People are increasingly choosing services over product ownership. As we shift our focus to buying outcomes rather than goods, manufacturers are building resilience through as-a-service business models. Servitization, the process through which companies compete by offering services rather than simply the sale of products, opens up new revenue streams and can help address some of the world’s greatest challenges. Tyre manufacturer Goodyear is leading by example, developing advanced services to help customers extend the life of their tyres, improve efficiencies, reduce fuel consumption, and cut carbon emissions.
Transportation is the UK’s most polluting sector, accounting for around 27% of total greenhouse gas emissions. As we strive to reach Net Zero, the race is on to reduce our reliance on fossil fuels and find more sustainable means of moving people and goods on the nation’s road network. Our innovators are now developing a range of advanced services and disruptive business models which allow customers to pay for the outcome they want to achieve rather than simply buying a product. Goodyear was one of the first to see the value in moving from selling tyres to solutions, exploiting advances in technology to help customers make informed decisions about the way they use their vehicles.
Like many manufacturers, Goodyear faced challenges from low-cost competitors and needed a way to differentiate its offer. Doing that through products alone was not enough and the business began exploring how advanced services could help meet changing customer demands. It began by focusing on the freight haulage sector, taking time to understand their drivers and pain points. For example, haulage and delivery companies are under increased pressure to meet on-time delivery schedules and reduce costs. Ensuring tyres are correctly inflated is key to efficient fleet management but these checks are time consuming and a hassle and not always made as frequently as they should be.
In 2016, Goodyear launched two packages of services which use real-time data to give customers unique insight into the state of their tyres by providing visibility on tyre health, intelligent alerts and predictive analytics to help schedule proactive maintenance, and optimisation of route planning. An RFID sensor fitted on each wheel detects the pressure and temperature of tyres and feeds information relating to poorly inflated or overheated tyres back to the customer. A scanner installed on the ground at the entrance to the customer’s depot also detects tyre pressure and the depth of the tread to highlight issues and calculate remaining mileage. Another option is to use GPS to provide real time data on the position and movement of vehicles. The service helps fleet managers find more time and fuel-efficient routes, recover stolen vehicles, and identify nearby technical centres to organise maintenance remotely.
Goodyear’s advanced services support more strategic decision making, help prevent breakdown, support better fleet management and cut emissions by reducing fuel consumption. They have proved particularly valuable in helping the logistics sector respond to demand during the pandemic.
At the launch of Goodyear’s Proactive Solutions unit, then VP for EMEA Commercial Business Michel Rzonzef said: “We are witnessing a transformational shift that is reshaping commercial trucking. In a digital economy, consumers and businesses expect deliveries to be faster, cheaper, and more flexible, and in response the industry is becoming increasingly connected and automated.
Goodyear Proactive Solutions offers fleet managers a one-stop, user-friendly solution to
help reduce their total cost of operations and improve the uptime, efficiency and
sustainability of their fleets.”
Goodyear has continued evolving its advanced services, exploiting advances in digital technology, and moving away from one-off product transactions to forming long-term symbiotic relationship with the customer. These services now form part of its larger Total Mobility offer for commercial fleets which offers bespoke packages incorporating premium tyres, proactive maintenance, support for tyre-related breakdowns and digital solutions.
Goodyear is now sharing best practice at Servitization Live, a business event exclusively exploring servitization and advanced services solutions. The three-day event, hosted by the Advanced Services Group at Aston Business School, runs between 4th and 6th October delivered online and in person at the ICC Birmingham. It will showcase how the as-a-service trend is affecting our daily lives, and how services business models help address some of the biggest challenges our planet has faced such as climate change, a growing and ageing population and health crises.
As a keynote speaker, Goodyear’s Marc Preedy, Managing Director, Truck Replacement Sales, Europe, will talk about how Goodyear launched its offerings to market and help inspire fellow manufacturers to adopt advanced service models.
There is a compelling case for more manufacturers to build resilience and boost profitability through servitized business models. Servitization Live will allow global business leaders to learn more about how new business models, technologies, organisational and societal innovations are accelerating service transformation. As British businesses battle to complete on the global stage, there has never been a better time to put advanced services at the heart of their offer.
Servitization Live is the business event solely dedicated to servitization and advanced services. Taking place 4-6 October 2021 at the ICC Birmingham and Online, it brings together the global community of leading industry executives and servitization researchers for sharing real servitization strategies and journeys, showcasing the technologies that enable advanced services and presenting the latest research on servitization.
For more information and to register visit: https://www.servitizationlive.com
The three-day event is sponsored by Servitly, Capgemini, Senseye, Allsee Technologies, DEAS+, IFS, Xait CPQ and DLL, and supported by Field Service News.