24MBP Business Shaping Scenario

Create Good Business Quality
FeatureImprove Management Quality and Working & Business Quality—Bridgestone DNA / Unique Deming Plan

In the 24MBP, Bridgestone further focus on value creation in accordance with our business shaping scenario, which consists of thefollowing four scenarios: “create good business quality”, “create good tires”, “create good business”, and “create new businesssowing good seeds for the future”. The top priority issue in 2024 as the first year of the 24MBP, is to create good businessquality. We are striving to improve management and working & business quality globally. What forms the foundation for this is
Bridgestone DNA “focus on quality” and the mission “Serving Society with Superior Quality.”

Bridgestone’s Unique Deming Plan

dedicated to promote and drove the plan toward the Deming
Prize. Bridgestone received it in 1968, and today, we have

In reaffirming Bridgestone DNA, returning to origins, we havecontinued our initiatives lead by “TQM Promotion

begun by reaffirming and re-enhancing understanding of

Department” under Global CQMO (Chief Quality Management

Bridgestone’s unique Deming Plan. The Deming Plan is the

Officer). The basic thought of Bridgestone’s unique Deming

activities which we promote toward improvement ofPlan is “good company quality makes good quality ofmanagement and working & business quality aiming for

products and services”. Based on this, we reaffirm andthe “Deming Prize” since 1960s. The Deming Prize wasre-enhance understanding of 5 concepts - “PDCA,” “5W1H

established in 1951, to honor Dr. Deming who was a(use why why why analysis),” “Promote rational

statistician in the U.S. and greatly contributed to the quality

standardization,” “Explain by using accurate data,” andcontrol movement in Japan. Dr. Deming’s idea was that the“Control important points”.

quality is created not only in the plant but is a matter ofoverall management, and is deeply related to management
philosophy. The prize isRe-enhancing Understanding of Bridgestone DNA
and Bridgestone’s Unique Deming Plan

recognized in the industry as

Receiving the Deming Application
Prize (1968)

the highest honor given to a

In order to reaffirm and re-enhancing understanding of thecompany whose quality

Deming Plan, we are initiating our training in all regions,control activities are company-

functions and job layers, from management to all employee

wide and comprehensive.

in global. As a starting point, the Global Executive Committee

We introduced this method in(Global EXCO) was held in March 2024 in Kurume City,

the 1960s when promoting

Fukuoka Prefecture, which is the birthplace of Bridgestone.

the modernization ofVisiting footsteps of the founder, all members of the global

management andmanagement team reaffirmed Bridgestone DNA based onenhancement of quality

Genbutsu-Genba (respect for being on-site). Also, we hadmanagement activities, andworkshops to reaffirm and re-enhance understanding ofin 1964, we independently“Bridgestone’s unique Deming Plan” and discussed specificnamed the activities as

management issues with PDCA and why why why analysis,“Bridgestone’s unique Deming

as well as visited on-site to see and learn on-site improvement

Plan”, established an

activities based on Genbutsu-Genba (respect for beingorganization which wason-site). Conveying Global CEO’s message to employees

Bridgestone’s Unique Deming Plan
Basic
thought
5concepts

36

Good company quality makes good quality of
products and services① Master PDCA ② Use 5W1H (WHY-WHY- WHY analysis)③ Promote rational standardization④ Explain by using accurate data ⑤ Control important points

Bridgestone’s unique Deming Plan
- Original Excerpt Edition connected with 24MBP -0/30

for the improvement of management quality on our 93rd

improvement by sharing excellent practices of TQM

anniversary of founding, we are working on disseminating

activities from each site of the world and evolving quality“Bridgestone’s unique Deming Plan” globally and conductingof working & business. In 2023, the 13th conference was held

workshops for all functions and job layers in global operations.

in person for the first time in four years after the COVID-19

Through these activities, we improve management andpandemic. Sixteen out of more than 2,000 improvement

working & business quality by deepening understanding ofcases submitted from regions and offices around the world

all global employees on the thoughts of founder Shojiro

were presented as excellent initiatives, followed by

Ishibashi toward its founding which are our origin, Bridgestone

exchanges of opinions among management and award-

DNA that has been cultivated since our founding, and thewinning teams.

intention and history of the Deming Plan.

