Publications
Publications
- June 2023
- HBS Case Collection
Komatsu and Smart Construction
By: David J. Collis
Abstract
Teaching Note for HBS Case No. 521-042. The case describes the introduction by Komatsu, the Japanese earth moving equipment manufacturer, of a new business model—Smart Construction. This replaces the one-time sale of a capital good with a software platform that integrates all the activities on a construction site and supports the autonomous operation of its own machinery. While the potential savings of the new system are enormous, Komatsu faces internal and external resistance to the adoption of the new business model. In 2019, should the President commit one third of the entire firm’s R&D budget to build out Smart Construction, or are the objections sufficient to delay or even reject the initiative?
Keywords
Citation
Collis, David J. "Komatsu and Smart Construction." Harvard Business School Teaching Note 723-419, June 2023.