype 2: Virtuoso Construction Process Integrator................................................................. 84
5.1.3. Archetype 3: Hybrid Creative CREM-Tech Expert ......................................................................... 88
5.2. The Adaptability of Archetypes in the Philippines ........................................................................ 91
5.2.1. Expert interviewee Background ...................................................................................................... 91
5.2.2. Feedback on Archetypes ................................................................................................................. 91
5.3. Operational Research Findings....................................................................................................... 95
Chapter 6: Synthesis and Recommendation .................................................................................................... 99
6.1. Synthesis of Empirical and Operational Findings .......................................................................... 99
6.1.1 Business Model Challenges and Epicenter of the Problem .......................................................... 99
6.1.2. Adjustment and Transition of Building Blocks.............................................................................. 100
6.1.3. Strategies Used and CREM Activities as a Business Extensions.................................................. 100
6.1.4. Paving the way for CREM in the Philippines................................................................................. 101
6.2. Recommendation for Practice ...................................................................................................... 102
1.2.1. Understanding the Business Model and Reasons for Innovation ................................................ 102
1.2.2. Awareness and harnessing the Potential Opportunities Brought by CREM............................... 102
1.2.3. Choice of CREM: Identifying which Quadrant is Most Suitable .................................................. 102
1.2.4. Integration: Point by point step of integration............................................................................. 103
Chapter 7: Conclusion ..................................................................................................................................... 104
7.1. Conclusion ..................................................................................................................................... 104
7.2. Limitations of Research ................................................................................................................. 106
7.3. Ensuring the Quality of Research ................................................................................................. 106
7.4. Future Research ............................................................................................................................. 107
Chapter 8: Reflection ....................................................................................................................................... 108
8.1. Relationship between graduation topic and master program .................................................... 108

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 8.2. Research Method and Approach.................................................................................................. 108
8.3. Graduation project and the wider social, professional, and scientific framework ..................... 109
References.................................................................................................................................................................. 110
Appendices ................................................................................................................................................................ 114
Appendix A: Systematic Research Methodology ........................................................................................... 114
Appendix B: Standaardtaakbeschrijving / List of “Standard Task Description” for architects .................... 116
Appendix C : Interview Questions for Expert Interviews ............................................................................... 120
Appendix D: Interview Questions for Case-Study Interviews ............................Error! Bookmark not defined.
Appedix E: Consent Forms for Case-Study Interviews .................................................................................. 125
Appendix F: Consent Forms for Expert Interviews......................................................................................... 127

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List of Figures
Figure 1-1: Business Model Framework Analysis....................................................................................................... 10
Figure 1-2: Architecture-CREM Company Scale in the Netherlands & Philippine Markets .................................... 11
Figure 2-1: Research Conceptual Model.................................................................................................................... 14
Figure 2-2: Design Research Cycle based on Hevner (2007) .................................................................................... 15
Figure 2-3: Research Structure.................................................................................................................................... 17
Figure 2-4: Multiple-Case Embedded Design based on Yin (2009), (Own Figure) ................................................. 19
Figure 2-5: Case Study Design (Adapted from Yin, 2008) ........................................................................................ 20
Figure 3-1: Main Research Topics Venn Diagram...................................................................................................... 23
Figure 3-2: Employment Distribution of Professional, Scientific and ....................................................................... 25
Figure 3-3: Theoretical framework of value creation and value capture in .............................................................. 26
Figure 3-4: Graphical interpretation of Emmitt's (1999) AM definition (Alharbi et al., 2015, p.2).......................... 27
Figure 3-5: The position of AM within the Project Lifecycle by Emmitt (1999) (Alharbi et al.,2015, p.2)............... 27
Figure 3-6: The Architectural Management Competitive Framework (AMCF) (Alharbi, 2013, p10). ..................... 29
Figure 3-7: Defined Unique CREM Activities from literature (Bontekoning et al., 2016, p 343). ........................... 31
Figure 3-8: CREM activities assigned to the levels of CREM and management support functions ....................... 33
Figure 3-9: Phasing (BNA & NL Engineers, 2014). .................................................................................................... 35
Figure 3-10: The Business Model Canvas (Osterwalder et al., 2010, p.44). ............................................................ 36
Figure 3-11: The Architect's Scope and CREM Activities List based on Standaardtaakbeschrijving (BNA & NL
Engineers,2014) and Defined Unique CREM Activtiies (Bontekoning et al.,2016) (Own figure). ........................... 38
Figure 3-12: CREM Activities by Dutch Architecture Firms....................................................................................... 39
Figure 3-13: Architecture-CREM Company Scale on Dutch Firms ........................................................................... 40
Figure 3-14: CREM Activities by Filipino Architecture Firms .................................................................................... 42
Figure 3-15: Architecture-CREM Company Scale in the Netherlands & Philippine Markets .................................. 44
Figure 3-16: Updated Research Conceptual Model .................................................................................................. 45
Figure 3-17: Business Model Framework Analysis..................................................................................................... 46
Figure 4-1. Vakwerk Sequence of Transformation ..................................................................................................... 50
Figure 4-2. Rothuizen Sequence of Transformation .................................................................................................. 59
Figure 4-3: PROCOS Individual BMC Block Transformation..................................................................................... 62
Figure 4-4: PROCOS Sequence of Transformation ................................................................................................... 67
Figure 4-5: Case Study Companies Position of AM within the Project Lifecycle (based on Emmitt, 1999). .......... 75
Figure 5-1: Architecture- CREM Archetypes in the Building Lifecycle ..................................................................... 80
Figure 5-2: Strategy Oriented Novice Business Model ............................................................................................. 83
Figure 5-3: Virtuoso Construction Process Integrator Business Model .................................................................... 86
Figure 5-4: Hybrid Creative CREM-Tech Expert Business Model............................................................................. 90
Figure 5-5: Ideal Location for Philippine architects .................................................................................................. 98
Figure 7-1: Ideal Location for Philippine Architects ................................................................................................ 105

List of Tables
Table 2-1: Research Process Summary (Own figure) ................................................................................................. 18
Table 2-2: Criteria Case Requirements....................................................................................................................... 19
Table 4-1. BM Challenge, Epicenter and Strategy Vakwerk ..................................................................................... 49
Table 4-2: Vakwerk Individual Block Transformation................................................................................................. 54
Table 4-3. BM Challenge, Epicenter and Strategy Rothuizen Architecten .............................................................. 57
Table 4-4: BM Challenge, Epicenter and Strategy PROCOS Group ........................................................................ 65
Table 4-5: PROCOS Individual BMC Block Transformation ...................................................................................... 71
Table 4-6. Compiled Framework Responses for All Cases. ...................................................................................... 79
Table 4-7. Strategy Oriented Novice Characteristics ................................................................................................ 82
Table 4-8. Virtuoso Construction Integrator Characteristics ..................................................................................... 85
Table 4-9. Hybrid Creative CREM-Tech Expert Characteristics ................................................................................ 89

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Chapter 1: Introduction
This chapter introduces the main subject, background of the AEC industry and the role of architecture
professionals. A critical overview of the findings from the literature review and market research are presented and
then the main problems which need to be solve are then identified. The goals, objectives, significance,
deliverables, and dissemination plan are then discussed.

1.1. Background

“Architects, it is said, are to the economy what canaries once were to coal mines, an early warning system” (Philips,
2011). During economic recessions, architects take an early hit and are slow to bounce back when the market
stabilizes (Philips, 2011). The Architecture Engineering and Construction (AEC) industry is universally highly
vulnerable to globalization, new technology and instability of both the global and local economies. Reversely,
one of the biggest effects on national economies during a global financial crisis is the performance of the
construction market. After the 2008 financial crisis, the European architecture industry saw an overall decline of
28%. The U.K felt the worst effects with the closure of up to 40% of architecture companies (Bondare et al., 2018).
While developed countries experience negative cyclical effects of the construction industry, another layer of
challenges is brought upon AEC professionals in less developed regions such as Southeast Asia.

AEC professionals in Southeast Asia face the aforementioned problems but encounter additional challenges such
as lower levels of financial capacity, lack of expertise, and a poor understanding of international business (Mat I.
et al., 2012). The overall weakened economic position, political instability, poor governance and weak institutions
negatively affect the progression of the AEC industry in developing countries (Muhammad & Johar, 2018). With
the ongoing COVID-19 pandemic, the South-East Asian construction industry was expected to contract by 4.3%
in 2020 (GlobalData, n.d.). Among the ASEAN countries, the Philippine economy is estimated to be the worst hit
by both short and long term effects of the pandemic (BusinessWorld, 2020).

Since 2016, the Philippine construction industry has contributed 1.8 percentage points of the country’s 6.6% of
GDP growth. In the last quarter of 2019, the construction sector made up 9.7% of the country’s total expenditures
on GDP and had the value of capital formation of 302.8 billion Philippine pesos (approximately 5.126 billion euros)
(Statista, 2020). The architecture and engineering industry employs the highest percentage of workers among the
total Professional Scientific and Technical professionals at 27.3% (Philippine Statistics Authority, 2018). However,
In 2020, the construction industry was the most negatively affected by the pandemic with a -39.8% growth rate
(Philippine Statistics Authority, 2020). Because of the significant role and dependence of many professionals in
the AEC, there is a need to create solutions that protect and future-proof the business continuity of architecture
professionals.

1.2. Problem Statement

The negative cyclical occurrences in the worldwide construction industry are exacerbated by the Philippine’s weak
political system and the high financial dependence on international markets that impede the development of
architecture professionals and industry. The vulnerable nature of the construction industry along with the
additional problems faced by developing countries paralyzes the development of architecture practices in the
Philippines.

1.3. Critical Overview

The universal contribution of architects to society is extensive and significant to many industries (European
Commission, n.d.-a), however, the industry faces challenges that affect their professional and financial value
(Bondare et al., 2018; Bos-de Vos et al., 2016). The challenges met by architects can be impeded by integrating

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new services into their business models, designing new ways of doing business or by providing more innovative
solutions for clients (Bontekoning et al., 2016).

In the expansion of services provided by architects, it is vital that these offerings can satisfy all the organizational
values of architects: (i) use value, (ii) exchange value and (iii) professional value. These values key aspects of
profitable architecture practices however they unintentionally contradict each other; making business growth
difficult (Bos-de Vos et al., 2016). Therefore, architects must look towards integration of services into business
models that allow the balancing of the organizational values to create successful practices. The utilization of CREM
for business development for architects presents a promising opportunity to improve a firm’s business as it is
identified as a business extension (Alharbi, 2013), strategic business scope (Zott & Amit, 2010; Winch & Schneider,
1993), and an additional activity system (Bos-de Vos, Lieftink, Volker & Wamelink, 2014a).

Corporate Real-Estate Management (CREM) is defined as the activity that strategically connects a company’s
business strategy to how they utilize real estate to support their main business activities. Main activities under
CREM are defined through the list of Figure 3-7: Defined Unique CREM Activities from literature (Bontekoning et
al., 2016). Bontekoning et al. (2016). CREM activities are evidenced to be a beneficial business opportunity for
architects because they create more dynamic architecture firms through differentiation of activities; improve on
health, safety and environmental understanding of buildings; improve the integration of technology in buildings;
and create architects with a better understanding of life-cycle systems and requirements (Alharbi, 2013; Bascoul
et al., 2018; Emmitt, 1999; Fross et al., 2015). These add value to architects as professionals, increase their revenue
streams and create better buildings (Fross et al., 2015).

In creating stronger practices, the Business Model Canvas (Osterwalder et al., 2010) provides a practical tool for
the development and analysis of business models and will be utilized in the operations portion of the paper. The
BMC identifies 9 main building blocks of business models: customer segments, value propositions, channels,
customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. In the
further analysis of business models, it can be identified that the need to update business models are driven by a
specific challenge/s met. These challenges can be (i) a near-death experience or crisis, (ii) adjustment due to
change met in the environment, (iii) adjustment due to new technology, (iv) the need to future proof the business
through an exploration of competitive advantage (Osterwalder et al., 2010). The challenges can also be further
examined to identify which building block is the epicenter of the problem, identifying if the problem is resource-
driven, offer-driven, customer-driven, or finance-driven. After understanding the main drivers to update a business
model, architects can now focus on a strategy in which they can use as an outline in business expansion. Architects
commonly chose between a (i) novelty, (ii) lock-in, (iii) complementary, and (iv) efficiency strategy to overcome
mentioned challenges (Zott & Amit, 2010). By analyzing business models through the Business Model Canvas,
identifying the challenges met, epicenters of the challenges, and strategies used to overcome these problems,
one can get a clearer view of the reasons and process of business model transformation. The main framework
presented below is used to analyze the case study companies and used to create the archetypes.

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 Figure 1-1: Business Model Framework Analysis

Two market analysis on architecture firms providing CREM services were performed. The first market study was
done in the Dutch context and revealed that there was a large range of firms providing a variety of type and
number of REM services. This led to the creation of a categorization of types of architecture based on the quantity
of CREM services provided. This led to the identification of 5 architecture firm categories. The categories are (i)
the “Architecture & Design Company” that does not provide any CREM service but is focused on purely
architectural design, (ii) “Architecture Company with Minimal CREM” provides 1-10 CREM activities, (iii)
“Architecture Company with Additional CREM Services” provides 11-20 CREM activities, (iv) “ARCH-CREM Multi-
Disciplinary Company” provides 21-30 CREM activities, and (v) “Professional CREM Companies” that are not
within the architecture scope but provide the full breadth of professional CREM services.

The second market study utilized the categorization indicated above and analyzed the top architecture firms in
the Philippines. The market study revealed that, unlike the Dutch architects, the Philippine architects were all
located within the (i) the “Architecture & Design Company” that does not provide any CREM service but is focused
on purely architectural design, (ii) “Architecture Company with Minimal CREM”. This indicated that architects in
the Philippines have not yet integrated CREM activities into their business models. Secondly, the existing CREM
providers in the country are polarized between large providers and less professional facility managers. Therefore,
these gaps in the market present itself as a viable business opportunity for Philippine architectural firms.

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 Figure 1-2: Architecture-CREM Company Scale in the Netherlands & Philippine Markets

1.4. Problems that remain to be solved

CREM presents itself as a viable business opportunity for architects based on scientific literature and availability
of architecture-CREM companies in the Dutch and Philippine markets. However, the effects of CREM integration
into architectural practices and the process of the transition must be mapped out for architects to replicate the
evolution in both the Dutch and Philippine settings. From this, a further analysis of the transition of the business
models of how Dutch Architects have evolved from purely architecture firms to architecture-CREM companies
must be studied. Secondly, the transition identified must then be tested in the Philippine market to determine
how adaptable the Dutch models prove to be.

1.5. Research Objectives

This thesis focuses on largely contributing to the development of both Dutch and Philippine architects through
the identification and analysis of business strategies, and the design of routes towards the expansion of business
opportunities through CREM. This aim is done through three main objectives:

1. Examine how Dutch architects have future-proofed and grown their practices through identification
of what CREM activities they have integrated into their businesses.
2. Define the transition of business models from architecture to architecture-CREM companies through
analyzing the changes in each BMC block to provide a sequential procedure of how the transition
occurs.
3. Expand the business opportunities of Philippine architects through adapting the business model
transition towards architecture-CREM companies done by Dutch architects.

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1.6. Scientific & Societal Relevance

Scientific Relevance

This thesis pioneers the formalization of how architecture practices can integrate real estate management
businesses into their professional practices. Therefore, this thesis contributes to the limited knowledge on the
development of business strategies and models for architecture companies, creative professionals, and
professional service firms. This thesis also contributes to the practical use of the concept, Architectural
Management, to create competitive practices. Furthermore, this thesis will contribute to the limited number of
research on business models for architecture practices that highlight new business opportunities that allow the
non-conflicting development of their organizational values. While there are existing studies on architectural
businesses management and entrepreneurship of Dutch architects, this thesis contributes to this limited
collection. As this study focuses on the adaptability of business model concepts in the Philippine setting, it acts
as a starting point for the scientific discussion and documentation of architectural business management in the
Philippines. Furthermore, this paper will also contribute to the scarce information on the context of architectural
businesses and management in South-East Asia. From this, the paper will provide new insight to the difference
in the professional environments of which architects in developed countries versus those in developing countries
practice in.

Societal Relevance

The overall focus of this thesis is to improve the practice of architects by identifying how to create future-proof
and more profitable businesses through real estate management services. Due to the importance and value
architects bring to overall society, there is a need to ensure the existence and protect the profession.

This thesis benefits Dutch architects by analyzing how successful Dutch Architects managed and expanded their
businesses. This provides fresh insight and new possibilities to firms who need to adjust their existing models and
for start-up companies. The BMs discussed and new models created will be beneficial as they are operating within
the Dutch context and therefore provide useful insight and easily applicable solutions to similar challenges.
Furthermore, the investigation of ASEAN architecture firms also provides insight relevant for possible future
partnerships and international relations.

This thesis is relevant to South-East Asian architects, particularly Filipino Architects, as it introduces fundamental
business management concepts which are not commonly known by the majority of architects. This paper sheds
insight into some management techniques and business for firms. Furthermore, this thesis introduces and
discusses the BMC as a tool that architects can use to further strengthen their businesses. Lastly, this introduces
the idea of CREM activities as a set of business opportunities and new revenue streams. While architecture is seen
as a profession that is not financially profitable, this thesis aims to prove architecture can be a lucrative profession
given the right mindset, knowledge, and plan of action.

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1.7. Deliverables

In the empirical portion of this thesis, the research creates the old architecture business model of each case study
company, the new architecture-CREM business model, and itemizes the transition of the nine business model
blocks. In line with this, the researcher will also itemize the sequential steps of the business model transition, while
highlighting the most crucial blocks for each case and the corresponding strategy used. The operational section
will begin with the formation of archetypes based on the unique characteristics of the case study companies.
Each archetype will have a profile that includes a business model and the identification of key business model
blocks to optimize the model. The archetypes are then presented to Philippine Experts followed by the creation
of feedback and analysis on the adaptability of each archetype.

1.8. Dissemination & Audiences

As mentioned in the social relevance portion of the paper, the audience this thesis aims to reach are small to
medium architectural companies in both the Netherlands and the Philippines. Firstly, the researcher hopes to be
able to publish her findings in a scientific journal. With the improvement of the Philippine architecture industry as
the main motivation behind this topic, the researcher aims to submit this report to several educational institutions
in the Philippines and present this to the different universities that provide architecture courses.

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Chapter 2: Research Questions & Methodology
This chapter introduces the main research questions and research scope. It is followed by the identification of the
overview of the research method, data collection and data analysis. After which, the chapter presents a detailed
account of the research design performed in the empirical and operation portion of the thesis. The empirical
description will focus on presenting the case study design, case study criteria, data collection and data analysis.
The operation research design will discuss the framework in which companies were analyzed, the transformation
of cases into archetypes, data collection and data analysis.

2.1. Research Questions

The main research question this thesis aims to answer is “To what extent can architects in the Philippines replicate
the architecture-CREM models created by Dutch Architects in order to create future-proof architectural
practices?” To answer this overarching question, it is broken down into four sub questions:

SQ1: What real-estate management services have Dutch architects integrated into their businesses?

SQ2: How did Dutch architects transition their original business models towards the integration of real-estate
management services?

SQ3: How beneficial was this endeavor to their professional practice?

SQ4: How replicable are the architecture-CREM business models of the Dutch architects in the Philippine context?

The figure below indicates the thesis into two key parts, empirical research, and operational research. The
empirical portion investigates SQ1, SQ2, and SQ3. This portion focuses on understanding how the Dutch
companies transitioned from traditional architecture companies to architecture companies that provide real estate
management services by asking the questions: why did they evolve? When did they evolve? How did they evolve?
The operational research focuses on answering SQ4. This is answered by the creation of three architecture-CREM
archetypes accompanied with their corresponding business models which are tested in the Philippine market to
identify the adaptability of each archetype.

Figure 2-1: Research Conceptual Model

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2.2. Research Scope

To clearly understand the importance and scope of this research, the Design Science Research Cycle by (Hevner,
2007) is used. The adapted model differentiates the context, importance, process, outcome, knowledge base,
and the cycles that the thesis transpires within and what the thesis affects. The application domain of this thesis
is focused on the Dutch and Philippine AEC industry, particularly architecture professionals. The relevance cycle
focuses on creating new business models that aim to stabilize and improve the architect’s business. The field
testing of this will require feedback of Philippine Architects on the adaptability of the Dutch architect’s business
models and transitions presented. The design research portion will firstly identify and outline the transitions of
each BMC building block per case study company. After which, three archetypes with corresponding business
models that integrate real estate management services through different strategies are presented. The design
cycle takes place after the researcher receives feedback on the adaptability of each archetype and makes her
synthesis about creating opportunities in the Philippine market. The rigor cycle connects the design domain to
the knowledge base by understanding what new ideas will be added through the design research into the
existing knowledge base or body of science. The knowledge base under development is focused on architectural
business management and business modeling. The rigor cycle will then add to the knowledge base by
demonstrating what real estate management services architects can include into their business models and how
these can be integrated using the case study companies as a basis. Through understanding the context and
significance of the research, the practicalities of how the research will be implemented can now be presented in
the methodology.

Figure 2-2: Design Research Cycle based on Hevner (2007)

2.3. Overview of Research Methodology

The overview presents a summary of the research design, data collection, data analysis, and case study design
used in the empirical and operational portions of the paper. These are then discussed in separate detail in the
succeeding sections.

Research Design

As previously mentioned, this thesis is made up of an empirical and operational portion. The empirical portion
aims to explain and understand the transition between two types of business models based on the framework
created from the main literature findings. The operational portion focuses on testing the adaptability of the

15
business model in the Philippine setting. From this, it is apparent that the thesis has an overall focus on a
descriptive analysis based on words rather than figures. When research is focused on words, Bryman (2012)
indicates that a qualitative research strategy must be chosen. Furthermore, as the research is based on an initial
set of scientific theories which is later tested in the operational section, Bryman (2012) identifies this as a deductive
approach. Therefore, this research utilizes a qualitative research strategy with a deductive approach.

The research design is chosen to provide a “framework for the collection and analysis of data” (Bryman, 2012,
p.46). The research design utilized in this thesis is a comparative design using a multiple case-study approach.
The multiple case-study approach allows the researcher to create a stronger set of findings based on multiple
cases that present different possible courses that companies can do to evolve. The researcher utilizes a
“representative or typical case” based on the initial classification of architecture-CREM companies (Figure 3-14:
Architecture-CREM Company Scale on Dutch Firms (Own figure). that is based on the number of CREM services
offered by firms. Each representative case allows the researcher to examine the different types of companies and
highlight unique features or aspects the category experiences. Each category will have one case which represents
its classification. Each individual case is considered as a complete study on its own, indicating how and why the
business models changed. Conclusions for each case are formed using the framework as an outline and then cross
analyzed with the other cases (Yin, 2009). The multiple case study approach used for this thesis utilizes the
embedded design utilizes the topics in the framework as the units of analysis and examines each case separately
in replication logic (Yin, 2009).

Data Collection

Data collection methods can have both a structured or broader approach depending on what the researcher
wants to know (Bryman, 2012). As suggested (Moser & Korstjens, 2018), data collection techniques in qualitative
research must use more than one data collection method. This research utilizes desk research, semi-structured
interviews, and expert interviews for its data collection techniques. In the empirical portion of the paper, the
researcher utilizes desk research (document analysis and website analysis), semi-structured interviews, and
validation interviews to answer SQ 1, SQ 2, and SQ 3. To do this, the researcher first focused on desk research to
create a literature review in which the business model analysis framework was created. The framework is centered
around the main themes of the Business Model Canvas, BM challenge, the epicenter of BM challenge, BM
strategy, adjusted BM, the number of CREM activity, and type of CREM activity.

To answer SQ1, the researcher identified the different CREM services offered through the company’s websites.
This list of services gave the researcher a foundation to start creating the business model and initial transition of
building blocks per case. At this point, the researcher obtained a general knowledge of several blocks in the BMC
per company. To answer SQ2 and SQ3, the researcher utilized the first round of interviews in a semi-structured
manner. In the interviews, the researcher first focused on identifying and understanding the elements of the old
architecture business models and the new architecture-CREM business models. Secondly, the researcher focused
on understanding how each BMC building block transformed between the two business models. After the
interviews, the researcher then switched back to desk research to build on the information obtained through the
semi-structured interview. This desk research now focused on documents presented during the interviews or
company documents that were sent to the researcher after the interview. After creating the initial business models
and transition analysis, the researcher performed a validation interview to clarify information and obtain additional
findings. To answer SQ 4, the researcher employed the expert interview method for the operational portion of
the thesis. The interviews were conducted with two Philippine experts and concentrated on obtaining feedback
on the adaptability of the business models and transitions of each archetype.

16
 Figure 2-3: Research Structure

17
 Data Analysis

Data analysis is defined as the process of how raw data is managed for the researcher to make sense of the
information collected and to link it to the identified research questions. Data analysis can be done with both
primary and secondary data (Bryman, 2012). In this thesis, the primary data that was analyzed are the interview
transcriptions from the case study and expert interviews. The secondary data is comprised of the information
retrieved from the websites of the companies and company documents. This paper utilizes coding and thematic
analysis as the main methods of data analysis. Thematic analysis is the identification of core themes through the
coding of a transcript. The researcher performs coding through analyzing recurrences of text and concepts
throughout the transcripts and then creates links between identified codes (Bryman, 2012). In the empirical
portion of the paper, the thematic analysis begins with the researcher transcribing the audio recordings of the
interviews through Otter.ai and then manually checking the transcripts. The interview transcripts, company
documents and website information, were then uploaded into Atlas.ai for the coding and thematic analysis. The
researcher used the findings from the interviews and websites to form the business models and transitions. This
will be further explained in detail in the Empirical Research Design and Operational Research Design section of
this chapter. After the thematic analysis was conducted and the business models were created, triangulation was
executed between findings obtained through the interviews, company documents, and company website to
finalize the initial draft of the business models. The final draft of the business models and transitions were
presented to the case companies for a validation interview. In the operational portion of the research, archetypes
based on unique characteristics of each case company were generalized to create the archetype’s main features
and a business model. To test the adaptability of each archetype, the researcher interviewed two industry experts
in the Philippines and used the thematic analysis process to obtain findings from the interviews.

Sub questions Data Collection Method Data Analysis Output

SQ1 What real-estate - Desk research focused on Literature review - P2 report (literature and
management services have review of related literature and market review) and
Dutch architects integrated on obtaining the list of services presentation
into their businesses? of various Dutch architecture - Graduation Plan
companies and the BNA list of - CREM Activities by
services Architects Matrix (Dutch &
Philippine versions)
- Architecture-CREM
Company Scale
- Criteria for case studies
- Initial outline for interview
questions
SQ2 How did Dutch - Desk research focused on - Thematic Analysis - Framework for scoring a
architects transition their company documents and - Triangulation (between company’s success
original business models company website. company documents, - Interview questions
towards the integration of - Semi-structured Interviews to company website, and semi- - Interview protocol
real-estate management understand the transition structured interviews) - Audio recordings &
services? process from a traditional transcripts
architecture company to an - Notes on BM transition
architecture-REM. (cause, challenges,
timeframe, significant events)
SQ3 How beneficial was this - Desk research focused on - Sequential map of
endeavor to their company documents and companies’ transition
professional practice? company website. - Identification of archetypes
- Semi-structured Interviews
will allow the researcher insight
into how the case study
companies were affected by
the change
SQ4 How can architecture - Creation of models - Thematic Analysis - Analysis of adaptation of
professionals in South-East - Due to time constraints, the Dutch architect’s CREM
Asia replicate the integration research will settle with Expert practice & transition
of real-estate management interviews to obtain feedback - Business Models for
services into their existing on the adaptability of the new Philippine Architects
business models? business model to the - Feedback on BM by
Philippine context. Filipino Architects.
- Answer to the main
research question
Table 2-1: Research Process Summary (Own figure)

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2.4. Case study Design

The main aim of the case study research is to be able to understand and itemize the different ways the companies
transformed from architecture firms to architecture-CREM companies, the research is focused on identifying
multiple approaches of how the transition could be achieved. Using multiple cases provides more transition paths
which create more diverse findings. In connection to this, the thesis utilizes the embedded design as it examines
each case as an individual study in which they were analyzed through multiple units of analysis (BM challenge, the
epicenter of BM challenge This process is then repeated in all the cases in which individual and cross-case
conclusions are generated (Yin, 2009). The boundaries of the cases are that the companies analyzed are
architecture or design firms that offer CREM services, the firms are in the Netherlands and the information
gathered will focus on aspects related to the business models and transitions of the companies. A total of three
case study companies were included in the research. Each company was represented by one interviewee
throughout the thesis.