Improve Management Quality and Working &Business Quality:
Strengthen Global TQM Activities Steady
Bridgestone values TQM (Total Quality Management)
activities and the Bridgestone Group Awards, our highestranking employee recognition program, important as
global asset to re-enhance understanding of Bridgestone
DNA and the Deming Plan at actual business and on-site
initiatives. In particular, since the promotion of“Bridgestone’s unique Deming Plan” in the 1960s, TQM
activities have been our global asset and inherited as ourculture to pursue continuous improvement and innovationstrongly reflecting Bridgestone DNA. We have held the

The 13 th Bridgestone Group Global TQM Conference"Group Global TQM Conference" every year from 2010 withthe aim for encounraging innovation and continues

Group Global TQM Conference: Awardee
Under the Bridgestone DNA “focus on quality,” we have a responsibility to deliver good tires toour customers at the timing when they want. In order to fulfill such responsibility, we tackled
the improvement to prevent malfunctions in the 6-kilometer conveyor through which tires
flow. By running the conveyor with tires equipped with acceleration sensors, we were able tocollect and visualize data on roller rotation defects that were previously invisible, leading topredictive management. I will continue to support our customers’ everyday lives by
persistently practicing the “5 concepts of the Deming Plan”, going forward.

Shinichiro Kondo
Supervisor, Inspection, Quality Assurance Department, Kurume Plant

We introduced automated visual inspection machine in the inspection process to improvecustomer value for further quality stabilization. This project was complicated and took a longtime for its implementation, however, we achieved it by meticulously conducting the PDCA
cycle and monitoring its situation on a weekly basis. Also, the participation in Group Global
TQM Conference gave me a lot of good practices. I will leverage this experience for future
improvement activities.

Patricia García
Final Inspection, Bridgestone Burgos Plant

Bridgestone 3.0 Journey 2024 Integrated Report37

24MBP Business Shaping Scenario: Good Business Quality

Talent Creativity Enhancement / Creation of New Corporate DNA Linked to theBridgestone E8 Commitment
Specific Efforts to Enhance Talent Creativity

Improving Productivity and Creativity(Talent Creativity) of Every Individual
In order to promote a talent strategy linked to business■ Talent Development

Bridgestone undertakes talent development based on a

strategies, the core of the Bridgestone’s talent strategy istalent strategy aligned with its business strategy. In addition

based on the idea of providing opportunities for diverse

to strengthening the Bridgestone DNA, we are expanding

talent to shine through the spread of individual success andlearning and challenging opportunities to support talent who

confidence. At the same time, this aims to enhance corporate

are keen to take on challenges and grow on their own tovalue by creating added value linked to business strategy. In

create further value. This will help ensure both the company’sorder to realize our 2030 Long Term Strategic Aspiration andgrowth and each employee’s growth can be realized.

improve the quality of our management and working &Through these efforts, we aim to create a virtuous cycle ofbusiness, which is a priority issue in 24MBP, we need to hirevalue creation while increasing employee engagement.

talent uniquely suited to Bridgestone who share and embody
the Bridgestone DNA, and then improve the productivity andcreativity of each and every one of these employees. We are■ Genba (On-site) 100-Day Challenge Program

In April 2023, we launched the “Genba (On-site) 100-Day

undertaking various initiatives to ensure that the corporate

Challenge Program”, in which employees take the initiative

growth and the growth of each and every employee go handto engage in investigating and verifying any issues orin hand.

hypotheses they have formulated on their own about theirAs an indicator of these efforts, “talent creativity” was first

respective operations. This initiative would be conducted fortested in 2023 and introduced as a global management

