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Harvard Case - Hilti Fleet Management (A): Turning a Successful Business Model on Its Head

"Hilti Fleet Management (A): Turning a Successful Business Model on Its Head" Harvard business case study is written by Ramon Casadesus-Masanell, Oliver Gassmann, Roman Sauer. It deals with the challenges in the field of Strategy. The case study is 23 page(s) long and it was first published on : May 4, 2017

At Fern Fort University, we recommend Hilti adopt a disruptive innovation strategy by launching a fleet management platform as a separate business unit . This platform would leverage Hilti?s existing core competencies in technology and analytics , manufacturing processes , and customer relationships to offer a comprehensive suite of services for tool fleet management, including predictive maintenance , remote diagnostics , and optimized tool utilization . This business model innovation would create a new value proposition for Hilti, expanding its reach beyond its traditional customer base and capturing a significant share of the burgeoning fleet management market .

2. Background

Hilti, a leading global manufacturer of power tools and fastening systems, has enjoyed remarkable success with its direct sales model and focus on customer service . However, the company faces increasing competition from online retailers and the rise of shared economy models. This case study explores Hilti?s strategic dilemma: whether to maintain its existing business model or embrace disruptive innovation to secure future growth.

The main protagonist is Michael Mayr , Hilti?s CEO, who is tasked with navigating the company through this strategic crossroads. He must decide whether to invest in a fleet management platform that could potentially disrupt its existing business model, or to continue focusing on its core business of selling power tools.

3. Analysis of the Case Study

Industry Analysis:

• Porter?s Five Forces: The power tool industry is characterized by intense competition, with several well-established players and a growing number of new entrants. The bargaining power of buyers is moderate, while the bargaining power of suppliers is low due to the availability of alternative materials and manufacturing processes. The threat of substitutes is moderate, with the emergence of new technologies like 3D printing posing a potential threat.
• Industry Lifecycle: The power tool industry is in a mature stage, with slow growth and intense competition. This suggests that Hilti needs to find new avenues for growth, such as expanding into new markets or developing innovative products and services.

SWOT Analysis:

• Strong brand recognition and customer loyalty
• Extensive global distribution network
• Expertise in manufacturing and product development
• Strong financial position
• Strong customer service and technical support

Weaknesses:

• Reliance on a traditional direct sales model
• Limited digital presence
• Lack of experience in fleet management services

Opportunities:

• Growing demand for fleet management solutions
• Increasing adoption of digital technologies
• Expansion into new markets, particularly emerging economies
• Increasing competition from online retailers
• Rise of shared economy models
• Technological disruption

Competitive Advantage:

Hilti?s competitive advantage lies in its core competencies of technology and analytics , manufacturing processes , and customer relationships . These strengths can be leveraged to create a competitive advantage in the fleet management market.

Value Chain Analysis:

Hilti?s value chain can be leveraged to develop a successful fleet management platform. The company?s expertise in product development , manufacturing , and distribution can be used to create and deliver high-quality fleet management solutions. Hilti?s strong customer relationships and technical support can be used to provide exceptional customer service and support.

Business Model Innovation:

Hilti can leverage its existing strengths to develop a disruptive innovation in the form of a fleet management platform . This platform would offer a comprehensive suite of services for tool fleet management, including:

• Predictive maintenance: Using data analytics to predict tool failures and schedule maintenance proactively.
• Remote diagnostics: Providing real-time monitoring and diagnostics of tools, enabling faster troubleshooting and repairs.
• Optimized tool utilization: Using data analytics to optimize tool usage and minimize downtime.

This business model innovation would create a new value proposition for Hilti, expanding its reach beyond its traditional customer base and capturing a significant share of the burgeoning fleet management market .

4. Recommendations

Hilti should launch a fleet management platform as a separate business unit . This platform would leverage Hilti?s existing core competencies in technology and analytics , manufacturing processes , and customer relationships to offer a comprehensive suite of services for tool fleet management.

