Isabelle Assandri, Laurane Bridel

Global Value Chains

APS Exercise 5
Business Ecosystem – Mapping and Typology

Delivery Date: Class 24

1. Map the Business Ecosystem of a Company (see slides 24-31 class 11)
Select a Company and map its business ecosystem using the three-step
process:
​ (1) Collect actors/stakeholders (influence and are influenced by) of the
Company – use the components of the value web to be exhaustive
​ (2) Group actors in the layers of the value web – core value
proposition, complementary offerings, supplying and enabling network
and other stakeholders
​ (3) Define the value flows (goods& services, money & credit,
information and intangible value), identifying value cycles between the
company and its stakeholders
2. Classify the mapped Business Ecosystem according to control of key
resources (centralized and decentralized) and types of interdependence
(reciprocal and pooled). Justify you answer.
The Business Ecosystems can be classified in Supply Systems, Platforms,
Communities of Destiny and Expanding Communities

Chosen company: Hilti AG

1. Map the Business Ecosystem of a Company (see slides 24-31 class 11)
Select a Company and map its business ecosystem using the three-step
process:

(1) Collect actors/stakeholders (influence and are influenced by) of the

Company – use the components of the value web to be exhaustive

When analyzing the actors or stakeholders of Hilti, a global company specializing in

manufacturing and providing construction and building maintenance solutions, we
can consider various components of the value web. Here is an exhaustive list of
actors/stakeholders who both influence and are influenced by Hilti:

1. Customers: Contractors, builders, architects, engineers, and other professionals

who purchase or use Hilti products and services.
2. Suppliers: Companies that provide raw materials, components, and equipment
necessary for Hilti's manufacturing processes.

3. Distributors: Retailers, wholesalers, and dealers who distribute Hilti products to

end-users.

4. Competitors: Other companies operating in the construction and building

maintenance industry that offer similar products and services.

5. Business Partners: Collaborators and strategic alliances that work with Hilti on
joint ventures, research and development, or marketing initiatives.

6. Employees: Hilti's workforce, including executives, managers, engineers, sales

representatives, customer service personnel, and other staff members.

7. Shareholders: Individuals or institutional investors who own shares in Hilti and

have a financial stake in the company's success.

8. Government and Regulatory Bodies: Local, national, and international government

agencies responsible for overseeing regulations, standards, and policies that affect
Hilti's operations.

9. Industry Associations: Organizations representing the construction and building

maintenance industry, which may influence Hilti through advocacy, networking, and
industry-wide initiatives.

10. Research and Development Partners: Universities, research institutions, and

technology providers that collaborate with Hilti to develop innovative products,
technologies, and solutions.

11. Financial Institutions: Banks, lenders, and investors who provide financing, loans,
or investment opportunities to Hilti for its growth and expansion.

12. Local Communities: The communities where Hilti operates its manufacturing
facilities, offices, or stores, including residents, local organizations, and community
leaders.

13. Environmental Organizations: Non-profit organizations focused on environmental

protection and sustainability that may monitor Hilti's practices and influence its
environmental impact.

14. Media and Press: Journalists, reporters, and media outlets that cover news,
industry trends, and developments related to Hilti.
15. Trade Unions: Labor organizations that represent and advocate for the rights and
interests of Hilti's employees.

16. Non-Governmental Organizations (NGOs): Non-profit organizations working on

social issues, sustainable development, or corporate social responsibility, which may
engage with Hilti on shared goals or projects.

17. Professional Associations: Organizations representing specific professional

groups within the construction and building maintenance industry, influencing
standards, certifications, and best practices.

Please note that this list may not be exhaustive, but it covers the key actors and
stakeholders in the value web surrounding Hilti.

(2) Group actors in the layers of the value web – core value proposition,
complementary offerings, supplying and enabling network and other
stakeholders

Based on the layers of the value web, we can group the actors/stakeholders related
to Hilti as follows:

1. Core Value Proposition:

- Customers: Contractors, builders, architects, engineers, and other professionals

who directly benefit from Hilti's core products and services.

