...Abstract . 3M Corporation History of the 3M Corporation What started off as a small company in the Lake Superior Town of Two Harbors, Minnesota in the year 1902 – 3M has grown into a worldwide corporation with companies in over 60 countries. Things seemed bright in June 1902, when Two Harbors attorney John Dwan drew up articles of incorporation and added his $1,000 to that of other charter board members, meat market owner Hermon Cable, Dr. J. Danley Budd, the city’s leading physician, and Duluth and Iron Range Railroad executives William McGonagle and Henry Bryan (3M Corporation, 2015). The five men set out looking for the next new product. They wanted to mine a certain type of mineral deposit (Corundum) to use as an adhesive for grinding-wheels. Corundum was in demand as the premier abrasive for grinding wheels, sandpaper and other items to polish, shape, sharpen and decorate items produced by America’s increasingly industrialized economy. This new source of corundum was greeted jubilantly; the only other North American source was in Ontario. The problem – one that surfaced after the company had incurred a large start-up debt – was that the corundum was not there on Lake Superior’s Minnesota north shore. What was there was anorthosite, which is useless as an abrasive (Bishop, 2005). So within a couple of years of its founding, 3M had tons of mineral for sale, no customers and was all but bankrupt. When mining turned out to be of little use and a failed attempt with mineral...
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...This case describes how 3M Corp. introduces and learns a new and innovative methodology titled Lead User research to understand future customer and market needs. A team from 3M's Medical-Surgical Markets Division applies the Lead User Methodology to the field of surgical infection control and discovers that there exist new product concepts together with a new business strategy. The problem here is 3M should decide whether this new strategy will be a tool for 3M 's strategy towards corporate expansion and innovation. In the mid 90s, 3M realized the symptoms in its innovation approach that only incremental development is involved in its current product range instead of breakthrough ones. This approach limited the company’s competitiveness and financial performance and growing the business required to prepare the environment capable of delivering “breakthrough innovations“. Therefore, 3M’s management set a new goal: 30% of sales should be driven by new products. The new strategy focuses on understanding the real market needs to create possible developments and enhancements for a particular product which can eventually lead to a breakthrough in product offering that ultimately results in a competitive advantage. In this case, the suggested approach, Lead User Method, enables 3M to satisfy an important need (not spreading infections during surgery) by developing a specific new product or service. If there is not a new approach, the innovations that 3M makes will only be a "solution...
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...evolved since the foundation of the company? Why, if at all, does 3M known as a “hothouse” of innovation, need to regain its historic closeness to the customer? The hard start of 3M’s in 1902 with digging for corundum then discovering it is low-grade and worthless, moving to sandpaper business and discovering that the abrasives they import to use refuse to stick to the paper pushed the company early to the research road trying to fix the problems they are facing, one of the young technician figured out the problem and fixed the sandpaper and created the waterproof sandpaper for first time in the world that has a big meaning to 3M’s which leaded the company to be one of the biggest global innovation companies in the world. The company used the innovation since then by old research and development traditional method by identify the problem through visit or questionnaire to the clients and research the solution for the problem under vision of engineering to ensure the project efficiently made, not facing any risk if the product failed and also provide a feedback, The product developers used to visit the factories and workplaces to talk to the workers to get ideas for products it start as in 1920 when one of 3M’s lab visited a car body shop and discovered a problem while removing newspapers glued to the car body and start a research ended by creating a masking tab to the world. After all the success through R&D, 3M allowed the staff to spend 15 % of their time to discover new...
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...Innovation at 3M Corporation INNOVATION AND KNOWLEDGE ECONOMY - GROUP C 1 Contents 1 1 2 3 4 Background Source of Innovation Innovative Culture Lead User Research 5 Impact of Lead User Method 6 2 Click to add title in here Companies in Indonesia Background of “ Lead User Innovation” “ Traditional strategic planning does not leave enough room for innovation “ understand leading _edge customer needs to change the basis of Competition working closely with customer & understanding market need LEAD USER INNOVATION Definition of lead users Lead users refers to users who are ahead of the majority of the market on a major market trend, and who also have a high incentive to innovate. Producers seeking user innovations to manufacture try to source innovations from lead users - because these will be most profitable to manufacture 3 Milestone of 3M in Innovation 1902 The Minnesota Mining and Manufacturing Company (3M) founded The company has a long and famous history of innovation. They are known for such products as the Post-it which revolutionized the way individuals communicate, masking tape, and waterproof sandpaper. 1961 Medical Products Division, the first 3M division dedicated solely to health care, founded. The Health Care Unit was an important component of 3M’s business model, contributing a large percentage to the company’s revenue streams The unit had failed to introduce a successful product in almost a decade 3M is third in...