100 days at Japanese or overseas worksites, thereby

indicator starting from the 24MBP. The basic concept ofpromoting awareness and behavioral change. In 2023, 15“talent creativity” is to strengthen investment in humanpeople from diverse functions and departments, including

capital, increase added value, and create a virtuous cycle ofsafety and procurement, took part in the program. Fromvalue creation. We define the “talent creativity KPI” as

2024 and beyond, the program will be expanded globally toadjusted operating profit (added value) divided by talentencourage even more employees to take up the challenge.

investment (sum of labor, training, and benefits costs), anduse this as a common global measure to monitor global
trends and address issues in each region and country.
“Genba (on-site) 100-Day Challenge Program” was a

Talent Creativity KPIvaluable opportunity for me, as a member of the Quality
Division, to collaborate with my teammates in Japan andoverseas involved in the growth business of TB retread

Talentcreativity

Added value

UP

Further challenge
to create added value

UP

Talent investment

tires, and to drive PDCA cycle and improvements on
Genbutsu-Genba. I have gained valuable knowledge from
activities such as improvement activities analyzing eachUP

individual tire and identifying the cause of failures throughthe actual product review meetings in Japan, data-driven
Averagefor 24MBP

130 level
117
100

119
110

117

+10 Pts level115

to strengthen recurrence prevention using the Process QA
Reference List. I was also able to build a wide network ofglobal connections. Moving forward, I will make efforts

21MBP→24MBP

Averagefor 21MBP

125 level

market analysis tools in the United States, and activities

to improve the working & business quality based on theoriginal five concepts of
the Deming Plan, with afocus on strengthening the

2019

38

2020

Retread QA system.

24MBP

74
2021

2022

2023 2024
Result2025

2026

Takuma Nishida
CQO/Quality Division
G-Material & Evaluation
QA System Section

■ Digital Skill Enhancement (Digital 100 Days of Training)proactive and willing to take on challenges in order to

We have introduced the “Digital 100 Days of Training” as anprovide greater value to stakeholders. Through multiple

opportunity for our employees to choose a program that

initiatives, we continue to support the challenge and growthsuits their level of ability and challenges them to learn. Theof numerous employees. In addition to creating a place

program covers a wide range of skill levels, including

where diverse talent can shine and take on diverse

beginner training in basic digital literacy compiled by thechallenges, we are promoting the creation of a new

Digital Literacy Council, and in-depth training in which

corporate culture, corporate DNA, and culture change linked

participants learn digital technology related to their own

to improving employee engagement and creating value

field. In 2023, a total of over 700 employees worked tothrough the Bridgestone E8 Commitment.

strengthen their digital skills. We believe that creating social
value and customer value through the fusion of the real andthe digital is indispensable to achieving the goals of 24MBP■ Establishing a Pleasant Working Environment

At Bridgestone, we make ongoing improvements to create

and realizing our 2030 Long Term Strategic Aspiration. We

workplace environments that are inclusive to diverse

will continue to globally expand our foundation of digital

personnel. These include on-site improvement activities

talent, promoting their ongoing development and acquisition.

and the use of FemTech programs to help resolve women’s
health issues through technology.

Creating an Environment where Diverse Talent
can Shine

As part of our on-site improvement activities, we makeinvestments that generate immediate results based on
feedback from employees at the foremost front lines of our■ Creating a Place for Diverse Talent to Shine

business. We are also working to enhance benefits, improve

Based on the belief that the success of diverse talent leads

the workplace environment and reduce employee workloads.

to the creation of value as expressed in the Bridgestone E8

In particular, safety is the very foundation of corporate

Commitment, Bridgestone has created a workplace

management, and as such each and every employee strives

environment that allows our diverse workforce to shine.

