Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 21.04.2021
Length: 19 pages
Data source: Field research
Abstract
The Michelin case study is about business and cultural change through the implementation of a digital transformation. It describes how Michelin, a 130-year-old leading global player in the tire industry, was facing intense competition from Asian low-cost players, who were commoditizing the core product. In addition, large digital platforms, such as Amazon and Alibaba, were disintermediating distribution, and vehicle ownership patterns were also changing with the emergence of new rental and car-sharing models. These changes brought the message home to management that Michelin needed to refocus on putting its customers at the heart of everything it does, simplify operations, empower its people to make the change happen and innovate its business model to find new sources of value. Michelin embarked on a digital transformation that was the catalyst for the transformation of the global business. The case details the steps senior management took to initiate and deploy Michelin's digital transformation and, in parallel, evolve a very strongly entrenched company culture. The success of Michelin's digital and culture change was in large part due to senior management's strong commitment to digital transformation and careful orchestration of the execution considering the highly decentralized and global nature of the organization.
Time period
The events covered by this case took place in 2014-2020.Geographical setting
Region:
World/global
Featured company
Michelin
Employees:
10000+
Turnover:
EUR 20 billion
Industry:
Tires
About
Abstract
The Michelin case study is about business and cultural change through the implementation of a digital transformation. It describes how Michelin, a 130-year-old leading global player in the tire industry, was facing intense competition from Asian low-cost players, who were commoditizing the core product. In addition, large digital platforms, such as Amazon and Alibaba, were disintermediating distribution, and vehicle ownership patterns were also changing with the emergence of new rental and car-sharing models. These changes brought the message home to management that Michelin needed to refocus on putting its customers at the heart of everything it does, simplify operations, empower its people to make the change happen and innovate its business model to find new sources of value. Michelin embarked on a digital transformation that was the catalyst for the transformation of the global business. The case details the steps senior management took to initiate and deploy Michelin's digital transformation and, in parallel, evolve a very strongly entrenched company culture. The success of Michelin's digital and culture change was in large part due to senior management's strong commitment to digital transformation and careful orchestration of the execution considering the highly decentralized and global nature of the organization.
Settings
Time period
The events covered by this case took place in 2014-2020.Geographical setting
Region:
World/global
Featured company
Michelin
Employees:
10000+
Turnover:
EUR 20 billion
Industry:
Tires