...The term innovation can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society. Any review particularly on new product development and innovation management will uncover numerous references to 3M. 3M is quite possibly the most innovative company of our times that even CEOs of other visionary companies admire. 3M is best known for its household brands such as Post-it Note, Scotchgard, Scotch tape, and many more. 3M initially failed in its mining business, and eventually stumbled onto most of the successful innovations that we know 3M for, including Post-It, Masking and Scotch tape. There are some key activities and principles that contribute to 3M’s performance which reflected in its approach to innovation namely the variety of management techniques, such as good communications and the setting of clear objectives with a company culture built on more than 90 years of nurturing idea and fostering creativity. Being an “innovating machine”, 3M institutionalized the mechanisms to drive innovation as the "15 percent rule" - technical people spend up to 15 percent of their time on projects of their own choosing or initiative, "25 percent rule" - each division should produce 25 percent of annual sales from new products and services introduced in the previous four years (which later increased to 30 percent). More growth mechanisms were created to stimulate internal entrepreneurship, test new ideas, create unplanned...
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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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...Question 1 There are many examples of successful companies. To what extent is 3M justifiably highlighted as the ‘innovating machine’? Answer: This case study has highlighted some of the key activities and principles that contribute to 3M’s performance. Many of these are not new and are indeed used by other companies. In 3M’s case they may be summarized as an effective company culture that nurtures innovation and a range of management techniques and strategies that together have delivered long-term success. Many companies pay lip service to the management principles and practice set out in this case study. There is evidence that 3M supports these fine words with actions. 3M hire good people and trust them; this will bring about innovation and excellent performance. 3M ensured that developing new products is much higher on the agenda in management meetings than at other companies. Moreover, the success of the approach is due to the continual reinforcement of its objectives. Indeed, the performance of individual business managers is partly judged on whether they are able to achieve the objective. Question 2 In the 3M case study, what is meant by the statement: ‘the message is more important than the figures? Answer: The 15 per cent rule does not make so much sense, some employees use more than 15 percent of their time on projects of their choose, on the other hand some employees use less than that and some none at all. The figure is not so important as the message, meaning...
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...Case study An analysis of 3M, the innovation company Introduction Any review of the literature on new product development and innovation management will uncover numerous references to 3M. The organisation is synonymous with innovation and has been described as ‘a smooth running innovation machine’ (Mitchell, 1989). Year after year 3M is celebrated in the Fortune 500 rankings as the ‘most respected company’ and the ‘most innovative company’. Management gurus from Peter Drucker to Tom Peters continually refer to the company as a shining example of an innovative company. This case study takes a look at the company behind some of the most famous brands in the marketplace, including Post-it® Notes. It examines the company’s heritage and shows how it has arrived at this enviable position. Furthermore, the case study attempts to clarify what it is that makes 3M stand out from other organisations. Background Originally known as the Minnesota Mining and Manufacturing Company, with its headquarters in St Paul, Minnesota, 3M was established in 1902 to mine abrasive minerals for the production of a single product, sandpaper. From these inauspicious beginnings, the company has grown organically, concentrating on the internal development of new products in a variety of different industries. The latest review of the company’s position reveals that it manufactures over 60,000 products, has operations in 61 countries, employs 75,000 people and has achieved an average year-on-year growth...
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...Kenni Graham D03198968 SBE330 3M Case Study: Week 4 There are many examples of successful companies. To what extent is 3M justifiably highlighted as the ‘innovative machine’? 3M have concentrated the internal development of new products in a variety of different industries. 3M manufacture over 60,000 products, have operations in 61 countries and have achieved an n average year-on-year growth in sales of 10 percent. New products that are less than 4 years old represent Thirty Percent of 3M’s sales. In the 3M case study, what is meant by the statement: ‘the message is more important than the figures’? It means that the 15 percent rule is meaningless, because some people use more than 15 percent for projects of their choosing, some less and some none at all. The message is that there is some slack in the system for anyone that wants to be creative and innovate a new product of their choosing. Discuss the merits and problems with the so-called ’15 percent rule’. Consider cost implications and a busy environment with deadlines to meet. To what extent is this realistic or mere rhetoric? The 15 percent rule is almost pointless due to every project is different and everyone has different roles which may require more time that may cut into their 15 percent. There are others who may have a lot more free time to spare and can dedicate more than 15 percent towards innovation. The other factor is if deadlines need to be met in producing a new producing a new product then...
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...Abstract 3M utilizes a variety of marketing information sources. They produce thousands of products that are offered in several different market segments. “3M is not a conglomerate like GE or United Technologies, which own a variety of industrial businesses that operate, for the most part, on their own.” (Gunther, 2010). This diversification makes it difficult to stick to specific marketing information resources. “Instead, 3M — a supplier to all of those companies– is a set of businesses organized around a big, busy and intellectually productive R&D lab which researches new technologies and processes and then develops them into products” (Gunther, 2010). 3M must utilize many different strategies that are specific to each division. They do however, have one strategy that has proven to be useful in all market segments. 3M refers to the strategy differently in each segment and gathers the data in different methods, but essentially is using the same method to accumulate information. In the recent past 3M has struggled with being an “open” research and development company. While they have been able to become a leader in innovation and technological advances, they have failed to make gains in service and business model innovations. This was from a lack of external research efforts. The research and development was done in reverse. The department would research a segment of an industry to find an area that could use improvement and then try to align their new product with...