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...3M in 2006 Prior to reading the 3M case, I was unaware of this historic corporation that dominates a wide range of markets today. I have heard and purchased products such as Post-it Note, Scotch Tape, and Scotch-Brite; however, I did not know all these products and many more belong to 3M Company. 3M was initiated in 1902 by five businessmen in Minnesota and its first product was the development of sandpaper. William McKnight was the leading figure and CEO of 3M who revolutionized the company and led it to its initial success. He and other prominent figures at that time evolved the company culture into a unique innovative organization. 3M was the first company to utilize various strategies that differentiated them from other organizations at the time. For instance, they applied product diversification, which was done by creating brand extensions, production modifications, or creating brand new products. A large number of ground-breaking products were created by, “leveraging existing technology and applying it to new areas”. (p. C437) This strategy was not common in other industries during that time period. This unique culture assisted 3M by allowing the company to reach out to markets their competitors could not have access too. This advantage gave 3M the opportunity to acquire a wide range of new consumers across different market sectors. It placed them as the top dog in supplying daily essentials for individuals, families, manufacturers, and suppliers. Another strategy...
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...Introduction The Minnesota Mining and Manufacturing company, or more commonly known and abbreviated as 3M, was found in 1902 in Two Harbors, US. The company started out by mining corundum which was to be used to make sandpaper and grinding wheels but soon seized operations when artificial replacements made the mineral worthless. 3M then turned to producing grinding wheels and sandpaper themselves, and only then were things were then looking up. Having difficulty with quality and marketing its products, the management supported its workers to innovate and develop new products which became its core business. Over the years, 3M and its division have produced many unique and inventive products for households and production alike. Popular Innovations from 3M: Waterproof sandpaper Post-it notes Scotch tape – Masking tape Imation Corporation Nowadays, with the vision of “the ability to not only develop unique products, but also to manufacture them efficiently and consistently around the world”, 3M operates with over 80,000 employees in more than 60 countries producing in access of 55,000 different products. 3M Business Unit: Abrasive Systems Division 3M Abrasive Systems is the core business that the company started with over 100 years ago. Part of the Industrial and Transportation business, today, it produces a complete line of coated abrasives, abrasives, microfinishing and microreplicated abrasives, plus hardware accessories which are available in sheets, rolls...
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...Innovation Organisations: The 3M Way Damian Gordon Recommended Reading 3M formerly known as the Minnesota Mining and Manufacturing Company Founded on the North Shore of Lake Superior at Two Harbors, Minnesota in 1902 With over 76,000 employees they produce over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits and optical films Richard Drew June 22, 1899 – December 14, 1980 American inventor who worked for 3M in St. Paul, Minnesota, where he invented; – – – Masking tape, Cellophane tape, and Duct tape. Masking Tape In 1923 3M employee Richard Drew visited an autorepair shop in St. Paul, Minnesota. 3M produced and sold sandpaper and Drew was in the shop to test out a new batch. Masking Tape When he entered the shop employees were expressing disappointment at a failed attempt to paint a car in the two-tone style that was becoming popular at the time. Masking Tape Typically how the effect was achieved was by painting part of the car in one colour while covering the other parts with butcher paper The butcher paper was usually held in place with a heavy adhesive tape. Unfortunately, removing the adhesive tape peeled away part of the paint job. THE IMPORTANT BIT: Rather than just sympathise with his customers and move on, Drew decided to do something about it. Masking Tape His company 3M had a lot of know-how in creating adhesives...
