...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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...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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...theoretical and practical. Minnesota Mining & Manufacturing Corporation (3M) is one of the companies that have successfully implemented differentiated product strategy that gives priority to innovation as a competitive advantage offered. This company believes that innovation to be the cornerstone of 3M’s future success. Current management has continued to embrace and expand these policies and philosophies. That is why researchers interested in evaluating policies and 3 M that philosophy is based on the innovation in the implementation of the strategy of differentiation 2. Motivation Motivation researchers conducted a study of control for differentiated strategies in Minnesota Mining & Manufacturing Corporation (3M) because the researchers wanted to know more about the factors that influenced the design of the system and also the policies and philosophy rooted in the innovations made by 3M Corporation. By studying and examining the existing policy and philosophy that is rooted in innovation from the company, researchers can get a clearer picture of how to do a proper evaluation and what steps should be taken when problems arise in the future. 3. Research Question Evaluate the policies and philosophies of 3M from the standpoint of helping the company implement its strategy, rooted in innovation. 4. The Aim/Objectivity To provide evaluation policies and philosophies used by the 3M Corporation in implementing the strategy of differentiation that...
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...Q1. How has 3M’s innovation process evolved since the company was founded? Why, if at all, does 3M, known as the “hothouse” of innovation, need to regain historic closeness to the customer? Ans1. 3M Corporation has small laboratory or research and development section with some technicians and doing experiments on sandpaper and developed some core technology at that time for 3M like masking tapes. After such core technologies development 3M achieved global reputation and become “hothouse” of innovation. However the process grows slowly and allows 3M to recognize user needs because 3M researchers contact different employees in factories. In 1990’s 3M have 30 key technologies and get much market growth and for more development and product 3M employing more engineers and scientists. 3M corporation goes high in innovation but they are not able to found what customer need is because of least interaction and closeness with customers and users. This is because 3M need some marketing research and identifies customer needs rather focusing on products and technical stuff. Q2. How does the Lead User research process differ from and complement other traditional market research methods? Ans2. Lead user research is the process in which products may be innovate and developed products on the basis of the information and data collect by customers or user and with respect to the need of users. By the help of lead user research organizations are able to identify the client...
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...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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...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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...Success Comes from Corporation’s Innovation Student Name: Course Name: Instructor’s Name: Due Date: Success Comes from Corporation’s Innovation Abstract Innovation drives companies to progress. Also innovation helps countries develop. Therefore, companies and governments are much concerned about innovations. Various strategies are exerted on enhancing companies’ innovations. The success of companies and even the success of governments depend on innovations. This essay discusses the importance of innovations in companies and counties as well as the application of innovation and innovation strategies. Success Comes from Corporation’s Innovation Why are companies so concerned with innovation? Historically, human beings evolve from ancient to modern society mainly due to their creative ideas. Whenever several pioneers experiment with one idea, there will be a brand new era coming into beings. For instance, the revolutionary invention of wheels completely altered the life of people in late Neolithic. It also gave rise to the technological advances. Human beings are progressing significantly into the modernization. Thus, each great innovation has brought a drastic change to humans. In modern society, corporations, especially technology corporations, are much concerned to the innovation, for the reason of the amazing benefits innovations bring to corporations and society as well. How do countries and corporations foster innovation? There are consistently questions...
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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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...Focus Questions for “Innovation within the Organization” 1.) Radical innovations are technologies that allow firm to differentiate themselves from competition and become leaders in newly developed markets. As radical innovations are speculative in nature, it is essential for firms to constantly conduct numerous research and development projects to increase the likelihood a commercially viable one is discovered. Within the article “Innovation’s New Math,” Gary Hamel offers the innovation pipeline as a focused method for a firm to develop radical innovation projects and avoid the financial strain of having too many risky ventures operating at once. Hamel highlights the need for companies to allow communication lines for all employees to provide input on processes and technologies. In establishing such communication lines, successful ideas can be enhanced and distributed throughout the company. Hamel furthers the innovation pipeline by keying on creating internal competition among segments of the business. Hamel believes firms should set aside funds 2.) Prahalad and Hamel’s article “The Core Competence of the Corporation,” serves as a distinctive guide for managers to enhance their company’s core competencies. The article highlights strategic architecture as a primary driver in augmenting core competencies. Through strategic architecture managers identify their company’s core competencies and create a focus on the cultivation and enhancement of those strengths...
