Roundtable Talk among Officers in Charge of Technology and General Managers of Business HQs

Three key persons involved in our technology development gathered to discuss our technological strengths, future technology strategies, efforts to create innovation, and the importance of human resource development.

Demonstrating Global Presence with Uniqueness and Adaptability in Advanced Technologies

Our rubber products, including tires, use dozens of additives and structural materials, mainly rubber raw materials, to deliver the required functionality and quality. Our strength lies in our possession of technologies for combining various materials and technologies for optimizing materials. The keys to this optimization are our technologies for analyzing physical properties and performing simulations. We always pursue technological advances with the confidence that we are second to none in these areas.
Moreover, while we don’t have the top market share in the tire industry, this allows us to focus on being distinctive in terms of the products we manufacture and on creating value that other companies cannot offer. Tires are used in a vast number of ways, and by optimizing them for different uses, the possibilities are endless, so we are dedicated to developing high value-added tires that other firms are unable to imitate.

There are many aspects of the mechanisms by which rubber performance manifests that are yet to be fully understood. By uncovering even one of these aspects and appl insights to R&D and performance optimization, we can begin to generate new value. And by repeatedly cycling evolutions in rubber technology, I think we are able produce unique products that are distinctively ours.

Having been involved in product design for many years, we focus on creating tires that maximize the performance of rubber as identified through R&D. The design of the tread pattern, which is the outer part of the tire in contact with the road surface, is especially important, as it affects the tire's stability, drainage, and other essential performance characteristics. Matching the tread pattern to customer preferences is also a vital element. Internally, we refer to this as "getting close to and adjusting to the customer," which emphasizes our market-driven product development.

Regarding the analysis and simulation technologies that we excel in, I would also say that given the dramatic improvement in the processing performance of hardware for data analysis, it now comes down to how effectively we can take advantage of this advancement. We are also making greater use of generative AI, which is increasingly penetrating R&D settings.
We have accumulated a massive amount of data on tire usage, which I expect to prove a powerful asset in future business development.

One aspect of tire development, is that the techniques and know-how of charismatic, master designers are black-boxed, and are thus highly valued. By having generative AI learn this knowledge and skill, we should be able to better develop human resources by allowing advanced techniques to be shared and passed on.

In the upcoming era, while it will be crucial to have differentiated products that only we can offer in the tire business, pursuing uniqueness alone could make global expansion trickier. It is essential to create new value ahead of other companies, and to endeavor to make that the de facto standard in the tire market. In this regard, we continually embrace new challenges, creating unique value and bringing it to the world, One example has been the development of tires that are manufactured using a high proportion of sustainable materials, namely biomass and recycled raw materials.
In addition, our "TOWANOWA" circular economy concept, which leverages data-driven insights based on big data, offers huge potential.
By combining our technological strength with data utilization, we intend to increase opportunities to earn profits while resolving social issues.

Shifting from a Defensive to an Offensive Intellectual Property Strategy

We are currently focusing on the questions of how to effectively utilize our existing patents and how to protect the rights we will need in fields we aim to explore in future technological development. Therefore, we are conducting benchmarking surveys for each product to clarify their current positioning, and systematically deciding on the patents we should acquire moving forward.

Creating an Environment in which We can Devote Our full Attention is Vital for Innovation

In the process of technological development, it is essential in this era to balance achieving steady results along the roadmap with fostering so-called non-linear innovation. The role of the R&D Headquarters is thus becoming increasingly important.

In R&D, a challenge is to decide which among numerous seeds we should move to commercialize. Whether to elevate a theme, continue working on it, or abandon it requires judgment from a more specialized perspective. Therefore, researchers do not handle everything themselves in the run-up to commercialization. They also obtain advice from outside directors and external specialist organizations.
A recent innovation success story is our ACTIVE TREAD all-season tires, which are set to hit the market in autumn 2024. They have the potential to fundamentally change conventional tire wisdom and represent a truly unexpected innovation achievement.

I can talk about it now, but back in 2016, when a researcher first proposed the ACTIVE TREAD concept, everyone in the company thought it was an interesting idea but impossible to realize. Actually, I had responsibility for the final decision, but there were hardly any supporters in the company, and I felt like I was playing away from home. And for about six years, there was no prospect of realization. It was as though I was sleeping on a bed of nails during that period. Though encouragement from a superior who kept urging me to see it through to the end provided a ray of hope. Without that support, we might have abandoned the theme. Through our unique R&D, which values the fundamental principles of technology, we thoroughly and continuously elucidated and pursued physical phenomena, leading to this accomplishment.

