Innovation at 3M Corporation
03/11/11
Team Members:
Cian Barrett
Gillian Barrett
Lynn Curtin
Amanda O’ Sullivan
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Contents
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About 3M
Products & brands
Innovation Culture
Innovation Processes
SWOT Analysis
What does the future look like?
Q&A
1. About 3M
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Let us introduce you to 3M
http://www.youtube.com/u
ser/3M?blend=7&ob=5#p
/u/0/n26omgodGoM
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We take ideas,
we take dreams,
we make them
REAL ITY
Inspiring
creativity to
solve problems
Innovation to
be proud of
Connecting
ideas around
the world
Make a
difference
Reject
boundaries
Be the next spark
Be the next idea
Embracing
curiosity
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Does anyone know where the name 3M
came from?
• Minnesota
• Mining
• Manufacturing
=
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Key Milestones
1900s 1910s 1920s
1930s 1940s
1950s
2000s
1990s
1970s
1902 - 3M
1910
founded
- The
Lucius
world's
The
in Ordway
Two
Adhesives
first
Harbors,
Post-war
joins
waterproof
Division
3M
innovation
and
sandpaper
was
Scotchlite™
1960s
introduces
Thermo-Fax™
2004
Sales
-reach
Sales
$15
top-$20
billion
billion.
mark.and
Post-it®
3Mcopying
Pharmaceuticals,
radiology
energy
MN.
moves company
developed
established.
to(reducing
St.
Reflective
Paul.
airborne
Sheeting
dusts
for
highway
Dry-silver
microfilm
introduced
along
process,
Scotchgard™
Fabric
Protector,
Super
continues
Sticky
toNotes,
develop
Scotch®
immune response
control
expand.
1905 - 3M
1916
moved
- during
3M to
paid
nearby
automotive
firstmarkings,
Duluth
dividend
manufacturing).
to
of
magnetic
6photographic
sound
with
products,
videotape,
Scotch-Brite®
Cleaning
Transparent
modifier
pharmaceuticals,
Duct
Tape,recording
optical
brightness
films Pads
focus oncents
sandpaper
a1925
share.
products.
- Richard
tape,
G.for
filament
Drew
adhesive
start
carbonless
papers,
projection
newinvents
electro-mechanical
products.
enhancement
LCD
televisions,
filmstape,
and
foroverhead
electronic
athe
new
family
masking tape.
of 3M's
involvement
in
the
graphic
arts
systems.
Rapid
growth
in medical
ofdisplays,
Scotch-Brite®
and
flexible
cleaning
circuits
products
used inand
with enter
offset
printing
plates.
dental
products.
inkjet
the
printers,
market.
and cell phones.
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Mission, vision, values
• Act with uncompromising honesty and integrity in
everything we do.
• Satisfy our customers with innovative technology
and superior quality, value and service.
• Provide our investors an attractive return through
sustainable, global growth.
• Respect our social and physical environment
around the world.
• Value and develop our employees' diverse talents,
initiative and leadership.
• Earn the admiration of all those associated with 3M
worldwide.
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3M at a Glance (yr end 2010)
• Global sales: $27 billion.
• International (non-US) sales: $17.5 billion (65
percent of company's total).
• Operations in more than 65 countries.
• 3M products sold in nearly 200 countries.
• 80,000 employees globally.
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Organisation Structure
Consumer and
Office Business
15%
Safety, Security
and Protection
Services Business
Display and
Graphics
Business
13.8%
Industrial and
Transportation
Business
Electronics and
Communications
Business
30.8%
Health Care
Business
18.6%
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13.5%
9.8%
Organisation Structure
Consumer and
Office Business
15%
Safety, Security
and Protection
Services Business
Display and
Graphics
2. Products and Brands
Business
13.8%
Industrial and
Transportation
Business
Electronics and
Communications
Business
30.8%
Health Care
Business
18.6%
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13.5%
9.8%
3M Brands
Post-It
Scotch
Vikuiti
Scotch-Brite
Nexcare
Scotchgard
Littmann
Scotchprint
Graphics
Filtrete
Command
Adhesive
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/
3. Innovation Culture
4. Innovation Processes
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Innovation Culture
• In 1948, William McKnight, Chairman (1949-1966)
– "As our business grows, it becomes increasingly necessary
to delegate responsibility and to encourage men and
women to exercise their initiative.
– "Mistakes will be made. But if a person is essentially right,
the mistakes he or she makes are not as serious in the
long run as the mistakes management will make if it
undertakes to tell those in authority exactly how they must
do their jobs.
– "Management that is destructively critical when mistakes
are made kills initiative. And it's essential that we have
many people with initiative if we are to continue to grow."
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Innovation Culture cont.
• In 2011, Fred Palensky, VP of R&D and CTO:
– “Our goal is to include the voice of the customer at the basic
research level and throughout the product development cycle,
to enable our technical people to actually see how their
technologies work in various market conditions.”
– “We call it ‘customer-inspired innovation.’ Connect with the
customer, find out their articulated and unarticulated needs,
and then determine the capability at 3M that can be
developed across the company that could solve that
customer’s problem in a unique, proprietary, and sustainable
way.”
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Innovation
Pronunciation:/ɪnəˈveɪʃ(ə)n/
noun
[mass noun] the action or process of innovating: innovation is crucial to the
continuing success of any organization
[count noun] a new method, idea, product, etc.:technological innovations
designed to save energy
Derivatives
innovational
Pronunciation:/-ˈveɪʃ(ə)n(ə)l/
adjective
Origin:
Late Middle English: from Latin innovatio(n-), from the verb innovare
Source: Oxford English Dictionary
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Innovation Definitions cont.
