Innovation is Key to Future Prosperity – Goodyear’s Keegan

In remarks before the 28th Conference on Tire Science and Technology, Goodyear chairman and CEO Robert J. Keegan told attendees that a commitment to rapid innovation, aimed at addressing specific consumer needs, provides a significant “competitive advantage.” Furthermore, in today’s fast paced and economically challenging environment, such a commitment is “critical to a company’s very survival.”

In most industries, Keegan emphasised, innovation is exclusively associated with products.  However, he noted that truly progressive companies innovate across the spectrum of business practices from processes and people, to research and development, to supply chain and business continuity. “Innovation is most often a response to a need,” he explained.  “Once a consumer need is identified, every aspect of a proposed new product, from fundamental technology to product development, from quality and manufacturing through the supply chain should be addressed concurrently.  The result is exponential acceleration of time to market, which is a critical factor in driving prosperous innovation.”

In describing Goodyear’s recently introduced Assurance Fuel Max, Keegan commented that during the development of the tyre’s compound, construction and tread design, Goodyear’s sales and marketing organisations were meeting with retailers and consumers to determine the most effective way to talk about the product, to determine the value proposition for both the seller and the buyer.  According to Keegan, that prepared the company, well in advance of introduction, to begin talking about the product in ways that were both motivating and believable.

“The ingredients of prosperous innovation are basic, but profound,” Keegan said.  “You need to respond to a market need where the addressable market is significant.  You have to be specific and clear on your purpose.  You can’t confuse innovation with novelty.  You also need to work with speed and a sense of urgency.  This requires genuine cross-functional teamwork.  And finally, you need to make the commitment.  Those with total commitment have the best chance of winning.”