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Hilti: Holes instead of Hammers. Business Model Innovation Explained

Date post: 16-Apr-2017
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www.bmilab.com Hilti: the customer wants holes not drill hammers Discover how to innovate YOUR Business with the 55 Business Model Patterns Based on the St Gallen Business Model Navigator
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Page 1: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

Hilti: the customer wants holesnot drill hammers

Discover how to innovate YOUR Business

with the 55 Business Model Patterns

Based on the St Gallen Business Model Navigator

Page 2: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

Did you know that 90% of the most

successful companies are based on

only 55 Business Model Patterns?

That means that innovation is mostly

built on the recombination of

already existing ideas.

Want to learn more about the

patterns and the process? Check out

our Uber Slideshare

Page 3: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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Now, see how Hilti innovated its industry

Page 4: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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First, see how the drill business used to work

WHO WHAT

HOW WHY

- Construction firms need drills

to handle performances

- Different requirements in

respect to various treated

materials and operations

- Selling single drills

- Remedial maintenance is

mostly provided by

independent providers

- Tools wholesales

- Commercial agents who

target purchasing

departments

- High one-time payment for

every sold drill

Page 5: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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But this do not satisfy major customer problems

RELIABILITY

- Broken drilling machines

can cause heavy losses,

because most performances

are consecutive in construction

business

- In case of reparation, service

parts and providers are often

not quickly reachable

- A further problem is that tools

are stolen at construction

sites frequently

COSTS

- Specialized drilling machines

are very costly

- High amounts of investment

result in fewer repeated

buys

- On the other hand uncertain

reliability leads to the

demand for extra stock of

tools

Page 6: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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Now, Meet Hilti!

WHO WHAT

HOW WHY

- Especially bigger construction

firms, which need stable

high quality and permanent

availability

- Drill Fleet Management:

availability of right tool at

right time and right location

- Rather than selling the drills, a

leasing system is implemented

- Direct targeting of the users

on the ground by new

problem focused sales team

- Full maintenance everywhere

through Hilti Centers

- Subscription fees

- No high one-time investment

cost for customers

- Full service allows for distinctly

higher returns for Hilti

Page 7: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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But HOW did Hilti innovate?

Page 8: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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#12 Direct Selling

HOW HILTI DOES IT: A new big sales department has been introduced, which is specifically focused on the problems of drill users on the ground.

Page 9: Hilti: Holes instead of Hammers. Business Model Innovation Explained

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#20 Guaranteed Availability

HOW HILTI DOES IT: Through the Fleet Management program, Hilti organizes the machine park of the customer and with decentralized “Hilti Centers” it ensures permanent availability of the right tools.

Page 10: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

#27 Lock-In

HOW HILTI DOES IT: By leasing the drills and offering full maintenance through long-term subscription contracts, Hilti achieves long-term customer relationships.

Page 11: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

WANT TO LEARN MORE?

Yes, we know, we only

gave you a small taste

of what’s to come!

And that was a piece of

cake, wasn’t it? Easy,

but delicious!

If you’re still hungry for

more…

Page 12: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

Visit www.bmi-lab.ch and discover more about Business

Model Innovation!

PS.: No real cake included! But more juicy information ;)

Page 13: Hilti: Holes instead of Hammers. Business Model Innovation Explained

www.bmilab.com

WHERE DOES IT ALL COME FROM?

Of course, there was a

lot of research behind

the pattern cards

The result of it is this

book to the right: The

Business Model

Navigator!by Oliver Gassmann, Karolin

Frankenberger & Michaela Csik


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