Keegan says innovation key to success in recession

ERJ staff report (TB)

Akron, Ohio -- Innovation is the key to success in a recession and one that Goodyear believes is critical, Goodyear Chairman and CEO Robert Keegan told attendees of the Tire Society meeting in Akron yesterday.

Delivering the keynote address for the gathering of tyre and rubber engineers and scientists, Keegan said the tyre industry tends to search for as much certainty as possible, but innovation doesn't usually come with certainty.

“It's pretty easy to withhold support and patience for projects that might yield a great result or products that could change the industry,”Keegan said. “We all love an innovation until the time comes to place the bet. In our industry, that aversion to accepting the innovative approach certainly will not lead to success.”

When an idea is introduced, he said the easiest and most comfortable answer is “no, it won't work,” because nothing is at stake. He acknowledged that not everyone has the courage to accept the risk of an idea or approach that could fail.

At Goodyear, Keegan highlighted the company's success in developing the Assurance Fuel Max, TripleTred and ComforTred tyres and bringing them to market. He said in 2002, Goodyear “had to change simply to survive, but as we did that, we also changed the way we worked,” and became a “fast-moving consumer products company.”

Keegan noted the Fuel Max tyre was developed and introduced over a year's time, and the company is on track to sell 1 million units “faster than any other consumer tyre in our history.”

To do that “in the worst economy in 70 years is the best example of innovating to prosper…,” he added.

From Tire Business (A Crain publication)