Key Recommendations:

• Develop a comprehensive fleet management platform: This platform should include features such as predictive maintenance, remote diagnostics, optimized tool utilization, and data analytics.
• Invest in technology and analytics: Hilti should invest in developing its capabilities in data analytics, AI, and machine learning to power its fleet management platform.
• Build a dedicated team: Hilti should assemble a team of experts in fleet management, data analytics, and software development to drive the development and implementation of the platform.
• Leverage existing customer relationships: Hilti should leverage its existing customer base to pilot the fleet management platform and gather feedback.
• Market the platform effectively: Hilti should develop a comprehensive marketing strategy to promote the platform to its existing and potential customers.

5. Basis of Recommendations

These recommendations are based on the following considerations:

• Core competencies and consistency with mission: The fleet management platform aligns with Hilti?s core competencies in technology and analytics, manufacturing processes, and customer relationships. It also complements the company?s mission of providing innovative solutions for its customers.
• External customers and internal clients: The platform addresses the needs of both external customers (construction companies, contractors, etc.) and internal clients (Hilti?s own sales and service teams).
• Competitors: The platform allows Hilti to compete effectively in the growing fleet management market, differentiating itself from competitors through its expertise in power tools and its strong customer relationships.
• Attractiveness ? quantitative measures if applicable: The fleet management market is expected to grow significantly in the coming years, offering significant potential for Hilti to generate revenue and profits.

6. Conclusion

By embracing disruptive innovation and launching a fleet management platform , Hilti can secure its future growth and maintain its leadership position in the power tool industry. This strategy will leverage the company?s existing core competencies and create a new value proposition for its customers, expanding its reach and capturing a significant share of the burgeoning fleet management market .

7. Discussion

Alternatives:

• Maintain the existing business model: This would involve continuing to focus on selling power tools through its direct sales model. However, this approach would expose Hilti to increasing competition from online retailers and the rise of shared economy models.
• Acquire an existing fleet management company: This would allow Hilti to enter the market quickly. However, this approach would require significant investment and could pose integration challenges.

Risks and Key Assumptions:

• Technology adoption: The success of the platform depends on the adoption of digital technologies by customers.
• Competition: The fleet management market is becoming increasingly competitive, and Hilti will need to differentiate itself to succeed.
• Integration: Integrating the platform with Hilti?s existing systems and processes could pose challenges.

8. Next Steps

• Develop a detailed business plan for the fleet management platform.
• Secure funding for the development and launch of the platform.
• Assemble a dedicated team to develop and implement the platform.
• Pilot the platform with a select group of customers.
• Market the platform to Hilti?s existing and potential customers.

By taking these steps, Hilti can successfully launch its fleet management platform and capitalize on the growing demand for fleet management solutions . This disruptive innovation will enable Hilti to secure its future growth and maintain its leadership position in the power tool industry.

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Case description.

This case explores the introduction of fleet management in the construction industry by the premium power tools manufacturer Hilti in 2000. Following its customers' needs, Hilti moved from selling power tools to leasing them as a service. The introduction of the new business model contributed significantly to the success of Hilti, since it sustainably differentiated the company from its competitors. For instance, the adoption of fleet management resulted in customer loyalty levels five times higher than under the dominant business model Hilti had formerly employed, and over-proportioned profit contribution at Hilti. Hilti's Chief Technology Officer described the importance of the innovation as follows: "Hilti developed many very innovative and successful products over the years, but they paled in comparison with the fleet management business model, which was the most important innovation in Hilti's history." All told, Hilti, which had about 22,000 employees and made about 4.5 billion Swiss Francs (or $4.589 billion USD) in sales in 2015, managed 1.5 million tools under fleet management contracts in 40 countries, resulting in a contract value of more than 1.2 billion Swiss Francs (approximately $1.4 billion USD). Case A describes the strategic decision-making process regarding the introduction of fleet management in its early planning stages. Case B (separate) tackles the implementation and scaling process of fleet management over the years and explores current challenges facing the BMI.

