Caterpillar Minestar fleet management increased revenue from $1m to $40m in 1 year. MCC built the business model & strategy for Caterpillar to secure a new global mining client.
Caterpillar had purchased a mining fleet management software company called Minestar. Minestar had built world class software but it had only been successfully implemented with one client. The new entity, Caterpillar Minestar, enabled Caterpillar’s heavy equipment customers to monitor the performance of their mining fleet in real time. The challenge was integrating an innovative, small software company into Caterpillar’s large, global manufacturing business which focused on limiting changes in its vehicles to reduce customers’ maintenance costs. Caterpillar also wanted global scale and quality standards developed at a rapid pace to beat innovations by its key competitors. The software from Minestar also needed to be compatible with clients’ existing software to provide a seamless coalface to corporate office solution.
MCC assisted Caterpillar Minestar to build a new business model that enabled senior decision makers in Caterpillar to approach large mining clients with a mine face to board room fleet management solution incorporating vehicle supply and monitoring systems. MCC was involved in developing processes to engage staff and strategic partners in three continents in the new business model and strategy.
The first large mining client approached by Caterpillar purchased software and vehicles for 40 sites. This resulted in a dramatic increase in revenue for Caterpillar Minestar without an appreciable increase in overheads. This success enabled Caterpillar to strategically position itself in the new and more sustainable total service model market. Caterpillar Minestars’ success created the foundation for self-driving mining trucks which have increased the safety, efficiency and performance of mining operations.