for “Safety First, Always”, as stated in our Safety Mission

Positioning the improvement of employee engagement as

Statement, by promoting safety activities throughout theone of the key issues in promoting global culture change invalue chain, thereby ensuring we can all work with peace ofline with the Bridgestone E8 Commitment, from 2023, wemind in a safe workplace. As we work toward an environment

have transitioned to monitoring through a globally

where diverse talent can flourish, we update our safety andstandardized engagement survey. While respecting thedisaster-preparedness standards taking into consideration a

differences in culture and characteristics of each country

variety of changes in conditions, including ergonomic risks,and region, we will deepen and evolve our efforts using a

regulatory changes, the changing performance of machineryshared global evaluation and framework for activities.

and equipment over time, and the introduction of new

The Bridgestone is active across a broad range of businesstechnologies. Furthermore, all our employees take theareas, including premium tires, solutions, diversified products,

development of safety awareness seriously. We will continue

and a value chain that extends from upstream (raw materials)

to develop workplaces where a diverse range of people canto downstream (sales and services). In all business areas andwork easily and with high motivation.

across the entire value chain, we believe it is essential to be

The Fundamental Area Safety team within Global Quality Management
Committee, has been developing a comprehensive roadmap to build
a Strong Safety Culture, aiming to achieve globally ‘Perfect Safety’as stated in our Safety Mission Statement. For this goal, our teampromotes safety from Awareness, Engineering and System aspects
such as implementation of fundamental activities (3S, KY, RA, Safety
rules), development of safety technologies and establishment of

Anisara Tisamee
General Manager
Safety and Disaster
Prevention, Bridgestone
APIC

global safety standards. Also ‘Safety Maturity Assessment’ is utilized
for continuous improvement in the PDCA cycle. Viewing safety as thefoundation of corporate management, we contribute to the entire
value chain by fostering a safety culture that protects our teammatesand creating safe and worker-friendly working environments.

Bridgestone 3.0 Journey 2024 Integrated Report39

24MBP Business Shaping Scenario: Good Business Quality

Bridgestone’s DX
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

EconomyEmpowerment

Linked with talent creativity enhancement, Bridgestone

development, and introduction of the tire building systemevolves DX (Digital Transformation) that supports value“EXAMATION”, which is equipped with AI. These initiatives

creation and productivity & creativity improvement.

have contributed to the development of Dan-Totsu

The theme of Bridgestone’s DX is “Faster, easier, andproducts by linking data to the engineering chain. While

more accurate with larger data.” Utilizing our uniquefurther developing these initiatives, Bridgestone issimulations and algorithms, we aim to accelerate

promoting DX to create social and customer value by

innovation by combining our strong “real”, such as market

connecting throughout the value chain and amplifying

and customer data obtained through our field engineeringvalue of Dan-Totsu products such as by providing solutions

activities, technology and development data cultivatedthrough building our unique algorithms utilizing AI.

through empirical experiments and demonstrations, with“digital”.

What supports this DX is global digital talent. We plan toincrease the headcount of global digital talent from

Since the 2000s, we have gradually introduced digital

approximately 1,600 in 2023 to the level of 2,000 in 2026

power (digital capabilities) into our R&D and manufacturing,on a global basis, through the expansion of in-houseincluding the introduction of material informatics in the

training, including reskilling programs, and co-creationmaterial domain, simulation technology in productwith partners such as universities.

Faster, easier, and more accurate with larger data

Engineering Chain Feedback to development of “Dan-Totsu products”

2009 〜

Amplify value“See” & “Analyze”
technology(Polymer design, composition design)

Tire design knowhow, measured & test data
Visualization of road contact condition
by ULTIMATE EYE®

Craftsperson skills

Product development

Manufacturing

Material

1980 〜2010 〜

Contact tosociety & customer
e.g. Co-creation with JAL

2016 〜
AI-implemented tire building
system EXAMATION®

Collect tire data
and mobility data

Real

Digital2020 〜

Increaseproductivity

Material informatics(AI utilization & technology
to solve at the micro level)

