Material presented at: MANUCORE - SUPPLY CHAIN LEADERSHIP FORUM, EUROPE - 5-7 March 2018, Warsaw, Poland.
Marcelo describes the transformation of Pirelli into a “pure consumer tyre company” and how the company’s digital strategy is driving the reinvention of its products, business model and ways of working. He offers a few lessons learned for companies going through similar transformations as well as outlines his vision on how the major technology trends will impact the way companies operate in the future.
[2024]Digital Global Overview Report 2024 Meltwater.pdf
THE JOURNEY TOWARDS DIGITAL PRODUCTS AT PIRELLI
1. MANUCORE
SUPPLY CHAIN LEADERSHIP FORUM
WARSAW, MARCH 5-7, 2018
Marcelo De Santis, Group CIO
THE JOURNEY TOWARDS
DIGITAL PRODUCTS AT
PIRELLI
2. • Marcelo is a Business Technology leader with +20 years of
experience creating business value at the intersection of people,
data & technology across different industries - CPG, telco,
consulting, financial & automotive. He lived and worked in United
States, Latin America, Asia Pacific and Europe.
• Marcelo strongly believes in the power of an entrepreneurial,
collaborative and agile team culture to accelerate results.
• Determined to make a difference in the world, he mentors and
supports startups & NGO working on improving the lives of
underprivileged children.
• Marcelo is currently the Group CIO at Pirelli, and provides
leadership to the digitization of company products and business
processes.
ABOUT MARCELO
5. 1Excluding non recurring, one-off and extraordinary items and startup costs. Source: Pirelli FY2017 Group data
2Percentage based on 2016 Consumer revenues net of Moto only. Source: FY 2016 carve-out Consolidated financial statements consumer business only, Pirelli
estimates on third party data
Revenues
€5,352 Mln
Adj. EBIT1
€927 Mln
(Margin 17,3%)
Car
93% of revenues2
Moto
7% of revenues2
HQ & Worldwide R&D center
in Milan
presence in 6 REGIONS
19 FACTORIES
in 13 COUNTRIES
~14,600 POS
in 160 COUNTRIES
almost 50%
Market Share
Prestige Car
Manufacturers
Long standing partnership with
Exclusive supplier
#1
PIRELLI: PURE CONSUMER TYRE COMPANY; FOCUS ON HIGH VALUE
6. THE JOURNEY STARTED HERE: 4 MAJOR AUTOMOTIVE TRENDS
AUTONOMOUS DRIVING
Shift from human driven to
self driven
SHARED MOBILITY
Shift from car ownership to
transportation as a service
ELECTRIC CARS
Shift from internal
combustion to
electric engines.
1 2 3
Electric vehicles to be 30% of
new car sales by 2040
(currently is 1%).
- IHS Markit
Car sharing market revenue
USD 16.5 billion by 2024
- Global Market Insights
L4 & L5 to reach 4% of new
vehicle sales by 2030;
up to 55 % by 2040.
- Center for Automotive Research
7. CAR CONNECTIVITY: CONSUMERS HAVE ALL TYPES OF INFO.
V2V/V2X communication engine efficiency battery storage driver safety navigation/mapping
adas/car automation
auto repair
tyres
connected car
vehicle cybersecurity
AN OPPORTUNITY: INFORMATION ABOUT THEIR TYRES
4
8. PIRELLI DIGITAL PRODUCTS
Shared
Connected
Monitoring of tyres’ conditions,
via smartphone
or car electronics.
Cloud based solutions for
fleets, enabling TCO reduction
and higher uptime of vehicles
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Autonomous
Integrated real-time analysis of
tyres and car performance, for
the safest autonomous drive
Electric
Ultra
Low
Rolling
Resistance
Homologation of «Green»
tyres (A-label RR), specifically
designed for electric cars
18. “ The first responsibility of a leader
is to define reality.
The last is to say thank you.
In between, the leader is a servant. ”
- Max de Pree
THE JOURNEY STARTS HERE: 4 MAJOR AUTOMOTIVE TRENDS