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Referrences & Bibliography for Harvard Stategy Case Study Analysis & Solution

1. Andrews, K. R. (1980). The concept of corporate strategy. Harvard Business Review, 61(3), 139-148. 2. Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124. 3. Brandenburger, A. M., & Nalebuff, B. J. (1995). The right game: Use game theory to shape strategy. Harvard Business Review, 73(4), 57-71. 4. Christensen, C. M., & Raynor, M. E. (2003). Why hard-nosed executives should care about management theory. Harvard Business Review, 81(9), 66-74. 5. Christensen, C. M., & Raynor, M. E. (2003). The innovator's solution: Creating and sustaining successful growth. Harvard Business Review Press. 6. D'Aveni, R. A. (1994). Hypercompetition: Managing the dynamics of strategic maneuvering. Harvard Business Review Press. 7. Ghemawat, P. (1991). Commitment: The dynamic of strategy. Harvard Business Review, 69(2), 78-91. 8. Ghemawat, P. (2002). Competition and business strategy in historical perspective. Business History Review, 76(1), 37-74. 9. Hamel, G., & Prahalad, C. K. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91. 10. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard--measures that drive performance. Harvard Business Review, 70(1), 71-79. 11. Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 76-84. 12. Kotter, J. P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review, 73(2), 59-67. 13. Mintzberg, H., Ahlstrand, B., & Lampel, J. (2008). Strategy safari: A guided tour through the wilds of strategic management. Harvard Business Press. 14. Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2), 137-145. 15. Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster. 16. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press. 17. Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91. 18. Rumelt, R. P. (1979). Evaluation of strategy: Theory and models. Strategic Management Journal, 1(1), 107-126. 19. Rumelt, R. P. (1984). Towards a strategic theory of the firm. Competitive Strategic Management, 556-570. 20. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

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Hilti Fleet Management (B): Towards a New Business Model

• Format: Print
• | Language: English
• | Pages: 11

About The Author

Ramon Casadesus-Masanell

Related work.

• Faculty Research

Hilti Fleet Management (A) and (B)

• June 2017 (Revised May 2018)

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• Hilti Fleet Management (A) and (B)  By: Ramon Casadesus-Masanell, Oliver Gassmann and Roman Sauer
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Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Solution

The Hilti Fleet Management A Turning a Successful Business Model on Its Head case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Hilti Fleet Management A Turning a Successful Business Model on Its Head case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Hilti Fleet Management A Turning a Successful Business Model on Its Head case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Hilti Fleet Management A Turning a Successful Business Model on Its Head case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Hilti Fleet Management A Turning a Successful Business Model on Its Head is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Hilti Fleet Management A Turning a Successful Business Model on Its Head HBR Case Study

The objective of the case should be focused on. This is doing the Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head

An important tool that helps in addressing the central issue of the case and coming up with Hilti Fleet Management A Turning a Successful Business Model on Its Head HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Hilti Fleet Management A Turning a Successful Business Model on Its Head

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Hilti Fleet Management A Turning a Successful Business Model on Its Head operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Hilti Fleet Management A Turning a Successful Business Model on Its Head case solution.

VRIO Analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head

This is an analysis carried out to know about the internal strengths and capabilities of Hilti Fleet Management A Turning a Successful Business Model on Its Head. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Hilti Fleet Management A Turning a Successful Business Model on Its Head are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head

The Value chain analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Hilti Fleet Management A Turning a Successful Business Model on Its Head to increase its competitive advantage.

BCG Matrix of Hilti Fleet Management A Turning a Successful Business Model on Its Head

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Hilti Fleet Management A Turning a Successful Business Model on Its Head BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Hilti Fleet Management A Turning a Successful Business Model on Its Head

Ansoff Matrix is an important strategic tool to come up with future strategies for Hilti Fleet Management A Turning a Successful Business Model on Its Head in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Hilti Fleet Management A Turning a Successful Business Model on Its Head

Hilti Fleet Management A Turning a Successful Business Model on Its Head needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Hilti Fleet Management A Turning a Successful Business Model on Its Head Blue Ocean Strategy

The strategies devised and included in the Hilti Fleet Management A Turning a Successful Business Model on Its Head case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Hilti Fleet Management A Turning a Successful Business Model on Its Head looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Hilti Fleet Management A Turning a Successful Business Model on Its Head.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Hilti Fleet Management A Turning a Successful Business Model on Its Head case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Hilti Fleet Management A Turning a Successful Business Model on Its Head case answers should be written down in the Hilti Fleet Management A Turning a Successful Business Model on Its Head case memo, clearly identifying which part shows what. The Hilti Fleet Management A Turning a Successful Business Model on Its Head case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Hilti Fleet Management A Turning a Successful Business Model on Its Head HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Hilti Fleet Management A Turning a Successful Business Model on Its Head is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Hilti Fleet Management A Turning a Successful Business Model on Its Head Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Hilti Fleet Management A Turning a Successful Business Model on Its Head Harvard case is complete and properly answered.

