Shifting from manufacturing products to services requires new capabilities, new infrastructure, and a fusion of IT and operating technology expertise.
Forrester recently published a report highlighting Toyo Tires’ path to digital innovation in collaboration with strategic partner Tata Consultancy Services.
When Toyo Tires realized it needed to evolve to stay relevant, the company decided to adopt market-leading business models to become more adaptive, creative, and resilient. To embark on its path to becoming a digital business innovator, Toyo Tires worked together with TCS.
Working with TCS, Toyo Tires developed the digital capabilities to create value-added services and pioneer the tire-as-a-service business model.
Toyo Tires, whose business is all about tires, had little client feedback on how its products performed.
To change this, it needed to use a variety of innovation practices. This included:
Digitizing its knowledge of tire performance and maintenance to generate more timely insights.
Defining its tire-as-a-service business model and piloting it with some commercial clients.
A data insights and service-based business model
To generate predictive insights and develop new ‘tire-as-a-service’ business models, Toyo needed to first digitize its data gathering process. Toyo applied five innovation competencies outlined in Forrester’s innovation toolkit for technology leaders:
Innovate at the core of business: Toyo leveraged predictive modeling to develop and launch innovative, value-added services around tire performance and safe driving.
Develop a test-and-learn culture to spark innovation: It collaborated across all departments to overcome resistance to change.
Create a home for innovation initiatives: The company established a digital transformation headquarters to bring together existing innovation initiatives that could drive digital transformation across the organization.
Leverage co-innovation partners and build an ecosystem: Toyo partnered with multiple technology and service providers to build an ecosystem that could help it create a new business model.
Build expertise on digital and emerging technologies: The tires major built entirely new capabilities and expertise in analytics, predictive modeling, cloud, and data management to chart a robust course for its transformation and innovation endeavors.
Creating value for itself and customers
Toyo Tires successfully validated the value proposition and reception of its tire-as-a-service model. With the new business model, it could increase safety for its customers, ensure real-time tire pressure monitoring, and faster tire replacement and maintenance.
Working with TCS, Toyo could evolve as a digital service provider. By offering Toyo Connect as a value-added service bundle, customers could understand tire condition in real-time and make maintenance decisions based on actual wear and tear.
What made this happen
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