Rebooting a business

Innovault enables a tyre business to reboot, bouncing back from adversity riding a new Business Model

A big problem

The truck bus radial business of a tyre company had been struggling to live up to its promise. Even after repeated attempts to ride the rising wave of radial-isation in the road transport sector of the country, this line of business was plagued by low traction among truck fleet operators.

Their struggle over a few years convinced the leadership that they needed an Innovative new Service model to enshroud the products they were taking to the fleets.

In our experience working with organizations of all sizes across the industry spectrum

The bigger the need for a ‘Pole-vaulting’ boost in a business, the more it pays to dig below visible activities to uncover and shine a ruthless spotlight onto the organization’s potentially limiting Perceptual Models: a self-created obstacle course of invisible but all-powerful beliefs about the business. Something that can silently limit the field of thought, short-circuiting new ideas & possibilities. 

In what proved to be a thought-provoking exercise, an Innovation Team handpicked from the business recognized and faced up to several of their unconscious Perceptual Model boundaries worth seriously questioning. For instance with regard to the transport fleets’ real needs, the company’s own go-to-market strategy for the truck bus Radial category, and what constituted value for numerous players in the transport ecosystem.

Facing up to their Perceptual Model boundaries slowly but surely started opening up new Strategic Questions for the team:

  • What would it take to initiate lifetime engagement with the customer – in contrast to the repeated door-knocking we are having to do today?
  • What is the real value customers expect from our service setup – over & above the warranty terms we offer to them today?

Trying to solve for these Strategic Questions led to a quest for deeper Insight into the thought processes of the fleets and other transport industry entities. In a radical departure from established practice, in this case the entire Innovation Team went out to engage with customers, channel partners and other service providers like fitters, re-treaders etc. Investing energy in highly productive direct dialogues with them.

Some powerful Insights emerged. For example:

  • Trust is the holy grail. The customer is looking for a supplier whom he can trust, and once you win it, its not easy to displace you. Equally, if you lose it, its something very difficult to regain.
  • You cannot have one single formula across the country: The Service model has to be contexted to the micromarket/segment need. E.g. the South customer is technically knowledgeable & also financially savvy.

Some powerful Insights emerged. For example:

  • Trust is the holy grail. The customer is looking for a supplier whom he can trust, and once you win it, its not easy to displace you. Equally, if you lose it, its something very difficult to regain.
  • You cannot have one single formula across the country: The Service model has to be contexted to the micromarket/segment need. E.g. the South customer is technically knowledgeable & also financially savvy.
Inspired by these insights freshly imprinted on their minds, the Innovation Team generated several ‘Pole-Vaulting’ Ideas. For instance, Fleet Need Assessment services to cover not only tyres but all aspects of fleet operations; Customer Lifecycle Management services; Driver Availability & Driving Performance related services; Emergency Assistance services.

After intensive prototyping, a bouquet of services named ‘Advisory Services’ was chosen for countrywide scaling.

Targeting fleets based on carefully thought-through criteria, within 1 year the truck bus radial team has been successful in tying up long term service contracts with 130+ customers. The services offered are highly customised to the nature of operations & specific requirements of each customer. They use skilled manpower to carry out monitoring & analysis using sophisticated technology tools and offer intervention services covering the whole range of activities related to tyres.

Impact

In the 1st year the Pole-Vault ideas were scaled nationally, there has been a powerful impact on the truck bus radial business:

  • Advisory Services has added 20% to the revenues of this business.
  • Thanks to this innovative bouquet of services, the truck bus radial team are now seen as true partners helping a fleet to do its business better on an everyday basis. This has created a strong pull for the radial product range. And opened up a robust a pipeline of opportunities in fleets which were earlier not keen to engage.

The new innovative Service Model has truly re-booted the radial business & is well on course to becoming a long-term competitive advantage for the company.

Impact

In the 1st year the Pole-Vault ideas were scaled nationally, there has been a powerful impact on the truck bus radial business:

  • Advisory Services has added 20% to the revenues of this business.
  • Thanks to this innovative bouquet of services, the truck bus radial team are now seen as true partners helping a fleet to do its business better on an everyday basis. This has created a strong pull for the radial product range. And opened up a robust a pipeline of opportunities in fleets which were earlier not keen to engage.

The new innovative Service Model has truly re-booted the radial business & is well on course to becoming a long-term competitive advantage for the company.