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...Innovation, ideas and solutions for a modern world 1 Introduction – A Century of Innovation 3M is a global diversified materials science company and a powerful, diverse and integrated enterprise. Although 3M identifies its core competency simply as “applying coatings to backings”, the company’s operations extend far beyond this. 3M, famous for its consumer brands such as Scotch® Tape and Post-it ® Notes, also creates thousands of industrial products used by manufacturers and service providers to create their own products. From its beginnings in 1902 as Minnesota Mining and Manufacturing, 3M has grown to achieve sales revenue of $US25.3 billion and an operating income of $US3.5 billion in 2008. The company has over 79,000 employees with approximately 13 percent employed directly as technical staff. As a truly global presence, 3M services almost 200 national markets, and operates subsidiary companies, such as 3M Australia, in more than 60 countries. Almost 64 percent of 3M’s entire sales revenue originates from international operations. With a vision “to be the most innovative enterprise and preferred supplier in the markets we serve”, 3M prides itself on its history of innovation – reinforced through its brand promise, “practical and ingenious solutions that help customers succeed”. Key values underpinning 3M’s continual success include its commitment to: • Satisfy our customers with superior quality and value • Provide investors with an attractive...
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...extent is 3M justifiably highlighted as the ‘innovating machine’? 3M primary objective to be successful innovators in any company and that is one tradition which they have always followed and that is to combine variety of good management techniques such as outstanding communications, setting up clear objectives by nurturing and fostering creativity. 3M also uses the independence for its research and individual workers to explore ideas of their own choosing. 2. In the 3M case study, what is meant by the statement: ‘the message is more important than the figures’? The statement above simply suggest that as long as the 15 percent rule is used when a good idea is invented and willing to put it the hard work and the commitment to execute it. 3. Discuss the merits and problems with the so-called ‘15 per cent rule’. Consider cost implications and a busy environment with deadlines to meet. To what extent is this realistic or mere rhetoric? 4. Encouraging product and brand managers to achieve 25 per cent of sales from recently introduced products would be welcomed by shareholders, but what happens if a successful business delivers profits without 25 per cent of sales from recently introduced products? 5. Some people may argue that 3M’s success is largely due to the significance given to science and technology and this is the main lesson for other firms. Discuss the merits of such a view and the extent to which this is the case. 6 . Explain how the innovation dilemma...
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...3M CASE STUDY Group: 20 Team: 11 Xizi Yang : S2780364 Tan Long: S2797402 S. van Eijk: S2755246 Lecturer: Henk Ritsema Question 1 Identify 3M’s core competencies, core products and end products. How are these three sources of competitive advantage lined with each other? 3M, also known as Minnesota Mining and Manufacturing, has several core competencies. First, the rule of allowing 15 per cent of its employees’ working hours has been spent on their own projects. It is the symbol of tolerance for experimentation for 3M. Second, the development of spirit of innovation. The shared characteristics of the trio, the calculated risk-taker, the rule-breaker and the inventor, shaped 3M’s climate of innovation. 3M supplies money for independent research products. For example, 3M launched the Genesis Program to fund research projects unable to go through the regular funding channels. Same for developing unconventional projects that would not otherwise receive funding in the outside world. Technology and ideas are shared through an informal way, such as conversations, but also through a formal way, such as the ‘R&D Workcentre’ and ‘Tech Forum’. Also, 3M has mentors and sponsors who help younger people by listening to their ideas, giving them advice and assistance, and acting as their champions. Patents give 3M the power and time to protect the growth potential of its business. All these thinks develops the spirit of innovation. Third, 3M keeps the functions of engineering...
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...http://vigaexalt.blogspot.com/2014/01/innovation-key-transformation-for.html Innovative has seen the transformation of modern technology that suits global appeal. Organizations have constantly innovated new ideas, technologies, products and services to have competitive edge in its industry. Entrepreneurs should always constantly look into areas of creating new inventions’ or adapt the existing products. The most common one was the creative introduction of telephone by Alexander Graham Bell. It is still widely used but humans require a gadget that is mobile. In mid 1980s, Motorola launched the first hand phone in market which also prompted other brands such as Nokia, Sony Ericsson, Siemens and LG venturing in the mobile market in 1990s. However in 2000s, the world saw another innovation from the phone through the introduction of Apple’s IPhone. The birth of smartphones innovation channels in new players such as Samsung, Blackberry, HTC, Acer and Nokia to innovate their models. The creation started by Alexander Graham Bell has been adapted and altered to fulfil the current generation and needs. This process shall not end with the introduction of smart phones or tablet PC but innovation shall continue as it seeks refurbishment of finest and latest technology. Several worldwide popular entrepreneurs such as Bill Gates, Steve Jobs, Michael Dell, Sergey Brin, Larry Page, Henry Ford, Oprah Winfrey, Ray Kroc, Walt Disney, George Lucas and Mark Zuckerberg has reshaped their respective...
