Enterprise Architecture and Business Model Innovation: Digital Platform Strategies for Scalable Architecture Practice

Abstract

The Philippine construction market reached USD 39.40 billion in 2024, with projections indicating substantial growth to USD 60.08 billion by 2033, representing a compound annual growth rate (CAGR) of 4.80% (IMARC Group, 2024). This growth is primarily fueled by accelerated urbanization, increasing foreign direct investments, and large-scale government-funded initiatives, particularly the Marcos administration's $165 billion Build Better More (BBM) program encompassing 207 flagship infrastructure projects (National Economic and Development Authority [NEDA], 2023). Despite these unprecedented opportunities, the Philippine architecture industry faces a critical juncture characterized by structural constraints that prevent local firms from fully capitalizing on this market expansion. Local architecture firms remain constrained by traditional United Architects of the Philippines (UAP) fee-for-service frameworks charging 6-12% of construction costs, creating cyclical revenue patterns that inhibit strategic investment in technology and talent development. Industry fragmentation and reliance on outdated operational and financial models prevent firms from participating effectively in large-scale infrastructure projects and building sustainable, scalable businesses. Survey data from 120 Philippine Contractors Accreditation Board (PCAB)-registered architecture firms reveal that 67.5% have fewer than 30 employees, 50% allocate less than 5% of revenue to technology investment, and only 38.3% have adopted Building Information Modeling (BIM) despite its widespread global use. Furthermore, 61.7% of firms cite high implementation costs as the primary barrier to technology adoption, while 37.5% report no business model changes despite available digital technologies. Thisresearch examines how Philippine architecture firms can transition from traditional project-based models to platform-based business models that leverage enterprise architecture frameworks, digital technologies, and dynamic capabilities to achieve sustainable scalability and competitive advantage in domestic and regional markets. The study integrates Dynamic Capabilities Theory, Platform Ecosystem Theory, and Enterprise Architecture Framework Theory (TOGAF) to develop a comprehensive Digital Platform Transformation Framework. This framework provides systematic guidance forfirms to develop sensing, seizing, and reconfiguring capabilities; design scalable platform architectures; and implement structured transformation processesthat align business strategy with technology implementation, ultimately enabling participation in large-scale government projects and expansion into high-growth ASEAN construction markets.