PROPOSAL DETAIL
VALUE PROPOSITION CANVAS
(Evaluates the product-market fit, identifying customer needs and matching that with the product and services offered)
This proposal envisions a development, design and assembly (construction) company that leverages off-site construction to offer a catalog of designed products in the form of predesigned homes, rooms and unitized building facades and other components through an interactive online shopping experience. The products will cater to customer needs of affordability, energy efficiency, health, design adaptability to family structures, site, and other contexts, financial flexibility, smart technology, etc.
Client needs:
Value Proposition:
VALUE CHAIN & CUSTOMER ECOSYSTEM MAP
(detailed, short term)
In the short and medium terms, six key steps would comprise the firm's value chain: land purchase, online shopping, detailed consultation, outsourced manufacturing, assembly and post-occupancy evaluation services. The entire value chain will be coordinated by a 'Business Information Modelling' System (BIM), a holistic information, coordination and management database that will coordinate between different actors and actions. It will also be informed by general research & development.
(Describes the major processes of turning raw materials into the finished product or service, while the customer ecosystem map shows how the product or service reaches the customer)
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VALUE CHAIN & CUSTOMER ECOSYSTEM MAP
(detailed, long term)
In the long run, the company would expand to include its own manufacturing hub (in case of a vertically integrated model), or form an expanded network of factories (in case of a vertically aligned business model) and property management division, directly feeding post-occupancy data into the BIM interface enabling product and service development. It would also deploy integrated procurement & management teams.
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BUSINESS MODEL CANVAS
(Outlines major business elements of the proposal)
ECOSYSTEM MAP:
New Home construction
The following diagram summarizes the differences between the existing and the proposed ecosystem map for new home construction, with the latter revealing efficiencies in time and process by eliminating multiple steps from the conventional construction system.
(Shows how the customer attains a product or a service)
SUGGESTIVE CLIENT SEGMENT & REAL ESTATE CLASS
This proposal suggests first-time homebuyers looking to purchase homes at affordable home price points as a possible client segment. Retirees wishing to downsize could be another possible primary segment as well.
MARKET SHARE
Both single and multi-family homes are undersupplied across major US states and cities. The following diagrams show an estimate of potential market shares in two west coast states with a housing shortage: California and Washington. New York and other major cities are potential markets as well.
COMPETITION ANALYSIS
A recent Dodge Data & Analytics study revealed that prefabricated modular construction will give rise to a range of vertically integrated companies and building material suppliers with innovative value chains in the next 3 to 5 years in the US.
Multiple companies have begun offering prefabricated and/or modular products in recent years, with some operating as a designer, manufacturers, and builders - one of the main competing groups for this proposal. The other prime competitor groups are the designer-manufacturer and the developer-designer-manufacturer-builder. Firms that are situated in other parts of the value chain, in conventional practice, and those in between are also listed.
A detailed analysis of select firms is presented in appendix 3.
PROPOSED PRODUCT & SERVICE DIFFERENTIATION
RISKS & SOLUTIONS
PRODUCT
DIFFERENTIATION
EXPANDED
Website
The e-shop will personalize the shopping experience for every client, recommending building design products by their desired construction type, features, budget, area, program, site, etc. It will allow clients to choose between three purchase types: fully designed homes, partially designed modular & podular rooms, and a mix of modules, pods and panels, for both new constructions and additions, and for both single-family residences and multi-family units. It provides a comprehensive online purchase experience, providing product details such as images, drawings, price, ratings, reviews, environmental and health information, etc., and take into account land and financing information. Once the order is closed, clients will be able to see manufacturing and construction progress through the client dashboard, as well as other information such as order list, cost estimates, financial analysis, etc.
Product listing & product detail page for partially designed rooms & components (purchase model 3):
Product listing & product detail page for partially designed rooms (purchase model 2):
Design Derivatives
Stemming from a homebuyer desire for more interior light and outdoor spaces, it is forecasted that modernist/contemporary homes will grow in popularity in the coming years, especially among millennial and Gen Z buyers. This proposal will enable a transition from traditional home design towards different contemporary languages, by appropriately combining the best design elements traditional, contemporary and other styles have to offer, mixing and matching them to various degrees to create unique living experiences. Big Data around market demand on home features and styles will be leveraged to inform the design.
Different design possibilities for a backyard home office addition from the design.kit catalogue at a varying price range:
Different design possibilities for a 1 bedroom apartment unit from the design.kit catalogue at a varying price range:
Module growth, movement & disassembly on different site profiles
Two basic module types: 15'X30' & 15'X15' are adjacently connected to each other orthogonally and at angles to allow for incremental growth as well as potential shrinkage. This simple growth system can adapt to any site profile.
Unitised component system
All walls, floors, windows and other building components are constructed as panelized units, complete with interior and exterior finishes, insulation, moisture barriers and all forms of sheathing for transport and site assembly.
Financial Projections
Financial projections based on a built to rent, mixed use, multi family housing development proforma has been provided in appendix 1. Much elaborate calculations will need to be made for income and profit projections from a firm perspective.
Applications in other real estate class
There is enormous potential for the design.kit system to be applied to real estate classes with scope for scale and repeatability. These involve the hospitality, healthcare, education and even food, and niche building types such as temporary event structures.
Key Implementation Milestones
short term
long term
Firm Operations
Technology
Product
RESEARCH & PRODUCT LINE DEVELOPMENT
WEBSITE DEVELOPMENT
SINGLE FAMILY HOMES, ADUs
DEVELOPMENT, DESIGN & ASSEMBLY
BIM SOFTWARE DEVELOPMENT (MODERATE)
MANUFACTURING PLANT INTEGRATION
BIM SOFTWARE DEVELOPMENT (ADVANCED)
ADDITION OF MULTI FAMILY UNITS