Tire design utilizing simulation

Visualize & standardize“craftsperson skills”
Promote shift to Smart

Increasecreativity

Evolve from wear prediction
to durability prediction model
leveraging unique AI & algorithms

Connect the value chain and link with the solutions business
Amplify value of “Dan-Totsu products”
Global digital talent(Advanced & Intermediate)

Approx. 1,600 people in 2023,
approx. 1,700 people in 2024

→ To the level of 2,000 people in 2026

Enhance internal training& co-create with partners

Improve productivity &creativity leveraging generative AI– Improve working efficiency –We have been planning a digital talent development program with the aim of enabling all
employees to understand the meaning of data and the characteristics of digital technology
and apply them to their work to create new value. We have built level-based training programs
that allow people who have not been exposed to digital technology to initiate their learning,systematically learning from beginner to advanced levels. This training program incorporates
Bridgestone’s unique issues and data as case studies, so that participants can view the training
content as their own studies, so that participants can better connect training content to theireveryday work and enhance matters and enhance the learning effect.

Yasushi Hanatsuka
Director
Digital Solution AI/IoT Planning and Development Division40

Co-creation Leveraging Bridgestone Innovation Park “From Interaction with
Empathy to Co-creation”
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

Empowerment

For future value creation, ”co-creation” is essential,

As one of the examples, Bridgestone is accelerating joint

connecting with employees, society, partners, andresearch with Nippon Telegraph and Telephone Corporation

customers to create new value. Bridgestone’s R&D facility in(“NTT”) since there are many areas in which we can

Kodaira, Tokyo, was redeveloped as “Bridgestonecollaborate with NTT given the high compatibility between

Innovation Park (BIP)”, a global hub for innovation. Its

the visions of both companies. This joint research is based

full-scale operation commenced in 2022. BIP consists ofon the strengths of both companies in three areas: “Digital

three main facilities designed to promote interaction with

Twin”, “Sustainability”, and “Creating environmentally andempathy and cultivate relationships through co-ideation

people-friendly cities through tires”. Co-creation with TIER

and co-R&D to realize co-creation. First, “Bridgestone

IV, Inc. is also being promoted, aiming for contribution to

Innovation Gallery” aims to acquire empathy by showcasing

the evolution of mobility, such as R&D and

our history, DNA, business activities, and future initiatives.

commercialization of autonomous driving technology. In

Second, “B-Innovation” is an innovation center composed

addition, we are expanding co-creation activities throughof “Bridgestone Open Innovation Hub”, where people cancollaboration with industrial, governmental, and academia

view and engage with core Bridgestone technologies andpartners that leverage our core competencies. This includes

products with the aim of giving rise to new ideas, thejoint research with Tohoku University, that promotes“Rough Prototyping Studio”, where machine tools are usedmaterials development in the next-generation synchrotron

to give shape to ideas, and the “Co-creation Office”, which isradiation facility, “NanoTerasu”, and collaboration with

open to external partners. Third, “B-Mobility” is a proving

Kyushu University, that promotes comprehensive initiatives

ground that can be used to quickly experience and verify thesuch as joint research and talent development.

performance and potential of prototype mobility

With BIP at the core, working together with the global

technologies and products with actual vehicles.

technical centers as our innovation sites in 3 regions

We are promoting joint research with industrial,

including the U.S. (Akron, Ohio) and Europe (Rome, Italy),

governmental, and academia partners to create social and

we are initiating technology development based on

customer value starting with BIP. In 2023, approximately

role-sharing reflecting the geographical advantages and2,200 people visited the Open Innovation Hub, and 17 cases

strengths of each center, and are promoting co-creation

have evolved into joint research.

activities globally to achieve it.

Opened April 2022

Accelerate “from interaction with empathy to co-creation” based on the Bridgestone E8 Commitment2023(cumulative total from 2022)

2024

Customer & partner visits(Open Innovation Hub)Approx.

