"What customers really want is not the drill, but the hole."

In the year 2000, Hilti famously shifted its business model from simply manufacturing and selling power tools to offering equipment management services. This change is summed up in a well-known saying:

"What customers really want is not the drill, but the hole."

This means that customers are more interested in the results that tools can achieve rather than the tools themselves.

As with all innovations, moving from selling equipment to renting it was not an easy task. It involved a fundamental change in how the business operated. Selling products involves managing inventory, but it also means getting paid upfront. 

This method is relatively simple and has been the standard for most companies. On the other hand, "equipment rental" requires ongoing management and maintenance of the rental items. It also involves recovering the initial large investment over time, which can pose cash flow risks.

Shifting from focusing on the 'drill' to the 'hole' is challenging in any industry. Changing a business model is difficult because it must overcome internal resistance and unexpected challenges. Therefore, even the smartest people in a company, who understand that customers want the 'hole' and not the 'drill,' often avoid talking about the 'hole.' Instead, they focus on improving the 'drill.'