Analysis and Evaluation of Business Model Patterns for the Craft Sector

Analysis and Evaluation of Business Model Patterns for the Craft Sector

The German craft sector is an integral part of the German economy. The sector currently accounts for approximately 27 percent of all German businesses and employs around 5.5 million people. With an average capacity utilization rate of 84 percent and revenue indicators close to a previous all-time high, the current economic state of the craft sector is strong. Nonetheless, the sector faces multiple challenges. The businesses are confronted with a shortage of skilled labor, industrial companies capturing customers, the digital transformation, and a dynamic market environment. To sustain its strong economic standing, the craft sector must actively address these issues. One approach is business model innovation (BMI), which has various positive effects that could help to tackle the current challenges. Many business owners in the sector currently lack awareness of the relevance of BMI, and when they are aware have difficulties choosing suitable business models. The current methods for BMI, for example using business model patterns, are perceived to be too complex and thereby met with reluctance. The paper raises the research question of which business models are suited for craft businesses and addresses the need for a BMI method that matches the demands of the craft sector. In the first step, a literature review of existing business model patterns was conducted. Using a qualitative multi-dimensional benefit analysis, three experts evaluated a variety of business model patterns based on five dimensions: level of product adaption, complexity, customer focus, cost, and revenue potential. By compounding a benefit score for each pattern, the patterns were ranked. Out of 60 business model patterns evaluated, 14 patterns were identified to match the requirements of the craft sector.

Veröffentlicht/Erschienen in: Proceedings of the 15th European Conference on Innovation and Entrepreneurship (ECIE)

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