As ACTIVE TREAD becomes more widespread, I predict it will become a game-changer for automobile tires. Tires equipped with this ACTIVE TREAD will be launched in autumn 2024. Those who have experienced them on the test course have expressed a strong desire to fit their own cars with them. This is the first time in my experience that a new product has garnered such a significant reaction before its release.
Through this experience, we have had the opportunity to reconsider the nature of innovation. We have learned that while it is obviously crucial to come up with groundbreaking ideas, it is also essential to have the ability to implement those ideas. It is unrealistic for a single human being to handle everything, so looking ahead, I think it will be vital to create an organization in which some individuals generate ideas and others work on realizing those ideas.

Fostering Human Resources Willing to Take on Tough Challenges

While this may sound self-congratulatory, we should probably　be more confident and bolder in our approach to R&D. Looking back on　the past, we have long been involved in developing products using　non-petroleum resources. Although some themes were ahead of their　time and commercialization failed, it is a fact that we have an unbroken　history of taking on the challenge of new value creation, as evidenced by　our 100% fossil resource-free tires, ENASAVE100, which are made from　all-natural materials, and could be described as a pioneering example of　sustainability. Learning from the achievements of our predecessors, I feel　it is our mission to develop as many individuals as possible who have the　spirit to take on challenges.

Creating advanced technology is imperative, but researchers working in isolation cannot deliver good products to the market. I view ACTIVE TREAD as a technology that resonates well with customers. It is thus important for everyone involved in R&D to share a commitment to turning technology into something valuable from the customer's perspective.
Going forward, we will be increasingly focusing on R&D that reflects societal trends. Our mission is to lead in areas such as sustainability and the use of non-fossil fuels, addressing the needs of the future ahead of our competitors. With this belief, we will continue to move forward with foresight.

Ever since I joined the company, I have felt that executives have kept a close eye on R&D and played key roles in supporting work that responds to societal demands. For example, the development of our 100% fossil resource-free tires, which are made from all-natural materials, began with a young researcher's grand vision of creating a tire in anticipation of the eventual exhaustion of oil reserves. For around a decade, they were encouraged by a superior with a "Let's do it!" attitude.
While I may sound idealistic, I would say that this episode emphasizes that our corporate culture of supporting dreams remains undiminished. Looking back on my own experience, I have found immense joy when I have been allowed to pursue what I wanted to do. Conversely, being instructed to do things I didn’t want to do was painful. I don’t want to be misunderstood, but I believe that not all R&D needs to be directly linked to business outcomes. In an organization in which such a mindset is firmly established, I believe it fosters motivation among researchers and enables the creation of groundbreaking innovations. And by continually looking ahead and moving forward, they can establish technologies that are more advanced than those of anyone. This is the key point. To that end, I want us to be a company that fairly evaluates the work of each individual engaged in R&D while providing them all with encouragement.

I believe that along with fair evaluation of work, it is crucial to maintain close communication with each researcher about the themes they want to tackle, providing them with projects that align with their abilities and aspirations. In addition, during the years of the COVID-19 pandemic, opportunities to engage with people externally were limited. Moving forward, we will encourage researchers to actively participate in the activities of external research institutions and in academic conferences. I hope that by doing this, they will gain exposure to external insights, feel inspired, and take on the challenge of work that leads to the creation of innovations.

The key to human resource development lies in whether the organization allows for self-actualization. Of course, complete freedom isn't possible within a corporate structure. That being said, motivation is ultimately fostered by enabling individuals to pursue their interests to the greatest extent possible. This naturally cultivates talent. On the one hand, we allow each individual to do what they want to do. And on the other hand, we have them produce research outcomes that contribute to our business. The reality, though, is that achieving balance between the two is not easy. However, I believe that by maintaining regular communication with each individual, this problem is not insurmountable.
Personally, I want to develop human resources, even just one person, willing to take on tough challenges. Taking on a tough challenge brings with it the possibility of failure. I think we must have a corporate organization that supports people who take on challenges and evaluates them fairly, even if their efforts end in failure. As the General Manager of the R&D Headquarters, I will be implementing measures to boost employee morale so that we can replicate the success we had with the development of ACTIVE TREAD a second and a third time.

I have asked the personnel in the departments supervising manufacturing to fundamentally change their approach to work. I have requested that managers adopt the "3-3-3-1" approach. This means allocating 30% of their work time to operations themselves, 30% to operational transformation, 30% to staff development, and the remaining 10% to self-improvement. In operational transformation, I want us to pursue DX to create a mechanism that allows operations that used to take a decade to master to be mastered by subordinates in five years or less. Through this process of operational transformation, we will make ourselves an organization in which managers can concentrate more on developing their subordinates. Each individual has different abilities, personalities, and values. Given that, if we provide a place where each individual can demonstrate their value, they will grow independently. Going forward, within the departments supervising manufacturing, we aim to create rewarding workplaces. This will strengthen our human resource foundation and allow us to pursue the creation of new value that contributes to business development.