Figure 2-4: Multiple-Case Embedded Design based on Yin (2009), (Own Figure)

The companies chosen were guided by the criteria presented in the figure below. The three companies that were
chosen for this research were Vakwerk Architecten (case 1), Rothuizen Architecten (case 2) and PROCOS Group
(case 3).

Primary Criteria Explanation

1. The firm must have started as an architectural company. The focus of this thesis is on expanding the business
opportunities of architectural firms; it is important that the
selected case has the same point of origin.

2. Each category within the architecture-CREM scope must The type of cases selected act as representative cases of
be represented (Architecture Company with Minimal CREM, the specific category. This allows the researchers to begin
Architecture Company with Additional CREM Services and the case study using an initial categorization (based on the
Architecture-CREM Multi-Disciplinary Company). number of CREM activities a firm provides) which was
based on findings from the literature and market analysis.
3. The case must have an office within the Netherlands The focus of the research is understanding how Dutch
architects have integrated CREM services due to the
maturity of the CREM industry in the Netherlands; it is
important to remain within the scope.

Table 2-2: Criteria Case Requirements

The multiple case study procedure is based on Yin’s (2008) image breaks down the study into three main parts.
In the define and design phase, the theory and literature framework is created, case study companies are
identified, and protocols are created. The second phase begins with data collection through the semi-structured
interview per company and is followed by the individual report. This is then presented to the interviewees for
validation and final remarks. The report and business models are then updated and finalized based on the

19
feedback. A conclusion and cross-case analysis is produced. The conclusion then requires the researcher to
update her initial theory created at the literature review. These outputs serve as the foundation for the creation
of the archetypes using the unique characteristics presented. Three archetypes are created and presented to
experts from the Philippines. These are then analyzed and a final report on the adaptability is created. The
researcher then connects the findings back to the initial set of literature and a new theory is presented.

Figure 2-5: Case Study Design (Adapted from Yin, 2008)

Case Study Interviewee 1- Willeke van de Groep (Vakwerk Architecten)

Willeke is the office coordinator of Vakwerk Architecten and a project team leader. She graduated with a master’s
degree from Delft University of Technology in 1997. She has been in Vakwerk since April of 2020. As an office
manager, she focuses on professionalizing the office and oversees office finance, public relations, and human
relations. She has over 20 years of working experience both as an architect and project coordinator in the areas
of laboratories, offices, education reuse, and culture (Vakwerk Architecten, n.d.-a).

Case Study Interviewee 2- Pierre Maas (Rothuizen Architecten)

Pierre is both a partner and architect in Rothuizen. He has been with the company since 1995. He graduated from
Eindhoven University of Technology with a degree in architectural history and theory and a doctorate. In the
company, he is known for his ability to create partnerships and strong networks that foster collaboration. He
played in the creation of the BouwMeesterPro Method in which he created its vision, product development, and
network of partners. He currently oversees the BouwMeester Pro method and the Heritage department (Rothuizen
Architecten, n.d.-b).

Case Study Interviewee 3- Jos Duchamp (PROCOS Group)

Jos is the managing director of PROCOS Group. He studied Applied Economics, Safety and Security in his
bachelor and has a master’s degree in Construction Engineering from the University of Leuven. He worked as
worked as a facility manager in the government and joined PROCOS in 2000 as a consultant and became a partner
in 2003. In 2005, he was one of the founders of PROCOS Group EEIG, a European-wide network of facility
managers. In 2019 he became the director of the International Facility Management Association (IFMA).

20
2.5. Empirical Research Design

The empirical section of this thesis is comprised of a theoretical and practical portion. The theoretical portion was
first done through the literature review which focused on firstly answering SQ 1: What real-estate management
services have Dutch architects integrated into their businesses? Secondly, the theoretical portion served as the
foundation towards the creation of the business model framework The practical portion of the empirical research
was done through a comparative multiple case-study approach focusing on three case study companies. It aimed
to answer SQ 1: What real-estate management services have Dutch architects integrated into their businesses?
SQ 2: How did Dutch architects transition their original business models towards the integration of real-estate
management services? And SQ3: How beneficial was this endeavor to their professional practice?

Each case had two interviews, one semi-structured interview which focused on the re-creation of their business
models and the second one served as a validation interview. The first interview with Vakwerk was done in person
with the duration of an hour. The first interviews with Rothuizen and PROCOS were done through an online video
platform and was approximately one hour and thirty minutes long. After each interview, the researcher
transcribed the audio files and imported the files into Atlas.ti for the thematic analysis. The thematic analysis was
focused on directly identifying the elements laid out in the framework and identifying the transition of every
building block of the BMC. To understand the transitions between blocks in detail, the researcher had one code
per building block for the old and the new. The researcher also included codes for business model challenge, the
epicenter, the type of strategy used, and unique elements to each case.

The interview aimed to probe the interviewees to discuss each block and how each block transitioned between
the old and the new (Appendix D: Interview Questions for Case-Study Interviews). At the end of the process, the
researcher a total of 104 codes which allowed her to identify all the blocks of both the old business model, new
business models and the transition experienced by each block. After coding the interviews, the researcher went
through documents sent by the companies after the interviews and documents presented during the interviews
(through video call) and coded them in the same manner as the interviews were coded. The researcher then went
back to the company websites and went through the pages which explained the company’s background, visions,
mission and focuses and actions done per project. The researcher then cross-referenced the information obtained
through the three different sources and created the business models and individual case reports.

The business models, transitions and case reports were presented to the interviewees through a verification
interview. The verification interviews took place on an online platform for approximately one hour. The main aim
of this was to firstly verify if the researcher was able to grasp the intended explanation of the business models
and the transitions experienced. This second set of interviews were transcribed again, coded into corresponding
themes, then the business models and transitions were updated. The researcher then created conclusions per
case and a separate cross-case analysis which focused on similarities and differences between the findings. There
were used to create new conclusions which modified the initial theory from the literature review.

2.6. Operational Research Design

The operational portion of the research is still located within the second phase of the case study design and aims
to answer SQ 4: How replicable are the architecture-CREM business models of the Dutch architects in the
Philippine context?

Utilizing the findings that identify the main differences of how the companies transitioned and their strategies,
the operational research begins with the creation of the archetypes that highlight these alternatives. The
archetypes were created through highlighting the differences of the cases based on 1. What type of CREM
services they offered, 2. Where these CREM services were located within the Project Life Cycle and 3. The final
Value Proposition of the company. These three factors were the main determinants that created three separate
archetypes.

21
The archetypes were then presented to two experts from the Philippines. The researcher sent a presentation of
the archetypes along with the corresponding descriptions and business models for each for the expert
interviewers to familiarize themselves with the archetypes before the interviews. The expert interviews were done
through an online video platform for an hour and thirty minutes. During the interview, the researcher presented
the archetypes and focused on the following:

1. Understanding if the architects in the Philippines faced the same challenges as the Dutch architects.
2. Identifying what strategies, they were currently using to cope with these challenges.
3. Identifying which archetype did their firm most identify with?
4. Identify and explain which archetype the majority of the architects in the Philippines would be able to imitate
to develop business opportunity?

The interviews were recorded, transcribed, and inputted into Atlas.ti for the thematic analysis. The researcher
focused the thematic analysis based on 1. Challenges met by the Philippine architects, 3. The Strategies of the
Philippine Firms to overcome said challenge, and 2. Feedback on each archetype. The researcher then created
the adaptability findings identifying which would be the best option for Philippine architects to follow, and the
strengths and weaknesses of each archetype in the Philippine setting. These findings were then connected to the
initial theories in the literature review and the conclusion of the empirical research. The researcher then adds on
to the initial set of theory created at the beginning of the thesis.

2.7. Data Plan and Ethical Considerations

A data plan is indicated how data will be secured during the collection, documenting, and sharing of research
information. Data collected throughout the research will include both raw data and processed data. Raw data,
personal information of interviewees, audio files, and transcripts of interviews will be stored offline with a copy in
a hard drive. The working version of the thesis, charts, and findings were stored both in the researcher’s laptop
and a separate copy on a hard drive. The raw data will be stored for one year from the date of the final submission
of the thesis report, after which it will be deleted. The final research output will be uploaded to the TU Delft
educational Repository.

This master thesis focuses on business development information, therefore raw data must be protected by a level
of confidentiality based on standards rules of the TU Delft on Ethics and Privacy Committee or the General Data
Protection Regulation. Prior to the case-study interviews, all interviewees were given Informed Consent Forms
which confirm the individual’s permission to take part in the study, allow the researcher to utilize information
shared in the interviews for her thesis and lastly, provide consent for the use of information for further research.
The sample of the Informed Consent Forms are in Appendix E: Consent Forms for Case-Study Interviews. For the
expert interviews, an Informed Consent form was also provided. The template can be seen in Appendix F:
Consent Forms for Expert Interviews. All signed consent forms can be submitted by the researcher upon request.

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Chapter 3: Literature Review & Market Analysis
The chapter is comprised of the literature review and the market analysis. In the literature review, the research
will identify relationships, theories, and frameworks that contribute to potential of corporate real estate
management services as an opportunity for architects. The market analysis will identify aspects from the literature
that are present in the professional realm. Overall, the chapter aims to answer sub-question 1, “What real-estate
management services have Dutch architects integrated into their businesses?”. The chapter will end with an
identification of the main findings of literature, a market analysis to prove the need of architecture-CREM
companies in the Philippines, a framework to analyze the companies, and an updated conceptual research
diagram.

3.1. Method of Review

This research is comprised of three main topics: Architectural Firms, Business Models (BM) and Real Estate
Management (REM). This review focuses on firstly, identifying the gap in the center of all three topics. Secondly,
it focuses on understanding the overlaps between 1.) architectural firms and BMs and 2.) REM and architectural
firms. The overlap between business models and REM was not included as it created too general of a scope and
thus remains outside this thesis’ scope. However, separate literature and market studies will be used to introduce
main aspects of REM and BMs which will be utilized for this research.

Figure 3-1: Main Research Topics Venn Diagram

Through a systematic review process followed by the snowballing technique, the initial set of scientific literature
was obtained. This paper utilized an intertextual coherence process to create connections between the collection
of various theories and findings from research (Bryman, 2012). A detailed description of the systematic review can
be found on Appendix A.

The literature review is broken down into 6 themes. Nature of the Architecture Industry identifies the current
context and background of the industry, challenges, and future opportunities for architects. In Philippine
Architecture Industry, an overview of the local AEC industry is discussed. Architects as Creative Professionals:
Values and Drivers focuses on unique values that motivate an architects’ businesses strategies and outlook. The
Business of Architecture discusses theories and models of architectural business management. CREM is presented
as a viable business extension and opportunity. In Corporate Real Estate Management (CREM), an overview, main

23
definitions are discussed and differentiated. The different activities under CREM are identified and defined. After
which, the benefits of integrating CREM into the business models of architects are discussed. In Business Models,
the main framework which will be used for this study is identified and explained.

3.2. Literature Review

3.2.1. The Nature of the Architecture Industry

The European Commission (European Commission, n.d.-a) describes the architecture industry as “a discipline that
encompasses the right balance between cultural, social, economic, environmental and technical aspects for the
common good”. The architecture industry is a key factor in the improvement of technology and the creation of
innovation that affects a multitude of industries. Known as “Knowledge bridges”, architects enable other vital
growing industries to improve on their systems and businesses through design innovation (Landoni & Verganti,
2015). Architects, therefore, do not only directly affect society through their designs but improve on important
industries, affecting society indirectly as well.

As a core actor in the construction industry, architects contribute to a large portion of national economies. The
European constructor sector directly contributes 9% to the European Union’s (EU) GDP and provides 18 million
jobs (European Commission, n.d.-a; European Commission, n.d.-b). Despite its vitality to national and regional
economies, the AEC industry is one of the first to feel the impact of economic dips and is one of the last to return
to a stable position (Bondare et al., 2018). With the construction industry dominated by small to medium
enterprises (SMEs), architects are not only technical professionals but also entrepreneurs. However, due to their
creative background, architects are often labeled as artistic free thinkers of the construction world with low levels
of management skills and business proficiency (Bondare et al., 2018; Kačerauskas, 2016).

In recent times, the construction industry experiences lower construction budgets, added pressure to lower
professional fees, (Bos-de Vos et al., 2016), increased sustainability requirements (Bondare et al., 2018), demand
for higher quality projects, highly customized product demands, shorter product life-cycles, and new
manufacturing processes (Vilas-Boas et al., 2019). As construction projects become more complex, new technical
advisers and project management specialists (Bondare et al., 2018) increase the number of actors in a project;
lessening the scope of architects. The emergence of Integrated contracts also contributes to increased
competition in the industry (Bos-de Vos, Lieftink, Volker, & Wamelink, 2014b). The valuable role architects play in
society and nation-building drives the need to protect the profession from challenges that threaten their financial
and professional value. Architects can confront these challenges by adjusting the way they do business, the
services they offer and how they provide services to clients to create more future-proof businesses.

3.2.2. The Philippine Architecture Industry

The Philippine Construction industry has been a major driver of the national economy and the industry sector. In
the last quarter of 2019, the construction sector made up 9.7% of the expenditures on GDP with the value of
capital formation at Php 302.8 billion (approximately 5.126 billion euros) (Statista, 2020). Due to the ongoing
Covid-19 pandemic, the economy is expected to shrink by 11.9%, leading the country to its first recession in thirty
years (CNA, 2020). Due to this, the construction industry contracted by 39.5% and the real estate industry by
22.5% (Philippine Statistics Authority, 2020).

The Architecture industry comprises 10.9% of the country’s Professional Scientific and Technical Activities
Establishments. It employs the most professionals at 27.3% of the category. The architecture and engineering
category came in third as highest for revenue and expense contribution to the industry and said to be the second-
highest in (financial) value added to the industry. Despite this, the architecture and engineering industries are not
included in even the top five for employee compensation (Philippine Statistics Authority, 2018).

24
 Figure 3-2: Employment Distribution of Professional, Scientific and
Technical Activities Establishments (Philippine Statistics Authority, 2018).

Architecture is defined by the Republic Act No. 9266 (Implementing Rules and Regulations) as “the art, science
or profession of planning, designing and constructing buildings in their totality taking into account their
environment, in accordance with the principles of utility, strength and beauty”. The United Architects of the
Philippines (UAP) is the professional organization for architects. The Implementing Rules and Regulations (IRR) of
Republic Act No. 9266, state that the scope of Architecture “encompasses the provision of professional services
in connection with the site, physical and planning, and the design, construction, enlargement, conservation,
renovation, remodeling, restoration or alteration of a building or group of buildings”. Only duly licensed architects
under the Professional Regulatory Board of Architecture and the Professional Regulation Commission are allowed
to practice architecture in the Philippines. (Francisco, 2019).

The local architecture industry faces challenges due to a high level of globalization, a weakened economy,
increasing natural calamities (earthquakes and typhoons), territorial disputes, political unpredictability, trade
tensions, threats to foreign investments, and lower levels of material export. These complex problems create high
levels of pressure and competition within the local industry. The UAP recognizes the need to respond to the
changing context of what society needs of architects to keep the professional relevant. The UAP has organized
several endeavors in the form of conventions, talks, and professional development points, that encourage
architects to think about how they can change or strengthen their existing business models through collaboration,
design and build services, and project management (Panganiban, 2020).

Scientific research that focuses on the management and practice of architecture professionals in the Philippines
is scarce and few. Due to this, the author will consider the first-hand experience of her five years of practicing
architecture in the Philippines along with feedback from Filipino architects. From a personal standpoint, the
architecture industry in the Philippines is behind other countries, not because of the lack of talent but due to a
lack of direction as to what architects can do after they graduate. Architecture graduates are still focused on
becoming employees of larger architecture companies or creating smaller architecture and design studios. There
is very little room for diversion from traditional roles as they are not taught anything else. The education of
architects in the Philippines does not incorporate any level of management, finance, accounting, or basic business
concepts. The lack of this aspect in education, leaves Philippine architects paralyzed when brought to real-world
scenarios.

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 3.2.3. Architects as Creative Professionals: Values & Drivers

The business techniques and processes of architects are largely driven by their identity of being both a
Professional Service Firm (Bos-de Vos et al., 2016) and a Creative Professional (CP) (Pfeifer, Stanić, & Oberman
Peterka, 2018). While the CP is a fast-growing market, made up of small enterprises, there is little known about
their business models (Bos-de Vos et al., 2016). This lack of development in business strategies in this field can
be linked to a creative’s resistance to being managed or restricted. However, high levels of competition are
pushing CPs to create more innovative business models (Pfeifer et al., 2018).

Architects often face opposing values as professionals and creatives. These opposing values hinder many
architects from maintaining profitable practices. To understand the drivers that push professional decisions made
by architects, we must recognize the underlying values that motivate them (Bos-de Vos et al., 2016). Architects
are driven by three organizational values: use value, exchange value, and professional value (Figure 3-3). Use
value is value created or from the level of utilization retrieved by clients. Use value refers to the perceived utility
value that the customers ascribe to the service or product. Exchange value is the price the customer and service
provider agree on in exchange for services or products. Lastly, Professional value is unique to PSFs. Their business
goals do not solely revolve around making a profit but are centered on creating quality products, building their
reputation, talent development and knowledge expansion (Bos-de Vos et al., 2016).

Figure 3-3: Theoretical framework of value creation and value capture in

professional service delivery (Bos-De Vos et al., 2016, p. 24).

The architect’s organizational values steer management style and business principles. Architects chose projects
that capture (or develop) their professional value, develop their organizations, create work pleasure, and generate
income (Bos-de Vos et al., 2016). Architects select projects that either develop or maintain their reputation in a
specific field. Secondly, architects prefer projects that provide them with new or strengthen their current
competitive advantage through innovative solutions or the creation of a commercial relationship (fees based on
what the client is willing to pay for a service instead of the professional fee being based on man-hours) with a
client. Lastly, architecture professionals chose projects that generate income and profit. Many architects, however,
do not focus on high levels of profit but are focus on “earning a living and guarantee organizational continuity
(Bos-de Vos et al., 2016).

There is a need for architects to utilize business strategies and management principles that allow them to nurture
and balance the different organizational values providing them with income-generating projects but still develop
their knowledge and professional skills. Architects must create businesses models that enable them to fulfill both
financial and professional values.

26
 3.2.4. The Business of Architecture

Architectural Management Theory

Architects perform multiple roles as creative individuals, project managers and entrepreneurs. The multiple hats
worn by architects can often create tension within their own organizational values and affect the way they do
business. Architecture companies are unique businesses that can not be managed in the typical industrial process.
This can be attributed to the need for creativity to be present for the business to flourish (Bondare et al., 2018).

The Architectural Management (AM) Concept (Brunton et al., 1964) introduces the management of style
specifically for architectural firms. AM identifies two main aspects of running a firm; 1) Managing the Business and
2) Managing the Projects. By understanding the range of managerial tools and functions to enable both aspects
to run, this improves a firm’s competitiveness (Alharbi, 2013). Research in AM is extremely limited. Since 1964,
there has only been eight attempts to define AM despite Working Group W096 Architectural Management
identifying the importance of AM for Architects.

Figure 3-4: Graphical interpretation of Emmitt's (1999) AM definition (Alharbi et al., 2015, p.2).

The AM concept was developed further by Emmitt (1999) by introducing “The Position of AM within the Project
Lifecycle Framework” (Figure 3-5). This expanded the two aspects into four by creating sub-categories and
identified activities that fell under each category. More importantly, this model identified AM in the centre of
project lifecycles and identified possible activities that architects could execute in all phases of a building (Alharbi
et al., 2015).

Figure 3-5: The position of AM within the Project Lifecycle by Emmitt (1999) (Alharbi et al.,2015, p.2).

27
This framework was further improved by creating a more extensive list of activities per quadrant. The “Detailed
AMCF matrix” (figure 3-6) was designed to help architects understand how to use the AM concept in practice
(Alharbi et al., 2015).

Architectural Management Competitive Framework (AMCF)

Alharbi (2013) created a more specific definition for AM, “the strategic management of the architectural firm that
assures the effective integration between managing the business aspects of the office with its individual projects
in order to design and deliver the best value to all stakeholders” (Alharbi, 2013, p.204). Using the framework
created by (Emmitt, 1999), Alharbi (2013) created the extensive version of 1999 framework called the Architectural
Management Competitive Framework (AMCF). The AMCF included “Managing Stakeholders” (MS) and
“Managing Education” (ME) to the original two aspects of AM. In efforts to create a more practical understanding
of the AM theory, Alharbi (2013)points out that Managing the Practice is focused on managing the internal
environment of the firm and understanding the SWOT of a company. Alharbi (2013)indicates these management
functions are seen in the CIB W096 publications and were listed as the following.

1. Organizational structure (OS),

2. strategic planning (SP)
3. business management (BM)
4. Managing finance (MF)
5. Marketing & Sales (MS)
6. Working Environment (WE)
7. legal & ethical issues (LE)
8. Managing Communication (MCM)
9. Knowledge Management (KM)
10. Human Resource Management (HRM)
11. IT Utilization (IT)
12. Managing Collaboration (MCL)

In AM’s second major component, “Managing the (Individual) Projects” focuses on how individual projects are
vital to the success and competitiveness of a firm (Emmitt, 1999). Architects must be willing to explore activities
outside of regular architectural design to improve on their competitive edge. Such activities include planning
construction sites, designing temporary buildings, insurance, facility management, and quality management
(Emmitt, 1999). These activities strengthen a firm’s transition towards a multi-disciplinary firm model. The different
(expanded) functions specifically under “Managing the Projects” identified by Alharbi (2013) from accessible CIB
W096 publications are listed below.

1. Design Management (DM)

2. Project Management (PM)
3. Construction Management (CM)
4. Facilities Management (FM)
5. Quality Management (QM)
6. Value Management (VM)

Alharbi (2013) states that the intention of AM is to create multi-faceted architects that can take roles such as
collaborative facilitator, value creator, enabler, strategic facilitator. To be able to fulfill these different possible
roles, there are several (business) extensions architects can integrate into their design processes and business
development. Business extensions are “components of managing the business and managing the projects, and
other components that have not been classified yet by researchers but have been discussed in a scattered format”
(Alharbi, 2013, p.20). Extensions are a mix of activities that support or improve existing services offered and
possible business opportunities that firms can incorporate into their businesses. Business extensions include value
design and management, collaboration, design management, planning, creativity, knowledge management,
teamwork, project management, education, IT adoption and applications, legal and ethical issues, lean

28
philosophy, construction management, sustainable and renewable energy, communication, managing growth,
leadership, quality management, benchmarking, and risk management (Alharbi, 2013).

Figure 3-6: The Architectural Management Competitive Framework (AMCF) (Alharbi, 2013, p10).

New Activity Systems & Possible Business Extensions

A firm’s business is a system of interdependent activities that transcends a single activity and spans its boundaries.
The Activity System Theory indicates that a firm, connects with its partners, to create value and to appropriate a
share of that value (Zott & Amit, 2010). When spanning the firm boundaries for possible additional activities, there
are four possible design themes to consider: Novelty, Lock-In, Complementarities, and Efficiency. Design themes

29
allow firms to expand their activity systems based on existing value creation drivers. The Novelty theme activity
system centers on the creation, adoption, or governing of a new idea or process. Lock-In themes focus on creating
business that attracts third parties to take part in their business models. The complementarities theme creates
bundles of services that provide more value than getting those services separately. Lastly, Efficiency centers on
reducing transaction costs for users (Zott & Amit, 2010).

Winch & Schneider (1993) recommend four strategic choices in the expansion of an architect’s scope: 1. remain
as an architectural practice, but offer a broader range of services; 2. diversify laterally into other building
disciplines; 3. diversify vertically into development or construction; 4. diversify outside construction into areas
such as design. The first option proves to be difficult with specialized practices that want to expand their scale.
The last two are the least popular, as developers usually expand into design. Option two is the preferred option,
as this builds a competitive edge based on professional experience. Bos-de Vos et al. (2014a) suggests another
set of business expansion themes; international market approach, BIM services, programming services and
partnering. International market approach and partnering require external partners to develop the activity systems
in business models. This thesis will focus on activity systems that architects can do independently from external
partnering, removing the international market approach from the themes. While BIM proves to be beneficial to
the industry, there is a lot of research focused on this; this will not be expounded on further. Hence, Programming
presents itself as a unique opportunity to be further analyzed in this research as little is explained about this topic
and it provides an activity system that architects can venture into independently. Programming services allow
architects to assist clients in identifying their program of requirements. It focuses on the alignment of design with
a company’s strategy, ambition, and budget. Also referred to as Requirements (PoR), has been part of the
architect’s scope for 20 years but due to more complicated levels of design, have become a specialization. PoRs
are often offered by consulting firms that are involved with a project before the design phase (Bos-de Vos et al.,
2014a). Through the inclusion of programming into the architect’s services, this expands their business scope by
involving them earlier in a project’s lifecycle. The different suggested activity systems as summarized on the
Position of AM within the Project Lifecycle, involve architects earlier on the project timeline an extend their
involvement to several post-construction services. This idea supports the first concepts of AM and AMCF.
Furthermore, the suggested business activities overlap with the activities in the field of Real Estate Management
Activities.

3.2.5. Corporate Real Estate Management

Definitions & Activities

Real Estate Management activities (REM) or Property management is focused on the daily operations of real estate
to support the main activities of organizations (Haynes et al., 2017). Corporate Real Estate Management (CREM)
is defined as “the management of buildings and parcels of land at the disposal of private and public organizations
which are not primarily in the real estate business. An organization which occupies space is in the real estate
business and needs to manage it properly” ( Haynes et al., 2017, p.4; Bon, 1992). CREM goes beyond daily use
and is focused on the larger picture of ensuring an alignment between the real estate portfolio and business
strategy (Haynes et al., 2017).

Real estate can be viewed in three main dimensions: financial asset, physical asset, and operational asset. As a
financial asset, real estate is used as a measure of company value and seen in balance sheets. As a physical asset,
the property contains an organization that performs the core business. Lastly, operational assets relate to
properties used to perform daily operational functions. (Haynes et al., 2017). According to (Heywood & Kenley,
2007) CREM activities can be divided into 3 different task levels; strategic, tactical, and property. The strategic
level focuses on how real estate can be used as a business strategy to influence the portfolio of an entire company.
The tactical level focuses on how the strategy will be implemented within real estate. Lastly, the property level
focuses on facility management and daily operations. Bontekoning et al. (2016) produced a list that identified
different activities under CREM based on a literature review. The list, “Defined unique CREM activities from
literature” identified 31 CREM activities (Figure 3-8).

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 Figure 3-7: Defined Unique CREM Activities from literature (Bontekoning et al., 2016, p 343).

The list below defines all CREM activities based on Bontekoning et al.’s literature review (2016). While the original
focus of the thesis was REM, due to literature found focusing on the larger scope of CREM, this research will
expand the scope to CREM activities.
1. Facility management- Activities that ensure that business can take place smoothly in the working
environment. Involves business administration, commercial management & services, and architecture.
2. (Real estate) development – “Development of new buildings” (Bontekoning et al., 2016, p.354).
3. Leasing and property (administration)- rent collection from tenants and payment of real-estate dues by
company
4. Acquisition and disposition- The acquisition and disposal of real estate.
5. Strategic planning/scenario planning- aligning the real estate strategy to the business strategy
considering multiple future scenarios.
6. Information Technology (IT)- The application of computers and telecommunications to store, retrieve or
submit data related to the practice of REM.
7. Portfolio management- The strategic management of properties as a group to achieve corporate goals
and risk appetite.