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...is a product so conceptually simple, that in the technologically advanced time we live in, we have been almost desensitised to its brilliant innovation. The innovation of the Post It Note went through a number of distinct stages and processes. In this assignment I will attempt to give a clear and cohesive analysis starting from the earliest ideas of the Post It right through to the products available today. 3M The physical invention of the post it spanned over a period of 10 years, however, I believe the earliest derivation of the modern day Post It Note can be traced back to the very establishment of the 3M Company itself. In 1902 the business got off to a rather bad start when a group of investors by mistake bought a mountain containing worthless mineral to start a business to mine corundum to manufacture sand paper). Unsurprisingly the company did not generate profit for 14 years. Seemingly spurred on by their less than successful origins, 3m have since always strived to create a working environment in which innovation can flourish. Brand (1998) on the topic of 3m states that “to guarantee such conditions are in place and sustained over time, requires a long term commitment from top management, the recruitment and retention of the right people and a strong support and recognition programme.” Brand (1998) insists however that innovation cannot be allocated to one or two individuals in an organisation, that “it must permeate the entire fabric of an organisation and every department...
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...go to company for new and innovative, cost saving, quality enhancing products and services. In pursuit of our goals, we resolve to treat our employees, customers and the community with dignity and respect. THE COMPANY U.M.I. was incorporated in the state of Florida in 1993. We are manufacturers and distributors of parts, specialty pressure sensitive tape products and services for the production of daily and weekly newspapers. The legal name of the business is Uhrig & MacKenzie, Incorporated, d.b.a./ U.M.I. U.M.I. is an “S” Corporation. Our principal offices are located at 2821-A Worth Avenue, Englewood, Florida 34224. STRATEGIC ALLIANCES U.M.I. has developed important and profitable strategic alliances and exclusive marketing agreements with several larger and more established businesses. For example, We have developed exclusive marketing agreements with: • Lohmann Technologies of Hebron, KY • 3M Company • Support Products of Effingham, IL • The Flint Ink Company Lohmann Technologies is a world leader in the manufacture of medical and industrial pressure sensitive tapes. Through a concerted effort, we have been able to secure 20% percent of sales of these products to the newspaper industry. Support Products is a recognized leader in the manufacture of various equipment used by both commercial printers as well as newspapers. We have an exclusive marketing agreement to sell a new and unique...
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...------------------------------------------------- 3M Environmental ANALYSIS and report Project Report 3M COMPANY Environmental & SWOT Analysis of 3M Strategy | AN AMERICAN MULTINATIONAL CONGLOMERATE TABLE OF CONTENT 1. Introduction/Executive Summary………………….. 2. Industry Environment Analysis&External Audit……………………………………......... 3.1. Demographic Environment………………… 3.2. Economic Environment………………… ………… 3.3. Political and legal environment…………………………………. 3.4. Technical environment………………………………………………….. 3.5. Social environment………………………………………………………….. 3.6. Global environment………………………………………………………………. 3.7. Industry environment…………………………………………………………….. 3.8. Competitive landscape………………………………………………………. 3. Internal Environment Audit &Analysisof 3M company ……………………. 4. SWOT Analysis……………………………………………………….. 5. Risk factors & future interpretation………………. 6. Conclusions&Interpretation........................................................................ 7. References 1. Company Profile Introduction 3M is an American multinational, multi industry, diversified conglomerate company incorporated in 1929as per laws of State of Delaware, in order to continue operations of Minnesota Mining and Manufacturing that began in 1902.It is headquartered in St. Paul suburb of Maplewood ,Minnesota in United States. It...
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...For the exclusive use of Q. WEI2015. 9-699-012 REV: JULY 23, 2002 STEFAN THOMKE Innovation at 3M Corporation (A) On the evening of October 23, 1997, Rita Shor, senior product specialist at 3M, looked across the conference room at her team from the Medical-Surgical Markets Division. She wondered when to draw to close the intense ongoing debate on the nature of the team’s recommendations to the Health Care Unit’s senior management. A hand-picked group of talented individuals, the team had embarked on a new method for understanding customer needs called “Lead User Research.” But this initiative to introduce leading-edge market research methods into 3M’s legendary innovation process had now grown into a revolutionary series of recommendations that threatened to rip apart the division. While senior management wanted the “Lead User” team to execute a manageable project involving surgical draping material to protect surgery patients from infections, the team now wanted to rewrite the entire business unit’s strategy statement to also include more pro-active products or services that would permit the upstream containment of infectious agents such as germs. This went against the incrementalist approach that for so long had pervaded 3M. After all, as Mary Sonnack, division scientist and an internal 3M consultant on the new Lead User methodology, noted “3M gets so much revenue from incremental products . . . like a blue Post-it note instead of just a yellow one.” ...