- Competitors: Other companies offering similar core value propositions in the

construction and building maintenance industry.

2. Complementary Offerings:

- Business Partners: Collaborators and strategic alliances that provide

complementary products or services to enhance Hilti's offerings.
 - Research and Development Partners: Universities, research institutions, and
technology providers that work with Hilti to develop innovative complementary
solutions.

- Industry Associations: Organizations that contribute to the development and

promotion of complementary offerings in the construction industry.

3. Supplying and Enabling Network:

- Suppliers: Companies providing raw materials, components, and equipment

required for Hilti's manufacturing processes.

- Distributors: Retailers, wholesalers, and dealers responsible for distributing Hilti

products to end-users.

- Financial Institutions: Banks, lenders, and investors who provide financing or

credit to support Hilti's operations and supply chain.

- Government and Regulatory Bodies: Entities responsible for enforcing regulations

and standards that impact Hilti's supply chain, such as import/export requirements,
safety regulations, and trade policies.

- Trade Unions: Labor organizations representing Hilti's suppliers, distributors, and

logistics workers, ensuring fair labor practices and protecting workers' rights.

4. Other Stakeholders:

- Employees: Hilti's workforce, including executives, managers, engineers, sales

representatives, and customer service personnel.

- Shareholders: Individuals or institutional investors who own shares in Hilti and

have a financial stake in the company's success.

- Local Communities: The communities where Hilti operates, including residents,

local organizations, and community leaders.

- Environmental Organizations: Non-profit organizations focused on environmental

protection and sustainability that may monitor Hilti's practices and influence its
environmental impact.
 - Media and Press: Journalists, reporters, and media outlets that cover news,
industry trends, and developments related to Hilti.

- Professional Associations: Organizations representing specific professional

groups within the construction and building maintenance industry, influencing
standards, certifications, and best practices.

It's important to note that some stakeholders may have influence across multiple
layers of the value web, as their interactions with Hilti can span different areas.
Below, you will find a visualized version of the different layers:

(3) Define the value flows (goods& services, money & credit, information and
intangible value), identifying value cycles between the company and its
stakeholders

Step 3: Define Value Flows

Next, let's define the value flows between Hilti and its stakeholders:

Goods and Services:

 ● Hilti provides high-quality power tools, equipment, and software
solutions to customers, general contractors, subcontractors, architects,
and engineers.
● Hilti's suppliers provide the necessary raw materials and components
for manufacturing Hilti products.
● Manufacturers of construction materials supply their products to Hilti's
customers and complement Hilti's offerings.

Money and Credit:

● Hilti's customers pay for the products and services they purchase.
● Hilti pays its suppliers for the raw materials and components.
● Financial institutions provide credit and financing options to Hilti's
customers and potentially to Hilti for its operations.

Information:

● Hilti provides technical information, product specifications, and training

to customers, architects, engineers, and general contractors.
● Hilti receives feedback and insights from customers and stakeholders,
which help drive product improvements and innovation.

Intangible Value:

● Hilti's brand reputation and trust contribute to its value proposition.

● Hilti's innovative solutions and expertise add intangible value to the
construction projects undertaken by its customers.
● Following strong regulations lead to intangible brand value and trust

Value cycles may occur between Hilti and its stakeholders, where feedback,
collaboration, and mutual benefits are realized. For example, Hilti receives feedback
from customers, architects, and engineers, which informs product development,
while customers benefit from Hilti's continuous improvement and innovation efforts.