• Innovation comes in two forms
– Sustaining innovations – These innovations improve
existing products and offer better performance against
established, mainstream metrics.
– Disruptive innovations – These innovations typically offer
less performance than established products, but are
adequate, smaller, easier to use and cheaper.
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Source: Clayton Christensen “The Innovator’s Dilemma”
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Innovation Definitions cont.
• End-user innovation. This is where an agent (person or
company) develops an innovation for their own (personal or
in-house) use because existing products do not meet their
needs.
• MIT economist Eric von Hippel has identified end-user
innovation as, by far, the most important and critical in his
classic book on the subject, Sources of Innovation.
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Source: Wikipedia
Lead Users – how did Eric Von Hippel define them?
• Eric Von Hippel defined Lead Users by 2 characteristics:
– Lead users face needs that will be general in a marketplace
– but face them months or years before the bulk of that
marketplace encounters them, and
– Lead users are positioned to benefit significantly by
obtaining a solution to those needs
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Examples of Lead User Research
Innovations
• World Wide Web - Tim Berners Lee
– http://info.cern.ch/
– http://info.cern.ch/NextBrowser.html
• Salesforce.com – Marc Benioff
• Facebook - Mark Zuckerburg
• Apache
• Apple – Apple engineers contacting users to assist in
resolving current battery life issues for the new iPhone 4S
• Others innovations include:
– Tippex
– Gatorade
• Adobe Reader
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Lead User Research Process
Step 2 – id of
needs & trends
•Build an
interdisciplinary
team
•Interviews with experts
•Define the target
market
•Scanning of
knowledge/information
•Define team goals
Step 1 – start of
the LUR process
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•Selection of the most
attractive trends
•Networking based
search for Lead Users
•Investigation of
markets
•Screening of first
ideas and solutions
Step 3 – concept
generation
Step 4 – final
concept design
•Workshop with lead
users to generate or
to improve product
concepts
•Evaluation and
documentation of the
concepts
Why and how is this research method
different?
• Identify new trends before they happen.
• Lead User Research (LUR) is different, traditional market
research collects information from the core target markets,
where as Lead User Research seeks out the early, early
adopters.
• Once the company finds these individuals, they will then work
with the lead users to solve a problem within an industry.
• Lead users are no different than most people; in fact we are
all lead users in some niche industry. These individuals are
unique because they experience the same needs as your core
target market but they experience them substantially before
the general public.
• Lead User Research doesn’t assist incremental innovation; it is
a facilitator for cutting edge, drastic innovation.
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“The Chasm”
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Seven Pillars of Innovation
1. From the chief executive on down, the company must be committed to innovation.
2. “The corporate culture must be actively maintained” Though 3M has had a new CEO
every five years on average over the past 40 years -- The philosophy of William L.
McKnight, its inspirational leader from 1929 to 1966, has been passed down over
the years – “Hire good people and let them do their job in their own ways. And
tolerate mistakes”.
3. “Innovation is impossible without a broad base of technology.” Technology allows
researchers to take ideas from one realm and apply it to another. Example – 3M
scientists have used a technology behind layered plastic lenses to make more
durable abrasives.
4. “Talk, talk, talk. Management at 3M has long encouraged networking -- formal and
informal -- among its researchers. This is knows as this 3M's secret weapon. It
allows researchers to get to know one another informally, so that they know who
to call for advice or to team up with on a project.
5. “Reward employees for outstanding work.” 3M gives its top 20 achievers and their
spouses a four day holiday at its corporate retreat park.
6. “Quantify efforts.” 3M tallies how much of its revenue comes from products
introduced in the past four years to judge whether its R&D money is being spent
wisely. It identifies which lab is hitting the mark and which lab is falling short.
7. “Research must be tied to the customer. Employees spend a lot of time with
customers to understand what their needs are so they can go back to the labs to
come up with valuable products. The Photo- IT photo paper came out of such
research.
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Crowd Sourcing
• Sourcing tasks traditionally performed by specific individuals to
an undefined large group of people or community through an
open call.
• An efficient way to improve products, market them, or even
conceive new ones.
• 3M willing to accept granted or issued patents for ideas
• Evaluated to see if it fits with current business and marketing
strategy
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5. SWOT Analysis
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The 3M Brand
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•
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•
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No. 3 in Booz & Co.’s Top 100 Most Innovative Brands
No. 85 in Interbrand’s Top 100 Global brands (no. 90 in 2010)
No. 2 in Interbrand’s Top 50 Global Green brands
No. 4 in Byte Level Research’s Best Global Web Sites (no. 7 in
2010)
No. 83 in Brand Finance Top 500 (summary of financial strength)
No. 72 in UK’s Superbrands B2B Top 100 (no. 83 in 2010)
No. 15 in Fortune’s World’s Most Admired Companies (no. 17 in
2010)
No. 4 in Global Reputation Pulse - U.S. Top 100 (no. 20 in 2010)
Latest Update
• “Diversified manufacturer 3M Co (MMM.N) sounded a
warning on Tuesday, telling Wall Street that Europe's
brewing debt crisis and weakening consumer demand
were taking a toll on profit” October 25, 2011
– 2 reasons cited by George Buckley - No. 1 was worries
about European sovereign debt and the European
economy. No. 2 was the rapid contraction of the
electronics end markets."
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Source: Reuters
The future is....
• Green.
• Continue to live and breathe “closeness to the customer”- e.g.
Annual Client Experience Summit.
• Continue to develop and support an innovation culture.
• Continue to align innovation strategy with the business goals.
• Revamp 3M.com!!
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Source: Reuters
To conclude... Thankyou...
http://www.youtube.com/w
atch?v=R2WPnlWFZqk
THANKYOU!!
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