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 8. Project management/development– The process of representing the owner towards on-site
professionals, engineers, architects, designers, financial specialists and other real estate professionals.
(GlobalCoreNet & The corporate executive board organization, 2015)
9. Appraisal- The process of identifying and estimating value of property.
10. Customer and client relationship management- The direct interaction with clients, creation of principles
that form the relationship between client and company, and analysis of client trends and behavior.
11. Workplace design/space planning- The process of configuring office space to maximize stakeholder
requirements and business processes.
12. Design and construction management- Utilising project management to control creative process in
projects to meet goals through design.
13. Finance/accounting- Financial activities that enable a company to run and operate. These are but are
not limited to corporate finance, finance and accounting, accounting, tax management, and
management accounting.
14. Marketing/communication- Communicating the value of a product with customers with the purpose of
selling.
15. Negotiation and deal-making- Strategic deal-making that allows two parties to be satisfied with the
outcome.
16. Personnel management/HR- Hiring of employees and ensuring their professional development.
17. Environmental management- Controlling and improving the impact of humans on the environment by
ensuring efficient use of space and systems.
18. Performance measurement/benchmarking- The process of regular measurement of building
performance and cross-referencing with identified benchmarking to rate a specific building or improve
on it.
19. Property management/building operations- The daily management and operations of activities that
support the legal interests of landlords and leaser.
20. Community relations/governmental regulation- Communication with external stakeholders that may
potentially pose a problem and consulting back to project team.
21. Contract management and law/legal – The focus on contract management and legal agreements
between the tenant and landlord.
22. Investment appraisal- The analysis of the value of investment proposals through IRR, NPV or payback
period.
23. Management and governance- Management is the coordination of activities to reach business goals.
Governance is the framework indicating accountability which ensures fairness and transparency to all
stakeholders.
24. Security and safety- The identification of an asset, and creating processes and rules to protect the asset.
25. Alliance management- Managing strategic alliances between companies to ensure mutual benefits.
26. Financial analysis and counseling – Overall financial consultation for CREM company
27. Asset management- Management of single buildings belonging to a portfolio, to obtain maximum
property value and reduce operating costs per building.
28. Location practices- Process of selection of location and site
29. Real estate finance- Financial aspects and regulations concerning company RE’s interests.
30. Risk management – Identification of possible RE risks and creating strategies to avoid or diminish risks.
31. Value management- Application of value engineering to increase business efficiency and effectiveness.

Bontekoning et al., (2016) then categorized all the mentioned activities into four groups based on the initial
groups created by Heywood & Kenley (2007). The new groups divided the CREM tasks into Portfolio Management
(strategic), Asset Management (tactical), Property management (Property), Management and Support functions.
Support functions and Management tasks identified reflected general management activities that were not unique
to a single category (Figure 3-9).

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 Figure 3-8: CREM activities assigned to the levels of CREM and management support functions
(Bontekoning et al., 2016, p344).

Benefits of Integrating CREM Activities

The benefits of CREM activities to businesses have largely been discussed throughout literature, however, for this
research, we focus on the benefits of considering CREM activities throughout the design process and CREM as
an additional service given by the architect. The adoption of facility management by architects allows for a
stronger business focus; enables a dynamic organization; improves on health, safety and environmental issues;
and improves technology (Alharbi, 2013; Emmitt, 1999). Recognizing FM requirements early in the design phases
allows the design teams to identify specific program constraints that may affect the design requirements and
future spaces. These constraints can be physical (maintenance) or the need for complex technology systems. By
having facility managers (FM) early in the project, they can create trade-offs between requirements and act as
additional consultants on technical systems. (Bascoul et al., 2018). REM activities done in the pre-design and
occupational phases provide architects with information that can justify design decisions or identify designs that
failed in bringing the value intended. Knowledge created by the post-evaluation of structures builds professional
value as architects are able to analyze and improve on designs for future projects (Fross et al., 2015). The quick
and reliable feedback architects obtain from CREM do not only positively benefit their professions but also create
more efficiently managed, better performing, and most cost-efficient buildings (Fross et al., 2015).

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 CREM Activities by Architects

The integration of CREM activities in an architect’s scope is promoted by different national architectural
institutions such as The Royal Institute of British Architects (RIBA), The American Institute of Architects (AIA), the
Branchevereniging Nederlandse Architectenbureaus (Trade Association of Dutch Architectural Firms) and the
United Architects of the Philippines (UAP).

The RIBA Plan of Work 2020 document, (RIBA, 2020) divides projects into eight stages: Strategic Definition,
Preparation and Briefing, Concept Design Spatial Coordination, Technical Design, Manufacturing and
Construction, Handover, and Use. The document starts with Stage 0: Strategic Definition, tasks include preparing
client requirements, developing the Business Case, providing reviewing Project Risks and Project Budget,
reviewing Feedback from previous projects, and undertaking Site Appraisals. In Stage 7: Use, suggested core
tasks for architects include Implementation of Facility Management and Asset Management, executing Post
Occupancy Evaluation of building performance, verifying Project Outcomes including Sustainability Outcomes.
The document is a guide for architects to understand what activity systems they can connect to services they
already offer. In another publication by RIBA (2019), to create stronger relationships between architects and
clients it is mentioned that clients prefer architectural businesses that span from pre-design to post-design stages.

The AIA came up with the B210-2017 document, “Standard Form of Architect’s Services: Facility Support” which
guides architects to start thinking of how they move from merely project-based professionals towards becoming
strategic partners of clients. The key services and areas of expertise outlined in the document form services that
let clients understand, evaluate and improve on existing facilities. Services and areas of expertise included in this
document include space management, workplace strategy, facility condition assessment, facility performance
assessment, operations assessment, space management, maintenance management, digital facility management
systems, and occupancy planning (Hensey, 2017).

In the Standaardtaakbeschrijving (Standard Job Description) by the BNA identifies the ten stages of architectural
services: 1. Initiative/feasibility, 2. Project Definition, 3. Structure Design, 4. Preliminary Design, 5. Final Design,
6. Technical Design, 7. Price and Contract Information, 8. Execution, 9. Implementation and 10, Use/Operation
(BNA and ONRI, 2009). Based on this phasing, the formal design phase starts at the Preliminary Design and ends
at the Execution Design. However, we see that the job description provides architects with pre-design and post-
construction service possibilities. These are seen in phases, 1, 2, 3, and 10. These tasks can be categorized as
Programming and Facility Management activities which fall under the larger umbrella of Real Estate Management
activities. The BNA also supports its architects by identifying a wider range of business activities that architects
may involve themselves with. The BNA published the BNA Service Cards (Dienstenkaarten) which identifies 6 new
roles architects can take on: one of which is the Strategic Architect. This role of focuses on analytical skills,
visionary ideas, and adding value to organizations through real estate strategies. Architects formulate visions for
building assignments, alternative solutions for housing problems, managing existing housing structures, strategic
accommodation advice, and construction advice to companies (BNA, 2014), all of which relate to CREM activities.

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 Figure 3-9: Phasing (BNA & NL Engineers, 2014).

The United Architects of the Philippines (UAP) is the professional organization for architects. Under SPP Document
203, the UAP identifies the following activities under “Specialized Architectural Services”: Site and Physical
Planning Services (including Master Development Planning, Subdivision Planning and Urban Design),
Comprehensive Development Planning, Security Evaluation and Planning, Facilities maintenance Support,
Building Testing and Commissioning, Building Environmental Certification, Building Appraisal, Contract
Documentation and Review, Post-Design Services, Dispute Avoidance and Resolution, Facility Planning and
Design (The Professional Regulatory Board of Architecture, 2011). From this knowledge, it can be concluded that
architectural organizations promote and advise architects to integrate several CREM/REM activities into the
services they offer. This along with literature prove to be aligned in indicating that CREM serves as a viable
business extension.

3.2.6. Business Models

Innovative business strategies can be divided traced back to several factors that form business models. Business
models have received substantial focus in recent years in both academic and professional environments. While
there are multiple definitions and motivations of business models, academics have agreed that business models
represent a new unit of analysis on how businesses create holistic approaches of doing business (Zott et al., 2011).
Business models (BM) are defined by Osterwalder et al. as “the rationale of how an organization creates, delivers
and captures value” (2010). Utilizing BMs to create a system-level business analysis, identify how a company views
value, how to deliver, and how created value can in-turn be appropriated by the company for its development
(Bos-de Vos et al., 2014b; Zott et al., 2011). The focus of a business model is to maximize business opportunities
by creating value for stakeholders. To increase competitive advantage, architects must look into other activities
that can support business opportunities (Bos-de Vos et al., 2014a).

Business Model Canvas

The Business Model Canvas (BMC) by Osterwalder et al. (2010) and is an extensively used framework to create
business models in many industries. The BMC is a blueprint with nine “Building Blocks” that identify how
businesses create income. The “Building Blocks” consist of Customer Segments, Value Propositions, Channels,
Customer Relationships, Revenue Streams, Key Activities, Key Partnerships, and Cost Structure. Customer
segments are the main clients the business aims to serve. They can be made up of different groups based on

35
their service needs, willingness to pay for a service, distribution channels, relationship types, and profitability.
Value Propositions are “products and services that create value for a specific Customer Segment” (Osterwalder
et al., 2010, p.22). Channels focus on how an enterprise connects with its customer segments. The main aspects
of channels can be broken down into communication, distribution, and sales channels. Customer Relationships
focus on the type of relationship between a company and the customer. Revenue Streams are the income a
company generates from customers by providing its services. Key Resources are the physical (buildings, vehicles,
machines, etc.), financial (cash lines, credit stock, etc.), intellectual (patents, copyrights, partnerships, etc.) or
human assets (skilled employees) of a company. Key Activities allow enterprises to provide their offered services
and products. Several key activities include production, problem solving and creating a platform/network. Key
Partnerships are the network, alliance, and cooperation of several enterprises to maximize their different business
models. Cost Structure includes major costs that were incurred in the operation of a business.

Figure 3-10: The Business Model Canvas (Osterwalder et al., 2010, p.44).

Innovative and Future-Proof Business Models

Companies face the need to innovate their business models due to four main causes: i.) a crisis or “near-death
experience” of the existing model, ii.) adjustment of existing model due to a change in the environment, iii.)
arrival of new technology, products, or services into the market, iv.) need to ensure a future-proof business by
exploration and testing new business models for competitive advantage (Osterwalder et al., 2010). The creation
of good business models requires a process to identify how a company can create new value to customers.
Business model innovation focuses on the creation of new ideas rather than improving existing services already
given by competitors. Innovation focuses on understanding the areas of serviced needs of consumers or changing
the way that a service is delivered or providing additional support to existing systems (Osterwalder et al., 2010) .
Along with innovative ideas, the need to future-proof business models makes stronger businesses. The Oxford
dictionary “Future-proof” is defined as “(of a product or system) unlikely to become obsolete.” (Lexico.com,
n.d.). Wikipedia defines “future-proofing” as “the process of anticipating the future and developing methods of
minimizing the effects of shocks and stresses of future events”. Therefore, when discussing techniques that
require the futureproofing of business models, this means that one must understand how different future scenarios
may affect a business; focus on ensuring that business continuity is secured in all the scenarios. For this research,
the phrase “future-proof business models” will focus on expanding services architects provide to ensure a larger
scope of possible income streams despite changes in the market.

36
The generation of new ideas for business models can start in any of the nine building blocks of the BMC. From
this, it can be said that there are four main epicenters of integrating major business changes: resource-driven,
offer-driven, finance-driven, and customer-driven. Resource-driven epicenters rely on the existing infrastructure,
systems, and partnerships to improve on the business model. Offer-driven innovations focus on updating the
value-proposition. Finance-driven innovations originate from adjustments that have to do with the revenue
streams and cost structures. Customer-driven changes are driven by client’s changing needs, improving
accessibility and customer convenience. While the four epicenters comprise the main reasons for innovation,
multiple epicenters-driven changes are also possible. These have two or more epi-center combinations and have
a multitude of effects on the other blocks.

In updating the business models, similar characteristics and behaviors can be identified as patterns. While this
study focuses on understanding the transitions of the case study companies to create archetypes, it is important
to be able to identify similarities and differences within the evolutions. Some patterns identified by Osterwalder
et al. (2010) are Open Business Models, Multi-Sided Platforms, FREE business models, Unbundling and Long Tail
Business Models. The goal in defining patterns is to create “business concepts in a standardized format—the
Business Model Canvas—so that they are immediately useful in your own business model design or invention.”
((Osterwalder et al., 2010, p.55). The standardization will thus assist the researcher in the formation of the business
models of each archetype.

3.3. Market Analysis

3.3.1. Dutch Context

REM Service Providers

The real estate sector in the Netherlands is a mature and growing industry that is has been driven by the country’s
reputation as an excellent business center. Due to the influx of international businesses, real estate has been
affected in two main areas: 1. Investment in Dutch real estate, 2. The use of Dutch structures and businesses for
management of global property portfolios. In 2018, the real estate market was valued at €20.7 billion with more
than half of the total investments coming from international investments. This growth has increased the number
of real estate professionals and asset managers, created new specializations, more comprehensive services
offered, and diversification of company types in the REM industry (Vistra, 2019). REM in the Netherlands focus on
becoming either specialists on a single function or a “one-stop-shop” for clients. Some professional CREM
providers in the Netherlands include Savills, Colliers International, Cushman & Wakefield, JLL, CBRE, Knight
Frank, and NIBC. While the real estate market is growing, professionals in the AEC industry have taken advantage
of this and have diversified their offered services to include several complementary REM services closely related
to their fields.

REM Services by Dutch Architects

The Dutch architecture industry, represented by the BNA, includes Real Estate Management activities in the
standard job description of architects. To understand how Dutch architects have integrated these services in their
Architectural practices, a market study involving 12 different Dutch Architectural and Design companies was
performed. The companies included were identified through google search and had office locations in
Amsterdam, Rotterdam, Utrecht, and Delft. The focus of the market study is to identify which CREM activities are
offered by firms. The “Defined Unique CREM Activities” list by (B. Bontekoning et al., 2016) is used as the
academic reference and the BNA Standard list of services (BNA & NL Engineers, 2014) will be used as the
professional reference. The BNA list was used as the main reference to create a sequential order of merged REM
services. The CREM activity list was arranged based on the BNA sequence design phases, identifying which CREM
activities were present in each design phase. The focus of this matrix is to identify CREM services, with that the
basic design phase services have been blocked out and will only be used as a reference point for CREM activities.
This final list activity is used as a basis for the identification of CREM activities.

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 BNA Standard Job Description REM Services
1. Initiative / Feasibility (IH)
acquisition and disposition
appraisal
2. Project Definition (PD)
3. Structural Design (SO)
strategic planning/ scenario planning
4. Preliminary Design (VO)
(workplace) design/space planning
Building permit/
Design Phase

5. Final Design (DO)

6. Technical Design
7. Price and Contract Formation (PC)
design and construction management
8. Execution (Ready for Implementation
Design) (UO)
9. Implementation Design
Project management/ development
10. Use/ Operation
Facility management
Leasing and property (lease) administration
IT
Portfolio management
Customer and client relationship management
Finance/accounting
Marketing/communication
Negotiation and deal making
Personnel management /HR
Environmental management
Performance measurement/benchmarking
Property management / building operations
Community relations/governmental regulation
Contract management and law/legal
Investment appraisal
Management and governance
Security and safety
Alliance management
Financial analysis and counselling
Asset management
Location practices
Real estate finance
Risk management
Value management
Figure 3-11: The Architect's Scope and CREM Activities List based on Standaardtaakbeschrijving (BNA & NL Engineers,2014)
and Defined Unique CREM Activtiies (Bontekoning et al.,2016) (Own figure).

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 Figure 3-12: CREM Activities by Dutch Architecture Firms

39
In the CREM Activities by Dutch Architecture Firms figure, it is evident that Dutch firms have a large variation to
what REM activities they offer. A similarity is that majority of the firms provide feasibility studies, project definition
and strategic planning/scenario planning. In further evaluation, three levels of integration of REM activities can
be identified. The first type is the least involved in REM activities. At most, these firms only practice Programming
Services and/or Feasibility Studies. The second type focuses on Pre-Design activities, Project Management, and
several Post-Construction Services. The third type of firm does not market itself as an architecture firm but as a
design company. They provide majority of indicated REM activities and focus mainly on interior office design.

Classification of Firms

A categorization of architecture firms based on the number of REM services offered was created. This scheme is
called Architecture-CREM Company Scale.

Architecture-CREM firms are situated between a scale of purely “Architecture & Design” and “Professional
CREM” Companies and grouped. Starting from the leftmost, “Architecture & Design” companies focus on purely
architecture, design, and urban planning. The second type is “Architecture Company with Minimal REM”, they
focus on design services but offer minimal pre-design REM services (Feasibility Studies, Project Definition,
Structural Design, and Scenario Planning) The second group, “Architecture Company with Additional REM
Services”, provide REM activities with a focus on Feasibility Studies, Strategic Planning, (Real estate)
Development and other Engineering services. The third group, “Archi-REM Multi-Disciplinary Company”
provides the most REM services that range from pre-feasibility to post-construction services. They also provide
Project management, various engineering Services and specialize in corporate interior design and construction.

Figure 3-13: Architecture-CREM Company Scale on Dutch Firms

It can be concluded that the Dutch firms offer a variety number and type of REM services that traverse the 5 types
of CREM levels. It must also be noted that there is a difference between services marketed by companies and
services performed. It is important to note that this analysis was only taken from desk-research and must be
confirmed by the company representatives in the next portion of the research.

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 3.3.2. Philippine Context

REM Service Providers

The CREM/REM industry is mostly driven by International and larger companies such as Colliers, JLL, Cushman &
Wakefield, Santos Knight Frank, KMC Savills, PRIME Philippines, SOSA JB Property Management Corp.,
PhilGems, Century Properties Management Inc and FOPM Property Management. There is little written about the
general growth of the CREM/REM industry and its overall development when compared to market research
available in the Netherlands. From this, it can be assumed that although the CREM/REM market in the Philippines
exists, it is still currently developing.

In a google search using the search “Corporate Real Estate Management Companies in the Philippines”,
companies that appeared included international companies but also included a list of smaller-scale companies;
81Property, Marsh Real Estate Agency, Expat Property Manila, FPD Global Integrated Services Inc., Host Pro Ph,
Azul, PhilGems Realty Corp., and Havitas. The second group of companies focused on Property Management
services which were largely marketed to Overseas Filipino Workers (OFWs) and Foreigners with properties in the
Philippines. The smaller companies are marketed themselves on their websites as residential real-estate property
managers that facilitate rental contracts maintain properties for owners abroad. From this, two main categories
of real estate management can be identified: international players and local property management.

REM Service by Philippine Architects

A sample of 10 architecture firms in the Philippines using the 2019 BCI Asian Awards Top Ten Architects list were
utilized to identify existing CREM services local architects offered. The author chose the sample of the BCI list as
this should reflect the industry’s pioneers and best practices. The services based purely on the websites of each
company were analyzed in the same process that was done with the Dutch firms and documented on the CREM
activity matrix in the Figure 3-15.

In the figure below CREM Activities by Filipino Architecture Firms, it is seen that only 2 out of the 10 companies
provide REM services. The first company’s (FSL Associates & Co.) REM activities are all categorized under the
level of Property Management or support functions activities as indicated in the Levels of CREM Management (B.
Bontekoning et al., 2016). The second company, ASYA is the main architecture company with 3 affiliate companies
providing construction management, leasing, and marketing, and property management. This conglomerate
presents itself as a more multi-disciplinary organization. The conglomerate offers services in 4 out of the 5 levels
of CREM Management and Support Activities: Support functions, Portfolio management, Asset management,
and Property management.

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 Figure 3-14: CREM Activities by Filipino Architecture Firms

42
Using the Architecture-CREM Company Scale, the majority of the Philippine firms do not provide any REM services
and take the role of traditional architecture and design companies. Two outliers are seen and categorized under
Architecture Company with Additional REM Services and Architecture-REM Multi-Disciplinary Company. Despite
CREM activities being indicated as part of the scope of Architectural firms by the UAP, and the presence of REM
professionals in the Philippines, the practice is CREM is limited as architects still focus on traditional services.

3.4. Main Findings from Literature & Market Analysis

The focus of the literature and market review was to establish a background into the context of the architecture
industry in the Netherlands and the Philippines. The review also aimed to identify central business concepts used
in architecture. Lastly, this chapter aimed to identify how the integration of real estate management services into
business models of architects would be beneficial.

While it has been proven that architects play a vital role in the development of society and the economy, their
professions are under pressure due to external changes that affect the AEC industry. To remain relevant, architects
must adjust their practices and create more future-proof business models. Architects in the Philippines and other
developing countries face worse problems with added challenges brought about by lower levels of financial
capacity, less business knowledge, and weaker government systems. While there is little written about the
architecture professional industry in the country, it is evident that Philippine architects can benefit from a better
understanding of architectural management principles and basic business knowledge.

As both creatives and professionals, architects have a unique set of organizational values. While it was established
that organizational values direct how a company does business, these must also be present in activities that firms
wish to expand to.

AM theory explains that there are two main actions; managing the business and managing projects (Brunton et
al., 1964). The theory was further developed by Alharbi (2013), in which he specified more activities in both
functions. The majority of functions were related to real estate activities. The AMCF suggests a “template for
developing specific models for their professional practices” (Alharbi, 2013, p.217) however a number of identified
options of expanding a firm’s projects or “Extensions” do not directly relate to architectural design but cross-over
to Construction, Engineering Services and Real Estate Management Activities. While the AMCF identifies many
business opportunities it does not clearly identify how these Extensions can be integrated into architecture
businesses.

Through investigating other business prospects for architects, REM activities were seen in the literature as a viable
business opportunity. The research has identified that REM activities satisfy all organizational values of an
architect, is identified as a strategic business extension of architecture (Alharbi, 2013; Emmitt, 1999; Winch &
Schneider, 1993), and is interlinked to the existing activity systems that happen within a firm (Bos-de Vos et al.,
2014; Zott & Amit, 2010). The inclusion of REM activities improves a firm’s exchange value, professional value,
and use-value. Through diversification of services offered through REM, adds value to the original services
(architecture) and creates a more competitive and future-proof business model for architects. Furthermore,
national architectural organizations agree with this thought as they include REM in the official scopes of architects.
From this, we see a shift towards the expansion of the tasks of architects.

As this thesis discusses businesses of architects, the Business Model Canvas (BMC) (Osterwalder et al., 2010) was
explained to be a comprehensive and practical framework to understand business models and for the creation of
new ones. The BMC will be the main framework used to analyze Dutch Architecture firms and to create models.
Using the BMC, the business models will be evaluated on the main challenge experienced by the BM, the
epicenter of the challenge, how the BMC building blocks have adjusted, and what overall strategy was utilized
by the company to innovate the business model.

The paper discussed the definitions of CREM, REM, and FM along with the identification of activities performed
in the scopes. This paper started with a focus on REM but changed slowly to expanding to CREM as a better
business opportunity for architects based on literature obtained and market studies. CREM provides a larger

43
scope of possible activities and allows architects to involve themselves in more strategic activities instead of daily
operational pursuits. The “Unique CREM Activities list” by Bontekoning et al. (2016) identifies the different CREM
activities that have been mentioned throughout literature and have been used as a backbone for the market
analysis.

Through the market analysis, it is evident that the CREM industry is growing in both the Netherlands and the
Philippines, however at very different paces. Through analyzing the different activities Dutch architects performed,
the researcher was able to create 3 architecture-CREM categories. The categories presented in the Architecture-
CREM Scale (Figure 3-18) are Architecture Company with Minimal REM, Architecture Company with Additional
REM Services, and Archi-REM Multi-Disciplinary Company. The different Dutch firms were in all three different
scales, indicating that there were architectural companies that did provide CREM services that covered all 5 CREM
levels based on use. The variety of companies and specialization creates a more diverse professional landscape
and lessens competition as architects are not focused on providing the same set of services.

In the Philippines, little has been written about both the REM industry and the architecture management industry.
Through a market analysis, the CREM and REM companies identified are comprised of two extremes- international
CREM companies, large local REM companies that were subsidiaries of large Real Estate Developers, and small
property managers focused on Residential real estate. The researcher was not able to find companies in between
the two typologies. Indicating a gap in the market between high professionals and less established firms. In the
analysis of architecture firms proving CREM services, out of the 10 firms analyzed, only 2 companies offered CREM
services. This indicates that the majority of the Philippine architecture industry has not yet integrated CREM
services into their business model, presenting a gap. Most of the architecture firms are located outside the
Architecture-CREM scope indicating architects are providing the same bundle of services in the least diversified
business category. This creates a more saturated market, with a limited number of services offered, and architects
with the same set of skills. Industry giants are competing with new comers and less competitive firms for the same
type of services. This finding further strengthens the need for this research as REM proves to be a financially and
professionally beneficial opportunity that can de-saturate the architecture market and create diversity, lowering
competition and allowing more architects to succeed.

Figure 3-15: Architecture-CREM Company Scale in the Netherlands & Philippine Markets

44
3.5. Updated Framework

While it is evident that Dutch architects practice a variety of CREM activities, the process of their transition from
purely architectural service architecture-CREM service providers is unanswered. This poses another question, of
how business organizations and business models have changed due to the integration of new services.
Furthermore, the degree of how beneficial the integration of REM services into the different architecture
companies is remains unknown. While this research attempts to use Dutch architects as illustrations of how Filipino
architects can evolve their practices, the skills that are necessary for this should be identified. In relation to
architects in developing countries, it is still unknown as to what degree of REM services they can integrate, how
they will integrate these services, and if this is valuable in the Philippine context. To understand the transitions
between the original architecture business models and the integrated architecture CREM business models, we
initially asked the 3 questions of 1. Why did they evolve? 2. When did they evolve? And 3. How did they evolve?
The conceptual research model has been updated to be able to answer these questions based on literature.
Figure 3-18: Updated Research Conceptual Model (Own figure) shows the updated questions which will be asked
in the analysis of the business models.

Figure 3-16: Updated Research Conceptual Model

The Business Model Analysis Framework is a detailed map of how each company will be evaluated and analyzed
for the researcher to identify the transition between the original architecture business model and the integrated
architecture-CREM business model. The sequence will start with the researcher identifying the old business model
of each case, inputting all the nine elements. After this, the researcher will first identify what challenge the business
model is facing, after which the epicenter will be identified. From here the researcher will itemize which blocks
must be adjusted to meet the value proposition. After the adjustments are made, the researcher will identify the
type of strategy used. The researcher will then identify how the transition has affected the different organizational
values of the company. Lastly, the researcher will create the new architecture-CREM business model.

45
 Figure 3-17: Business Model Framework Analysis

46
Chapter 4: Empirical Research
This chapter will first present an individual case analysis of three architecture companies providing CREM services
using the framework presented in the findings of the literature review. After which a cross-case analysis focused
on identifying the similarities and differences of the cases will be created. The unique characteristics of each case
will be highlighted and utilized as a foundation of the archetypes. This chapter aims to continue to answer SQ 1:
What real-estate management services have Dutch architects integrated into their businesses?), SQ 2: How did
Dutch architects transition their original business models towards the integration of real-estate management
services? And SQ 3: How beneficial was this endeavor to their professional practice?

