André Weisz, managing director of Goodyear Proactive Solutions for Europe, Middle East and Africa, talks frankly to Jeremy Cowan, editorial director of IoT Now about the risks and rewards of service innovation.
Jeremy Cowan: Is Goodyear effectively changing its business model to generate higher recurring revenues and closer customer connections?
André Weisz: Responding to the digital transformation in the transport industry towards greater automation and connectivity (Vehicle-to-Infrastructure and Vehicle-to-Vehicle), Goodyear now adds the Vehicle-To-Fleet (V2F) component to its commercial offer with Goodyear Proactive Solutions.
Goodyear Proactive Solutions is a natural next step for the company, after offering premium truck tyres and tyre-related services to our commercial customers for many years. Our customers will expect this type of service from us and we can fulfil their needs with this range of solutions.
Jeremy Cowan: Is the company already offering connected fleet management services in North America and Asia, or is this a first for Goodyear?
André Weisz: In terms of market-readiness among customers and the availability of best-in-class telematics, we identified Europe as the ideal pilot market for Goodyear Proactive Solutions. However, following very positive feedback from our customers in Europe, the company is looking at its potential for other markets.
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Jeremy Cowan: Is this designed primarily to attract new customers or to convert existing customers? Isn’t there a danger of just cannibalising existing business?
André Weisz: Goodyear Proactive Solutions is a new business responding to a genuine market need and we see it as a core element of our value proposition in the commercial market. Proactive Solutions applications are available to fleets whether they buy tyres from Goodyear or not. It is not dependent on tire purchase.
As I said before, introducing this new business is the natural next step for Goodyear, after offering premium truck tyres and tyre-related services to our commercial customers for many years.
Jeremy Cowan: What are the financial and organisational benefits to users of the service? Can you give examples?
André Weisz: In order for us to market Goodyear Proactive Solutions, it needs to provide a significant positive return on investment to our customers. The actual ratio depends heavily on type of operation and actual conditions in the fleet.
Goodyear Proactive Solutions has been designed in partnership with Commercial Fleet Operators, to increase the efficiency of their fleets by avoiding up to 75% of tyre-related breakdowns, reduce their total cost of operations by reducing fuel costs up to €300(US$ 326.09) per vehicle, per month and decreasing tyre maintenance costs by up to 70%, and further improve their carbon footprint by using around 10% less fuel.
Jeremy Cowan: What other applications does Goodyear expect to add to this service in 2017?
André Weisz: In addition to the applications that we launched in 2016, there are a number of others currently in incubation that may be added to the portfolio at a later date. As with the first applications the new applications of Goodyear Proactive Solutions are developed for and with our customers, meeting their current and future needs.