IDR Business Model
How can prefabricated building renovation be scaled up?
Prefabricated solutions mark a departure from traditional construction, especially in building renovations. We already explored several benefits of adopting offsite renovation techniques, including shortened construction timelines, enhanced quality, and reduced waste. However, their use remains limited. Creating effective business models is crucial to enable the market entry and industry adoption of these approaches.
Developing business models requires identifying the appropriate target audience for each solution and articulating the unique value proposition of these prefabricated offerings. Here we will examine three promising business models examined in the INFINITE project (link) and highlight their specific benefits for each target group.
The business models for prefabricated integrated solutions in building renovation can contribute to market adoption, cost management, operational scaling, and sustainability in the construction sector. Lastly, these models offer a structured approach to changing industry practices and supporting long-term development.
What is a Business Model?
A business model is a blueprint for how a company creates, delivers, and captures value. It outlines the core aspects of a business, including its value proposition, target customer segments, revenue streams, cost structure, and key activities.
In simpler terms, a business model describes how a company plans to make money and sustain itself in the market. Various methodologies exist for developing a business model; one widely recognised approach is the Business Model Canvas, which addresses essential questions such as:
- Who are the target customers?
- What value do you offer to the customers?
- How do you deliver your value proposition?
- How do you interact with your customers?
- How do you generate revenue?
- What are the key resources and activities required?
- Who are your key partners to carry on the activities?
- What are the major costs involved in operating the business?
Three business models have been developed using this methodology. For details on the process and methods, read the report.
