Maria Landaeta
Case Western Reserve University - Weatherhead School of Management
Chris Laszlo
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This story profiles Goodyear's Air Maintenance Technology (AMT); a technology innovation that will come with performance and environmental benefits. In terms of environmental benefits, it will help reduce carbon dioxide emissions by 12%. Regarding performance, this technology also will improve fuel efficiency with a 5% fuel reduction. AMT will extend the tire life with a mileage increase of up to 25%. The durability of the tire will be achieved by minimizing the wear of the tire thread. Suggested improvements also include handling and safety. The AMT self-inflating system will avoid the need of manually inflating the tires. Overall all the AMT will foster sustainability as well as performance.
Goodyear has built a history of innovation not only by creating leading-edge products but also business models that have proved the success of the company. In 2011, Goodyear announced it would be developing a state-of-the-art technology for the sustainable air maintenance of tires called Air Maintenance Technology (AMT).
The innovation behind Goodyear's Air Maintenance Technology (AMT) revolves around both the product itself, and also around the benefits to the environment. Tires using this technology are capable of self-inflating through a system that allows them to maintain the optimal cold inflation pressure without requiring the driver to use extra devices for inflation, such as external pumps or electronics. As the tire sustains its own pressure; it improves fuel efficiency, decreases emissions and secures a strong positive ratio of durability to performance.
Within the tire industry, costs involving tires represent the biggest maintenance item in operating vehicles for commercial purposes. For example, 44 percent of tires for heavy transportation such as trucks, are within 5 pounds per square inch (psi) of their optimal pressure, while 7 percent are significantly under-inflated by at least 20 psi. Under-inflated tires have a reduced life, while properly inflated tires have both longer life and better performance. The promise of this innovation is that the AMT technology will provide commercial vehicles a better performance in a variety of conditions.
Even though this innovation in currently under development, it has been recognized internationally with awards by notorious editorials. Some of the awards were: "Best Innovations of the Year" from Time, the "Green Innovation Award" from the Luxembourg Green Business Summit, "Best 100 Ideas of the Year" from Actualidad Economic in Spain, among others.
Clearly, the motivations of the AMT technology are far beyond any measure of economic profits. The system is still in the development stage and so far the company has spent over $1.5 million of research that they received as a grant from the United States Department of Energy's Office of Vehicle Technology.
Goodyear has a genuine history and culture of innovation that is here now and promises to expand to the future. Innovations like the AMT are considered scalable as the company continues to expand its sustainability efforts on all sectors of its supply chain. The AMT system is definitely setting inspiring changes that should ideally be mirrored by other companies in the tire industry.
One of the motivations behind this technology was to resolve one of the many problems consumers face. As tire users put off checking the air pressure of their tires regularly, the tires life and the user’s safety is jeopardized. Goodyear came up with the Air Maintenance Technology, AMT, to ensure drivers do not have to worry about their tire pressure again. The AMT systems does all the job of maintaining the proper levels of pressure for the tire, improving its performance and mileage by 25% and making consumers save money with a 5% of fuel efficiency that comes incorporated into the tire. Additionally, the technology has an environmental motivation that is to become more energy efficient by reducing emissions by 12%.
Goodyear's net positive impact is embedded in its vision and it is reflected in its action-oriented goals. It not only excels with vanguard products and services but also creates a responsible and caring working environment for its people. Goodyear’s care for the planet and commitment to its community of employees, customers, investors, shareholders and suppliers is constantly reflected on the company’s sustainability efforts.
With regards to the AMT technology specifically, this technology will provide a beneficial impact to commercial vehicles in a variety of ways. This technology allows for tires to be properly inflated at all times, in all weather conditions. Proper inflation gives tires a longer life span and better performance. Since these tires have the ability to maintain their own pressure this leads to improved fuel efficiency and decreased emissions for the vehicle.
To create economic profits from sustainable practices can be very challenging as Jose Diaz, Design Innovation Manager at Goodyear pointed out during the interview; “Innovation teams by definition are offending the current status quo. As they bring change, there is a lot of uncertainty for the future decisions and there are always internal pressures in terms of the ratio of how expensive these teams are for the companies compared to their actual productivity."
That is why one of the most important business benefits of these innovations goes beyond short-term economic profits. These innovations represent a long-term security on the quality and the performance of a product that transforms user experience through technology while it also benefits the environment. This brings into the equation a goal every company on earth wants to achieve, that is to become the brand of preference in a world of increasingly growing expectations. The whole strategy of Goodyear's net positive impact creates a long-term positioning as a brand of choice for the highly conscious global consumer.
In order to measure the performance of the product line and its impact on the environment, Goodyear also created the Life Cycle Assessment LCA. The metrics generated by this technology provide insight on the current impacts and opportunities of each product that can be utilized to prototype future designs for the greater benefits of end-users and the environment. This way, LCA technology also complies with the Responsible Consumption and Production UN Global Goal.
AMT technology, like many others Goodyear innovations introduced each year to the market, builds up the company’s net positive impact. Goodyear’s AMT Technology targets UN Goal number 7 on Clean Energy, and Goal 13 on Climate Action by improving emissions reductions by 12% in 2014. The company’s current goal is to reduce emissions by 15% over the course of the next three years.
Goodyear’s AMT Technology also embraces UN Goal number 9 on "Industry, Innovation, and Infrastructure" by empowering and developing great leaders in every sector of the organization, while also improving the quality of its operations to achieve smart and sustainable results. The company employs a cross-functional network of leaders working at every part of the supply chain with managers, designers, engineers, researchers, marketers, sales representatives and scientists at testing laboratories and plants to create the holistic approach this company has towards innovation.
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Jose Diaz, Design Innovation Manager at Goodyear Tire & Rubber Company
The global tire company headquartered in Akron, OH is now 118 years old. Throughout its history, the company has demonstrated to be an example of global expansion and innovation.