From Pilot to Payoff: How Pirelli Tires Makes Connected Tech Work on the Factory Floor

09/14/2025

Kalali leads digital strategy and operations at one of the world’s most advanced tire manufacturers, with a hands-on role in modernizing Pirelli’s U.S. plants. From integrating computer vision into quality control to deploying generative AI for safety monitoring, he’s behind initiatives that deliver real results.

In this conversation, Kalali shares how his team approaches transformation with a clear-eyed focus on value, capability, and usability. From vendor strategy to ROI to workforce development, he offers a practical blueprint for making connected worker initiatives stick.

Doug Power, Event Director: Let’s start at the top. How do you align technology investments with Pirelli’s overall business strategy?

Ilker Kalali: Generally, what we have is a strategic plan, and we take a look at it every couple of years. Right now, for example, we’re looking at 2026 to 2030. We start by analyzing what the market will require in terms of capacity, volume, and product mix, and we translate that into our investment plan and engineering roadmap. We begin with the market, and then look at what technical capabilities and technologies are needed to support that. We also scout new technologies in parallel but our target is not to deploy new tech…our target is to make sure we’re meeting the market needs with the help of the technologies that are available.

Doug Power, Event Director: And what are your top two or three investment priorities over the next 12 to 24 months?

Ilker Kalali: One of our main priorities is computer vision, particularly for our process in the U.S., where we want to improve quality and process capability. That ties directly into our business goals around lowering transformation costs. The second is automation. There’s a roadmap for this that supports productivity, especially in areas where we have a lot of unnecessary or non-value-added work, like patching tires. The third priority is digitalization. We’re working to capture process data from our machinery, but many of our PLCs can’t transmit data to the data lake. So we’re also focused on converting older SCADA systems to modern drivers. These three areas (computer vision, automation, and digitalization) are our top priorities for the next three to five years.

Doug Power, Event Director: Let’s talk about vendor partnerships. What do you look for in a vendor or implementation partner to ensure successful adoption?

Ilker Kalali: So if an existing partner already provides hardware or spare parts, I prefer to keep working with them. It helps maintain continuity, especially with partners we've worked with for 20 years or more. They invest in their own capabilities, and we grow together. I’ll give you an example. With Bosch, we’re working with them to develop a smart tire sensor that measures pressure and temperature and connects with the vehicle to support functions like braking. Since that’s Bosch’s core business, it makes sense to continue developing it with them. For newer technologies, like computer vision hardware, I still look to known suppliers like Cognex, KN, or Omron. But when it comes to system integrators, I prefer partners who are local to our U.S. facility in Georgia. It’s just better for day-to-day support.

Doug Power, Event Director: When choosing a vendor, do you look for proven use cases in manufacturing, or are you open to newer, less-tested technologies?

Ilker Kalali: I’m quite conservative when it comes to adopting new technologies. I prefer solutions that have already been tested and are mature enough to show results. That doesn’t mean we never push boundaries—our work on the tire sensor, for example, is still fairly unique in the tire industry. But when it comes to applying new technologies in live factory processes, I don’t want to be the very first. I’d rather see that other players in the industry, ideally even some competitors, have started using it. I’m comfortable being among the first five adopters, but rarely do I want us to be the first.

Doug Power, Event Director: What do you expect from your vendor partners, and can you give examples of successful partnerships?

Ilker Kalali: I guess the Bosch example is very, very important. We initially tried to design and manufacture tire sensors ourselves, but that’s not our core strength. Our focus is on designing and marketing tires. For a project like that, we needed a technology partner with deep expertise in electronics, and Bosch was the right fit. They understood our processes, we understood their capabilities, and we aligned on a clear scope of work. That collaboration created value on both sides. We also work with smaller system integrators on local digitalization projects at our U.S. facility, and we’ve had great support from larger vendors like Siemens, Allen-Bradley, and Rockwell. Their local teams are very integrated into our factory environment.