4.1. Individual Case Analysis

4.1.1. Case 1: Vakwerk Architecten

Company Narrative

Vakwerk Architecten was found in 2017 by three partners: Ellen van der Wal, Francesco Veenstra and Paul
Ketelaars. The three partners worked under Mecanoo architects for an average of 20 years and have a plethora
of working experience in the fields of education, care, hotels, residential, housing, culture, commercial,
infrastructure, design and build, and reuse (Vakwerk Architecten, n.d.-b). The company started with 5 employees
and has grown to 23 today (Van de Groep, 2021). Vakwerk’s designs are driven by core principles of ownership,
partnership, and entrepreneurship. Ownership is focused on taking responsibility for projects and tasks to become
a reliable partner. The entrepreneurship mindset is asking if things can be done more efficiently and contribute
to the client’s end goals or business through design. Through Partnership, they aim to maximize the collaboration
techniques to improve the use-value of buildings. To do this, the company focuses on creating its process-
oriented strategies comprised of stakeholder management and design programming, to create optimal design
strategies and unique solutions for clients (Van de Groep, 2021). Vakwerk Architecten BV is owned by the three
founders alongside another holding. The founders of Vakwerk Architecten BV also own a real estate company,
Vakwerk Vastgoed. While the architecture office is situated in the locally known, Vakwerk Huis, the café and co-
working space is a separate business entity from the architecture office. Although owned by the same people,
company expenses and income are separate (Van de Groep, 2021). The architecture office benefits from being
located and owned by the same owners as the café. They have full access to the café, co-working space, and the
network of tenants that rent the spaces in the Vakwerk Huis. This Vakwerk Huis’ environment aligns and builds on
the architecture enhances the firm’s ideology of collaboration, community, and entrepreneurship.

The main goal of this portion of the research is focused on understanding the transition of the business model
from the company’s original business model as a traditional architecture company towards the transition to an
architecture-CREM company, the Vakwerk case will be analyzed differently. Due to the company’s age, there is
no “old business model” as they are still at the beginning stages of the company; changes in business strategy
are minimal from when they opened in 2017. Therefore for the Vakwerk case, the “old business model” consists
of the business model they have been using from 2017-2020. The “new business model” will be focused on their
current transitions towards reaching the company’s aspirations for the next few years.

Reason for Innovation

The need to innovate the existing business model is brought about by the need to future-proof itself through the
exploration of a competitive advantage (Table 4-1. BM Challenge, Epicenter and Strategy). To do this, the
company can focus on updating its value proposition. This is classified as an offer-driven problem (Osterwalder
et al., 2010). This challenge has the epicenter of the problem in the value proposition block. To overcome the
challenge, the primary blocks that need to be adjusted in sequential order are the key activities, key resources,
and customer relationships (Figure 4-1. Vakwerk Sequence of Transformation).

47
 “Like every traditional architectural office in Holland doing everything, from the preliminary
design, and also everything before that initiative until finishing, all tasks that are in the standard
list of architectural services, that is what we do, but we do also more. It’s because
entrepreneurship is the base vision of this office, we think we should do more than just design,
we should think that we should really be in every project, the right hand of the initiator of the
project and feel ourselves being the owner of the project, we make we show ownership.”
- Willeke Van de Groep (2021).

Here we see that Vakwerk’s main business model challenge is the need to identify its competitive advantage.
Through the interview, it was evident that the way they do this is by focusing on providing in-depth pre-feasibility
in which they aim to add value to not only the building but the business model of the project. They have identified
this as their focus is on entrepreneurship, ownership, and partnership.

Challenge BM faces

1. Crisis/near-death of BM

2. Adjustment due to change in environment

3. Adjustment due to new technology/services to market

4. Need to future-proof model through exploration of Due to partners’ backgrounds, they saw the need to differentiate
competitive advantage themselves from regular architecture companies by
incorporating more process-oriented and value-creating
activities.

Epicenter of Problem

1. Resource Driven

2. Offer Driven As a new company with experienced partners, the founders

understood the need to differentiate themselves from other
architecture firms to obtain a steady influx of projects. From this,
this focused on creating a unique value proposition by
incorporating more process and stakeholder-oriented activities.

3. Customer Driven

4. Finance Driven

Graphic representation of epicenter in BMC

Type of Strategy

1. Novelty

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 2. Lock-In

3. Complementary Focuses on bundling in-depth pre-design services, stakeholder

management, and financial analysis to improve on use-value of
designs and improve on business models connected to building
space programs.

4. Efficiency

Table 4-1. BM Challenge, Epicenter and Strategy Vakwerk

Business Model Transition & Adjusted Blocks in Sequence of Transformation

To overcome the BM challenge, adjustments in other blocks in a specific sequence make up the unique way a
company transitions from the old to new BM. In the case of Vakwerk, the value proposition is the epicenter of the
problem. The old value proposition highlights the offer of the firm to create designs with a focus on
entrepreneurship, ownership, and partnership. To create a stronger competitive advantage, this idea needs to be
developed further for the firm’s offering to be distinguished compared to other architectural companies. In line
with this, the company indicates that they have developed a focus and extended time on the pre-feasibility stage
of projects. While companies regularly projects allocate a division of project design time with a 30% pre-design
and 70% design time ratio, Vakwerk allocates 40% for pre-design and 60% for design. To amplify this offering
and align it with the strengthening of their value proposition, it can be said that the office may even take on a
50%-50% division between pre-feasibility and design time. The innovative concept of creating higher importance
on pre-design to extract value from users and clients will create a new proposition that no longer focuses only on
the design but creates a bridge between business strategy and the built environment. The new value proposition
of the company can be that they provide built environment strategies and designs created through a process-
oriented approach focused on pre-feasibility and stakeholder management techniques.

“I think maybe in architectural firms, 80% of the work is making buildings and 20% is
strategy. Maybe we have 40% strategy and 60% designing buildings, so we work a little bit
more in the front and beginning of a project because we really help the customer thinking
about a good plan and we do still do also the other faces but it's not our focusing point
yet it's not like traditional architecture doing most of it.”
- Willeke Van de Groep (2021).

To support the strengthening of the value proposition, the company currently focuses on primarily updating its
key activities, key resources, and customer relationship (Figure 4-1. Vakwerk Sequence of Transformation). While
these are the primary adjusted blocks, all other portions of the BMC shift as well but in a less explicit manner.

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 Figure 4-1. Vakwerk Sequence of Transformation

The first block that must be actively modified to support the change of value proposition is the key activities. In
the old business model, the company already offered both standard architectural services (Initiative (IH) until
Implementation Design) and several CREM activities (appraisal, strategic/scenario planning, design/space design,
negotiation & deal-making, community relations/gov’t regulation, location practices), as seen on Figure 4-1.
While the company is now focusing on transitioning to a more strategic proposition but still maintain the office
as an architectural firm, it would be beneficial for both the projects and business for them to offer additional
services that complemented these such as design & construction management, project
management/development, customer and client relationship management, financial analysis, and counseling to
support the design and construction of their projects. To be able to provide these additional activities, the office
must invest in research and development of their stakeholder management process and how the company creates
real estate strategies. For the key resources, as the company highly values the range of talent that the different
positions provide, they need to delegate this task to an experienced individual/s who has a high level of
knowledge in the field of stakeholder management or process management. Having an experienced individual
who can develop and standardize these processes, will ensure that more employees can do this task instead of
only a select few. This individual will create a clear road for the steps of process management that others can
utilize later. The company can appoint existing employees to specialize and develop this further or hire external
professionals with experience in this field to help develop a specific version for Vakwerk. By appointing specific
people to focus on this task, it allows a single person to develop a deep and detailed understanding and also lets
other team members focus on architectural production tasks.

“…Never forget the end users because the end users, we want to make it for them as good
as possible. Also, if we're designing a hospital, and we stay in contact with all the people
working in the hospital, and thinking about the visitors, and not only in the starting point
of the design, but also getting into the detail, we get keep in contact with them. And we
have we quality work conferences. So quality work conferences. So creative sessions with

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 the users. Also during the design process where maybe other architects say, okay, we know
enough, we start designing, we stay in contact.”
- Willeke Van de Groep (2021).

The original relationship Vakwerk had their clients was open, horizontal, and built on co-creation to create the
architectural designs. The company slowly started to select certain projects to which they would give
complimentary advice to improve space functions to maximize financial returns but also how to improve and
connect with businesses around through the built environment. Through this gratuitous advice to strategic
partners, the company was able to show that they can provide not only architectural designs but develop design
strategies to find ways to reach business goals through the physical environment. This practice along with
stakeholder/relationship management processes currently has the potential to change their role from architect to
strategic designer. Today, the company is currently involved with two developers that they provide strategic
advice for business plans in the transformation of old buildings. The new customer relationship can be thus
defined as Vakwerk extending beyond the role of the architect and evolving into a strategist and trusted
consultant for project initiators.

In response to primary blocks, the rest of the BMC adjusts in this sequential order: revenue streams, key
partnerships, customer segments, channels, and cost structure. The focus of the adjustment of the secondary
blocks is to build around the need to support, obtain a similar type of relationship, or improve the marketing
strategy of the office to support modifications of the primary block, As the key activities of the office change, they
can also monetize the consultation for strategic design in a different way from regular architectural services. The
key partnerships of the firm are now focused on connecting to developers with a similar building strategy
requirement as Stichting DUWO and COUP Urban Producers. For the customer segments, the company originally
focused on obtaining diversity in their projects, however, they have since set a priority of typologies that they are
interested in designing for but still are open to a multitude of types. With the company focused on becoming a
strategist and reaching larger clients with more stakeholders, they have shifted their channels towards more
general, formal institutions and organizations instead of the design industry platforms. Lastly, the cost structure
of the office can also slightly change due to the other block adjustments. The focus here is to be able to lessen
the amount spent on acquisition and marketing costs as the formal channels (BNA and Universities) should make
the office more visible to target clients.

New Business Model and Organizational Values

The new business model focuses on providing designs that bridge the gap between business and the built
environment. Through focusing on the pre-feasibility phase of a project and the careful analysis of stakeholders;
Vakwerk aims to be able to provide strategies that enhance business processes, output, and create impact in
communities. The new business model improves the use-value of buildings created by the company by creating
a clear understanding of what requirements users need and why they need these. By understanding the why-
through the stakeholder process, the company can produce designs that improve on existing practices. This
leads to a building that is more customized to the needs of the users. Professional value of the company is
elevated through the widening of skills and critical thinking to be able to connect architecture to business, finance,
and strategy. Lastly, the exchange value of the company is expected to improve due to the addition of the new
pre-design-focused service. This can be monetized in both a higher project fee or a separate revenue for clients
who may only want to avail of this service. The new CREM services introduced a focus on extracting a clearer
picture of user requirements which ultimately enable architects to make better-suited buildings for their clients.
With more satisfied clients, this results in the possibility of higher professional fees, repeat clients, and new clients.

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 1. Current Value Proposition 1. Targeted Value Proposition
Process-oriented designs created from a mindset of 30% pre-design and 70% design to 40% pre-design Built environment strategies and designs created
ownership, entrepreneurship, and partnership. and 60% design. As the company expands services through a process-oriented approach focused on
for pre-design and strategy, this could change pre-feasibility and stakeholder management
further into a 50%-50% division. techniques.

2. Current Key Activities 2. Targeted Key Activities

Standard architectural services: (from IH- focus on pre-design phase and services of the Standard architectural services (from IH-
Use/Operation). project. These activities are related to stakeholder Use/Operation), appraisal, strategic planning/
CREM: appraisal, strategic planning/ scenario management and issues related to business scenario planning, design/space design,
planning, design/space design, design and feasibility or finances. negotiation & deal-making, community
construction management, project relations/gov’t regulation . Added to the current
management/development, customer and client activities are design & construction management,
relationship management project management/development, customer and
client relationship management, financial analysis
and counseling.

3. Current Key Resources 3. Targeted Key Resources

- Human (all levels of employees are highly valued To be able to specialize in stakeholder Stakeholder and process managers should be
based on their unique skillsets) management processes, this method needs to be added to the company’s original set of key
- Vakwerk Huis developed and improved on by the company resources which are comprised of Architects
through identifying employees to do this task, (Human) and the Vakwerk Huis.
stakeholder managers.
4. Current Key Partnerships 4.Targeted Key Partnerships
- Real-estate developers (COUP & DUWO) - Started offering their existing clients Architecture - Start-up real estate developers (CWE Region)
- Other architectural companies & strategy. Started projects in UK and Central - Technical specialist & veteran architectural firms
Western Europe through partnerships with looking for collaborations
developers located there. - Larger multi-national clients
- Began collaboration with specialist architecture - Tenants in Vakwerk Huis
firms, veteran architects to create a partnership to
be able to win more bids.
- Filtering who would rent co-working space and
tenant space in Vakwerk Huis based on company
visions and interests.

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 5. Current Customer Relationships 5. Targeted Customer Relationships

Open and horizontal with a high level of co-creation Focus on giving clients complimentary advice on Strategist and trusted consultant of the project
not only ways of how to improve space functions to initiator
maximize financial returns but also how to improve
and connect with businesses around through the
built environment (community development). This
gratuitous advice has shown that the company can
provide not only architectural designs but can
become design strategists.
6. Current Revenue Streams 6. Targeted Revenue Streams
- General architectural design and consultation - With the inclusion of stakeholder management, - General architectural design professional fees
professional fees (Hourly rates 20%, project-based pre-design services allow more income at the start (Hourly rates 20%, project-based fees 80%)
fees 80%) of the project. The company divides project hours (Netherlands and Central European region)
- Projects from VakwerkVastgoed BV into 40% Pre-design and 60% Design. This allows - Consultation fees for strategies and business
the architects to get a higher percentage of the fee plans for real-estate developer partners
at an earlier stage compared to the usual 30% Pre- (Netherlands and Central European region)
feasibility-70% Design division.
- market strategic design consultation as a separate
service for a wider range of clients
7. Current Customer Segments 7. Targeted Customer Segments
Education, reuse, care, living, culture, leisure, The original customer segment of Vakwerk was - 1st - care, education & reuse
residential and medical. focused on maintaining diversity throughout their 2nd- dwelling ,workplaces & culture
Real estate developers portfolio to show the company’s ability of a range - small -medium real estate impact developers (NL
of services as a young firm. However, as they create & CEW Region
expertise around strategy and stakeholder
management, they can decide which projects best
utilize these processes to improve on their
professional value. The company has realized that it
will focus on care, education, and re-use, with a
second focus on dwelling, workspace, and culture.
Learning from the work done with COUP and
DUWO, the company also intends to obtain
projects with developers (Netherlands and the CWE
region) who provide them with the freedom to
comment and strategize on building functions.

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 8. Current Channels 8. Targeted Channels
company website & other design websites & feature The company has shifted from marketing educational institutions & lectures (TU Eindhoven)
articles themselves in company-owned channels (website Partner as chairman of BNA (2020)
design competitions and publications) and design industry websites to
collaborative projects with other architects actively participating in the academe through
established institutions and universities. The
company has started giving lectures in TU
Eindhoven. Francesco Veenstra (Partner) will start
his term as a director for the BNA in 2021. The
involvement in established institutions creates a
more authoritative and established perception of
the company and puts the name of the firm out
there to larger clients.

9. Current Cost Structure 9.Targeted Cost Structure

Value-based. While still at the early stages of a company, Vakwerk Value-based.
- Events in Vakwerk Huis felt the need to focus on a value-based approach - Events in Vakwerk Huis
- Employee salary which meant spending for marketing and project - Employee salary
- IT maintenance (shared cost with Vakwerk Vastgoed acquisition costs. With the new business model, - Lower acquisition & marketing costs
BV) mainly driven by partnerships and channels to reach (publications, articles, research, marketing design
- Acquisition & marketing costs (publications, articles, the customer segments, the aim is for the expenses packages)
research, marketing design packages) of project acquisitions to lessen and obtain projects
organically through the entire BM strategy.

Table 4-2: Vakwerk Individual Block Transformation

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 4.1.2. Case 2: Rothuizen Architecten

Company Narrative

In 1933, Office Rothuizen was started by architect Arend Rothuizen in Middleburg. He later entered into a
partnership with Goese architect 't Hoof in 1945. In 1993, the company merged with the firm Van Doorn, and
RDH was created. By 1998, the company had two branches, one in Middleburg and one in Breda. Today the
company is a 50 person multi-disciplinary firm that provides a wide range of architectural, heritage, urban
planning, and construction services throughout the Netherlands. The core values of Rothuzien are focused on
continuity, independence, customer intimacy, respect, development, ambition, and mutual connection. The
company is experienced in the sectors of care, education, housing, cultural heritage, architectural and urban
design, sustainability and construction processes (Rothuizen Architecten, 2012)

With the official name of Architecten Stedenbouwkundigen BV (Architects & Urban Designers), Rothuizen is under
the RDH Holding BV with four other subsidiaries: RDH Vastgoed BV (real estate), Rothuizen Project BV
(Construction/BouwMeester), Architekci Urbanisci and Real Care! SP. The company is organized as a European
company and can operate in multiple international regions. They are currently represented in three countries, the
Netherlands, Poland, and Mali (Rothuizen Architecten, 2012). As one of the subsidiaries of the main company
holding, Rothuizen Project BV, more commonly known as the BouwMeester Pro Method is a construction method
created by the company that focuses on providing clients with “optimal price-quality ratio is realized in a
fully transparent manner.” (Rothuizen Architecten, n.d.-a). The process puts the architect, now labeled as
“Process Manager”, at the center of the construction team as the director of construction. While at the center,
the architect takes the risk of the construction by balancing out cost, quality, and time. In this process, the main
contractor is eliminated, creating a direct relationship between the architect and technical suppliers. The Process
Manager divides the building and construction work into segments which the manager then connects with the
right advisors and suppliers. The relationship focuses on the co-creation of better products through open
communication, trust, and collaboration (Maas, 2021).

Reason for Innovation

The challenges that pushed Rothuizen to revise their business model were driven by all four classifications of BM
challenges. They firstly were faced with the general issue of the shrinkage of scope in the architectural and urban
design industry. However, a crisis unique to their firm was that their clients had voiced out their discontent with
the quality of construction that the contractors provided. They also faced environmental changes mainly related
to the change in types of clients and the needs of the current population. The third challenge was the more
specific and higher-level technical requirements and overall change in how the construction industry collaborates
and sets up production lines. Lastly, despite growth in the company, they felt they still were not appreciated and
known by the public and commercial clients. They felt they were stuck and needed to break through a “glass
ceiling” to grow as a company. The challenges can be identified as firstly a Customer-Driven problem and an
Offer-Driven Problem. While the clients explicitly voiced out their concerns, this pushed the company to focus on
adjusting their value proposition (offer). The company then concentrated on utilizing a complementary strategy
which combined both the design with construction to provide clients with higher quality construction. In the
graphic representation of the BMC Table 4-9. Rothuizen Individual BMC Block Transformation. The adjustment in
the value proposition leads to major changes in key activities, key resources, key partners, cost structure, and
revenue streams.

“ Clients were not satisfied with the traditional way of building. They felt that the balance
between quality and price was not accurate, and it wasn't transparent. We ourselves also
saw that the quality of what was constructed of our design was not very good. So that's
what we say we do what we do with ourselves, and we do it better.”
- Pierre Maas (2021)

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 Challenge BM faces

1. Crisis/near-death of BM The overall shrinking market of architectural and urban

design firms has put additional pressure on professional
rates and project feed. Additionally, Rothuizen and its
clients were unhappy with the construction quality, price,
and level of transparency that took place during the
traditional building process.

2. Adjustment due to change in the environment The role of clients in the construction industry has
drastically changed. Aside from this, the adjustment in the
market due to changes in demographics (such as aging
and decline of population size) are changing the
requirements and lifestyle of society.

3. Adjustment due to new technology/ services to market The changing quality of technical requirements (due to
sustainability regulations and push for innovation), change
in collaborative processes within the production chain
(tending forms, project processes, legalization, etc), and
new offerings of large construction companies.

4. Need to future-proof model through exploration of Despite the development RDH has gone through in recent
competitive advantage years, the company is confident that they have not yet
maximized the community’s perspective of their work and
their company. The company can create a competitive
advantage and enhance the way the public sees the
company through the integration of the BouwMeester
service. Through developing this exclusive offering, the
company can ensure a unique competitive advantage that
should ensure its standing in the changing professional
environment. This decision can be seen as the company
maximizing potential but also securing their future in the
long term.

Epicenter of Problem

1. Resource Driven

2. Offer Driven Due to the changing markets, services, and scope of architects in
projects, the company needed to make adjustments to widen
their scope of services or create a new service that would bring
them better financial and professional growth. To do this, the
company had to adjust its value proposition.

3. Customer Driven Clients explicitly said that they were unhappy with construction
quality and the level of transparency in the traditional design and
construction process. With the clients instigating this change, this
is a customer segment-driven problem.

4. Finance Driven

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 Graphic representation in BMC

Type of Strategy

1. Novelty

2. Lock-In

4. Complementary The company focused on integrating construction services into

their offerings to be able to meet the standards and quality level
that was satisfactory to both the company and its clients. The new
construction process, the BouwMeester Pro method was
implemented to ensure the quality, cost, and schedule of
construction.

4. Efficiency

Table 4-3. BM Challenge, Epicenter and Strategy Rothuizen Architecten

Business Model Transition & Adjusted Blocks in Sequence of Transformation

Starting with the epicenter of the business model challenge, it was identified that Rothuizen had two happening
simultaneously in the customer segments and value proposition blocks. While clients voiced out their
dissatisfaction with the end products of construction, other challenges related to the company’s need to update
the value proposition pushed the company to reassess its value proposition. From this, the company decided to
venture into the construction of the designs by placing themselves in the center of the process as a system
integrator. At the center, they would be able to control the cost, quality, and time of the projects based on the
clients' needs.

Their chosen position at the center of the project gives them control over the entire construction. To provide this
new value proposition, the set of key activities needed to be adjusted to firstly include project management, and
design and construction management. In line with the high risks of construction, the company also needed to
include more financial and risk services to support and protect themselves. To be able to first create this new
service, the company invested in experts to define the functions of the BouwMeester Pro and to identify how
people would be fitted into this new method. The experts designed how the BouwMeester Pro would reinvent
the traditional processes, functions, and teams. In line with the new services, the company invested in new
software, a larger financial department, and more employees.

“We had a special group of people, experts. Let's call them process managers, who were
integrating the whole process from design until realization. The way we defined functions
in the company, and the way people were put into the place to do this process and
everything around, the rest was organized around it.” – Pierre Maas (2021)

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As the company’s new Value Proposition focused on them becoming the system integrator, this led to the
discontinuation of projects with main contractors as Rothuizen would essentially take this role. The relationship
with the main contractors was replaced with partnerships and collaboration with suppliers and technical advisors.
The overall shift was from Rothuizen coordinating with the main contractor, they now coordinated with all
suppliers and installers of the building. They had direct access, communication, and the freedom to make any
design adjustments with the suppliers. The increased level of collaboration in the project due to the direct
communication between Rothuizen and the suppliers, increased innovation, and improved designs.

“ Yes what we do instead we in the Netherlands, and not only in the Netherlands, but
everywhere is every the whole process of design, engineering, and construction is cut into
pieces. So you have an architect, a structural engineer, you have building companies, and
we say this is not correct. We have to integrate those processes in one flow. And like, for
instance, the car industry, like the automotive industry, you don't have separate car
designers, you don't have separate car engineers, you don't have separate car builders,
everything is in one factory. So what we do is we do the same we have architects, we have
engineers, and we also have people who are building our projects, and this is one
integrated process, just what we do.”
– Pierre Maas (2021)

With the adjustments done to the primary blocks, the customer relationships went from Rothuizen as an architect
to becoming the right hand of the client in the project. The level of trust Rothuizen receives from clients is also
elevated as Rothuizen takes in most of the risks of the project as a designer and constructor. The cost structure
of the office adjusted as the expansion of services brought in the need to employ more people for the construction
process and to expand the financial department of the office. Another main expense was that as a design and
construction company, they had to have insurances that protected them from both risks at the same time. The
company developed this new type of insurance with a provider and continues to adjust and improve on this.
Lastly, as a contractor, the company invests in different types of contractor certification that they believe improves
the trust clients have with them by seeing these accreditations. The BouwMeester Pro Method brings in new
revenue streams, specifically the BouwMeester Pro method Coordination fee, and BouwMeester Pro Incentive.
The coordination fee is for the company to do the construction or project integration. The project incentive is the
unused amount from the project budget that is divided between the client and Rothuizen to motivate the team
to stay below budget and work more efficiently.

“…we have a very different relationship with the same kind of group of clients, which means
that normally, you have a relationship as an architect but now we have a relationship as an
architect, engineer, and construction company, which means that our relationship is much
longer. And we also are dealing with resolving many other problems for clients. This means
that they are, let's say more involved in the whole process, we are more involved in the
whole process, from beginning to the end.”
– Pierre Maas (2021)

Looking at the channels, while the 90-year-old reputation and network of Rothuizen is still the main source of
projects, the company has taken more proactive methods to market itself. While they feel they are known within
the construction industry, they focus on making the Rothuizen brand known to the more public through
advertisements, direct mail, web page follow-up, free publicity, and thematic campaigns.

58
 Figure 4-2. Rothuizen Sequence of Transformation

New Business Model and Organizational Values

The new business model of Rothuizen which is centered around the integration of the BouwMeester Pro method
in alignment with the architectural and engineering services introduces a unique offering that allows the architect
to control the entire construction process. The creation of the “System Integrator” professional is a unique
offering that locates the architect in a central position and as the right hand of the client.

As the central actor in the project, Rothuizen can coordinate with suppliers in co-designing and improving existing
systems and construction details to ensure higher levels of sustainability and innovation. This direct coordination
and openness in the project team improves the product and creates a higher level of use-value for the building.
The updated model also adds to the professional value of architects by introducing a new skillset. For Rothuizen
in particular, this increases the value of the company as they are one of the few companies that provide this
service at this level of professionalism. The BouwMeester Pro method is anchored on increasing quality for
lowering the costs of projects. Clients can see the value of the service when Rothuizen can identify how much
costs they can save through the BouwMeester Pro without lowering the quality. This relationship can thus be
reflected in the exchange value Rothuizen and the client agree on. Rothuizen can support the cost they request
for professional fees easily as they can indicate the total costs they save the client through the BouwMeester Pro
method. Lastly, the exchange value or professional fee that Rothuizen obtains from the BouwMeester Pro method
increases the revenue of the office immensely. The reason for this is that the company is firstly able to diversify its
revenue streams and obtain different types of revenue from a single project (BouwMeester fee and Incentive).

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 1. Old Value Proposition 1. New Value Proposition
Customized designs created through collaboration By becoming the construction director or “system - Bouwmeester Pro Method- ensures that design
with a team of technical specialists that have a high integrator”, the company removes the main solutions are within the client’s boundaries of time,
level of integrity and experience. contractor from the construction process, and puts cost and quality
themselves in the center of the construction process. - Increased levels of innovation through shorter
The direct relationship with suppliers ensures that construction supply chains
they have more power over construction quality and
innovation.

2. Old Customer Segments 2. New Customer Segments

living and healthcare, schools, historical buildings, A lot of the same old clients but added due to the - Living and healthcare, schools, historical buildings,
urban restructuring locations, reuse, sustainability shift to becoming a system integrator (pre-design, urban restructuring locations, reuse, sustainability
and technology design and construction) let them work with clients and technology
with large real estate portfolios but no expertise - Developing contractors
(schools and other semi-owned government - Large organizations with scattered real estate
institutions that need help with managing and
upkeep of real estate)
3. Old Key Activities 3. New Key Activities
-Standard architectural services: from IH- Originally focused on providing Initiative/Feasibility - Standard architectural services (from IH-
Implementation Design (IH) up to Implementation Deign. When the company Implementation Design)
- CREM services: Strategic planning/ scenario decided to take on the role of main system integrator - Appraisal, Strategic planning/ scenario planning,
planning, design/space design, facility management, of the construction process, they focused on design/space design, design and construction
community relations/government regulation, developing their own method of project management, project management, investment
location practices management and design and construction appraisal, community relations/government
management. Inline with the high risks of regulation, location practices
construction, the company began to practice more
financial and risk services.

4. Old Key Resources 4. New Key Resources

Human (architects & engineers) The company invested in experienced process - Human: Process Managers, architects & engineers
managers that formed the BouwMeester and - Technological (new programs to support)
integrated it into the company. Inline with the new
services, the company invested into new software, a
larger financial department and more employees.

