2010 Pdma Speech Public

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A speech I gave at the Product Development Management Association (PDMA) Conference held at UNC in 2010. The primary focus is on Innovation Development, but it also has a motivational element to it as well...I just can\'t help myself.

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2010 Pdma Speech Public

  1. 1. Launching a new product is like sailing into a storm Presented by Mike Rubel Michelin Corporate Development – Africa, India & the Middle East PDMA Conference April 2010
  2. 2. Launching a new product is like sailing into a storm • Set a clear course • Know your environment • Move fast and don’t be afraid to alter course • Hire the right crew • Never give up
  3. 3. The Storyteller: Mike Rubel • Corporate – Michelin – Product Development Manager – Michelin – Corporate Development, Africa, India & Middle East • Startups – BookingCenter – VP Business Development – Mercury Communications – Founder and CEO • Non-profit – Big Brothers Big Sisters of the Upstate – Founder – Innovision – Board Member, Strategy Chair • Military – USS Gary – Communications Officer – USS Lincoln – Damage Control – Navy International Programs – Military Sales, Latin America • Education – United States Naval Academy – Undergraduate – Thunderbird Graduate School of International Management – MBA
  4. 4. The Environment: Michelin Group In operation for more than 110 years Headquartered in Clermont-Ferrand, France Present in every tire market Produces more than 190 million tires a year for every type of vehicle • 69 production facilities in 19 countries, 3 global R&D centers, 113,000 employees including over 22,000 employees in North America. • 2009 consolidated sales: 16.4 billion Euros €
  5. 5. A History of Innovation 1891: Michelin invents the detachable tire 1895: Michelin introduces first pneumatic tire for automobiles 1900: Michelin Red Guide is introduced to aid travelers 1938: First tire with a metal carcass, the Michelin “Metallic” 1946: First radial tire, the Michelin "X" tire is introduced 1952: First radial tire for trucks 1977: First radial tire for Formula One 1981: First radial tire for Aircraft 1984: First radial tire for Motorbikes 1992: Michelin’s “Green X” tire is introduced 1995: The space shuttle lands on Michelin tires 2000: XOne single truck tire introduced 2001: Largest Tire Built 59/80R63 2005: Tweel
  6. 6. “Innovation” Webster’s Dictionary: • “Innovation” – 113,000,000 references in Google • “Definition of Innovation” – 4,240,000 references in Google 1: the introduction of something new 2: a new idea, method, or device: novelty Wikipedia: • Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. • Innovation is distinct from improvement or invention in the following way: Innovation occurs when someone/something changes how the world works, how people organize themselves, or how they conduct their lives.
  7. 7. Michelin Research Strategies Construct product evolutions in phase with market needs Seek product revolutions which disrupt the market references by anticipating emerging, unknown or unrealized customer needs Dry & Wet Grip Comfort Product Evolution Handling Product Revolution Service Life Endurance Rolling Resistance To Promote the Innovative Process Continuously re-think the product Seize opportunities offered by new technologies or services Push the technical limits of the product in its known applications
  8. 8. Example 1: Tweel • Components – Shear Band • Rubber – Flexible Spokes • Polyurethane – Hub • Steel • Performance – Pneumatic ride – Maintenance free – Improved handling
  9. 9. Tweel Value Improved Fuel Economy Improved Stability Bullet Proof Improved Handling Durability Increased Mobility Shock Dampening Resilient Reduced Downtime Increased Productivity Increased Maximum Load Elimination of Flat Tires Reduced Maintenance Cost
  10. 10. Tweel Summary We tested its limits… We validated market opportunities… We developed the technology… We created the Skid Steer Tweel
  11. 11. Example 2: XOne Tire Crown Plies: provides vertical flexibility, lateral rigidity and Tread: A thick layer steering capability. of rubber for ground contact. Designed for adherence and wear. Sidewalls: Cover & protect casing InfinicoilTM: Controls Bead area: Internal casing shape for bead wire clamps the consistent ground Inner liner: Makes the tire tire against the wheel. contact nearly impermeable to maintain correct inflation pressure.
  12. 12. XOne Value 740 lbs of weight savings…which means fuel savings In 2000, Michelin introduced the XOne at the Great American Trucking Show. Competitors suspected it was a concept-product… but in fact it was ready for market. 18-Wheelers to 10-Wheelers 18 wheels: 10 wheels:
