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Abstract
The recent productivity improvement in multi dwelling construction processes has opened for
substituting on site construction with industrial processes. Increased prefabrication of
components and systems have resulted in the development of industrial construction timber
enterprises (house component and other woodworking industry enterprises) but also sawmills
and their upgrading activities (pre cutting, planing and other upgrading) to gradually adopt new
intra firm value creation activities including planning and assembling services. The prior major
business model, processes cost minimizing for standard timber products, has been transferred
towards client oriented tailor made solutions and services. The major contractors and other
construction system integrators have been reluctant to introduce the upflow enterprises in value
chains and to participate in the development of new industrialization with improved component
and product offerings for multi dwelling house construction.
This paper discusses the value creation positioning and coverage in the business model
formation among the timber element production industry enterprises. The business models are
based on the vision formation and implementation strategy with using, maintaining or selling
construction enterprises as clients integrating multi dwelling house construction processes.
Research task here is to extend a business model taxonomy for the three major industrial
product offering types for timber construction products (components, elements and modules) by
including further client types and market conditions in the multi dwelling construction Multi
dwelling construction constitute annual house construction majority in both countries with
aggregate volumes of the same magnitude. The core task is to discuss the future options to
develop the business models that fit with the objectives of the major construction producers and
real estate developers.