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 5. Old Key Partnerships 5. New Key Partnerships
Main contractors Being the system integrator led to the - Preferred suppliers (material suppliers,
Technical Advisors discontinuation of projects with main contractors. manufacturing/pre-fab industry
This relationship replaced with partnerships and installers and specialty contractors)
collaboration with suppliers and technical advisors. - Engineering companies and technical advisors
The overall shift was from an architect talking to one
main head contractor, they now had full control of
the quality and time, with the direct link to suppliers.
6. Old Customer Relationships 6. New Customer Relationships
Architectural, urban designer and project engineer Through the change in the value proposition and key - Right hand of the client and expert
activities, Rothuizen has evolved from being a representative
standard architect to the lead of design and - Problem solver
construction. While they are responsible for both the - Director of design and construction
front and back end of the projects, they must be able process
to create solutions and make decisions (or assist with)
for the client. This puts Rothuizen in more a
leadership and puts him in the role of the right hand
of the owner- his representative throughout the
project.

7. Old Cost Structure 7. New Cost Structure

- Employee salary The expansion of services towards integrated - Employee salary includes not only architects and
- Acquisition & marketing costs construction management has brought in new types engineers but a large group of process manager
- Technology & CAD software of professionals such as process managers (project and a larger financial department. Acquisition and
managers) and a much larger financial department. marketing costs remain a key cost. New Project
Along with providing both design and construction, insurance costs (both annually and per project) and
the risk of the company is increased and therefore contractor certifications are required as a design
they need new types of insurances that cover both and build company.
design and construction risks. These new insurances
are special for Rothuizen and developed along side
insurance companies. Aside from this, in order to
increase the confidence of clients towards the
company, Rothuizen must obtain different contractor
certifications.

8. Old Revenue Stream 8. New Revenue Stream

- Regular architecture & engineering service The old business model brought in revenue from - Regular architecture & engineering service
consultation Fees (Hourly rates) regular architectural and engineering services based consultation Fees (Hourly rates)
- Heritage Consultation Fees (Hourly rates) on hourly rates and a higher fee for heritage - Heritage Consultation Fees (Hourly rates)
consultation. With the implementation of the - BouwMeester Pro method Coordination fee
BouwMeester service, this opened the company to - BouwMeester Pro Incentive
be able to create new revenue streams through firstly

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 the BouwMeester coordination fee. Secondly, the
company has created the project incentive that
allows any remaining project budget to be divided
between the client and Rothuizen, this is aimed to
motivate efficiency and streamline activities.
9. Old Channels 9. New Channels
Personal and Professional network (developed While the company still largely relies on their 90- - Personal and Professional network (developed
through the 90 years) year-old reputation, they have now expanded into through the 90 years)
more proactive channels of obtaining new clients - Direct mail, advertising, web page follow-up, free
such as direct mail, advertisements, company publicity and thematic campaigns
website and campaigns.

Figure 4-3: PROCOS Individual BMC Block Transformation

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 4.1.3. Case 3: PROCOS Group

Company Narrative

Created in 1990 as an off-shoot interior design company for ELD Architects. While ELD designed the buildings of
large multi-national clients, PROCOS provided interior design services for their offices. 8 years after the company
was created, they started integrating facility management programs as an additional service to help their clients
keep track of how much space different departments were taking up and how these spaces would be efficiently
managed. This development opened the doors to facility management becoming a key activity of the firm.

Today, the PROCOS group markets itself as a workplace manager and technology company. They focus on three
main aspects of companies- Space, Software, and Soul. The company provides the full breadth of design and
CREM services starting with workplace strategy, space planning, interior design, project management, facility
management, asset management, and the development of software and programs to assist in facility and project
management. With a diverse and vast network of technical specialists both in-house and as third party
connections, they can give clients an umbrella of services that they oversee and optimize. The company has three
offices located in Belgium, the Netherlands, and Portugal.

“We work for teams that want to grow in an environment that supports the development of
their talents and collaboration. Because the physical and digital working environment
supports the productivity, engagement, and satisfaction.” – PROCOS Group website

Reason for Innovation

The business model of PROCOS is met by three main challenges which drive the need for change. First, the model
faces challenges from adjustments due to changes in the environment, specifically how globalization has affected
the way their clients do business and how this affects the services that they need from PROCOS. The changing
EU regulation on sustainability and world events (COVID-19) has changed what services can be provided to clients
and has also presented unique opportunities for the company to venture into due to these environmental
changes. For example, the ongoing crisis of COVID-19 presents a unique opportunity for the company to help
their clients safely go back to work. For this, they created the “Safe@Work” app which ensures social distancing
of workspaces. The app provides an online reservation tool and links the activity in the office to a cleaning
company to ensure all spaces are disinfected based on what is used.

“So we are not a hit and run organization, we want to be a trusted advisor, for our clients…we
see the issue that this group of our clients has in the upcoming months, and we say- okay, let's
create a solution for the questions that will come in the upcoming weeks. So we are very reactive
on looking into to the opportunities… based on the market, what happened in the market, we
say, Okay, let's take the opportunity, and let's provide the new technology and new service.”
– Jos Duchamps, (2021)

The second challenge faced by the company is the need to adjust due to new technology/services to market. An
example here is the integration of new green labels and awards. The company used to market itself as designers
with a focus on “wellness and sustainability” for the working environment for 20 years however, with the influx of
new sustainability design frameworks (Green Deal and WELL buildings), they have pushed them to rethink this
value proposition and aim to integrate the newest sustainability design standards and labels. Aside from this, the
introduction of SMART Buildings has started to present itself as the next frontier and a business opportunity that
the company is interested in exploring.

“We don't have too many smart buildings yet. We have a lot of technology in the buildings.
But we don't have a smart building. Because there's a good definition from the Building
Performance Institute Europe about what is the smart building. But very often the word is used
without it's not covering the flag very often. And so there we see also an opportunity and so
that so the first one, it was an opportunity based on something COVID raised, and we adapt

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 and we see okay, this is service. The second thing is from the existing service that we say okay,
with the new standard, we can leverage this in the future. The third one is really because we're
convinced off of that EU regulation related to Green Deal will have an impact on the built
environment. So we want to be prepared to this and to develop our smart building services in
the future.”
- Jos Duchamps, (2021)

Lastly, the company is driven to innovate due to its desire to future-proof the business through exploration of
competitive advantage. Their focus on finding their competitive advantage is focused on utilizing facility
management as their main differentiator. The company also develops its designers to think outside the box and
educate themselves on larger issues and changes within the built environment through fostering open discussion
and continued education (PROCOS Academy) in the company. From the challenges present, the epicenter of the
problem PROCOS faces is categorized as an Offer- Driven problem focused on challenges related to their Value
Proposition. While the problems of the company can be seen as both reactive and proactive, they all relate to the
need to adjust the services the company offers. The transition of the Value Proposition was reinforced by
substantial changes throughout five BMC blocks.

Challenge BM faces

1. Crisis/nearth-death experience of BM

2. Adjustment due to change in the environment Due to the nature of their clients (large mulit-national
corporations), the services offered by PROCOS are largely
influenced by larger work issues. Some examples of these are the
changing EU sustainability requirements for construction,
globalization, and COVID-19. They are constantly looking at the
changing market and trends to identify how they can better serve
their clients by addressing changing requirements that are
brought by shifting environments.

3. Adjustment due to new technology/ services to market Like the shifting environment, the changes brought about by the
latest technology and processes drive what services PROCOS
provides its clients. For example, the company has made
sustainability and wellness a core principle in its designs since the
beginning. However, this is no longer unique as majority of firms
now provide this. The company needs to search for a more
prominent offering along the lines of sustainability (i.e. WELL
Building Services or other green building standards) that will
elevate the company. Other items related to this challenge are
the use of specific software and the offering of new design
services related to the software.

3. Need to future-proof model through exploration of Driven by an entrepreneurial spirit, the company is constantly
competitive advantage researching on new technology and systems to leverage
themselves in the future by utilizing these as offerings and ideas
as business opportunities and new services to provide their
clients.

Epicenter of Problem

1. Resource Driven

4. Offer Driven Driven by changes in the environment, the emergence of

new technology and services to the market, and the
desire to stay ahead of contemporaries, PROCOS
continuously focuses on the improvement of business
offerings and key services. The desire to adjust the value
proposition to stay ahead of their contemporaries is the

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 primary reason for the adjustment and improvement of
the business model.

5. Customer Driven

4. Finance Driven

Graphic representation of epicenter in BMC

Type of Strategy

1. Novelty

2. Lock-in The company focuses on providing the entire range of

architectural and CREM services. The company is
currently comprised of architects, designers, and IT
specialists that focus on the design and development and
of in-house programs. The facility management
specializations are outsourced to their network of
professionals. The company acts as a generalist who
begins the design process as a space consultant and after
the design is completed, connects the owner to different
FM experts which they still oversee and monitor. The
package they deliver to clients is a holistic and fully
integrated design and CREM scope.

3. Complementary

4. Efficiency

Table 4-4: BM Challenge, Epicenter and Strategy PROCOS Group

Business Model Transition & Adjusted Blocks in Sequence of Transformation

From its original value proposition which focused on creating designs that provided a healthy and good working
environments that support the well-being of workers through interior/space design the company went through a
sequential pattern that involved the updating of the company’s key activities, key resources, key partners, cost
structure and revenue streams. The adjustment of these primary blocks led to alterations in the other blocks which
ultimately enabled the company to provide their new value proposition, creation of working environments
through an integrated approach with Space, Software, and Soul. As the company originally focused on interior
design services, the key activities were adjusted when corporate clients contacted PROCOS for assistance to be
able to first monitor the amount of space different departments of the company were using through ARCHBUS.

65
PROCOS developed this concept further by using ARCHIBUS to provide ways that the companies could more
efficiently manage and maintain such spaces through furniture and equipment tags. This provided clients with a
clear overview of the size and costs connected to the space the company took up which allowed them to
understand the financial flows related to this and integrate it to the larger businesses. This was developed even
further later to be used to schedule maintenance and create ticketing systems. The process of slowly integrating
a long list of CREM activities took around ten years.

In the transition of key resources, PROCOS employed managers with not only a design background but with
experience in the realms of FM processes and technology/IT system. These managers were vital in the adjustment
of the focus of the company from purely design to a multi-disciplinary one (design, facility management and
technology). With this new focus, they needed to invest in strengthening their IT systems to support the FM
services and create more efficient design processes. The company also transitioned from using cad software and
project libraries to more complex systems such as multi-project management systems and BIM. Furthermore, the
technology of the company was also elevated as they did not stop at using programs, but they began creating
their own programs and providing tech support to improve on efficiency and office management for their clients
as additional services (Safe@Work and Multi-Project Management Program). For key partners, PROCOS originally
had ELD Architects as their only partner, however, the expansion towards facility management introduced them
to International Facility Management Association (IFMA) which brought in technical specialists and professionals
that became their third-party suppliers. ARCHIBUS also became a major corporate partner throughout the 25
years they have been using the program. For the cost structure, the original expenses of the company were
focused on salaries for architects/designing and CAD programs. Today the company has employed facility
managers, IT staff, and program developers. The company also spends on many different licensing of programs,
specifically multi-project management systems and their own programs such as Safe@Work.

The transition of the customer relationships block mainly had to do with how corporate clients have changed due
to globalization and the centralization of certain departments. When the company first started, they had a close
relationship with the managers of the companies who approved the designs, proposals and final output by
PROCOS. If the project was in Belgium, they would directly talk, coordinate and work with the facility manager in
Belgium. This slowly changed when companies began to internationalize and centralize departments; separating
procurement departments and facility management departments from where the actual buildings and end-users
were located. This meant that PROCOS would now have to coordinate and discuss contracts of work with the
procurement department in the main regional office hub. This back and forth happens with the procurement
managers, who do not have any background FM. After the contract gets approved, PROCOS is in coordination
with the head of FM in another country, still, a different office from where the actual building PROCOS is
redesigning/maintaining is located in. The complicated process of having to deal with the same clients, to provide
the same services makes it a more costly process. A big factor of personal relationships with the managers and
facility management team of the clients is also removed. However, due to the past of PROCOS and the long-term
relationships they have formed with the clients, the cost of services are not an issue. The clients pay for the quality
they are assured of with the company. Despite this new structure, PROCOS is still able to provide a high level of
personal assistance to companies, however, they now do this through more automated systems and apps.

In the old business model, the company relied on the network of ELD as the main channel to obtain clients.
However, as they slowly became their own entity, they focused on utilizing a sales force, their company website,
and the focus on creating research. The company produces different papers, e-books, and documents that discuss
space planning and CREM topics. They do this not only to market their projects and services but to be seen as a
knowledge base for designers, technical experts, and clients. PROCOS also obtains clients through shared
projects with contacts they get through IFMA. Lastly, the biggest channel of new projects is their repeat clients.
With all things considered, the customer segments of PROCOS remained the same throughout the lifespan of
the company. They clients are still all large corporate multi-national companies and government organizations.

66
 “We provide consultancy services on facility management, lease and property
administration..we provide the technology to do it. So we're not specialists, for example
in, in security and safety, but we know high level how security and safety is organized. With
implementing ARCHIBUS, if we need a specialist, or if the client has no specialist, we can
look for a specialist bring in his expertise in our project and actually implement it the
ARCHIBUS system. All of these components that you have; leasing and property, IT,
portfolio management, we can cover them in the service that we provide an implementing
ARCHIBUS. Again, without being a specialist in each of one. But we have the entire
overview because most of them are actually subcomponents of facility management.
Facility management is the overall umbrella that people, places and processes in the built
environment to improve the quality of life of people, and the performance of the
organization.”
- Jos Duchamps, (2021)

Figure 4-4: PROCOS Sequence of Transformation

New Business Model and Organizational Values

Through the new architecture-CREM BM that is focused on aligning space design with facility management and
technology, PROCOS improves on the use-value of the buildings by firstly using tools to explain how buildings
are being used through space management. Through this information, the company is then able to advise on
how to maintain the environment properly and efficiently. Using the knowledge gathered, PROCOS is then able
to create space designs that integrate the user-specific findings, which results in the environments being custom-
made for the specific company processes and culture. Through the expansion of services offered by the company,
they widen their understanding of the built environment. Although not directly doing the services, they coordinate
between suppliers and maintain a macro perspective of overall activities and possible clashes. Through these

67
activities, they develop an understanding of the ecosystem interconnected aspects from design, finance,
construction, maintenance, and demolition. With this understanding, they can design better spaces for their
clients and they utilize their learnings and implement the findings in new projects. With the breadth of FM services
and the label as the central manager of the lifecycle of the building (from design to recycling), they elevate the
perspective in which clients see them, enhancing their value as professionals and what they bring to the table.
With a clear view of the added value a professional brings, this can easily be reflected in the exchange value the
company and clients agree upon. The holistic set of offerings the company provides clients creates a differentiated
value proposition that simplifies the design, use, and maintenance of buildings through a lock-in strategy. The
ability to streamline this process for clients is used by the company to request for higher professional service fees.
This approach works for PROCOS because they can identify in numbers how much they can save for their clients
by obtaining their services; justifying their professional rates.

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 1. Old Value Proposition 1. New Value Proposition
Provide healthy and good working environments that From an interior design company under ELD, Creating and maintaining working environments
support the well-being of workers through PROCOS designed the interior of ELD’s projects. through an integrated approach with space,
interior/space design. As PROCOS expanded, new managers with software, and soul.
backgrounds in facility management, engineering,
and technology entered the company bringing
new knowledge which led to new services and
collaboration with ARCHIBUS. ARCHIBUS
technology to answer questions of their clients
regarding the sizes of space their company was
occupying which evolved to furniture and
equipment management, and later Fm.

2. Old Key Activities 2. New Key Activities

- Standard Architectural Services: Preliminary From only the building permit section. Clients - Regular Architectural Services
design, final design, technical - design, price & started to ask for solutions on how they could From Pre-liminary – design execution, they added
contract formulations, execution- ready for execution monitor and optimize the amount of space and Initiative/Feasibility (IH), Project Definition (PD),
design resources the different departments in their Structural Design (SO), Implementation Design, and
- CREM Services: workplace design/space planning, companies were using; PROCOS used ARCHIBUS Use/Operation.
design and construction management to keep track of sizes of spaces. Later on they used - CREM
it to manage furniture and equipment and FM. Entire list!

3. Old Key Resources 3. New Key Resources

- Employees (architects/designers) the office employed managers that had a focus on From Human resources focused on architects and
overall FM processes and technology/IT systems. designers, they added managers with FM and IT
Created a larger IT/ tech team to integrate FM experience. For software resources, from using
programs and software into the design process mainly Project Library (project management
and post-construction services. From a Project documentation program) and CAD, they added
Library and CAD software as a design company, ARCHIBUS (FM software), PL5 (updated project
they integrated ARCHIBUS and MP2 (multi-project management program),
management program). The most recent addition MP2 and Safe@Work (PROCOS made program)
due to COVID-19 is “Safe@Work”, an in-house
created software

4. Old Key Partnerships 4. New Key Partnerships

- ELD Architects PROCOS started as the interior design company Long-term corporate clients-partners (SMART
linked to ELD Architects; obtained all their projects buildings), IFMA (learning partner), Technical
through ELD. However, as the value proposition of Specialists and Professionals from IFMA, ARCHIBUS
PROCOS started to change mainly due to clients’
requests and needs, they shifted focus on a larger
set of requirements outside design which led to
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 them operating independently of ELD. As the
company slowly started offering space
management, strategy and FM services, they
became active in the FM network and joined IFMA.
Through IFMA, they were able to connect to more
technical specialists who became third-party
providers. This allowed them to offer clients more
activities within CREM and strengthened their
position as overall integrators of the FM through
both their macro perspective of the entire design
phase to how this would be efficiently managed
daily.

5. Old Cost Structure 5. New Cost Structure

- Employee salary (Architects & designers) With the scope of the company evolving towards Employee salaries were initially for architects and
- Software (Project management systems & CAD) CREM and Technology, employees and salaries for designers but now include FM managers/staff and IT
these departments were added. In line with this, staff/department. Coming from using project
the software licenses and programs also increased management systems and CAD as main company
as they were being utilized in more projects. Lastly, software, they now heavily integrated ARCHIBUS,
the technical support for the company reduced Multi-Project Managers, and Safe@Home.
their in-house systems and storage to data center
subscriptions
6. Old Revenue Streams 6. New Revenue Streams
Professional fees for interior design services Professional fees for interior design services based
(percentage of total construction cost) on the total cost of materials and time spent
Technology and support fees for project
management programs developed in-house and
supported by PROCOS
Subscription to ARCHIBUS service by PROCOS

7. Old Customer Relationships 7. New Customer Relationships

- Close and personal relationships with clients built on When the company first started, they had a close Corporate and systematic but having a high level of
trust and human interaction relationship with the managers of the companies personal assistance with automated services
who approved the designs, proposals, and final
output by PROCOS. This slowly changed when
companies began to internationalize and
centralize departments. The procurement
departments were separated from the end-users
of the designs proposed by PROCOS. This
reorganization has made both procurement of new
projects (with old clients) and other approval of
costs for projects a more tedious process. In the
earlier days, PROCOS would be able to sit down

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 and submit a proposal to the facility manager
directly and sign the proposal versus the current
standard procurement process which can take up
to 8 weeks. This proves to be an expensive
endeavor for both PROCOS and the clients as
there needs to be a lot of paperwork, submission
of documents and legal checking for every single
project. With more centralized departments,
PROCOS is not able to talk to facility managers on
site in individual buildings, but they now
coordinate with regional heads, which removes
personal connection with the companies and
facility managers. Lastly, when dealing with
procurement departments, you are not
coordinating the proposal with facility managers
but with procurement staff that do not know
anything about FM.
8. Old Channels 8. New Channels
- ELD network When the company was connected to ELD, they Own channels: salesforce (tele-marketing), Website
got all their clients from ELD’s network. 31 years development, White Papers/Ebooks/Research (on
later, projects related through ELD make up only website) and repeat clients
5% of the total revenue of the office. Since Partner channels: IFMA events
expanding its services, PROCOS has shifted its
attention to procuring new clients through its
website and sharing its own papers and e-books
on space design. They do this to be seen as a
knowledge base. The company currently still does
telemarketing. They also get introduced to clients
via their partner channels, specifically technical
specialists from IFMA. Lastly, the company gets
most of its new projects from repeat clients
9. Customer Segments 9. Customer Segments
- Large international companies and governmental No change Large international companies and governmental
organizations organizations

Table 4-5: PROCOS Individual BMC Block Transformation

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4.2. Cross-Case Analysis (Similarities & Differences to create archetypes)

Business Model Challenges

When comparing the different business model challenges of the companies, the initial categorization has four
main options; crisis/ near-death experience, adjustment due to change in environment, adjustment due to new
technology/services in market, and the need to future proof. However, In the cases presented it can be identified
that each of the challenges can be categorized as being internally or externally driven. In the cases, internally
driven challenges come from the company’s inner need to change to remain at the forefront of the industry,
improve their standing/reputation, maximize a possible business opportunity. Internal challenges are focused on
positive motivation and a drive to improve. Oppositely, externally driven challenges are driven by pressure
outside of the company to make an adjustment in which if the company does not do, a crisis or negative effect
will happen to the company. Some examples are customer complaints, lessening the scope of architects in
projects, and the need for architects to implement updated sustainability regulations. In the cases, Vakwerk has
one main challenge and can be identified as an internally driven challenge. The challenge is internal as it centers
on the office’s aim of differentiating itself due to the partner's experience of the architecture industry and the
importance of being able to give clients more value to thrive as a company. Rothuizen faces both internal and
external challenges. The problems under Crisis/near-death of BM (external), Adjustment due to change in
environment, Adjustment due to technology/services to market are all external. Meanwhile, the challenges faced
under the need to future-proof model are driven by the company’s own desire to “break the glass ceiling”;
categorized as an internally driven challenge. PROCOS also faces both internal and external challenges. Their
challenges under Adjustment due to change in environment and Adjustment due to new technology/services in
market focus on externally driven problems. While their challenge under need to future-proof model through
exploration of competitive advantage is an internally driven problem. Across the three cases, it is apparent that
the challenges categorized under crisis/near death of BM, adjustment due to change in environment, and
adjustment due to new technology/services in the market originate from externally driven problems. While the
challenge of need to future-proof model through exploration of competitive advantage is the only internally
driven problem. Two out of three companies update their business models due to external and internal problems.
Vakwerk is the outlier, as they are updating the regular business model of traditional architecture due to an internal
challenge. However, due to the company’s young age, it is possible that they have not yet been in business long
enough to experience or evaluate how a crisis has affected their office. As COVID-19 is currently happening, this
may present itself as the first crisis that the office experiences; creating new challenges and the need to readjust
the business model once more.

In the exploration for a competitive advantage, the two cases (Vakwerk and Rothuizen) use a Complementary
Strategy while PROCOS uses a lock-in strategy. These two types of strategies are focused on extending the
activities outside the regular design phase. Connecting this to the image The position of AM within the Project
Lifecycle (Emmitt, 1999), each company focuses their competitive advantage on different portion/s of the building
lifecycle. Vakwerk focuses on pre-design and project management, which locate them in the Design and
Construction quadrants. Rothuizen focuses its competitive advantage on design and construction sections.
PROCOS’ services are in design, construction and maintenance quadrants. While both Rothuizen and PROCOS
extend beyond the Design quadrant, the scope of Vakwerk largely still lies within it but indicates the desire to get
into the construction quadrant. This is reflected in the new business model of Vakwerk, which focuses on the type
of company the firm is currently working to become. However, based on their design new business model value
proposition, they still want to remain largely as a design firm and focus much of their company development and
offerings in the Inception point of projects.

The Epicenter of Business Models

While the type and number of business model challenges that the companies experience differ, all the epicenters
indicate they experience an Offer Driven problem. Vakwerk and PROCOS have a single epicenter problem (Offer
Driven). Rothuizen has a Multiple-Epicenter Problem that is comprised of Offer-Driven and Customer-Driven. In
the case of Rothuizen, their customers voiced out their unhappiness which added to the existing set of problems

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they were already facing with their value proposition. This indicates that all the cases believe that their problems
lie within their value propositions.

Transition and Patterns of Business Model Transition

In the analysis of the transition pattern, emphasis is put on the similarities and differences of the patterns of the
building blocks that must be changed to update the value proposition. These will be referred to as primary
adjusted building blocks. When discussing the sequence of the business models, the researcher will focus on
changes of the primary building blocks over the sequence of changes throughout the entire canvas.

The first observation that while all three companies focus on the epicenter of adjustment of value proposition,
the first two adjusted blocks in sequential order in all cases were, the key activities and key resources. From this
we can say that there is a strong co-occurrence throughout all cases that the companies start their transitions in
an identical way, focusing on internal changes. Looking at the epicenter of the problem being value proposition
change, and the first two adjusted blocks (key activities and key resources), it is apparent that there is strong focus
on internal changes of business models before adjusting external relations and costs.

The second finding is that Rothuizen and PROCOS share the same five-step pattern of transition. Starting with
the Value Proposition block as the epicenter of the challenge, they transition in the following steps: 1. Key
Activities, 2, Key Resource, 3. Key Partners, 4. Cost Structure and 5. Revenue Streams. Vakwerk’s sequence is 1.
Key Activities, 2. Key Resources, 3. Key Partnerships. When looking at the business models of Rothuizen and
PROCOS, you can see that the third BM block adjusted in the sequence, key partners is a keystone of their new
value proposition. Their value propositions are largely anchored on the integration of third-party services (FM
practices) or the work of third parties (suppliers). While the two companies focus on different types of partners
and different value propositions, their key partners enable the companies to offer multiple CREM activities.
Oppositely, Vakwerk’s value proposition is focused on the skills and activities internal to the company (stakeholder
processes); do not rely on partnerships to perform their value proposition. While Rothuizen performs a majority
of the actual CREM activities (focused on construction and project management) themselves, they use their
partners as construction suppliers. PROCOS on the other hand, outsources much of the CREM activities (focused
on FM) but takes on the role as a coordinator between all the FM professionals and the environment. They use
their partners and technical experts that work as extensions of the company through outsourced work. Despite
the same sequence, the companies still have unique value propositions and can monetize the talent of their
partners to positively affect their businesses. As the partner networks of both companies are unique due to their
exclusive access to technical experts through the organizations (PROCOS) or the long-term partnerships and trust
that have formed throughout the years (Rothuzien), and the general depth of knowledge they have of suppliers
within the industry; make their business models harder to replicate thus making it more unique. PROCOS and
Rothuizen are both able to provide medium to high number of CREM activities as services through the support
of the technical expertise of their partners. Furthermore, the companies who prioritize the key partners in the
transition of the business model (PROCOS and Rothuizen) result in having three to four revenue streams as
compared to a Vakwerk who only has one main revenue stream. When connecting key partnerships to a larger
business model, it can be identified that the integration of a network of partners, 1.) increasing or improves the
uniqueness or strength of a value proposition and 2.) results in the ability to provide a wider range of service
(activities), and 3.) obtain more revenue streams.

The third observation is that, while resources are considered one of the most significant building blocks in the
updating of the value proposition, all companies indicate that while technology and software help them do their
work, human resource is the most important. Furthermore, the investment in managers with a focus on specific
technical specialization are both indicated as a key aspect of the diversification of PROCOS and Rothuizen. Both
companies explain that they invested in bringing in managers with a unique focus to integrate into the firm. For
PROCOS it was managers who had a background in technology and facility management and for Rothuizen, it
was the investment in Process Managers to create the Bouwmeester Pro Method. Although these human
investments in specialty managers happened later in the company’s lifetime, Vakwerk can use this as an example
to fast track their specialization towards the development of their focus. By investing in managers who can develop
and focus on their stakeholder process or hire outsiders with this experience, could benefit the company as it

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allows the current architects and managers to continue focusing on architectural work while the business side
develops and is strengthened simultaneously.

Lastly, based on the cases analyzed, customer segments and channels are updated as a reaction from the explicit
updating of the first three or five blocks. While there is a focus on internal BM changes, all three cases do not
include customer segments or channels in the blocks being actively adjusted. Instead, these blocks are a reaction
to what the company has changed in its models. From this, it can be said that the cases focus more on
relationships with existing customer segments rather than looking for new clientele.

