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.

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. 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. 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. 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. 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. “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. 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. Example 1: Tweel
• Components
– Shear Band
• Rubber
– Flexible Spokes
• Polyurethane
– Hub
• Steel
• Performance
– Pneumatic ride
– Maintenance free
– Improved handling

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. Tweel Summary
We tested its limits…
We validated market opportunities…
We developed the technology…
We created the
Skid Steer Tweel

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. 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. 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. Let me tell you a story…

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. 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. 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. 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. 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. 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. 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. 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. Challenge prevailing thought
1988 America’s Cup Challenge
Stars and Stripes easily defeats
New Zealand’s “Big Boat”

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. Launching a new product is like sailing into a storm
• Hire the right crew
Challenges:
• Corporate mindset vs. entrepreneurial mindset

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. 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. Persistence pays off
The Filter:
• Adds value to the market
• Technically possible
• Able to Manufacture
• OE/customer interest
• Strong business case

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. 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!