The purpose of this Blog is to give insights in the current challenges Rental companies face and see the value creation potential of Microsoft Dynamics 365 in combination with Dynamics Rental Management in solving these. Dynamics Rental Management & the Microsoft platform underneath are the perfect match to assist rental companies in becoming digital leaders in their industry. We will align our technical capabilities with some of the most important key performance indicators and give you insights into how we can impact them over a certain amount of time.


Industry Trends

Let’s deep dive into the Heavy Equipment Rental Market first, to understand the challenges & trends companies in this area face.

Customer Centricity

Rental companies are going above and beyond customer expectations, they are working hard to become more customer-centric while remaining operational excellence. To keep rentals running smoothly for businesses and consumers; manage risk, manage cost to meet demand, and help those who need assistance the most. To achieve this rental business, shift away from classical rental towards a more rental as a service approach. You could also say that rental companies in the past never say no to a customer if they do not have equipment available they are gonna make it available by cross renting for a partner or in some cases even buying in equipment. This brings us to our next challenge.

Covid-19 related fleet reduction

The world has been hit hard by the Saars Virus(Covid-19) nearly all of the industry suffers and this not different for the heavy equipment rental industry. While construction remains active a lot of projects failed due to the pandemic, open payments, less new construction projects, etc. Therefore more and more rental companies are beginning to reduce their fleet count due to less demand. This means a lot of heavy equipment is now getting sold to create additional revenue. We also see already that price competition starts and therefore rental companies need to have the most attractive offer.

Digital Transformation

Digital innovation has forced companies to change some well-established business processes. Thus, incorporate information technology into business processes is not enough. We argue that both BPM role and related capabilities might need to be re-interpreted for the digital future. This challenges comes along with multiple other challenges covid forced us to remote work so its an accelarator for this but there is also the need to fit the expectations the next generation of customers (millenials  & Gen-Z) has.

Servitization or Rental as a Service

We just discussed that digital transformation already forced companies to change well-established business processes. One major change is the switch away from the classical rental rate-driven approach to offering a more service-driven customer-centric rental approach. This enables companies to achieve more revenue in offering more services and binding customers on the longterm.


To achieve the servitization topic it is important to be more connected than ever before. Not only human beings with mobile devices, no it is key to step up your fleet game and equip your rental objects with the right sensors. If you combine telemetry readings with your business knowledge you can achieve operational and service excellence with ease. Sensors can also help you better understand customer consumption or usage of your rental objects. Improve utilization and increase revenue with the capability to bill them for it. For example power by the hour or fuel consumed.

How can we help you?

Now that we have defined the current challenges rental companies face in day-to-day business let’s have a look at how HSO Innovation & Microsoft business applications build the perfect match to help you overcome these obstacles and even improve your most relevant key performance indicators. According to Microsofts new Catalyst approach we have created an envisioning workshop especially for Heavy Equipment Rental companies. We choose standard value pillars like business growth, the optimization of operations, innovation in data and insights as well as improved customer service as the key targets of these envisioning workshops. Then we have maped them with our HSO Innovation equipment rental industry-specific value pillars.

So the goal of this workshop is to provide customers an overview of how they can improve these relevant factors with our rental offering. The workshop we provide follows a simple strategy which is called the IDEA framework.  I stand for inspire the initial phase of Catalyst where we as HSO Innovation envision you how your digital transformation journey could look like in later steps we then tailor the journey towards your business.

So do you want to Digitally Transform your rental operation and become a leader of your industry of tomorrow but also hesitate to make a major investment and first require better transparency in how the Microsoft Platform & Dynamics Rental Management can actually help you improve?

Then book and Business Value Insight Assessment workshop with us and we will help you clarify your vision of tomorrow!