Type of Strategy Used

Using the themes of business strategy development by Zott & Amit (2010), both Vakwerk and Rothuizen focus on
a Complementary strategy. While they focus on the same approach, the method of how they expand varies. Using
the methods of business strategy expansion indicated by Winch & Schneider (1993), it can be identified that
Vakwerk uses the method of remaining an architectural firm but expanding to a broader set of services, while
Rothuizen diversifies vertically into construction (Winch & Schneider, 1993). PROCOS is the only one that focuses
on a Lock-In strategy which they do by diversifying laterally into other building disciplines (Winch & Schneider,
1993), specifically facility management through third-party networks.

With the AM theory (Emmitt, 1999), each of the company’s strategies is focused on a phase in the project lifecycle
other than design. Using the Position of AM within the Project Life Cycle, it can be noted in Figure 4-4: Case
Study Companies Position of AM within the Project Lifecycle (based on Emmitt, 1999) as follows: Vakwerk focus
on design management services with an emphasis on briefing/pre-design, Rothuizen focuses on the construction
phase and PROCOS focuses on Maintenance. The strategies used by the cases are also in line with the expanded
functions of Managing projects that aid the transformation of firms towards becoming multi-disciplinary
companies that Alharbi (2013) mentions. Vakwerk focuses on design management, quality management, and
value management. Rothuizen focuses on design management, project management, construction management,
quality management, and value management. PROCOS focuses on design management, project management,
facilities management, quality management, and value management. The specific combination of the activities
of each firm forms a unique character, specialization, and an offering which is reflected in the CREM activities that
they offer. From this, it is apparent that the CREM activities that each firm specializes in is located in a specific
quadrant.

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 Figure 4-5: Case Study Companies Position of AM within the Project Lifecycle (based on Emmitt, 1999).

CREM Activities and Organizational value

A main issue architectural firms face is the ability to monetize the importance and quality of designs as these are
somewhat subjective concepts (Bos-de Vos et al., 2016). When design services (subjective concept) are the only
offerings of a firm, this makes it harder for architects to demand higher professional fees as design is subjective.
With lower fees, the exchange value architects receive also lessens the time and resources they invest into
projects. Less time and resources for projects then negatively affect the end product’s use-value. With lower levels
of use-value, this then also reflects negatively on the professional value of the architect. However, based on the
cases CREM presents itself as an opportunity for architects to be able to justify design concepts and strategies
through the figures and cost savings brought by the architect into the project through the strategies, design,
construction processes, and facility management systems creates by the company.

This objective justification for the exchange value makes the professional service fee architects are asking for
easier to understand and explains indirectly the reason for the cost of the service professional fee (SPF). This
mentality is highlighted in the Rothuizen and PROCOS case, wherein the interviewees explain that the ability to
present a different type of cost savings for the client makes it easier for them to obtain contracts and negotiate
for fees. With higher professional fees, the architects can invest more time to develop projects with a deeper
understanding of the companies processes and needs of the users. This is done in pre-design activities such as
stakeholder/client relationship management, business case development/financial activities, risk management
activities, strategic/scenario planning, and value management. The investment of time and resources to pre-
design activities creates better developed building programs, stronger alignment to the business of clients and
better designed spaces which improve the use-value of buildings.

As mentioned by (Fross et al., 2015), post-evaluation and knowledge obtained during the use of the building
positively affect future designs of architects by adding into their experience. While this is evident in the cases, it
is was discovered that integration of CREM into companies creates a professional who is not only seen as
designers but as strategists (Vakwerk), integrators (Rothuizen), and built environment experts (PROCOS). This
elevates the professional value of the architects as higher thinking experts.

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4.3. Empirical Research Findings

Through the cross-case analysis, the similarities and differences of the cases were identified through the different
business challenges, epicenter of the business model problem, transition of primary blocks, and the type of
strategy used by each case. The framework used to analyze the companies created from the literature review
along with patterns identified in the sequence of adjustment of blocks, the relationships between blocks, and
company history have outlined the differences between companies highlight the unique characteristics of each
company. While the companies have some similarities regarding strategy and patterns of transition, the
determinant factor is the type of strategy and which set of CREM activities they chose to integrate. When looking
at this finding the three cases establish three different types of companies, each with a unique focus using specific
sets of CREM activities in varied phases of the building life cycle.

4.3.1. Case Study 1

The company’s main aim in developing its business model is to find its main competitive advantage through
adjusting its value proposition but still maintaining the focus on being an architectural firm. They do this by
focusing on building on the backgrounds of the owners of the firm; the ability to deal with multiple stakeholders
and inject entrepreneurial thinking into projects. They use this background to develop a stakeholder and value
management process which they implement throughout the different phases of the project, most especially in
the pre-design stage. Their new value proposition puts these ideas in the forefront and aims to create “Built
environment strategies and designs created through a process-oriented approach focused on pre-feasibility and
stakeholder management techniques.”. Through sitting down with the different building users and owners, they
can improve on firstly, the connection between the business model and built environment. Secondly, they can
obtain the requirements, ambitions, and definitions of quality through the various stakeholders involved in the
project.

While their new value proposition process requires in-depth research and feedback from users, it only requires a
low number of CREM services. These services focus on stakeholder, value management, pre-design activities,
quality management, and design management (Figure 4-1. Vakwerk Sequence of Transformation). In the building
life cycle, the company’s focus is mainly on the design quadrant, specifically with inception/briefing stages. This
intricate process creates more user-defined designs and more customized architecture that enhances the project’s
business model and puts the architect in the middle of the design production. This allows the architect more
power and ownership over the building’s outcome, specifically related to costs, specifications, and use of space.

The office currently focuses on care, education, and re-use as their priority customer segments. The company
focuses on developing its human resources to improve on stakeholder and value management. Aside from
internal architects, the company has various partnerships with other architectural and design companies to be
able to garner more projects and create an exchange of ideas and grow through collaboration. Another key
partnership the company has is the connection with start-up real estate developers and developers who need
input with real-estate strategies. This is reflected in the new business model as the company defines itself as a
built environment strategist, not just an architect. They create strategies alongside clients and through a design
manager position, ensuring these strategies are reflected in the final output. The option of becoming a strategy
consultant for real-estate development provides an additional revenue stream that entails shorter periods of
payment or a per-time consultation fee.

4.3.2. Case Study 2

The company decided to update its business model mainly due to the clients who voiced out their frustrations
about the construction quality they received for the costs they spent. As the architect, Rothuizen had limited
power over the construction quality as they dealt with the main contractors who acted more as integrators than
the actual construction. To satisfy their clients, the company decided they need to control the quality of the
finished designs, which could only be done by becoming part of the construction process as the main integrator.
Through this position, they were able to coordinate and design alongside technical suppliers to be able to
improve designs and optimize costs. They developed this construction process and named it the BouwMeester

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Pro Method. With the BouwMeester Pro method, the company ensures the quality of their architectural and
engineering services- taking full control of design to actualization.

The BouwMeester pro The construction process starts with the company sitting down with the clients and creating
a clear image of the quality they want in projects, through discussing their budgets and goals. Agreeing on this,
Rothuizen then takes the risks on during the design and construction. The architects and engineers design the
project then it is passed on to the BouwMeester Pro team. During the BouwMeester Pro, Rothuizen does not do
any of the actual construction but instead divides the building into portions and tasks to be done by different
suppliers. Through this, Rothuizen can directly coordinate with suppliers to improve on the designs
collaboratively.

The company’s unique strategy ensures the costs, design quality, and innovation levels they want for both the
use-value of buildings and their professional value without having to do the actual construction. While this seems
like more of a management job, there is an extremely high level of technical specialization that is required by the
process manager and high levels of risks taken in by the company. This new business model (Figure 4-2. Rothuizen
Sequence of Transformation) focuses on a complimentary strategy between the design and construction phases
by adding a medium number of CREM activities into the BMC such as construction management, project
management, risk management, and financial-related activities.

The company’s new value proposition is anchored on providing clients with “Design solutions and construction
that are within the client’s boundaries of time, cost and quality with increased levels of innovation through the
supply chain” (Rothuizen website). A vital step to obtain their new value proposition was for the company was to
invest in hiring process managers to assist in the development and implementation of this method. After the
process experts created the scheme for the company, they adjusted the costs entailed to support this service
through purchasing insurance costs and contractor licenses- protecting themselves and their clients. The company
can take on these risks, pay for insurances and invest in research and development of the program due to the
sizable company reserves created throughout the years. The new construction method developed by the
company creates architects that have a more realistic understanding of design and knowledge of how things are
constructed. This design and build, or rather design and coordinate construction mentality provide a different
approach to the expansion of services and development of business opportunities.

4.3.3. Case Study 3

Case study 3 began as an interior design arm of a large architecture company. The main architecture company
designed corporate offices ground-up structures and PROCOS focused on the interior space design. The
adjustment to their business model was motivated by an internal drive to improve on the company’s main function
(interior space design) and the natural progression as the office began seeing possible business opportunities
present themselves.

PROCOS first started venturing into CREM to be able to provide their clients with the calculation of sizes of spaces
the companies were occupying through an FM program, ARCHIBUS. After this, they began managing the furniture
and equipment of the companies and later started creating maintenance and facility management schedules for
their clients. During this progression, they started investing in managers who had diverse experience in facility
management and technology development. The type of clients, new human resources and overall entrepreneurial
spirit of the company drove them towards the CREM and technology business focus.
Today, the company provides clients with a large breadth of services that allow them to “create and maintain
working environments through an integrated approach with space, software, and soul.” (PROCOS website) . They
focus on branding themselves as space managers rather than designers or architects. They offer clients a high
number of CREM services with a focus on facility management. The company focuses its value proposition in the
quadrants of design and maintenance. The management functions related to their daily CREM, and design
activities include Design Management, Project Management, Facilities Management, Quality Management and
Value Management.

The transition. The company transitioned towards becoming a high-level CREM-Architecture company by firstly
focuses on creating a new value proposition based on the events happening around them and opportunities that

77
presented themselves. They then investigated how they could capture these certain new market needs by
adjusting their key activities to include a large range of CREM activities. Then they invested more into human
resources to develop the technology and knowledge of the company. While they provide majority of CREM
services, they do this through outsourcing portions to third-party connections while they keep the main dashboard
of activities. Through these new services they needed to adjust their cost structure as programs, software and
experts are all new to the business model. Lastly, the inclusion of CREM was able to diversify their revenue
streams.

This strategy provides architects with the widest range of services and spreads their involvement throughout the
building lifecycle the longest. While present in the design and construction quadrants, their unique added value
is focused on the maintenance quadrants. However, the company was able to create this type of service mainly
due to their exclusive customer segment of large corporate clients. The steady stream of projects and revenue
from these large corporations was also a main factor for the office to be able to invest in research on FM services,
software, and new managers. The unique position of the company allowed them access to customers who needed
innovation and had the budget to pay for it. The company today focuses on management functions of Design
Management, Project Management, Facilities Management, Quality Management and, Value Management.
Today, the company continues to grow and evolve towards sustainability and circularity as new construction and
maintenance requirements to even further push the firm’s impact on society.

Characteristics Case 1 Case 2 Case 3

Strategy Oriented, Young Focused on construction Space, Software, and Soul,

Company Company, Entrepreneurial system integrator, project& change managers,
themes construction management, technology, and design
most mature company,

Established in 2017, 4 years Established in 1930, 91 Established in 1990, 31

Age
old. years old. years old.

Architects from a larger Originally an architecture, Began as interior design

Formation
company created a new firm urban design, and offshoot for a large
engineering company architecture firm

1. Need to future-proof 1. crisis/near-death of BM 1. Adjustment due to

model through exploration 2. Adjustment due to change in environment
of competitive advantage change in environment 2. Adjustment due to new
3. Adjustment due to new technology/services to
BM challenge technology/services to market
market 3. Need to future-proof
4. Need to future-proof model through exploration
model through exploration of competitive advantage
of competitive advantage

Epicenter of 1. Offer Driven 1. Offer Driven 1. Offer Driven

Problem 2. Customer Driven

(Internal change) 1. Key (Internal change) 1. Key (Internal change) 1. Key

Activities, 2. Key Resources, Activities, 2. Key Resources, Activities, 2. Key
Adjusted BM
3, Customer Relationships 3, Key Partners, and 4. Cost Resources, 3, Key Partners,
blocks
Structure, 5. Revenue and 4. Cost Structure, 5.
Streams Revenue Streams

Strategy Complimentary Complimentary Lock-In

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 Remain an architectural firm Diversify vertically into diversifying laterally into
Expansion
but expands to a broader construction other building disciplines
strategy
set of services- pre-design

Low (8 out of 30) with a Medium (16 out of 31) with High (30 out of 31) with a
Number of focus on stakeholder a focus on construction focus on facility
CREM services management and strategic management. management.
planning.

Design quadrant (Focus on Construction Maintenance

Quadrant of
Inception & Briefing) with
focus in Building
the desire to get into design
lifecycle aside
management & project
from Design
management

Design Management, Design Management, Design Management,

Quality Management and Project Management, Project Management,
Managerial
Value Management Construction Management, Facilities Management,
functions
Quality Management and Quality Management and
Value Management. Value Management.

Process-oriented design Design solutions and Create and maintain

specialists focused on construction that are within working environments
integrating complex the client’s boundaries of through an integrated
Updated value multiple stakeholder time, cost and quality with approach with space,
proposition requirements, built increased levels of software, and soul.
environment strategies innovation through the
towards creating impact supply chain.
developments

Table 4-6. Compiled Framework Responses for All Cases.

These findings present unique characteristics based on company strategy, CREM activities and business model
transition. The unique features of each case represent the fundamental characteristics of the archetypes. In the
next chapter, the original characteristics of the cases are generalized to focus on main elements that highlight
each company’s approach, it’s CREM focus, and more importantly, key components that allowed them to venture
into new services. The archetypes represent the ideal version the companies have of themselves, and their
developing ambitions for the upcoming years.

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Chapter 5: Operational Research
This chapter focuses on answering SQ4: How replicable are the architecture-CREM business models of the Dutch
architects in the Philippine context? To do this, three archetypes along with their business models, and key
building blocks are introduced. After which, the archetypes are presented to experts for feedback on each of the
model’s adaptability in the Philippine market. The feedback is then collated and findings on the adaptability of
each archetype are discussed.

5.1. The Architecture-CREM Archetypes

Archetypes are defined as “a typical or perfect example of a particular kind of person of thing” (Oxford Advanced
Learner’s Dictionary, n.d.) and can also be “ the original pattern or a model of which all things of the same type
are representations or copies” (Merriam-Webster, n.d.). The archetypes present three unique architecture-CREM
companies that have been established in the case study analysis. These archetypes are based on the challenges,
strategies, offerings, and the location of their offered CREM services within the AM Project Life Cycle (Emmitt,
1999). The archetypes are variations of the cases that focus on the main characteristics responsible that form their
competitive advantage and the unique CREM activities. The archetypes focus on general architecture-CREM
strategies located within a specific quadrant in the AM Project Life Cycle. One archetype focuses on pre-feasibility
CREM services, another on design to construction, and the last covers the design to facility maintenance phases.
The archetypes that will be presented are the Strategy Oriented Novice, Virtuoso Construction Process Integrator,
and the Hybrid Creative CREM-Tech Expert. The Strategy Oriented Novice

Figure 5-6: Architecture- CREM Archetypes in the Building Lifecycle

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 5.1.1. Archetype 1: Strategy Oriented Novice

Narrative

The Strategy Oriented Novice is a young company or a start-up that is led by architects with a high level of
experience in large projects with multiple stakeholders and an understanding of real estate finance. As a new
company, they are challenged to create a competitive advantage and differentiate themselves in the industry.
With their lead architects having a background that includes large projects and an understanding of real estate
finance, the company focuses on stakeholder management, financial estimation, and the creation of built
environment strategies to build their competitive advantage. Aside from traditional architectural services, they
provide in-depth workshops and financial consultation in the pre-design phase. These include activities such as
appraisal, strategic planning/ scenario planning, workplace design/space design, design and construction
management, project management/development, customer, and client relationship management. The overall
focus of the archetype in user-analysis, strategy creation, and finance, changes the perspective of the archetype
from a regular architect to a design strategist and consultant.

In the design process, the archetype includes design workshops with stakeholders to get periodical feedback on
the updated designs and details to ensure that the intent of the design required by users is still present. Through
this, the product that the archetype creates is a building that goes beyond the expected use-value, with a practical
design solution focused on user requirements and clearly defined costs. Understanding the importance of
collaboration in the industry, the archetype banks on their partnerships with real-estate companies for financial
assistance, with other architectural companies for collaborations and new projects, and other design industries
for continued education and knowledge sharing. Aside from collaboration, the Strategy Oriented Novice utilizes
sharing of information, education, and community participation as a channel to obtain new clients.

They are highly participative in their community, university activities, participate in programs for the public. They
have an active online presence through editorials and knowledge sharing on their digital platforms. They focus
not only on their development but the development of the community they are part of is a creative,
entrepreneurial, and impactful way of marketing their office, connecting with clients, and positively influencing
society.

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 Characteristics Archetype 2: Strategy Oriented Novice

Age of Company/ Formation The company is 5 years old or younger, but partners have a high
level of architectural professional experience (10-20 years) with
diverse, large-scale multi-national projects.

Challenge of Business Model Need to future-proof through competitive advantage:

Driven by entrepreneurial thinking and knowledge of the difficulties
of the construction industry, the company decided to focus on
differentiating itself from other small-medium architectural
companies by utilizing process-oriented design methods that
extract a higher level of understanding of stakeholder requirements
and client goals.

Epicenter of Problem Offer-Driven (Value proposition): As experienced architects, the

founders understood the importance to differentiate themselves as
a design firm and provide clients with unique service to garner
projects.

Strategy Complementary: Focuses on bundling in-depth pre-design services

such as stakeholder management, strategic planning, and financial
analysis to improve on use-value of designs and improve on
business models connected to building programs.

Primary Adjusted Building Blocks 1. Key Activities, 2. Key Resources, 3, Customer Relationships

Number of CREM services Low level (8 out of 30): Appraisal, strategic planning/ scenario
planning, design/space design, design and construction
management, project management/development, customer, and
client relationship management,

Updated value proposition Strategies and designs for the built environment that are created
through an in-depth process-oriented approach centered on user
behavior, business awareness, and entrepreneurial innovation
Table 4-7. Strategy Oriented Novice Characteristics

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 Business Model

Figure 5-7: Strategy Oriented Novice Business Model

Crucial Blocks for Archetype

Key Resources: The most valuable resource here is the background of the partners (human resource) as this is the
basis for their competitive advantage which is the stakeholder management and the understanding in real-estate
finance.

Key Activities: This archetype is largely based on their ability to conduct stakeholder management workshops that
deal with customer and client relationships, community relations/regulations, location practices, negotiations and
deal-making, alliance management, and scenario planning. While their goal is to create strategies that reflect
business goals, they need to act as a mediator in defining project requirements between multiple types of
stakeholders. The archetype must also understand the financial components of real estate and construction,
especially for smaller real-estate developers. This is used to identify how practical strategies are based on real-
estate finance, financial analysis and counseling, risk management, and value management.

Customer Segments: An important aspect of this archetype is the connection to small-medium real-estate
developers who allow them to adjust and build around the business model of a project and space program. The
freedom to be creative alongside financial analysis is key to maximizing the potential of this archetype. The
archetype can provide this service in different building typologies.

Customer Relationships: Due to their focus on the alignment of business development and built environment,
their entrepreneurial mindset and financial knowledge elevate them from the role of an architect to a strategic

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designer. Because they understand the importance of the business organization, goals, and processes, they can
practically reflect these into the built environment to maximize profits and value.

Key Partners: As strategists, they often work with smaller technically specialized companies while they take the
role of the coordinating architect or the strategic generalist. Partnerships are beneficial to this archetype because
of their young age so they must look for other older firms to collaborate with to win bids. These firms can be
specialty firms, generalists, or urban design companies.

5.1.2. Archetype 2: Virtuoso Construction Process Integrator

Narrative

The Virtuoso Construction Process Integrator started as a design company that was unhappy with the quality and
transparency in the traditional construction process. Driven by this frustration and their desire to improve on the
final constructed product and business model, they focused on shifting the company towards the inclusion of
construction and project management as the main service. The Virtuoso Construction Integrator provides
architectural design, engineering, and construction management. They focus on providing designs that fit in the
client’s boundaries of time, cost and quality with increased levels of innovation through shorter construction
supply chains. To achieve their value proposition, they begin all projects by defining the client’s budget, the
expectation of quality, and schedule. They start by creating the design and engineering drawings and pass this
on to the construction team. During the construction phase, the archetype takes the place of the main contractor
as the central construction integrator. They divide portions and activities of the building to send out to third-party
suppliers. The archetype then works with the different suppliers to improve on the submitted designs to increase
innovation and keep costs down. This open process and ability to go back and forth between the suppliers and
the archetype is what enables them to obtain the quality and maintain costs to their expectation. The archetype
facilitates the entire construction process, schedule, and budget.

The company can do this service due to the high level of experience of the archetype in design, technical
specifications, costs, suppliers, and construction processes. They integrate their knowledge into their process. In
line with construction management and project management, the company also offers several financial services
that support construction budgeting, risk management, and different types of relationship management services.
The company was able to provide this type of construction management process due to its knowledge in design,
construction, technical specifications, costs, suppliers, and overall industry knowledge.

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Archetype Archetype 2: Virtuoso Construction Process Integrator

Skillset -High level of knowledge in design and project management skills

-High level of knowledge in architectural, engineering, and
construction processes with diverse projects

Challenge of Business Model 1. Crisis/near-death of BM: The overall shrinking market of

architectural and urban design firms has put additional pressure on
professional rates and project fees. Secondly, the clients are unhappy
with the construction quality, price, and level of transparency that
takes place during the traditional building process.
2. Adjustment due to new technology/services to market:
Changes in the construction market (types of clients, tendering forms,
project processes, legalization, etc. that move work from the
architects towards larger contractors, developers, and manufacturing
industries have changed the dynamic of projects.
3. Adjustment due to new technology/services to market: The
changing quality of technical requirements (due to sustainability
regulation and push for innovation), collaborative processes within
the production chain (tendering forms, project processes,
legalization, etc.)
4. Need to future-proof model through exploration of competitive
advantage: The desire to improve company revenue through
creating more commercialized products/services.

Epicenter of Problem 1. Customer-Driven - Clients and architects are unhappy with

construction quality and the level of transparency in the traditional
design and construction process.
2. Offer-Driven – While the architect’s scope in projects gets less due
to the offerings of different types of companies in the market, the
archetype focuses on regaining lost services by including
construction services in their business.

Strategy Complimentary: The archetype focused on transforming its

operations to improve the standards and construction quality of
design and engineering. They do this by integrating a construction
management or “system integration” method to ensure the quality,
cost, and schedule of construction is met. This creates complimentary
benefits between the design department and construction
department. Using the initially agreed-upon definition of quality,
designers can adjust designs according to the specifications. The
construction team can then ensure that the designs will be followed
closely to design intent.

Adjusted BM blocks 1. Key Activities, 2. Key Resources, 3, Key Partners, 4. Cost Structure
and 5. Revenue Streams

Number of CREM services High level (16 out of 31) with a focus on construction and project
management.

Updated value proposition The construction management process ensures that design solutions
are within the client’s boundaries of time, cost, and quality with
increased levels of innovation through shorter construction supply
chains.

Table 4-8. Virtuoso Construction Integrator Characteristics

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From a regular design company, they had to invest in new resources, partnerships, and insurances to be able to
provide their new value proposition. Firstly, they invested in the research and development of their construction
method to simplify and organize the process they implement in their projects. The archetype also formed
partnerships with a large network of technical suppliers who provide the company with the services and manpower
needed to construct the designs. To protect itself, it was also important for the company to invest in a larger
financial department to track all the expenses of the projects. Furthermore, they also developed a new design
and build insurance policy to cover them in both activities. The company focused on obtaining several contractor
certifications to attract more clients and emphasize the company’s professionalism and capabilities. This is a
complimentary strategy, focused on providing both the front end and back end of construction ensures clients
that the quality aimed will be the quality achieved. While the process involved high risks for the archetype, the
financial gains and end product prove to be profitable financially and professionally.

Business Model

Figure 5-8: Virtuoso Construction Process Integrator Business Model

Crucial Blocks for Archetype

Key Activities
The key activities of the archetype were updated due to the customers’ dissatisfaction with construction quality
and market changes that lessen the scope of the architect. To be able to solve these two problems originating
from the Customer Segments and Value Proposition, the archetype investigated its Key Activities and decided to
design and construction management. With these main activities, the company also supports construction
activities through risk management and safety and security activities. The new activities enable the archetype
central integrator of both the design process and construction.

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Key Resources
The main factor in the integration of the project management process is having people with experience create
and develop the construction process and identify how this will be integrated into the existing company. The
archetype has invested in process managers to streamline the create a system that works for their company. While
construction brings a large change to the organization, the company also largened its financial department to
support the new business focus. Although not an income-generating resource, this was vital to the expansion of
services as they would ensure the company would not lose money (a common occurrence) in the construction
stages.

Key Partners
As the archetype focused on becoming the integrator of the design and construction process, they take the place
of the main contractor and divide the project into small portions to distributed to different suppliers. The
collaboration between the archetype, suppliers, technical advisors is essential to improving innovation and quality
in the design. Finding the right partners with the same mindset are critical in obtaining the aimed outcome.

Cost Structure
The projects are funded by the clients and do not require the archetype to put out investment to start the
construction. The clients and the company open a shared account in which the client funds periodically based on
the construction schedule. Despite this, a substantial amount is still required by the company to invest in different
types of insurances and certificates to ensure their professional safety and be marketable to new clients.

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 5.1.3. Archetype 3: Hybrid Creative CREM-Tech Expert

Narrative

The Hybrid Creative CREM-Tech expert is a design, technology, and organizational support company that
specializes on proving clients with the best holistic working environments by taking care of their organizational,
environmental, and digital needs. The company does this by focusing on change management, corporate culture
and identity consultation, workplace design services, facility management, technical support, and software
creation. While the archetype has a background rooted in interior workplace design, they have shifted focus
towards a larger macro perspective and work towards enhancing all aspects of the working environment. The
archetype is a space manager who leads their clients through design, construction, and building operation stages
which are strengthened through FM and IT strategies.

The need to strengthen their business model is caused by changing environments of the A&E industry and world
events, adjustment to available technology and services offered in the market, and the need to future-proof the
archetype’s business model. They transitioned through investment in technology and managers who had facility
management and technology backgrounds. They have a diverse set of staff comprised of architecture/interior
designers, facility managers, IT managers, and programmers. The various employee backgrounds and
specializations enable the company to extend its service scope. While they do not have all technical specialists
in-house, they largely rely on their strong network of engineers and FM professionals. The company manages the
overview and coordination of output from all specialists involved in the team and creates a design and operation
for a program for the client. Their main customer segment are corporations and multinational organizations that
have large amounts of corporate real-estate and require facility management and maintenance services. The
Hybrid creative CREM-Tech expert does not only provide clients with regular services but proactively provides
them with new ideas to improve on the efficiency of their working environment but also on way to improve
sustainability. Ultimately, the archetype provides a lock-in business strategy through the countless FM services
and contacts they offer clients, ensuring long-lasting business relationships.

This archetype offers a highly diversified set of revenues streams that are present throughout the entirety of the
building life cycle. This ensures business steadiness even when construction markets are down due to their focus
on facility management and software support and even app creation for project management. From these
offerings, they are also able to expand their customer segments into providing technology and software not only
to their primary clients but also to architecture companies and government agencies for projects they do not have
to be the designer in. The diversity and range of offerings of the Hybrid creative CREM-Tech Expert represents

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the pinnacle of a hybrid architecture-crem company fully integrating not only the physical environment but
organizational, business and technology.