Recommendations and Action Plan for Hilti Fleet Management A Turning a Successful Business Model on Its Head case analysis

For Hilti Fleet Management A Turning a Successful Business Model on Its Head, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Hilti Fleet Management A Turning a Successful Business Model on Its Head should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Hilti Fleet Management A Turning a Successful Business Model on Its Head should enhance the value creating activities within its value chain.
• Hilti Fleet Management A Turning a Successful Business Model on Its Head should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Did they really patent this use case? – IP strategy for fleet management – digital transformation at Hilti

Hilti’s leap from being a seller of equipment to becoming a provider of complete B2B solutions goes beyond additional services and traditional after sales support or spare parts supply: it is called fleet management. The fleet management idea at Hilti is retrieved from the automotive industry and comes as a one-stop package. Customers, and especially economically-aware business customers, appreciate a one-stop service which is adapted to their individual needs and optimizes their own productivity. As response, they are prepared to pay a significantly higher price.

Hilti’s Fleet Management strategy means that the company is no longer selling drills but holes. This business model targets at establishing a long-term maintenance system with leasing contracts, and to enable long-term, sustainable, and stable customer relationships. Having adopted a market-oriented IP culture and having adapted its IP management to its business model, the company now benefits from the protection of its business model through the use of IP. How this industry case study was done can be learned in the MIPLM (CEIPI Master for Intellectual Property Law and Management) case study Hilti: “Business model transformation to adapt to the digitalization in the construction industry”. Available to download: MIPLM_Industry_Case_Study_Hilti.pdf

For a better overview of the implementation of fleet management with its multiple aspects and use cases, such as predictive maintenance, inventory management, exchange of broken tools etc. please also watch the case study video.

Cannnot open the video? Please click: https://youtu.be/at0oNpdF6G8

1 . Which use case of Hilti’s fleet management is protected against imitation by the following patent?

• Group 1: EP2213421B1 “Pneumatic striking mechanism and control method”
• Group 2 and 3: EP3426441B1 “Handheld machine tool and amplifier antenna”
• Group 4: EP2931482B1 “Method for operating a hand-held working device”
• Group 5: EP2107718B1 “Method for configuring the electronic equipment of a handheld implement”

2 . Can you find other patents of Hilti in your own search that can be assigned to this use case?

3 . Which further protection instruments would you consider useful for this use case?

4 . How could the use case be expanded to include another element that is desirable for the customer and that could be made exclusive through IP rights?

Group 1: Anita Yaryna, Branimir Puškarić, Claire Laurens de Lopez, Greta Žėkienė, Steffen Rutter , Terita Kalloo

Cannot open the video? Please click: https://youtu.be/4p1MOEkmNO0

Group 2: Véronique Bolinches , Mohsen Ahmadi, Peter Conlon, Konstantinos Kontogiannis , Nina Šlat , Shu-Pei Oei

Cannot open the video? Please click: https://youtu.be/OmdCi4boBOM

Group 3: Rita Labundy, Andreas Werner, Sinara Travisani Cardozo, Clement Lim, Sachin Seshadri

Cannot open the video? Please click: https://youtu.be/G2NWNzV-njE

Group 4: Merve Şimşek , Nora Rüter , Yanan Huang , Anders Isaksson , Johannes Holzmair

Cannot open the video? Please cllick: https://youtu.be/LnmjTG_89t8

Group 5: Maria Boicova-Wynants , Felipe Bustos, Andrea Foglia, Timofey Rubchenko , Ricardo Cali

Cannot open the video? Please click: https://youtu.be/4iLQ-qYw1Es

Thanks to the coauthors from Hilti Stefan Nöken and Oliver Söllner , and thanks to Centre d’Etudes Internationales de la Propriété Intellectuelle – CEIPI If you want to learn more: Follow us at IP Business Academy

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