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...met the business challenges and once again delivered strong results. George W. Buckley Chairman of the Board, President and Chief Executive Officer Despite all this turbulence, full-year sales increased 11 percent to $29.6 billion, with double-digit growth in Industrial and Transportation; Safety, Security and Protection Services; and Health Care. Operating margins were 20.9 percent for the company, and all businesses delivered margins of 20 percent or higher, which is an amazing feat of consistency. Inge G. Thulin named President and Chief Executive Officer, 3M Company, Feb. 24, 2012 Inge G. Thulin, 58, was named president and chief executive officer of 3M Company effective Feb. 24, 2012. A 32-year veteran of 3M, he served as executive vice president and chief operating officer of 3M since May of 2011, after having served as executive vice president, 3M International Operations since 2003. Mr. Thulin joined 3M Sweden in 1979, working in sales and marketing, and subsequently assumed...
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...3M's POST-IT NOTEPADS "NEVER MIND. I'LL DO IT MYSELF." Near the end of 1978, bleak reports came back to the headquarters of Minnesota Mining & Manufacturing (3M) Corporation in St. Paul from a four-city test market: This Post-itTM notepads idea was a real stinker. This came as no surprise, of course, to many of 3M's most astute observers of new product ideas; this one had smelled funny to them from the beginning. The company had ignored Post-it before it was a notepad, when the product-to-be was just an adhesive that didn't adhere very well. The first related product to reach the market was a sticky bulletin board whose sales were less than exciting. So why was it still around? For five years this odd material kept turning up like a bad penny in the pocket of Spencer Silver, the chemist who had mixed it up in the first place. Even after the adhesive had evolved into a stickum-covered bulletin board, and then into notepad glue, the manufacturing department said they couldn't mass-produce the pads. The 3M marketing crew also said you could only sell these things if you gave them away, because who would pay a dollar for scratch paper? So when the test market reports arrived, it seemed everyone who'd disparaged the Post-it notepad was right after all: 3M was finally going to do the merciful thing and bury the remains. Only one last try by two executives, Geoffrey Nicholson and Joseph Ramey, saved those little yellow self-stick notes from oblivion. Nicholson and Ramey knew 3M's marketing...
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...people also met the business challenges and once again delivered strong results. George W. Buckley Chairman of the Board, President and Chief Executive Officer Despite all this turbulence, full-year sales increased 11 percent to $29.6 billion, with double-digit growth in Industrial and Transportation; Safety, Security and Protection Services; and Health Care. Operating margins were 20.9 percent for the company, and all businesses delivered margins of 20 percent or higher, which is an amazing feat of consistency. Inge G. Thulin named President and Chief Executive Officer, 3M Company, Feb. 24, 2012 Inge G. Thulin, 58, was named president and chief executive officer of 3M Company effective Feb. 24, 2012. A 32-year veteran of 3M, he served as executive vice president and chief operating officer of 3M since May of 2011, after having served as executive vice president, 3M International Operations since 2003. Mr. Thulin joined 3M Sweden in 1979, working in sales and marketing, and subsequently assumed levels of...
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...Harvard Business School 9-395-016 January 3, 1995 3M: Profile of an Innovating Company As a perennial winner in Fortune magazine’s annual poll of American CEOs to determine “The Ten Most Admired Corporations,” 3M was almost universally recognized as one of the world’s most consistently innovative companies. Indeed, Fortune described it as “a kind of corporate petri dish that fosters a culture of innovation.” In an era when large companies were struggling to reignite employees’ entrepreneurial spark, 3M was the benchmarking standard. Yet, in November 1991, as “Desi” DeSimone assumed the job of CEO in the midst of a worldwide recession, he was more focused on 3M’s uncertain future than on its glorious past. Beyond the stagnating sales and declining margins he knew would be reflected in his first annual report (see Exhibit 1), DeSimone was aware that the company faced some longer term challenges. With a portfolio of over 100 core technologies being leveraged into some 60,000 products which it sold in 200 countries, some observers were beginning to ask whether this $14 billion giant with over 88,000 employees could continue its extraordinary innovation-powered growth and expansion. It was a question that the new CEO knew he would have to confront honestly. A lot more than the continued admiration of his Fortune 500 peers depended on it. The Beginning: Foundations of 3M’s Values In 1902, on the basis of a report that deposits of corundum, an abrasive mineral, had been found...
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