Archetype Hybrid Creative Crem-tech Expert

Age of Company/ Formation - Knowledgeable of workplace design, alignment of company goals

and strategies with environment and project management
- Highly knowledgeable e in facility management
- Highly knowledgeable in technology and programming

Challenge of Business Model 1. Adjustment due to change in environment: updating of

sustainability regulations and COVID-19.
2. Adjustment due to new technology/services to market:
competition around sustainability certification, emergency of SMART
buildings, facility management programs, and BIM
3. Need to future-proof through competitive advantage: The focus
of the company is to keep on developing their offered services and
research into new technology and programs to remain at the
forefront of their contemporaries and to better serve their clients for
long-lasting business.

Epicenter of Problem 1.Offer-Driven: Driven by the changes in the environment

(Sustainability regulation changes, new sustainability
standings/measurements) the company must quickly adjust to
incorporate these services as they aim to be at the forefront of green
FM and design.
2.Client-Driven: As the organizations and processes of clients
change, they seek often look at how their environments should reflect
this change. The clients often ask the company for ways of improving
workflow, costs, and output levels through the working environment.
The architect’s job is to understand the question of the client and
seek strategies through design and technology to answer these.

Adjusted BM blocks 1. Key Activities, 2. Key Resources, 3, Key Partners, 4. Cost Structure
and 5. Revenue Streams

Strategy Lock –In: Full architectural design services and CREM activities. They
are present from the initiative phase of design and provide facility
management services executed by third-party FM professionals.

Number of CREM services High level (30 out of 31) with a focus on facility management.

Updated value proposition Designing and maintaining efficient and enjoyable working
environments that are founded on people, principles, business
processes, and technology.
Table 4-9. Hybrid Creative CREM-Tech Expert Characteristics

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 Business Model

Figure 5-9: Hybrid Creative CREM-Tech Expert Business Model

Crucial Blocks for Archetype

Customer Segments
The foundation of a good and strong commercial customer segment was key for this company to provide their
set of services both as an interior design company (original business model) and an independent space manager
(current business model). The connection to large companies with a portfolio of large real-estate assets is a big
factor for the business model as this provided the company with a steady income to be able to comfortably invest
into new technology and processes that otherwise would not have been possible without these types of clients.

Key Activities & Key Resources

Originally an interior design company that focused on corporate spaces, the company transitioned into including
pre-design services and post-occupancy activities when new managers entered the company. These managers
came in with the overview knowledge on FM and IT systems and were vital to the shift towards the full integration
of CREM services in the company. In the initial stages of exploration of furniture and equipment management,
the company discovered the use of ARCHIBUS which later further propelled their activities towards CREM.

Key Partners

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With the new focus on FM, the archetype joined the International Facility Management Association to connect
with like-minded companies, connect with technical specialists and receive industry updates and knew
knowledge. The connection with the organization brought in new specialists that further enabled the company to
expand its set of activities based on a strong and more diverse network in the CREM industry.

Cost Structure

The expanded set of services offered by the company is connected to multiple expenses towards the
development of the services, software and technology fees, and human resources to power these. A large number
of operational expenses incurred by the company relate to technical support and methods of continuing
education or research for constant improvement of services and competitive advantage.

Revenue Streams
The archetype’s expanded partner network, key activities, and new resources create a more diversified revenue
stream. Aside from design professional fees, they obtain revenue from all the FM services, subscription fees from
integrating ARCHIBUS in projects, subscription fees for their internally made applications for daily office
management (Safe@Home), and technology support fees for project management programs.

5.2. The Adaptability of Archetypes in the Philippines

5.2.1. Expert interviewee Background

Expert 1: Jaime Hermogenes (Hearth Group)

With over 20 years in the Philippine Architecture Industry, Architect Jaime Hermogenes has worked on some of
the largest commercial, residential, transportation, redevelopment, and corporate projects. He has been a
professor in De La Salle-College of Saint Benilde School of Design and Arts for the Architecture Program, teaching
design, and professional practice. In 2019, he opened Hearth Group Corp with four partners. Hearth group offers
architectural design, interior architecture, planning graphics, and architectural photography. In 2020, he finished
his master’s degree in Business Administration and Management under the Ateneo Graduate School of Business.

Expert 1: Abelardo Tolentino (Aidea Inc.)

Architect Abelardo Tolentino is recognized as the pioneer of architecture and technology in the Philippine
Architecture Industry. He is the CEO of Aidea, Inc., a Philippine ran but globally integrated design and technology
firm. They focus on providing integrated design solutions focused on architecture, interior design, planning, and
graphic environments. The company has over 250 people with three offices in, Manila, Clark Pampanga, and Abu
Dhabi. The company has over 800 projects in 60 different countries. In 2020, the company ranked number 39 in
the World Architecture 100 (Expertise - Aidea Inc., n.d.).

5.2.2. Feedback on Archetypes

Through the expert interview, this portion will focus on analyzing how adaptable the archetypes are in the
Philippine market. By firstly understanding what challenges the business models of the Philippine architects'
experience, both in their practice and their insight on the overall industry we can identify which archetype is the
most relevant. From here, feedback based on the three archetypes will be presented and then a conclusion on
the most adaptable model will be established.

Business Model Challenges of Philippine Architects

Through the interview with both experts, it was evident that the Philippine architects have faced or continue to
face all four business model challenges that push for the need to innovate their traditional architecture business
models. COVID-19 pandemic has highlight the need to update and strengthen the business models of the

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companies of both Experts. For Expert 1, it is a more pressing task, as they are mainly reliant on design services.
One year into the pandemic, they not only feel the lack of efficiency within their office (work from home) but more
importantly their projects are expected to be completed shortly. With the market still down, they need to find
other business avenues. For Expert 2, while their company is not fully reliant on design services, due to the size
of their office, they do feel the pressure to maintain a certain level of income to maintain the office and human
resources. While Expert 1’s office relied on work outside the country when the local economy was down, the
global economic slowdown removes all possibilities and affects their outsourcing services.

The architects in the Philippines identify that they experience all four main business model challenges daily.
Highlighted by the ongoing COVID-19 pandemic, they indicate that their companies feel the slow down of the
industry at different levels. Expert 1 identifies the concern around their current projects ending; needing to shift
focus on creating new temporary streams of income through possible zoom consultations. On the other hand,
while Expert 2 indicates that there was indeed a slowdown in their firm it was not as bad as expected due to their
shift towards technology. However, their pipeline of projects is much less and they are not able to get new projects
from their usual markets abroad. When identifying challenges due to the adjustments in the environment, they
identify that they feel the design industry is being commoditized. Expert 1 indicates that while many clients have
long-lasting relationships with his company, the longer the relationships last the more demanding the client
becomes, wanting more attention but asking for lower pay. The national architectural organization in the
Philippines (United Architects of the Philippines) has also started promoting and pushing architects to get into
specialization and move away from the generalist mindset. Lastly, it is indicated that the overall quality of
education of young architects needs to be updated and strengthened to provide them with the practical skillset
companies need.

Due to adjustments in the new technology and services to market both architects highlight the need to utilize
BIM further and use this as a spring board to connect and enhance their services. Expert 1 indicates that by
investing in BIM and other technology, he aims to create a more efficient workflow, improving the profitability of
the company. While already the at the top of the BIM industry in the Philippines , Expert 1 identifies the need to
further their focus towards providing facility management services to be able to extend their scope of work past
construction phases of buildings. Expert 2, also indicates the need to use BIM to obtain business through
providing as-built drawings to the aging infrastructure in Metro Manila. Expert 2 also mentions the need to look
for BIM capable engineers. At the moment, his company has to reproduce engineering designs in BIM- taking
twice the effort for their production to ensure there are no clashes. While the Philippine architecture industry is
slowly letting go of the idea that architects must design, they see themselves competing against engineers and
construction companies for services such as construction management and project management.

Given the unstable landscape of the construction industry in the Philippines, the need to adjust business models
to future-proof their companies is constantly evolving based on current events and what their contemporaries are
doing. In separate interviews, both architects indicate the desire to offer services focused on the maintenance
phase of the building, through FM services, technology or by providing BIM plans for old structures that need to
be maintained or renovated. Individually, the two experts also focus on separate aspects. Expert 1 focuses on
future-proofing his company by exploring relationships with construction partners abroad and utilizing the
concepts on lowering costs to implement it to construction in Manila. On the other hand, expert 2 is driven to
future-proof his BM model due to the gap he sees in the market of lack of front-end services (pre-feasibility and
finance) and FM support for clients.

Archetype 1: Strategy Oriented Novice

Based on the feedback of the experts, the Strategy Oriented Novice highlights the gap in the Philippine market
between financial analysts that provide general real estate estimates to real-estate finance counseling that
integrated the larger business model of the company. The former is more focused on standard costs of
construction, which can start as very general estimates for the project but are never followed due to contextual
issues of all projects. As real estate is a unique resource, the financial analysis, and its business model strategies
will always differ from site to site and require someone who understands both the financial and spatial aspects to
tie these together to create strategies, estimates, and guide owners through the business process of
development. Although this gap presents itself as an opportunity, the experts indicate that the gap is most likely

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due to the overall low level of maturity of the market. This reduces this advancement and regular application of
this concept, as local clients have not yet grasped the value of the proper business and financial planning of
projects. The experts indicate that many clients begin large developments with only a goal but no organized
structure of what details to include regarding space planning, financial goals, and business models. While real-
estate finance and business modeling mentality are developing in the larger real-estate players, this will take time
to develop throughout the industry. With archetype 1 focused on strategy, stakeholder analysis, and financial
modeling as their main competitive advantage, this presents itself as a possible risk with the market not being
ready for it. Experts suggest that while there is much value in bundling strategy, stakeholder management, real
estate finance and business model activities for architects; this needs to be presented as “added value” services
and cannot stand alone as the main competitive advantage of the firm. Another challenging point is that the
services offered (specifically stakeholder management) are limited due to the handful of people in a firm who can
perform the activity. In the Philippine setting, the activity would be limited to only managers and lead architects
being able to perform this. Expert 1 brings up the comment that while the offerings are unique, this activity is
also highly personalized and may be hard to replicate exactly for each new client depending on the context.

“Maybe the nearest and most feasible is the first one for starters. Just to select additional
services. The young firms but experienced architects. Yeah, it's number one but here's the
problem with number one, you have a 20 man firm but not everyone there has equal strengths.
My concern is that this service is highly personalized. Now your limitation is the number of
people who are skilled to provide this service. And so, if the base is still design, this is going
to be a value-added model in the Philippines context. Because first of all, as I mentioned, the
Philippine market is not as mature as what you have in Europe. They look at a project
differently, you'll be surprised, even owners of big projects, they don't look at the project in a
very structured way”
- Abelardo Tolentino (2021)

To maximize the main value of archetype 1 which is centered around offering strategy, stakeholder management,
and real estate finance to better equip clients into developing profitable developments the experts bring up the
transition towards incorporating real estate individuals in the firm as initially part-time consultants, then partner
companies and then partners in the firm. While the usual route for architecture firms is to have directors and
owners who come from a technical background, bringing in professionals with a real-estate financial background
could be beneficial if a company chose to take this archetype’s strategy. Furthermore, while this archetype is best
suited for real-estate companies who do not have in-house services, architects who chose to take this direction-
can use these on developers who are “new entrants” into real estate developers, or the other way around. If the
customer base of a company has multiple new entrant clients, this could be a business opportunity to venture
into, creating a real-estate finance analysis package before the design phase or imbedding this additional service
into the design process and identifying a rate for it. While much of the market in the Philippines may not be
mature, the archetype can still be utilized as a pioneering idea. By practicing and highlighting the process of the
main services of the Strategy Oriented Novice, the effects of this will reflect into a user-based and profitable
design which is a good reflection of the process. While some things need to be slowly introduced to the market,
the phrase “learn by doing” is appropriate for clients who otherwise did not see the value of this service. While
the market does not change overnight, practicing this and showing results is a possibility to assist the market
towards maturity.

“We are exploring the specialized services of the architects. more on feasibility, site
selection...the things that the public is not aware they can do. Usually the perception for
architects is already in the design stage- when they're done studying the project, done with
the pre-design stage, when they're ready to design they approach the architect. But when
I was teaching professional practice, I realized that pre-design can be offered to clients.
Actually, we were conducting a survey a few months ago, we were asking non-architects if
they knew architects could provide these services as a standalone service, a lot of people
didn't know this. That we could do feasibility, or site selection, space programming, facility
management... So many people were not aware we provide those services, people usually
think it’s just design.”
- Jaime Hermogenes (2021)

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 Archetype 2: Virtuoso Construction Process Integrator

This Virtuoso Construction Process Integrator archetype was deemed to be the most adaptable to the majority of
the architecture professionals in the Philippines due to the need for world-class professional construction
management services in the local industry and the nature of work in the value proposition. When comparing it to
the first archetype (strategy, stakeholders, and finance-focused), the core values practiced by the Virtuoso
Construction Process Integrator are still in line with construction and architectural tasks although in a more precise
and organized manner. Because of this, the experts believe that while these are still different skills (construction
management and project management) from design, they can be learned easier than a new type of skill like
financial modeling. As construction management is one of the services that can still be charged based on a
percentage of total construction cost, it is easier for a CM to identify how much savings they caLucarmosn offer
the client and put that number towards their professional fee. Unlike design, the value of the CM is clearly
indicated in numbers, making it easier for them to justify their fees and making the business model potentially
very profitable. While the archetype presents itself to be a potentially lucrative opportunity, there are high risks
involved due to the amount of monetary value that the archetype is responsible for daily. While the archetype
does not fund projects or provide initial payments to suppliers, they are still in charge of coordination and
approval of plans, construction materials, equipment, contracts that have a corresponding monetary value. The
way the funding for the project works is that the client and Virtuoso have a bank account in which the client is
required to periodically replenish based on the phase of the project. In this way, it lessens the risk of the archetype
as he does not put out any initial payments. However, it still requires the architect a large financial investment
that they would use for company insurances and certifications to start the company.

“The construction management this is one of the few services that you can still charge on
percentage of construction costs. And the other thing about that is that it's so easy to
explain to the client that if you hire me, you will save 15% on your construction budget.
Clients can easily understand that. If I have 100 million peso Project 15% is 15 million, hey
thats big. Now try as an architect, try charging the client 15 million for 100 million project.
I mean Good luck right.”
- Abelardo Tolentino (2021).

While the experts both agree that this model is the most adaptable for the majority of the architecture firms and
seemingly very profitable, neither of them see their practices following this model. According to expert 1, the
high amount of corruption that transpires within the construction industry has pushed their company to stay on
the design and technology side. Based on their experience, because there is this perspective of bribery and
money-making between architects and suppliers, there is always some level of mistrust of clients towards
architects who are involved in the construction. Due to this, they want to remain totally outside the construction
scope to maintain protect their practice from any possible integrity issues.

“I think the second is most adaptable. And I know some architects are already doing that.
They of course design and there are times that they build their own design, and there are
times they build the design of other architects. Like now in one of our projects, he's an
architect and contractor but he right now is the project manager. Although the services are
"chop chop" but I'm sure, given the chance they can do everything. So there are some
clients that she just designs for, there are clients that they just build for. And then there are
projects they just manage”.
- Jaime Hermogenes (2021)

In the Philippines, many companies provide small scale design-build services mainly due to resource constraints
(investment in materials, people, etc.), this presents a more refined version where the architect can focus on the
process and output instead of having to deal with minuscule details of construction and financing the project. The
experts compared this archetype to the Integrated Project Delivery method of construction, it slightly differs due
to the use of multi-party contract. However, in connection to the archetype, a hybrid between their offering and
an IPD presents itself as an opportunity connected to the archetype. Lastly, the experts suggest that while the
model presents itself as profitable, the overall risks can be furthered lessened. While larger projects present larger

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risks (more coordination, people, suppliers, etc.) focusing on more projects of a smaller scale (residential, small
commercial etc.) and possibly just interior projects, result in lessened risk and quicker project turnover.

Archetype 3: Hybrid Creative CREM-Tech Expert

This Hybrid Creative CREM-Tech Expert was identified to have the most unique offering amongst the three
archetypes. The archetype can provide a unique offering through the use of technology to provide and strengthen
both front-end and back-end services of the build life cycle. While expert 1 indicated that the offering of the
archetype’s value proposition is truly unique and unlike any firm’s offering in the Philippines, he also indicates
that this is the most viable model for his company. While the archetype is focused on utilizing third-party networks
to provide the CREM activities, expert 1 indicates that for their company, they utilize part-time consultants
specifically for the front-end (financial analysis). There are also some parallels with their technology partner and
technology team setup of the archetype. While the archetype can maintain an in-house technology department
that runs ARCHIBUS and creates software which the company offers, Aidea has connected with a third-party
technology partner towards the creation of their own software which will be branded under their company and
offered as an added business for FM to their clients. Expert 1 indicates that while the company will only be selling
and providing support for the programs, they will not be doing the actual FM administration. While the company
of Expert 1 owns the software, the data that comes in will also be owned by them, making it extremely valuable.

“it's a unique offering- Number one, there's a need for both the front and the back end,
as I mentioned. It's technology base, which is what we like. And you know, it, it could be a
unique service here, at least in the Philippines because I don't, I cannot think of a design
firm that has those kinds of offerings”
- Abelardo Tolentino (2021)

The main challenges of the archetype in the Philippine market are firstly the costs of creating and investing in the
technology. While the company of Expert 1 is one of the largest, majority of the firms do not have their financial
resources. In the interview, it was mentioned, that despite the desire to develop towards this many years ago, the
company simply could not afford it yet. The costs related to this include purchasing the program, researching on
the program, employee training, and development of the system into the already existing processes of the office.
For the investment in the technology to be worthwhile, firms must be able to obtain clients that firstly need this
level of service and secondly clients who are willing to pay for the service. The key is to be able to have a large
scale of clients to ensure the investment is profitable. Furthermore, to be able to cover the costs required for
research and development of such technology entails that the office must have a steady and dependable stream
of income that will provide them with business continuity to fund the transition.

5.3. Operational Research Findings

Business Model Challenges and Epicenter of Problems

Through the interviews, it is evident that the architects in the Philippines face the same set of challenges the
Dutch architects face, but at a larger scale. All four challenges that push the need for the innovation of business
models were discussed and indicated as current challenges, most especially with the ongoing COVID-19
pandemic. Furthermore, the epicenters of the challenges met by Philippine architects identified in the interview
can be traced back to resource-driven, offer-driven, customer-driven, and finance-driven, making the challenges
that the firms meet all multiple-center driven. With the strategies and archetypes, the experts have identified that
all archetypes created appear to be adaptable to different extents.

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 Adjustment and Transition of Building Blocks

In the analysis of the levels of adaptability of each archetype, it can be stated that the most challenging blocks to
recreate in the Philippine setting are the key activities, key resource, key partnerships, and customer segments.
While the value proposition is also the hardest block to attain, this is taken as the main goal of the company and
driven by the other blocks. While the other blocks are not fully met, it can be assumed that the value proposition
will not be realized.

The challenge experienced in the key activities is mainly due to the limited scope the Philippine architects put on
themselves and the traditional idea of the role of an architect. According to the interviews, many architects have
a mentality that “to be an architect you must design”.This concept is outdated and is a hindrance to the
development of both the professional, his/her business, and the industry at large. Secondly, the key activities that
are made known and promoted by both the educational institutions and the national architectural organization
are still focused on the building permit activities (design and construction). Pre-feasibility and post-construction
activities are not taught or introduced to architects early on in their education and during their practice as an
architectural apprentice. Overall, there is a lack of knowledge on merely the existence of these activities outside
design and construction.

Key resources block is clearly defined as a challenge early in the interview. Financial resources are the most
obvious limitation for the Philippine firms. The low financial capacity of the majority of the small to medium-sized
firms experience hinders their growth towards utilizing new technology, creating new services, and the
understanding of business management. It was stressed that, while there is an abundance in the quantity of the
human resource in the country, the issue is on the quality of the resource. It was touched upon in the expert
interview that there is a lack of a global mindset in the students entering the workforce. While all archetypes
indicate human resources as one of the main drivers in the realization of their competitive advantages, the need
to have experts focused on the chosen strategy for differentiation is key. While many of the elder Philippine
architects have chosen and continue to choose the path of being a “generalist designer”, firms that want to
expand towards more specific and unique value propositions may have a difficult time finding local architects to
guide them.

In the archetypes’ business models, key partnerships include other architecture professionals and suppliers. While
the Philippine market is not as mature as the Dutch market, issues such as corruption and bribery are still common.
There is still a mindset that architects get paid “commissions” by both main contractors after they are awarded a
project and by suppliers. This is why firms chose to separate themselves from construction companies and
suppliers to protect their reputation and avoid any possible suspicions of bribery and affect client relationships
and future projects. Overall the current level of professionalism in the AEC industry needs to be improved on to
provide better collaborative processes to serve clients better.

Customer segments block also proves to be challenging due to the overall maturity of the market. In the local
setting, many developers do not have formal processes when they begin the development of real estate and do
not feel the need to develop these studies despite the recommendations of professionals to do otherwise. While
a handful of clients have their own standards and real estate financial studies (large real-estate developers), the
majority of clients entering the real estate market are not aware that these exist nor the value it can bring. Due
to their backgrounds as successful business owners, clients often feel that the success and business acumen they
practice in their companies can be transferred into real estate development, which is highly unlikely. It is the role
of the architect to help these clients understand the value of pre-design and feasibility studies. The experts
identify that they do this by bundling the services or creating conditions in which they will accept a project only if
the client obtains the pre-design services. `

Type of Strategy Used

Through the interviews, the experts see the need to improve and value of focusing on real-estate financial analysis
in projects. Both experts indicate their steps or plans towards integrating this into their companies. The focus on
technology, in particular, BIM continues to play a big part in defining the success and revenue streams of

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companies. While many architects in the Philippines still do not use BIM, being a BIM-capable firm can still be
identified as a competitive advantage.

In discussing the main activities of the archetypes, the majority of the firms are still focused on the Design and
Construction quadrants of the AM project life cycle. However, companies like Aidea and Hearth Group are
beginning to explore the Maintenance quadrant through facility management services and BIM modeling of
existing buildings. It is worthwhile to mention that Recycling Management and Demolition were not mentioned
in the interview. From this we can conclude that based on the knowledge of the experts, no architectural firms
provide services in the last quadrant, highlighting the lack of circularity and sustainability efforts in the country
but also an opportunity for growth.

Adaptability of Archetypes

Both experts indicated that Archetype 2: Virtuoso Construction Process Integrator would be the most suitable
business model for the majority of the architectural practices in the Philippines. This conclusion was mainly based
on the existing set of skills the Philippine architects currently posses or learn during their education being the
main competitive advantage of the archetype. However, the Virtuoso is centered on a refined and developed
construction process as the competitive advantage, it would be challenging for the Philippine architects to
provide this level of construction management today due to the lack of professionalism and knowledge in the
field. To be able to provide this service, architects would still need to refine their existing skills. Connecting this
back to the BMC, it can be identified that the main element that is most difficult to replicate in this archetype’s
business model is the key activities block. In conclusion, the archetype provides a clear direction into a possible
business development based on a set of skills already existing, however, to maximize the potential of the
archetype, the Philippine architects need to improve on their construction management skills and project
integration knowledge. As the experts identified the importance of feasibility, finance, and front-end services of
architects, they conclude these services cannot stand as the sole competitive advantage for a company.
Companies who provide these services will still be heavily reliant on the design phase and should only use this as
an added value to projects. The limitation on the focus on pre-design services is due to the market (clients) not
being mature enough to understand the value this brings to projects. Therefore, the architects that provide this
will still need other sources of competitive advantage in their design phases and rely on those heavily as well. The
main BMC block that makes this difficult to adapt in the Philippine market is the focus on the customer segments
block. The third archetype is the most difficult model for the general population to replicate due to the level of
technology, financial resources, and scale of work needed to obtain the main value proposition. While the
company of expert 1 identified this as the archetype they could relate with most, his company is representative
of the companies in the highest tier in the industry, giving them access and resource to follow the model. The
blocks that make the third archetype hardest to attain are the key activities, key resources, and key partnerships.
It can be concluded that the third archetype is only advisable for companies with a high level of financial resources.
To conclude the operational findings, the figure below illustrates the location of each archetype within the project
lifecycle, the corresponding activities of each, and the adaptability of each based on the Philippine market. From
here it is evident that three out of the four phases of the project lifecycle have been represented by an archetype.
However, it is interesting to note that based on the cases analyzed, no archetypes are connected to the fourth
quadrant, Demolition and Recycling.

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Figure 5-10: Ideal Location for Philippine architects

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Chapter 6: Synthesis and Recommendation
The synthesis links the findings from the empirical and operational portions of the paper. In this chapter, one
comprehensive picture is created and the relationships between observations are drawn out and connected to
create the conclusion and recommendation. The synthesis is presented using the outline of the framework used
to analyze the business models. The recommendation section illustrates how the Philippine architects can utilize
the findings to expand their businesses.

6.1. Synthesis of Empirical and Operational Findings

6.1.1 Business Model Challenges and Epicenter of the Problem

The empirical and operational portions of this report indicate that both the Dutch and Philippine architects are
driven to innovate their existing business models due to all four challenges indicated by Osterwalder et al. (2010):
the crisis, adjustment due to changes in the environment, adjustment due to changes in services and the need to
future-proof. While both architects confront the same set of challenge themes, there are several similarities and
differences in the actual obstacles. Both the architects have identified the narrowing scope of work of services
due to overlapping offerings of construction companies and engineering firms as a main issue under the theme
of crisis or new death experience. While Dutch architects do not identify other problems under this theme, the
Philippine architects emphasize the COVID 19 pandemic as the main problem they face. For challenges under
the change in environment, the architects emphasize on on the changing characteristics of clients in both
countries. Aside from this, the Dutch architects identify the changing sustainability regulations as an additional
problem. The Philippine architects do not mention this however they identify the effects of globalization and the
need to generate more competitive and forward-thinking architects. For the challenge of adjustment due to
new technology/services in the market the Dutch architects focus on changes that result require increased
sustainability and collaborative processes. However, the Philippine architects focus on the need to transition to
BIM and utilizing BIM modeling as a service for both the local market and foreign markets. Under the challenge
to future-proof the business models, Dutch architects identify unique set of competitive advantages of each
firm such as focusing on pre-design activities, focus to commercialize their business and exploration of technology
to improve the built environment. For Philippine architects, they identify offering activities under the maintenance
quadrant, utilizing technology connected to BIM, and developing software.

The findings in the empirical research indicate that all case studies have an offer-driven problem. On the other
hand, Philippine architects have their epicenters in all four categories, resource-driven issue, offer-driven,
customer-driven, and finance-driven. This finding indicates that despite the Dutch and Philippine architects
experiencing the same themes of challenges, the Philippine architects have more epicenters to their problems.
The epicenters of Dutch problems are focused on offer-driven and customer-driven, while the Philippine architects
indicated problem driven by resources, offer-driven, customer-driven, and finance problems. This indicates that
it is more challenging to sustain a business given higher number of possible origins of challenges; more difficult
to sustain businesses in the Philippines.

When comparing the Dutch and Philippine firms it is evident that the Philippine architects are behind in terms of
what activities they can be integrated to futureproof, but also the overall mentality of business planning. The
Philippine architects are still focused on the integration of BIM in projects as a new business opportunity and a
competitive advantage. For Dutch architects, BIM is considered a norm, and the focus has evolved into utilizing
BIM to improve on sustainability measures, circularity, and the alignment to tightened sustainability regulations.

For business planning mentality, it is noticeable that Dutch architects have a longer range of planning compared
to Philippine architects. For the Dutch cases, crises are permanent changes that negatively affect their businesses.
When sudden negative economic cycles hit, like COVID-19 they are seemingly more prepared to deal with these
issues. This can be connected to finding in the cases of the Dutch architects showing the inherent characteristic
of constantly reviewing their businesses and trying to implement long-range planning. Overall, the security of the
Dutch architects are also related to the environment they are in which is a strong government and stable systems.

