Moving Away From A Price Driven Battle by Hilti Energy & Industry

Mamina Radu-Bogdan, Head of Energy and Industry META at Hilti Middle East; discusses the importance of moving away from price war in Energy and Industry.


 

Hilti Middle East‘s Energy and Industry department’s shift from project focused scope to becoming a relevant integrated business partner.

Mamina Radu-Bogdan, Head of Energy and Industry META at Hilti Middle East; discusses the importance of Energy and Industry (E&I), the department’s strategic positioning with the integration of  Champion 2020 (aims to achieve sustainable value creation through leadership and differentiation. Market leadership through added value for our customers by offering products, services and software that provide superior productivity and safety to our customers and differentiate from the offering of our competitors), as well as their improved business strategy and changes within the industry based on new market trends.

When was the META department established? What was the department’s focus?

The E&I META department was established in January 2016 – an energy and industry regional structure with focus on power, oil and gas, decommissioning, industry, facade, and elevators based on 3 pillars: Segment Management, Account Development and Professional Project Management. This setup allowed the department to understand, build and communicate specific value propositions. The Segment Managers are responsible for strategic steering, product development to close application gaps and building a strong value proposition. META Business Developers in E&I are representing the interface for global accounts at local levels. They are liasing with accounts they handle (through their needs, visions and strategy), and cooperating with the local Hilti project support.

What does your business model focus on?

A professional approach to key stakeholders, including owners and customers through a tailor made value proposition in perfect synergy and approach towards headquarter offices and project sites.

Few years ago, the E&I segment was strongly dominated by mega projects with extensive budgets; where the cost of building was less important given the potential output of the facility where the oil barrel was 100 US Dollars.

When did you feel there was a need for change in your strategy?

Hilti’s innovation was a great fit in this kind of environment and Hilti X-BT Grating Fastening solution soon became a standard of building for many important players. While Hilti was widely recognized as the problem solver especially in grating applications in offshore environment, we understood that we were heavily depending on our “one trick pony show“, thus vulnerable…and needed to make the change towards a more sustainable model.

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How did you adjust your approach to fit the economical change that heavily affected the E&I sector?

The 100 US Dollars price per oil barrel will not come back again. Instead, adjusting ourselves to fit these economical changes is critical – a modest approach is visible already today in the energy sector amongst developers and investors. We should engage stronger with key players and increase our relevance. We have to move away from a price-driven battle and instead leverage a service driven value proposition built around engineering.

With inevitable competition; how does E&I stand-out?

In order to outplay competition, E&I thought of ISB (Integrated System Business) –  build a customized value proposition on engineering, logistic services, special product solutions, site support and price agreements to go hand in hand with the customer’s specific requirements. Part of the execution is also the Total Solution Warehouse where the E&I META team is able to provide logistic related services such as cut to length, kitting, packing, shipping and full size mock ups for required approvals.

Today, ISB (Integrated System Business) is a unique step change. A great advantage in the way Hilti does business globally and provides access to all levels of stakeholders in owners structures and high level decision makers in our focus accounts.

How do would you react to change in developing the company’s value proposition?

It is our duty to learn from what the market is telling us and adapt our model to win. We need to see the change, move with it and finish the learning curve, even if that means re-inventing ourselves against what made us successful till now.

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Hilti is a global leader in providing cutting-edge products, systems and services to professionals in the construction and energy sectors. From design to demolition, Hilti supports customers with expert technical advice, reliable products, prompt delivery and outstanding service. The product range covers drilling and demolition, direct fastening, diamond and anchoring systems, firestop and foam systems, installation, measuring and screw fastening systems, as well as cutting and sanding systems. As a result of this, Hilti’s portfolio helps construction professionals through every step of the construction journey. A direct-selling company, Hilti generates over 200,000 customer interactions per day, providing it with superior insight into company and market demands. Hilti Emirates LLC and Hilti Middle East FZE has been operating in the UAE since 1991. Today, Hilti Emirates has more than 200 employees, its own warehousing facility and a state-of-the-art repair center. Thomas Stumpp is Head of Market Region Middle East Turkey & Africa; while Mutaz Almaani is Head of Sub Region Gulf.

For more information, please call Hilti Emirates at 800-Hilti (44584) or visit www.hilti.ae.

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Moving Away From A Price Driven Battle by Hilti Energy & Industry

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