Doug Power, Event Director: How do you show potential ROI at the business case stage to get buy-in from senior leaders, especially for long-term or expensive investments? I know this can be quite difficult, especially when the return might be long term.

Ilker Kalali: Right? What we do is look at ROI from two angles. The first is safety—health, safety, environment, and sustainability. For example, we’ve recently implemented a generative AI algorithm on top of our CCTV system. It alerts us to near misses, unsafe conditions, and behaviors, and it creates a heat map of high-risk areas in the factory. When we presented it to our North America CEO and the board, we didn’t focus on ROI at all, we just discussed the technology itself. We didn’t need to because in this case it was about recognizing that this is an important safety project. The second pillar is more traditional.

We usually expect a payback within three years, but in the case of our computer vision project the return is much faster. That kind of result depends on having the right hardware and integration partners. It’s an innovative, high-impact technology, but it’s not entirely new. It’s already being used in areas like cord, textile, and metal production, so we also speak with our suppliers and use their experience to help guide partner selection.

Doug Power, Event Director: What strategies have you put in place to analyze inefficiencies and prioritize technology investments that will have the most significant impact?

Ilker Kalali: We created a five-year roadmap where we defined the main drivers to meet our market delivery goals and cost reduction targets. Then we built a long list of projects and prioritized them, mostly based on payback time. For example, we have water-related projects that are critical from a sustainability standpoint, but the payback is very long because water costs are low. Even though the ROI might be seven years, we still go ahead with those as sustainability projects because they have a positive environmental impact. In those cases, we don’t base the decision purely on ROI.

Doug Power, Event Director: Many companies struggle with workforce readiness. How are you addressing skills gaps as you adopt more advanced tools?

Ilker Kalali: We have a couple of initiatives. One is that we work with the local universities to get the talent before they are graduating, especially with Georgia Tech, but not only with the universities. We run summer internship programs in their first two years, and then support some of them with scholarships. That way, by the time they finish school, we already know their profiles and can hire them directly. This approach has worked well for us. I believe maintaining the talent is another big item, because right after, you need to create the challenges for these young talents to make sure that they are growing in the organization.

Unfortunately, after a couple of years, talent is looking for some other challenges, most probably, and going back to either a bigger city or different reality in another industry. On the technical side, culture is very important. We put a lot of emphasis on safety, and our high standards have helped us attract talent for shop floor roles. We also focus on internal training.

Of course, no one who started 20 years ago had experience with robotics or mechatronics, but that doesn’t mean they can’t learn. We offer bridge training courses, so anyone interested can earn certifications and take the next step in their careers. It’s motivating for the team and often better than hiring from the outside.

Doug Power, Event Director: Are digital tools helping you attract younger talent?

Ilker Kalali: Absolutely. One of the first questions we hear from new operators is: “Why are you still using paper?” People expect digital tools in every part of life, so they should be part of the factory, too. We’re replacing paper with mobile checklists and using videos for training instead of dense manuals. That helps with onboarding, multi-skilling, and overall morale. People feel more confident and more connected when they can engage with modern tools.

Doug Power, Event Director: Final question—how do you approach change management to make sure your workforce is prepared to adopt new technologies?

Ilker Kalali: We generally look at digital transformation through three pillars. One is the technology side, of course. But the central piece is always the business—it needs to define priorities and where we want to go. The digital team supports that. The third pillar, which is very important, is HR. They’re involved from the beginning, helping define how to transform or upgrade the workforce. That’s especially important when technology interacts with people, like on the shop floor. HMIs (Human-Machine Interface) need to be designed in the local language and in a way that fits how people actually work. That’s why HR is involved right from project kickoff. We also work with HR on long-term planning. For example, we’ve mapped out that we’ll need to hire 350 people over the next five years. So we ask: what are the profiles we need? Where are these people now? Many are still in high school, so we connect with them early through events. That way, we’re not just building a digital roadmap—we’re building the future workforce to support it.

Doug Power, Event Director: Ilker, this has been incredibly insightful. Thanks again for your time—and we look forward to seeing you in Chicago.

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