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...[pic] CASE ASSIGNMENT As the end of his first year comes to a close, George Buckley (CEO) is evaluating his strategic approach and its ability to drive desired results for 3M during the upcoming year. He has asked you to prepare a report assessing strategic performance during 2006 and to make recommendations for enhancing strategic competitiveness in 2007. You will have a 10 minute meeting with Buckley to highlight your findings, so you should prepare 3-5 Power Point slides to provide an overview of your written report and to summarize the results of your analysis and supporting exhibits. Your report and overview should address the following key strategic issues: 1. Establish criteria for judging strategic performance by comparing past successes and strategies. Use a Balanced Scorecard framework to make sure that both financial and strategic controls are used to assess performance. 2. Define the company's core competency. 3. Determine if the company has a sustainable competitive advantage. If you determine that a sustainable advantage exists, support your claim. If you find it lacking, recommend actions that would secure a sustainable competitive advantage. 4. Identify any external environmental forces that have strategic implications in the future. 5. Evaluate the success of 3M's strategy in 2006 based on the criteria identified for judging strategic performance. 6. Evaluate 3M's Acquisition strategy. 7. Recommend an integrated and coordinated...
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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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...arriving in Minnesota from Milan last year, Mauro and his wife, Elisa, can't help but stand out. | Photo by David Bowman The Nine Passions Of 3M's Mauro Porcini By Chuck Salter 1. Mauro loves his pink lion. One Saturday afternoon last spring, he and his wife, Elisa, front-runners for the title of Minnesota's most glamorous Italian transplants, stumbled onto an eclectic sale in a parking lot on the outskirts of St. Paul. As soon as he saw the white stone statue of a regal lion, Mauro didn't hesitate forking over a few hundred bucks. He knew exactly what he wanted to do with it. "I painted it fluo [as in fluorescent] pink myself," he says. And he put it in his front yard for all to see. Mauro Porcini is the resident design guru at 3M, the materials-science conglomerate based in St. Paul. Throughout the company, he's simply known as Mauro--a renaissance man who's transcended his last name. Although most of his Midwestern colleagues pronounce it MORE-oh, it actually rhymes with WOW-whoa, which is also the typical reaction to the flamingo-colored sculpture that now resides across the street from the Oak Ridge Country Club. The club had been lion-free for 90 years until Mauro moved from Milan in 2010 to Hopkins, a Minneapolis suburb dotted with low-pitch ranch homes like his. "The neighbors stop and take pictures," he says, smiling as he gazes at his yard one night in June. In his mind, Mauro says, the beast roars, "This house is owned by a designer, someone who likes to think...
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... It’s just a 4 easy steps to submit ideas. View, post, vote and see the results. Other visitors have the ability to vote for the ideas they would most like to see Dell produce. For Dell, this site has been a priceless source of innovation and customer feedback. Diret2Dell is Dell’s official corporate blog. Not only the Dell employers can post articles on the blog, the customers and visitors can also do that. You could also post different languages on the blog. English, Chinese and Spanish. Basically, any topics related to Dell’s product, you could post on the blog. Also, the blog has a variety of different functions that made it easy to use. Customers could email the blog, share the blog the Facebook and put comments to the author. StudioDell is a platform that people share videos on it. Customers could upload videos about Dell products and services. Videos for different categories. Main purpose is for customers to watch, learn and share. In 2007, Dell actually uses these platforms to help the company to put out fires. In 2007, Dell computers started getting reports of laptops exploding in flames. That’s really a bad news for Dell. How did dell response? Dell’s computer digital media manager posted a video from Osaka, Japan, of a Dell machine bursting into flames at a conference on the company bloggers. This is a pretty risky action to do. After posting the video, the blog became Dell’s prime tool to communicate what it was doing, how it would handle recalls and what...
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...Case study notes This case has been updated to include the Apple iPad. Principally this is case explores the issue of licensing and how successful firms can become unsuccessful. It is not a case about Apple and why it has become successful. This case study explores the rise of the Apple Corporation. The Apple iPod is one of the most successful new product launches in recent years, transforming the way the public listens to music, with huge ramifications for major record labels. More than 50 million MP3 players are expected to be sold in 2005; over a third more than last year. Mobile phones have long been regarded as the most credible challengers to MP3 players and iPods. The launch of digital download services via mobile phones illustrates the dramatic speed of convergence between the telecom and media industries, which many observers expect to usher in a new era of growth for mobile phones. Users are willing to pay more for additional services and many analysts predict that mobile phone handsets will eventually emerge as the dominant technology of the age, combining personal organisers, digital music players and games consoles in a single device. Indeed, Microsoft founder Bill Gates has predicted that mobile phones will supersede the iPod as the favoured way of listening to digital music. The launch of the Apple ipad in 2010 makes this case even more topical. This should form the basis of supplementary questions at the end of the case: How will the iPhone succeed? What about...
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