To enhance competitiveness, the tyre manufacturer, Bridgestone Tyres, has been piloting an early version of a new co-creation service in Europe developed around a new business model.

Bridgestone has initiated a pilot project where the focus of their business is no longer only the sale of tyres but added services which enhance the value of buying and using tyres. The tyres have incorporated sensors, which register the usage and the mileage. Instead of selling the tyres as a product on its own, the tyres are leased based on usage.

When sensors are incorporated in the tyres and they relay data to a central data server, Bridgestone can in real time register what condition their customers’ tyres are in. Hence they can inform the customer when he needs new tires, check the pressure or signs of rough usage.

As a consequence, the customer receives a driver experience, instead of just tyres. Bridgestone is moving away from being a product manufacturer to becoming a service provider, providing a co-created service to the end users.

The revenue is based on tyre usage. It is a move from selling resources to leasing and accessing the resources.

Source: Prahalad & Krishnan (2008), A New Age of Innovation