  13. 13. XOne Summary In the Market Over half a million XOne tires sold Thousands of customers on XOnes Boost to the Economy US freight carrying capacity increased by several hundred thousand tons Environmental improvements 20 million gallons of fuel savings Reduction of CO2 emissions by 200M+ tons
  14. 14. Let me tell you a story…
  15. 15. Key lessons • Set a clear course • Know your environment • Move fast and don’t be afraid to alter course • Hire the right crew • Never give up the ship
  16. 16. Launching a new product is like sailing into a storm • Set a clear course Challenges: • Changing ownership and metrics • Minimal budget • Innovation-appropriate metrics
  17. 17. Build Consensus Define Value to the firm n v atio Define resources required no and associated timeline nt In be technology um inc time Today Tomorrow
  18. 18. Launching a new product is like sailing into a storm • In Summary: Set a clear course Challenges: • Changing ownership and metrics • Minimal budget • Innovation-appropriate metrics Actions: • Established Executive-level Committee • Dedicated budget from outside the business unit • Pushed to establish metrics that fit the nature of our product Key lesson: • Top level support is critical for your success • You must “sell” your product to internal customers before the external ones
  19. 19. Launching a new product is like sailing into a storm • Know your environment Challenges: • Understand the market • Know the value of your product/service
  20. 20. Know the Market – Value your Product • Internal: Define what you can do… – Product challenges – Testing – Value analysis – Market research • External: Define what your customer wants you to do… – Challenge suppliers – Work with customers to define potential – Engage end-users to determine needs/wants – Field trials validate product expectations
  21. 21. Launching a new product is like sailing into a storm • In Summary: Know your environment Challenges: • Understand the market • Know the value of your product/service Actions: • Engaged the market (suppliers, partners, customers & end-users) early to determine needs/wants • Early and rapid product testing with multiple field trials Key lesson: • Don’t assume you know what the market wants
  22. 22. Launching a new product is like sailing into a storm • Move fast and don’t be afraid to alter course Challenges: • Traditional Corporate processes may impede revolutionary ideas • Corporations find it hard to make decisions and changes quickly
  23. 23. Challenge prevailing thought 1988 America’s Cup Challenge Stars and Stripes easily defeats New Zealand’s “Big Boat”
  24. 24. Launching a new product is like sailing into a storm • In Summary: Move fast and don’t be afraid to alter course Challenges: • Traditional processes impede progress • Corporations find it hard to make decisions and changes quickly Actions: • Numerous, rapid, product loops based on market feedback • Challenged prevailing thought and “historical wisdom” • Teams try to make decisions quickly Key lesson: • Know your limits…then push them
  25. 25. Launching a new product is like sailing into a storm • Hire the right crew Challenges: • Corporate mindset vs. entrepreneurial mindset
  26. 26. Launching a new product is like sailing into a storm • In Summary: Hire the right crew Challenges: • Traditional thought process with a new technology Actions: • Created a cross-functional Team • Taught them to think like Entrepreneurs • Worked hard to beat deadlines and come in under budget Key lesson: • Cultivate your differences • Build a strong, flexible, hard-working, decision oriented Team
  27. 27. Launching a new product is like sailing into a storm • Never give up the ship Challenges: • We stopped several market approaches • Many assumed that would be the end of these technologies
  28. 28. Persistence pays off The Filter: • Adds value to the market • Technically possible • Able to Manufacture • OE/customer interest • Strong business case
  29. 29. Launching a new product is like sailing into a storm • In Summary: Never give up the ship Challenges: • We stopped several market approaches • Many assumed that would be the end of these technologies Actions: • We kept coming up with new opportunities, approaches & models Key lesson: • Never give up!
  30. 30. Over 60 years ago, we reinvented the mobility industry… we did it again with the XOne… we intend on doing it again and again and again!

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