2,200 visitors

Evolved into
joint research

17casesDevelop as business base for Japan tire business—promote co-creation activities through integration of R&B (research and business)

Bridgestone 3.0 Journey 2024 Integrated Report41

24MBP Business Shaping Scenario: Good Business Quality

Intellectual Property Strategy
Innovating the Tradition of Utilizing
Intellectual Property

point for value translation is our true strength, and forms
the core of our IP portfolio from both real and digital
perspectives. The real perspective, for example, includes

Bridgestone is striving to manage intellectual property (IP)

our ability to gain insight into dormant needs that ourin a way that enhances corporate value by visualizing

customers are not yet even aware of, and to offer solutions

mechanisms to convert IP into social value and customer

based on our ability to see and know the market and othervalue. It is also managing IP by verifying the effectivenessphenomena on-site—an ability we have prioritized everof IP investment from an ROIC perspective, thereby

since our founding. Much of our “IP secret sauce” emerged

increasing the certainty of investment.

from motorsports activities—effectively, our “mobile

Our IP activities are based on the creation, succession,laboratory”—which has been passed down to the present

and development of our unique “IP secret sauce” as aday. On the other hand, in terms of digital, our ability tofundamental aspect to all our businesses. Based on thisdecipher big data and convert it into knowledge that leads

fundamental approach, we strategically undertake IP

to solutions for customers serves as the foundation of ourmanagement to amplify social value and customer value by

DX-based business such as aviation solutions and mining

understanding and visualizing diverse IP such as knowledge,

solutions. This “IP secret sauce”, which combines both realexpertise, and patents generated on-site (Genbutsu-Genba)

and digital aspects, is converted into new IP, including not

throughout the value chain. Then we effectively combine

only the IP cultivated through manufacturing but also in thethem as an IP mix tailored to the business model.

domain of business models through our unique IP mix. By
strategically combining IP—including not only patents but

Creation of social value and customer value
Premium Tire Business

Solutions Business

Exploratory Businessalso peripheral knowledge and expertise—we can amplify
and expand value in efficient and strategic ways.
In addition, in the area of tacit knowledge visualization, we
identify and extract “craftsperson skills” as the tacitknowledge that is crucial in differentiating our manufacturing
and solutions business from our competitors—not only on

Visualizationof the conversion
mechanism

Connecting
IP management

Visualization oftacit knowledge

IP that expands value
Quality assurance/service know-how

Real × Digitalcommunication with all departments, including development,
production, logistics, sales, service, solutions, and more.
We are expanding and strengthening our IP mix to link ourBusinessmodel patents

Secretsauce IPthe manufacturing floor (Genbutsu-Genba) but also throughTechnical
IP

Patent area
Confidential area

Knowledge to be able toconvert data (digital)
Knowledge/know-how ofbackground (real)

The IP mix

Talent that continues to evolve toinheriting our DNA

unique strengths to creating business value. By visualizing amechanism for translating value across the entire value chain
with the IP mix as its axis, we connect our strengths to thefusion of tradition and innovation.
In both real and digital terms, it is talent that creates this“IP secret sauce” and develops it into true value. The
Bridgestone E8 Commitment and the organizational
capability to cultivate talent that keeps evolving andpassing on our corporate culture and DNA are also key
elements of our IP management.
We are also using amplification of value through IP
visualization in co-creation activities with partnercompanies. In achieving IP management through open

Toward Translating Intellectual Property into
Social Value and Customer Value

innovation, we strive to create synergies that generatevalue for both parties by organically combining our IP withthat of our partners, based on the fundamental premise of

In order to translate IP into social value and customer value,

respecting the IP of partner companies. By visualizing each

we utilize two methods of visualization—“mechanism

other’s IP and through transparent and fair IP contracts thatvisualization” and “tacit knowledge visualization”—toclearly identify the ownership of intellectual property, we

increase the certainty of the IP investment’s contribution

establish an “IP safe zone” where both parties can shareto business. In concrete terms, mechanism visualization

intellectual property with peace of mind, thus contributing

allows us to grasp the characteristics of each businessto fair communication, free and open-minded win–win

portfolio and work toward IP management linked toco-creation activities, and building relationships to that end.

