Pirelli’s digital technologies have made it ready for second wave of Covid-19

While 46 per cent of the global population is still without internet access, the Covid-19 pandemic has demonstrated the effectiveness of digital technologies. And specifically companies such as Pirelli are now better prepared for a possible second wave of Covid-19 because of the digital technologies they have deployed. Pier Paolo Tamma, SVP and Chief Digital Officer of Pirelli and Dr John O’Shea of Dell Technologies shared their views at the Global Manufacturing and Industrialisation Summit’s Virtual Edition on 8 July 2020.

The main point is: companies that embarked on digital transformation programmes years ago are now reaping the rewards and successfully navigating the disruption caused by the pandemic. Those with technology based on Artificial Intelligence (AI) are said to be particularly well-placed.

Pier Paolo Tamma said the pandemic demonstrated the effectiveness of the digital technologies the Italy-based tyre manufacturer had adopted in recent years: “This was a chance to review our priorities and maybe to accelerate the part of the programme related to cost optimisation, for example, which is very critical for all companies now,” he said.

Tamma added that Pirelli’s digital transformation programme had provided it with the data and insights to adapt the capacity of its manufacturing plants and adjust its supply chains to future demand trends: “We are working with artificial intelligence in order to optimise production, optimise planning, and ultimately optimise the efficiency and effectiveness of our sales force in order to address where demand will be generated”.

According to Tamma, AI has proved “incredibly successful” at delivering results and that smaller companies should look to invest in the technology:
“Thanks to our industrial Internet of Things (IoT) solution, we are progressively connecting all the machinery that we have in the plants and applying real time data analysis with machine learning technology. The impact on the quality and the effectiveness of the production is very high. So there is a good business case to invest in this area.”

Dr O’Shea highlighted the role that connectivity has played in allowing businesses to maintain operations during the pandemic and that the continued roll out of 5G would be crucial to support businesses with digital transformation programmes.

He added that investment in critical infrastructure would be essential in the wake of the pandemic, especially for developing countries. However, he warned against the dangers of a widening digital divide if the spread of technology is uneven and that governments and multi-lateral organisations must co-ordinate with entrepreneurs and innovators to create best practices that would help move society forward.

“Having the balance level infrastructure of the networks is very important so 5G is going to be crucial moving forward. But you have approximately 46 per cent of the global population that has no internet connection,” he said, adding: “I think the pandemic has opened our eyes more and given us more empathy in relation to how we come together as humanity. I would say we need more collaboration in relation to governments coming together and discussing the economics.”

Pirelli has learnt lessons from the pandemic that can be reapplied to a second wave scenario Tamma said Pirelli could leverage valuable lessons from the pandemic to deal with another crisis in future or even to help manage the risks of a potential second wave of COVID-19:

“What we’ve learned this year from applying digital technology in the industrial and manufacturing process is that we can leverage more and more the power of data to make better decisions,” he said. Having the possibility to understand in real time what is happening in each part of your company and take the right decisions, this is a very big game changer and I think this is the way to enhance your business and adapt to what is happening in the market.”