This mapping of the business ecosystem of Hilti demonstrates the

interconnectedness and interdependencies among various actors and the flows of
value in the construction industry.
 2. Classify the mapped Business Ecosystem according to control of key
resources (centralized and decentralized) and types of interdependence
(reciprocal and pooled). Justify you answer.
The Business Ecosystems can be classified in Supply Systems,
Platforms, Communities of Destiny and Expanding Communities

The classification of business ecosystems based on control of key resources (centralized

and decentralized) and types of interdependence (reciprocal and pooled) can be applied to
the mapped ecosystems as follows:

1. Supply Systems:
- Control of Key Resources: Centralized
- Types of Interdependence: Reciprocal

Supply systems typically involve a centralized entity that controls key resources, such as raw
materials, manufacturing facilities, or distribution networks. In this case, Hilti's ecosystem
would likely fall under the supply system category. Hilti centrally manages its production
processes, supply chain, and distribution channels. The company controls the key resources
necessary for manufacturing and delivering its construction products. There is a reciprocal
interdependence between Hilti and its suppliers, distributors, and customers. The company
relies on suppliers for raw materials, components, and equipment, while distributors and
customers rely on Hilti's products to fulfill their construction needs.

2. Platforms:
- Control of Key Resources: Decentralized
- Types of Interdependence: Reciprocal

Platforms are characterized by decentralized control of key resources and reciprocal

interdependence among participants. Although Hilti operates in a B2B context rather than a
pure platform model, it exhibits certain platform-like characteristics. Hilti provides a range of
products, services, and digital solutions that enable collaboration and interaction among
different stakeholders in the construction industry. The company's platform-like ecosystem
allows contractors, architects, engineers, and other professionals to engage with Hilti's
offerings and collaborate on projects. There is a reciprocal interdependence between Hilti
and its customers, where both parties benefit from the value created through the platform.

3. Communities of Destiny:
- Control of Key Resources: Decentralized
- Types of Interdependence: Pooled

Communities of destiny are characterized by decentralized control of key resources and

pooled interdependence. While Hilti may not fully fit this category, it exhibits some aspects of
a community of destiny. Hilti engages with various stakeholders, such as employees,
shareholders, local communities, and industry associations, who have a shared interest in
the success and sustainability of the construction industry. The interdependence in this
ecosystem is more pooled, with stakeholders contributing their resources, expertise, and
networks to support the overall development and growth of the industry. Although the control
of key resources may not be fully decentralized, there is a recognition of collective goals and
collaboration among stakeholders.

4. Expanding Communities:
- Control of Key Resources: Decentralized
- Types of Interdependence: Pooled

Expanding communities are characterized by decentralized control of key resources and

pooled interdependence. Hilti's ecosystem exhibits aspects of an expanding community,
especially in terms of collaboration with research and development partners, environmental
organizations, and professional associations. These stakeholders contribute to the
expansion of knowledge, innovation, and sustainable practices in the construction industry.
The interdependence is pooled, with stakeholders collectively working towards shared goals
of advancing technology, environmental responsibility, and professional standards. While
Hilti maintains control over certain key resources, it recognizes the importance of
collaboration and cooperation within this expanding community.

Hilti's ecosystem can be classified as a supply system due to its centralized control of key
resources, such as production processes and distribution channels. This is evident in their
management of the supply chain. The interdependence between Hilti and its suppliers,
distributors, and customers is reciprocal, as they rely on each other for the exchange of
goods and services. Additionally, Hilti exhibits platform-like characteristics, offering a range
of products and digital solutions that enable collaboration among stakeholders in the
construction industry. This decentralized control of key resources and reciprocal
interdependence categorize Hilti's ecosystem as a platform. Furthermore, Hilti's engagement
with various stakeholders who share an interest in the success of the construction industry
indicates characteristics of a community of destiny. Although control of key resources may
not be fully decentralized, there is a pooled interdependence, with stakeholders contributing
resources and expertise. Finally, Hilti demonstrates collaboration with research and
development partners, environmental organizations, and professional associations, reflecting
the characteristics of an expanding community. While maintaining some control over key
resources, Hilti recognizes the importance of collaboration and cooperation within this
expanding community.