business strategy. The “IP secret sauce” that is the starting42

Mechanisms for Visualization in ENLITEN,
Bridgestone’s Unique Base Technology for
Product Design and BCMAIn ENLITEN/BCMA, we hypothesize the relationshipbetween the fundamental technology and thebusiness model to be pursued, and visualize themechanism by which intellectual property isconverted into value, as shown in the diagram to theright. Our “secret sauce” of proprietary technologies,● ENLITEN×BCMA IP Influence Diagram“New premium”

Social value

Improve product power－Generate customer delight

Customer value

Reduce cost － simpliﬁcation

Achieving both performance and simplicity / optimizing the entire value chain

Convert IP
into value
through
IP management

Improvement of tire performance

Mastering road contact

Mastering rubber

Secretsauce IP

Integrated system of sales,
production and R&D

Modular design and ﬂexible production

Mastering manufacturing

SCM optimization

IP that expands value
Patents

Knowledge/know-how

Conﬁdential technology

consisting of patents, knowledge and expertise, islinked to “mastering rubber”, “mastering roadbusiness model of ENLITEN and BCMA. Sincecontact”, and “mastering manufacturing” ofvisualization has enabled mutual understanding

technology innovation and our strengths in supply

between us and our R&D and business divisions in

chain management. Furthermore, this will be

the field, prioritization of IP investment has been

converted into value through the expansion of total

decided through close communication. This enables

performance of tires, modular design/flexible

us to achieve IP management that increases the

production, and an integrated system of sales,certainty of value amplification.

production, and development, lead to forming theLeveraging Intellectual Property in
Co-Creation Activities

enhance the IP value and corporate value of both

Our IP division has been involved from the initialin being able to conduct co-creation activities based

stages of our co-creation activities with TIER IV, Inc.

on free and open communication in order to utilize

helping to establish an IP safe zone that ensures a

TIER IV’s technologies and expertise in autonomous

win—win for both parties by preparing IP

driving, which is a new technological field, inagreements. The combination of our unique IP in tiredeveloping tires and solutions. For example, we have

manufacturing and TIER IV’s unique IP in innovative

gained insight into key factors of basic tire

autonomous driving technology creates IP that could

performance previously not visible to us, which has

never be realized alone, and can be expected to

led to the creation of new IP.

Verifying Return on IP Investment Using ROIC

parties. For Bridgestone, there is a huge advantage

multiple KPIs from both inward-looking and outward-looking
perspectives, we will continue to strive to continuously

We verify the effectiveness of IP management byimprove our IP management and enhance quality of

implementing the concept of ROIC, our key management

operations by verifying the effectiveness of IP investment.

indicator. Specifically, we set “IP value creativity” as a results-

IP valuecreativity

driven KPI that measures the contribution to sales generated
by leveraging IP and IP revenue. We also set factor-oriented

IP value＝

IP investments

KPIs that measure management efforts. The quality of IP
operations is improved by verifying overall IP managementwith results-driven KPIs, and by implementing the PDCA cycle

8.8

9.4

10.2

10.5

10.9

for management measures with factor-oriented KPIs.
Bridgestone’s IP value creativity nearly doubled in 2023
compared to 2019, thanks to our thorough implementation oflean IP investment, improving the quality of our IP mix, and

4.7

5.2

2022–

6.0

Management ofenhancing IP value

2021

the efficient and strategic use of IP mix tailored to business

Implementation of lean IP investment

models. As of the end of 2023, the number of IP mix units,
which is one of our factor-oriented KPIs, was 15 units currently
being utilized and 26 units under preparation. Having set

2019

2020

2021

2022

2023

2024

2025

2026

Bridgestone 3.0 Journey 2024 Integrated Report43