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...profile ( 2011 ). (n.d.). Retrieved from http://www.politicalaccountability.net/index.php?ht=a/GetDocumentAction/i/5154 Common blog, what does 3m, unitedhealth group and comcast have to do with trayvon martin?. (2013). Retrieved from http://www.commonblog.com/2012/03/29/what-does-3m-unitedhealth-group-and-comcast-have-to-do-with-trayvon-martin/ Center for Responsive Politics, (2012). 3m co expenditures. Retrieved from website: http://www.opensecrets.org/pacs/expenditures.php?cycle=2012&cmte=C00084475 Center for Responsive Politics, (2012). 3m co. lobbying. Retrieved from website: http://www.opensecrets.org/lobby/clientsum.php?id=D000021800&year=2012 Public Citizen, (2011). 12 months after the effects of citizens united on elections and the integrity of the legislative process. Washington, D.C.: Public Citizen. Retrieved from http://www.citizen.org/documents/Citizens-United-20110113.pdf 3m community giving. (2013). Retrieved from http://solutions.3m.com/wps/portal/3M/en_US/Community-Giving/US-Home/ Economic recession and competitive advantage. (2009, December 30). Retrieved from http://ayushveda.com/blogs/business/economic-recession-and-competitive-advantage-the-3m-case/ Black, T. (2013, April 26). 3m cuts 2013 profit forecast on slowing demand. Retrieved from http://www.bloomberg.com/news/2013-04-25/3m-profit-trails-analyst-estimates-as-europe-slumps.html The National Bureau of Economic Research, Public Information Office. (n.d.). Us business...
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...Comparing Career Options with 3M Subsidiaries in India and Spain 1. Introduction The choice between two subsidiaries of 3M will be evaluated for appropriateness considering a wide number of variables. 3M is a large multinational corporation with operations in more than 65 countries, including China and Norway and its headquarters are located in St Paul, MN (3M Website). Because of its innovation, 3M has developed a wide range of products used across many industries. What makes the company stand out is that it measures its progress according to a commitment to meeting the needs of society (3M Website). As it notes on its website, this means that it placed a high value on sustainability, with specific goals to address the challenges of environmental changes (3M Website). 3M has been making the newest businesses its core focus, with the increased need for products and services in the businesses of renewable energy and technology (3M Annual Report). Recent areas of growth have been in Industrials and Transportation Safety, Security and Protection Services, and Health Care (3M Annual Report). 3M also supplies materials used in the solar industry (3M Website). The various career paths at 3M fall under the following categories: Engineering: Corporate, Engineering: Manufacturing/Quality, Finance, Human Resources, Information Technology, Marketing, Communications & Sales, Research & Development, Sourcing Operations and Supply Chain (3M Website). 3M has turned environmental protection...
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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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...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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...3M Marketing Audit Jeremiah Lindgren University of Mary 3M Marketing Audit 3M was founded in 1902 in Two Harbors, Minnesota by five businessmen, with diverse occupations, who wanted to mine a mineral deposit for grinding-wheel abrasives (3M, 2012). The founders did what many others did in that time and that was incorporate first and investigate later so soon after their start the company moved to Duluth, Minnesota to focus on sandpaper products because the mineral deposit was of little value (3M, 2012). 3M struggled for many years, then they got the quality production and supply chain down they attracted new investors. The company moved to St. Paul, Minnesota in 1910 and in 1916 they paid their first dividends of 6 cents a share (3M, 2012). In 2004, their sales topped $20 billion for the first time and currently they are in 25 different countries worldwide. When most people think of 3M they think of Post-It notes and Scotch tape but 3M actually has many other businesses besides office supplies (3M, 2012). They currently have a very high technology platform which gives them the ability to have a graphics business that people rely on every day along with an electronic and communication business that contribute reliable sources of electrical power to markets around the world (3M, 2012). They supply innovative and reliable products that are used by health care professionals. These products make them a global leader in medical and oral care products, and drug deliver and...
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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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