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When compared to the feedback taken from the Philippine experts of many of the companies had started
experiencing very hard times six months into the pandemic. It can be assumed through the interview and the
researcher’s current knowledge of ongoing activities in the Philippine industry due to COVID, that the Philippine
architecture industry is harder hit than the Dutch. This is mainly due to the lack of long-term planning of businesses
and the reactive characteristic of Philippine architects that follow feast and famine cycles. In the expert interview,
it was mentioned by Expert 1 that their company is looking into providing temporary online consultation services
for architecture and interior design advice, and after the pandemic, they will go back to regular design services.
Philippine architect needs to develop a long-term view, not only when a crisis hits but focus on maintaining a
diverse set of revenue streams and not letting it go when things improve.

6.1.2. Adjustment and Transition of Building Blocks

The Business Model Canvas enabled us to identify the change of the entire business through identifying the
changes and the transitions that took place per building block. In the empirical portion, it was discovered that
two cases had the same first five sequences of their transitions, with one company having the first three. However,
in the operational portion, the specific sequence of blocks for the evolution proved to less crucial to the Philippine
architects during the expert interviews. The architects paid attention to what change transpired in every block
and how this affected the company’s value propositions. When looking at the adaptability per building block, it
was discovered that the most challenging blocks to duplicate for the Philippine architects were the blocks located
at the beginning of the Dutch architects’ sequence of transition. The most challenging to duplicate were identified
to be 1.) Key Activities, 2.) Key resources, and 3.) Key Partners.From this finding, it can be correlated that the
blocks which key to the transition and uniqueness of the business model are usually located at the beginning of
the transition sequence. In the operational research, it was found that these are also the blocks that are most
difficult to replicate.

6.1.3. Strategies Used and CREM Activities as a Business Extensions

The aim of business extensions through CREM is to expand business opportunities, increase revenue streams and
create multi-faceted architects. In the cases of Rothuzien and PROCOS, they focus their business extensions in
the Construction and Maintenance quadrants. However, Vakwerk focuses its business extensions within the
Design quadrant by providing more intensive pre-design services. These indicate two different patterns for using
CREM as business extensions:

Pattern 1: Extending business through CREM in other quadrants outside design. This was done by Rothuizen and
PROCOS by extending their company’s value propositions with main focuses in the construction, maintenance,
and recycling quadrants.

Pattern 2: Extending business by providing more in-depth service in the design quadrant. This pattern was shown
by Vakwerk who focused on providing a wider variety of services within the design quadrant.

When this pattern was integrated into the archetypes, the Philippine experts identified that the archetypes that
focus their competitive advantage within the Design quadrant (including pre-design services) had a much more
limited number of revenue streams. Archetype 1 (Strategic Novice) utilized pattern 2 by presenting the built
environment strategy and real estate finance activities as a separate service. The Philippine Experts stated that
the local real estate market is not mature enough for this to be profitable due to only a select few who would
have the capacity to pay for this service and would be interested in it. Whether the pre-design services presented
are very detailed (financial calculations) or general (relationship management), the experts suggest that these still
do not present enough value to be considered as a competitive advantage but can be seen as added value
services in the Philippines. Archetypes 2 and 3 demonstrated to utilize pattern 1. Their competitive advantages
were located within the construction and maintenance (FM) quadrants. These were received with more enthusiasm
by the experts as they said that these were more understandable for clients and would be easier to offer in the
Philippine market. Pattern 1 also increased the number of revenue streams and diversified income of the firm.
However, based on the cases presented, the expert interview architects that have chosen either the combination
of Design-Construction quadrants or Design-Maintenance quadrants were discovered to be profitable, sizable,

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and adaptable to the Philippine market. However, due to the high cost of initial investments and resources that
are required to practice Design-Maintenance (FM) activities that the majority of architects do not have access to,
the construction quadrant consequently becomes the most viable option for the average architect. It is also
apparent that complementary strategies may be easier to attain given the resources needed. Lock-in strategies
provide the potential to be very beneficial however they require much more investments.

The recycling management quadrant was not discussed by the Philippine architects indicating the lack of interest
or unfamiliar scope to them. The unexplored opportunities in the fourth quadrant lead to a new opportunity to
provide the Philippine market. The emergence of a possible fourth archetype that focuses on circularity and
recycling should be further studied. The appearance of this professional is already existing in the Netherlands as
professionals in the built environment focus on circularity and material re-use; creating more reason for architects
to explore this quadrant. Lastly, the emergence of the three archetypes are solely based on the three cases that
have been analyzed in this thesis. However, one can imagine that more archetypes can be created through a
combination of identified archetypes and even subcategories per archetype.

6.1.4. Paving the way for CREM in the Philippines

The architect must understand that the commitments they need to make are a combination of the four aspects of
architectural management: managing business, managing projects, managing learning, and managing
stakeholders. To do this, the architect must understand the commitments they will need to make in the way of
pooling the needed resources, both capital, and human, and devising a modified business model that will suit
the company. To fully maximize the benefits of CREM to the architect’s business model, the architect needs to
take a central role as the “enlightened architecture-CREM” professional and be the main instigator in the
transformational efforts to elevate the maturity level of the client market (real estate developers), their peers and
the academe. It is important that co-professionals in the AEC industry are re-educated to see the possibilities of
the additional services they can offer their larger corporate clients. They can choose the set of services that best
meet their resources and the needs of their clients. Making them realize the challenges their particular practice
faces, the ways to address them, and the resources they need to commit, will go a long way in convincing them
of their new role as a CREM advocate. Depending on the Archetype they see themselves to be, a program to
guide their development in this direction can be formulated together with them. In the process, a clarification of
their clients’ needs or expectations can also be clearly defined and then addressed in their new business model.
With the current oversupply of architects and engineers in the Philippines which over many decades now has
served as the point of the spear which characterizes the overseas labor market. Developing this segment of the
AEC industry by re-training them on CREM will offer a huge pool of human resource with many years of experience
abroad. Their new skillset will make them available to associate with other architects/AEC professionals locally
instead of having to leave the country to work many years abroad.

The CREM professional and their client may, by working together, identify the latter’s needs, both, front and back
ends, and then come around and offer them such a customized service. By doing this, the CREM professional can
enlighten their clients on the large scope of services available out there in the industry, which up to now, has
been beyond their knowledge. Also by identifying these needs, the CREM professional can highlight the weak
points in their client’s business model and work with them as consultants to upgrade their process. By doing all
this the CREM professional contributes to the maturity of the market which will eventually filter out to the rest of
the industry. This effect will then contribute to a larger demand for similar CREM-based services from architects.
Promoting the adoption of CREM principles by architects in the Philippine real estate market will ensure the
success of these developers as they start to employ the methodologies and processes that will guide their
business model, reduce risk, and increase profitability. In the end, it will contribute to a stronger, more stable,
and dynamic real estate industry and give birth to a plethora of AEC companies offering CREM services.

To initiate and sustain a change in the capabilities of future AEC professionals, the technical schools and centers
of the Philippines must review, re-design, and expand their curriculum to include CREM ideas and principles. The
student may then decide to “specialize” in a specific CREM field, while the institution may offer these new areas
as part of their expanded curriculum. Given this new breed of architects and AEC professionals with the required
knowledge in appraisal, strategic/scenario planning, construction and project management/development,

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customer and client management, to name a few, we can then foresee a workforce with an array of the right skills
that will feed into the needs of CREM based companies and their clients in the real estate development industry.

6.2. Recommendation for Practice

6.2.1. Understanding the Business Model and Reasons for Innovation

Architects must acknowledge that successful practices constitute not only of well-designed projects but entail
proper business management Architects must be able to manage the four quadrants presented by Alharbi (2013).
Architects therefore must be able to manage the business, manage projects, manage learning, and manage
stakeholders. Secondly, to improve on their business models, architects must be able to identify and understand
the challenges being faced by their current businesses within these realms. Through the framework presented,
architects can outline these problems and use the business model canvas to map-out the different elements and
focuses of the business to resolve the problems. By firstly understanding how the business works, can the
architects then identify the location of the problem and then improve on it.

6.2.2. Awareness and harnessing the Potential Opportunities Brought by CREM

The practical survival of the architect both in the Netherlands and the Philippines will depend on their ability to
identify new sources of income, and new clients, which they have not yet considered. Through this research, it
was demonstrated from both the literature review and the interviews, that CREM as a business expansion
opportunity is beneficial for architects based on all three organizational values. While CREM mostly remains
outside the regular functions of design, it can be advantageous for architects who want to extend their practices
and elevate their reputation to veer away from purely design activities and transition towards CREM integration.
Given the current climate and changing roles in projects, architects need to become multi-faceted professionals
to succeed and have sustainable practices. Architects need to let go of the notion that architects are only focused
on design, and instead focus on specializing on another quadrant aside from design to create a complementary
strategy. By understanding the specific CREM activities that take place throughout the four quadrants in the
project life cycle (Design, Construction, Maintenance, and Recycling), architects can better understand how these
activities can ultimately benefit their practices and improve on their organizational values.

6.2.3. Choice of CREM: Identifying which Quadrant is Most Suitable

Based on the cases presented, Dutch architectural practices have three viable options in which they can integrate
CREM into their practices: (i) pre-design and design activities, (ii) design and construction activities (as an
integrator), and (iii) design and maintenance (FM). Overall, in the Dutch professional context, these options have
shown to be lucrative and beneficial to the architecture professional. While the pre-design and design mix of
CREM activities may still be a novice idea, the positive projection and strategies to strengthen the business
models as indicated in the archetypes (stakeholder management, strategic planning, and financial analysis to
improve on use-value of designs and improve on business models connected to building programs.) are expected
to benefit the architect based on theory and the current performance of the case. The design-construction and
design-maintenance mixes prove to be safer paths however, they require more investments. Therefore, Dutch
architects can choose between the three options based on the existing resources of the company and the end
goal of the owners.

For small to medium-sized Philippine architectural practices, the most advisable option is that they chose to
integrate the CREM activities located within the design-construction quadrant. This set of activities presents a mix
that builds on the existing strengths, skills and talent of architects and is also more attainable due to the less
expensive prerequisite of initial investments. However, it is important to note that despite the focus being on
construction, it is vital that the architects understand that this role is focused on becoming a construction
integrator rather than a contractor.

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For larger Philippine architecture practices, focusing on CREM activities with the design-construction quadrants
may be better which requires higher investments but will yield higher profits and growth. Due to the size and
steady income of larger firms, they have the liquidity to make the investments required in technology and
manpower for a facility management team. While this may be unchartered expertise in the country, the rewards
of incorporating this service as an offering presents itself as lucrative due to the lack of companies that provide
this service and the growing need to record building performance due to growing sustainability requirements
worldwide.

6.2.4. Integration: Point by point step of integration.

To integrate CREM activities into the business, architects can update their business models based on the
sequence presented that begin with the epicenter in the Value Proposition block and focus on the primary
building blocks as presented by the cases. The sequence is as such: 1.) Key activities, 2.) Key resources, 3.) Key
Partners, 4.) Cost Structure and 5.) Revenue Streams. Beginning with the new Value Proposition, the firm must
then itemize which activities would be necessary to provide the value proposition. They should then itemize what
new resources they would need for such services. Like the cases presented, the investment of managers who can
spearhead the new activities proves to be a method that speeds up the process of integrating the new service
into the existing structure of the company. The architects must then look outside their companies and itemize
what kind of partners can add value and elevate the value proposition. While the Dutch can directly copy the
sequential process of BM integration, it proves to be a little more difficult for Philippine architects as the first 3
items in the primary blocks prove to be the most difficult. Architects in the Philippines along with the national
architectural association must understand how they can update the professional system to avoid these problems
for future architects.

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Chapter 7: Conclusion
This chapter summarizes the research process, the findings, and recommendations to answer the main research
question. The chapter then discussed the limitations of the research, processes the researcher took to ensure the
trustworthiness of the research, and the recommendations for future research.

7.1. Conclusion

The main aim of this thesis was to contribute to the development of both Dutch and Philippine architects through
the identification and analysis of business strategies, and the design of routes towards the expansion of business
opportunities through CREM. The thesis utilized a comparative design multiple case-study approach to analyze
three case study companies and plot out the transitions of their business models and building blocks within the
BMC canvas. The transitions were analyzed through the framework created through a literature review in which
the researcher focused on identifying BM challenge, the epicenter of the problem, the adjusted BMC building
blocks, the strategy used, and identifying the effect on organizational values of architects. This framework allowed
the researcher to understand the context and reasons behind the innovation of the business model. The
researcher first utilized desk research that focused on analyzing company websites and documents, and interviews
as the data collection method. The collected information was then analyzed through a thematic analysis using
Atlas.ti to identify how each building block transformed.

The key finding of this paper is that Dutch and Philippine architects face the same four challenges (crisis,
adjustment due to change in the environment, adjustment due to new technology/services to market, need to
future proof) Philippine architects face more epicenters or causes of these challenges; which make it more difficult
to sustain a business. In the business model transition, it was also discovered that the three cases all began with
adjusting the value proposition and had the same first three blocks (“primary blocks”) in the sequence of transition
of the business model indicating this could be utilized as a standard sequence to be used for other firms. Firms
can update their business models using the sequence of 1.) value proposition, 2.) key activities, 3.) key resources,
4.) key partners, 5.) Cost Structure and 6.) Revenue Streams. The first step into integrating CREM into the business
is for the architect to update their value propositions. Here, they must first identify which key CREM activities they
want to include. From there, they must ensure that they have human resources within the office or hire experts to
help incorporate these CREM services into the existing office functions. Thirdly, they need to look for third-party
partners to assist them with construction integration or facility management services. Next, they must identify all
the added costs that the added activities and partners add onto the business model- many of these could be in
the terms of software subscriptions, insurances, and additional employee costs. Lastly, given the expenses of the
office, they must update their revenue streams and ensure a diverse way of both the source and process of
obtaining professional fees.

From the cases, it was identified that the two main factors that defined the differences of the archetypes were (i)
the type of CREM activity and (ii) the location of chosen CREM activities within the Project Life Cycle. These factors
were the main aspects of the creation of the three archetypes. The archetypes presented were: (i) The Strategy
oriented Novice, which focused on pre-design and design CREM services; (ii) The Virtuoso Construction Process
Integrator which focused on design and construction; (iii) The Hybrid Creative CREM-Tech Expert which focused
on design and maintenance/facility management. For Dutch architects, all the archetypes are viable in the
development of their businesses due to being situated in the same professional environment. However, the main
hurdle that this research has identified that Dutch architects may face in the success of the adaptation of the
business model is finding their key partners which add a significant value to the uniqueness of the business model.

To answer the main question of the research, “To what extent can architects in the Philippines replicate the
architecture-CREM models created by Dutch Architects in order to create future-proof architectural
practices?”, this research has identified that for small to medium Philippine architecture practices, the most viable
archetype to adapt is the Virtuoso Process Integrator. This archetype integrates the CREM services located in the

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design and construction quadrants. For larger architectural practices with more financial resources, the Hybrid
CREM Tech Expert presents itself to be the most lucrative option due to the uniqueness of the value proposition
and overall novelty in the Philippine market. Through the expert interviews, it was identified that the Strategy
Oriented Novice does not demonstrates to be the most difficult archetype to adapt in the Philippines due to the
lack of maturity of the market (clients and suppliers) and limited knowledge on the value of pre-design and real
estate finance services. According to the findings presented, Philippine architects can create future-proof business
models through the integration of CREM services by adjusting their business models to include CREM activities
within the Construction quadrant or Maintenance quadrants of a Project’s Life Cycle. This strategy can be seen as
a firm expanding their businesses either laterally into other building disciplines (Maintenance quadrant) or
diversifying vertically into development or construction (Construction quadrant). While these archetypes provide
frameworks for architects to develop their business opportunities and revenues, a key factor is the architect’s
proactive role in paving the way for CREM in the Philippine industry and their ability and openness to become
multi-faceted professionals.

Figure 7-11: Ideal Location for Philippine Architects

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7.2. Limitations of Research

As the thesis focused on upholding methods discussed above to ensure the research’s trustworthiness, the
research possesses limitations that make the findings unique to the cases and context presented. The research
presents several limitations which build on the specificity of the results coming from the specific cases selected.
Focusing on the empirical portion, the main limitation is that the results are bounded to the context of the
Netherlands and Dutch firms. Due to the limited time for the research, the outcome of the business models and
the archetypes only identify three routes that outline the transformation of architecture firms to architecture-CREM
companies. The results are limited and unique to the three cases studied. The application domain is also limited
to testing the adaptability in the Philippines through the perspective of two industry experts. These experts were
chosen to represent a perspective coming from the business side and the academe.

As the research focused on the transformation of the business models, the difference in the ages of the companies
were a limitation. To counteract any possible effects of this on the results, the researcher adjusted the framework
for the youngest company. For the older companies (Rothuizen and PROCOS), the researcher focused on a
“looking back” process of understanding what transpired in order to position themselves at the location they are
in today. With Vakwerk (5 years old), the researcher focused on creating a “looking forward” analysis, utilizing
their current business model and the “old” model, and using the vision the company has of itself and what they
want to become as the “new” business model. In connection to the age of Vakwerk, the methodology in which
the transition was conducted differed compared to Rothuizen and PROCOS. The researcher focused on activities
that Rothuizen and PROCOS had already done in past projects to input these in key activities. However, in the
case of Vakwerk, the research only utilized actual past activities for the old business model” and included desired
activities to be included in the key activities of the new business model. For clarity of this difference, the researcher
discusses this in Vakwerk’s case and must be seen as an additional limitation of the research.

In the data collected, it is important to include in the limitations that the researcher did not use financial records
of the companies in analyzing the benefits of CREM to the organization. While these were available for some
companies, not all were as transparent and provided these; the research stuck to general indications of success
and effects of CREM to organizational values. Included in the limitations are the constraints of the time of the
master thesis of 10 months to collect data, analyze and interpret. The personal background of the researcher as
an architecture professional with a working experience of five years may have created some limitations in the
research. As someone who is technically trained in the field of architecture, it was the first time the researcher
created and analyzed business models which may result in a conceptual understanding of the larger business
issues and relationships. Lastly, it is important to take into account that the entire master thesis was completed
during the COVID-19 pandemic, amidst lockdown and social distancing measures. Due to these limitations, face-
to-face interviews, the physical collection of documents from office archives, and site visits to the architectural
companies were not possible to occur to adhere to the requirements of safety and social distancing measures.

7.3. Ensuring the Quality of Research

The trustworthiness of qualitative research is founded on four main criteria: credibility, transferability,
dependability, and confirmability (Guba, 2004). The research upholds credibility through utilizing a well-
established qualitative research method specifically, using a comparative design multiple case study approach
and indicating the detailed process in the methodology chapter. Credibility was also held up through the
triangulation of information between the website, the semi-structured interviews, company documents, and the
validation interviews. Lastly, a degree of peer scrutiny was performed between the researcher and both of her
mentors during consultations.

The thesis focused on demonstrating transferability by identifying the companies that took part in the study, the
background and information of the interviewees, the number of interviewees, the data collection methods
utilized, the length of the interviews and how they were done, and the length of the research. To demonstrate
dependability, the research focused on explaining how the research was executed on both a strategic level and
operational level through the detailed explanations in the methodology chapter. Additional to this, the researcher

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will provide an appraisal of the limitations of the research in the next section. To lessen the possibility of having
companies utilize the interview to present themselves in a more advantageous or marketable image, the
researcher focused on activities that can be specifically pinpointed in projects that they have done. In the
interviews, the researcher focused on having the companies be specific on indicating which projects they did
specific CREM activities in for it to be included in the company’s key activities. activities that they currently aim to
begin providing were not included in the business models, except Vakwerker in which their new business model
is a vision of what the company wants to transform towards. To preserve confirmability, the researcher will indicate
how her background may have affected the output of the research ensuring the readers are aware of any possible
bias. As mentioned above, triangulation between the website, documents, and two interviews is also utilized to
counteract any possible biases by the researcher. Lastly through by providing readers with a detailed
methodology of both the empirical and operational portions, the researcher aimed to create an audit trail in which
future researchers can investigate.

7.4. Future Research

The scholarly interest in business management strategies to strengthen architectural companies outside BIM-
focused activities proves to be scarce and few. Future research outlining other possible strategies for companies
to implement present itself, as necessary. This research aimed to add to the limited knowledge of business
extension strategies for architects through the integration of CREM activities. While the cases are focused on the
Netherlands due to the context of the researcher, future research on the transformation of architectural offices in
the United Kingdom and the United States presents themselves as viable research studies due to the growing
popularity and necessity of CREM in these countries. Future research done with a wider selection of firms in the
Netherlands using the same framework and evaluation will add value to the main body of architectural business
management. This opens the possibility for future research to be done with other architecture companies to
provide a more unique plethora of analysis and new “routes” for the business transformation, identifying more
options for architects to improve their businesses.

With the application domain of the research focused on the adaptability of the business models in the Philippines,
research on other Southeast Asian countries is extremely valuable given the overall lack of scientific knowledge
on architectural business management in this region. Given the development in Southeast Asia, the unique
position architecture firms are provides an opportunity for future researchers to analyze how they can improve on
their business management and business processes to strengthen their positions and create more future-proof
firms.

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Chapter 8: Reflection
This chapter discusses the overall process, the argumentation on the choice of research methods, and the choice
of the general topic. The main aim of the reflection is to understand how and why the research process worked,
reflect upon the feedback given by mentors, and illustrate how the researcher has learned from her work.

8.1. Relationship between graduation topic and master program

This thesis focused on architectural entrepreneurship through corporate real-estate management activities. This
topic is categorized between the Design and Construction Management chair and Real-Estate Management
specialism under the track of Management in the Built Environment. My research utilized a qualitative research
strategy through a comparative multi-case-study approach done in a cross-sectional manner.

8.2. Research Method and Approach

The thesis is divided into an empirical and operational portions. The empirical research focuses on creating a
theoretical background that created the framework in how the case studies were analyzed. After the cases were
analyzed, I focused on identifying similarities and differences between the cases which served as a foundation for
the operational research. The operational research began with the identification of archetypes based on the three
cases. For each archetype, I created a narrative, business model, and primary elements of the business model
that were crucial to the success of that archetype. These were then presented to Experts from the Philippines and
feedback to identify the level of adaptability of each archetype was compiled.

The empirical portion of my research focused on desk research to obtain an initial company background and
understanding of the services offered by each firm. This desk research was done by analyzing their websites,
services they identified and the different project write-ups. Using the services and projects discussed on their
website as a basis for the business model, I formed a set of questions that revolved around clarification of
assumptions and asking about the building blocks that I could not obtain information about through the websites.
After the interviews, I then updated the business models and write-ups about the companies and presented them
to the interviewees for a second time. The second time provided me with the triangulation and ensured I had a
clearer understanding of their services, models, and strategy.

While the process of interviewing the companies was interesting, the feedback given to me and the level of
assistance from the three companies varied. Some companies provided me with very detailed documentation
and others did not. While this proved to be a challenge, I focused on analyzing the companies not on the quantity
of documentation they gave but forced myself to stick to the original framework and if things were not clear-
focus on understanding the lacking portions within this framework rather than extending the information about a
specific company. I tried to have the same information on the different aspects given the limitations of the
research and the availability of documents.

For the operational research portion, the creation of archetypes was the hardest portion of my research to do.
The goal for this portion was to create business models that were based on the cases but could be applied to a
more general audience. While there is no scientific process of how to do this, the feedback of my mentor helped
me a lot in this portion.
The second portion of the operational research required me to do expert interviews to obtain feedback on the
adaptability of the archetypes. These interviews happened once with two expert interviewees. While I am aware
that the choice of the interviewee influences the feedback, I tried to widen the perspective by choosing an
architect coming from a large prestigious firm and an architect that has an independent start-up practice and is
part of the academe. With both architects having over 30 years of experience in the industry this seemed like a
logical choice. With the feedback and analysis that I was able to get, I believe that this choice proved to be

108
successful, and they were able to give me a wide range of perspectives and feedback on the archetype which
contributed to my research immensely.

8.3. Graduation project and the wider social, professional, and scientific framework

My graduation project is in line with wider professional issues of the narrowing scope of architects due to many
industry and environmental changes. With the ongoing pandemic, the focus on the importance of business
continuity and development in the AEC industry is extremely relevant. While it has been mentioned in my paper
several times that the construction industry is volatile, during the process of my thesis I have seen the changes
that the COVID-19 pandemic has done to the different practices in the Netherlands and the Philippines. With this
research, I hope to be able to provide architects with tools to help lessen the adverse effects of the larger social
and economic networks outside our scope.

109
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Appendices
Appendix A: Systematic Research Methodology

A literature review is created in order to identify existing knowledge, critically analyse and develop the
researcher’s argument (Bryman, 2012). The next section creates a summary of theories, main sources and market
research that contribute to potential of real estate management services as an opportunity for architects to expand
their businesses. Through a systematic review process, the researcher obtained an initial set of literature which
was later expanded through the snowballing technique. Snowballing was used due to the lack of articles obtained
through the searches. This paper utilised an intertextual coherence process to create connections between the
collection of various theories and findings from research (Bryman, 2012). The research is divided into three main
subjects: Architectural Firms, Business Models and Real Estate Management. A search terms in the chart below
was created using synonyms or main elements related to the main subjects.
Subject 1 Subject 2 Subject 3
architecture firm* “business model” real estate management
architectural “business framework” property management
service*
“Architectural management” revenue* asset management

“architecture and design” “value added” facility management

Search terms (Own Illustration).

This literature review was created to identify main definitions, the frameworks to be used and to identify the
academic and practical gap between the three topics. However, when all subjects were put in a single search on
Scopus, there was no valuable literature in the results. Due to this, the researcher decided to create a smaller
scope by searching for the overlap of two main topics at a time instead of all three. From here, search 1 focused
on the topics of “architecture firm” and “business model”. Search 2 focused on “architecture firm” and “real
estate management”. There was no search done on the overlap between “real estate management” and
“business model”. as the overlap presented research created too general of a scope and remains outside the
extent of this thesis. However, separate literature and market studies will be used to explain both main aspects,
fundamental theories and frameworks of Real Estate Management and Business Models which will be utilised for
this research.

Main topics Venn diagram (Own image)

Search 1 focused on the search query below in image X. This search led to a total of 136 articles. From this I
focused on only open access articles; I was left with 64 articles. The articles were analysed based on subject, main
aim, research question, definitions, theories, background literature, research methodology and results. After the

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filtering systems, 10 articles were chosen for the research. Search 1 was done with terms in figure X to obtain
sources that presented relevant business model concepts in the architecture industry. From this initial search, it
was noticeable that there is a large amount of literature on business model strategies for developing construction
companies and less on development of architectural practice business models. From these already limited
sources, most of the articles are focused on utilising BIM integration and integrated contracts as a strategy for
business development.

Search terms for search 1 (Own image)

Search 2 search terms are identified below. This led to 1019 total articles. We focused on only open access articles
which filtered it to 146 articles. After performing the same filtering method used in search 1, the researcher chose
3 articles to be used for this research. Most of the articles in this search focused on the use and benefits of BIM
integration into facility management and strategies used to improve facility management.

Search terms for search 2 (Own image)

Through the systematic search process, the researcher found a total of 13 articles. These articles only provided
general ideas about the overlaps of the three subjects but did not present theories in which the researcher could
utilise for the literature review. The researcher then employed the cross-referencing articles. From here the
researcher was able to obtain the fundamental papers for this study. To maintain a systematic process, the
researcher focused on a set of words that had to be present in the titles of papers during cross-referencing. The
set of words were business, business model, architecture, architectural practice, architecture industry, AEC,
professional practice, and management. From here I was able to obtain an additional of articles. A large portion
of this study was focused on the research from FuturA research project, a collaboration between Department of
Management in the Built Environment of the TU Delft Faculty of Architecture, Institute for Management Research
at the Radboud University Nijmegen, the Royal Institute of Dutch Architects (BNA) and seven industry partners.

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 Appendix B: Standaardtaakbeschrijving / List of “Standard Task Description” for architects

Source : BNA & Engineers (2014)

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Source : BNA & Engineers (2014)

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Source : BNA & Engineers (2014)

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Source : BNA & Engineers (2014)

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Appendix C : Interview Questions for Case Study Interviews

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Appedix D: Consent Forms for Case-Study Interviews

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Appendix E: Consent Forms for Expert Interviews

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