See how Hilti innovated its industry by focusing on a service rather than selling its products. This Slideshare explains the process by using the Business Model Pattern Cards based on the St. Gallen Business Model Navigator. For more information, check out our website: www.bmi-lab.ch

1. 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

2. 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

3. www.bmilab.com
Now, see how Hilti innovated its industry

4. www.bmilab.com
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

5. www.bmilab.com
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

6. www.bmilab.com
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

7. www.bmilab.com
But HOW did Hilti innovate?

8. www.bmilab.com
#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.

9. www.bmilab.com
#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.

10. 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.

11. 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…

12. www.bmilab.com
Visit www.bmi-lab.ch and
discover more about Business
Model Innovation!
PS.: No real cake included! But more juicy information ;)

13. 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