(C2) Innovation at 3M Corporation

Innovation at 3M corporationInnovation at 3M corporation

M9721015 M9721015 林怡伶林怡伶 LINDALINDA

M9701021 M9701021 李家駒李家駒 MARMAR

M9701020 M9701020 洪詩瑜洪詩瑜 FRIDAFRIDA

OutlineOutline

Introduce 3MIntroduce 3M

Traditional 3M innovation Way and Why Traditional 3M innovation Way and Why want to use new methodwant to use new method

Lead Users MethodLead Users Method

Example for Lead User Process Example for Lead User Process --3M Corporation and infection control

ConclusionConclusion

Introduce 3MIntroduce 3M

BackgroundBackground HistoryHistory

BackgroundBackground

Founded in 1902 at Minnesota.Founded in 1902 at Minnesota. Five businessman set out to mine Five businessman set out to mine

a mineral deposit for grinding-a mineral deposit for grinding-wheel abrasive. wheel abrasive.

Deposits proved to be of little Deposits proved to be of little value value

New 3M company focus on New 3M company focus on sandpaper products.sandpaper products.

1910s1910s

New investor were attracted to New investor were attracted to 3M, such as Lucius Ordway, who 3M, such as Lucius Ordway, who moved the 3M company to St. moved the 3M company to St. Paul.Paul.

Early technical and marketing Early technical and marketing innovations began to produce innovations began to produce successes. The company paid its successes. The company paid its first dividend of 6 cents a share first dividend of 6 cents a share in 1916.in 1916.

1920s1920s

The world’s first waterproof The world’s first waterproof sandpaper, which reduced sandpaper, which reduced airborne dusts during airborne dusts during automobile manufacturing was automobile manufacturing was developed.developed.

Masking Tape was invented- an Masking Tape was invented- an innovative step toward innovative step toward diversification and the first of diversification and the first of many Pressure-Sensitive many Pressure-Sensitive Tapes.Tapes.

Technical progress resulted in Technical progress resulted in Cellophane Tape for box Cellophane Tape for box sealing and soon hundreds of sealing and soon hundreds of practical uses were discovered.practical uses were discovered.

1940s1940s

3M was diverted into 3M was diverted into defense materials for defense materials for WWII, which was followed WWII, which was followed by new ventures, such as by new ventures, such as Reflective Sheeting for Reflective Sheeting for highway markings, highway markings, Filament Adhesive Tape Filament Adhesive Tape and the start of 3M’s and the start of 3M’s involvement in the involvement in the graphic arts filed with graphic arts filed with offset printing plates.offset printing plates.

1950s1950s

Thermo-Fax copying Thermo-Fax copying process, Fabric process, Fabric Protector, Cleaning Pads Protector, Cleaning Pads and several new electro-and several new electro-mechanical products mechanical products ware introduced.ware introduced.

1960s1960s

Dry-Silver microfilm Dry-Silver microfilm was introduced along was introduced along with photographic with photographic products, carbonless products, carbonless papers, overhead papers, overhead projection systems, projection systems, and a rapidly growing and a rapidly growing health care business of health care business of medical and dental medical and dental products.products.

1970s1970s

Markets further expended into Markets further expended into pharmaceuticals, radiology and energy control.pharmaceuticals, radiology and energy control.

1980s1980s

Post-it Note was introduced, which created Post-it Note was introduced, which created a whole new category in the marketplace a whole new category in the marketplace and changed people’s communication and and changed people’s communication and organization behavior forever.organization behavior forever.

1990s1990s

Sales reached the $15 billion mark. 3M Sales reached the $15 billion mark. 3M continued to develop an array of innovation continued to develop an array of innovation products, including immune response modifier products, including immune response modifier pharmaceuticals; brightness enhancement films pharmaceuticals; brightness enhancement films for electronic display; and flexible circuits used for electronic display; and flexible circuits used in inkjet printers, cell phones and other in inkjet printers, cell phones and other electronic devices.electronic devices.

NowadaysNowadays

In 2004, sales topped $20 billion for the first In 2004, sales topped $20 billion for the first time, with innovative new products time, with innovative new products contributing significantly to growth. Recent contributing significantly to growth. Recent innovations include Post-it Super Sticky Note, innovations include Post-it Super Sticky Note, Transparent Duct Tape, optical films for LCD Transparent Duct Tape, optical films for LCD televisions and a new family of Cleaning televisions and a new family of Cleaning Products that give consumers the right Products that give consumers the right scrubbing power for a host of cleaning jobs.scrubbing power for a host of cleaning jobs.

Traditional innovation way at 3M(1)Traditional innovation way at 3M(1)

Product team comprise technical individualsProduct team comprise technical individuals involve process engineersinvolve process engineers

ensure the particular product under development could ensure the particular product under development could be efficiently madebe efficiently made

provided feedback about 3M’s manufacturing capabilitiesprovided feedback about 3M’s manufacturing capabilities

Allowed for technical employees to take Allowed for technical employees to take matters in their own hands.matters in their own hands.

Marketing input traditionally came from Marketing input traditionally came from current customers and sales representatives.current customers and sales representatives.

Product developer focus on finding new Product developer focus on finding new angles or twists on the early trends.angles or twists on the early trends.

Tools to identify market needs and trend by Tools to identify market needs and trend by product developers of 3Mproduct developers of 3M Data from sales representative with daily contact Data from sales representative with daily contact

with physicians or registered nurses.with physicians or registered nurses. Gather some 30 nurses biannually from across the Gather some 30 nurses biannually from across the

nation in a room to obtain reactions to proposed nation in a room to obtain reactions to proposed products.products.

Customer evaluation of currently marketed Customer evaluation of currently marketed products.products.

Site visits to observe physicians and nurse at work, Site visits to observe physicians and nurse at work, with the intent to identify unforeseen needs.with the intent to identify unforeseen needs.

Data on risk factors for diseases.Data on risk factors for diseases.


Disadvantage Disadvantage Hiring out for market research created too many Hiring out for market research created too many

interfaces between development teams and interfaces between development teams and customerscustomers

Information obtained was not necessarily Information obtained was not necessarily proprietaryproprietary

anyone could open up a medical textbook to find key anyone could open up a medical textbook to find key risk factor for diseases.risk factor for diseases.

Understanding customer and market needs Understanding customer and market needs would not sufficewould not suffice

customers were somewhere blind about their own customers were somewhere blind about their own needs, and thus could not provide clues about needs, and thus could not provide clues about developing revolutionary products.developing revolutionary products.


SHOULD BE INNOVATED!!

Why 3M want to use Lead User Why 3M want to use Lead User MethodMethod

They want to product a breakthrough They want to product a breakthrough products.products. Want to find new ways Want to find new ways

Identify leading-edge customer needsIdentify leading-edge customer needs Develop concepts for breakthrough products Develop concepts for breakthrough products

and servicesand services Customer-focused product development Customer-focused product development

process process

Lead User Method(1)Lead User Method(1)

DefinitionDefinition Method : An accurately forecasting market Method : An accurately forecasting market

opportunity by taping the expertise base of” opportunity by taping the expertise base of” lead users.”lead users.”

Lead UserLead User The people whose experience are The people whose experience are aheadahead of the market of the market

segment. segment. They may lead in eitherThey may lead in either targettarget or or analogousanalogous market. market. They may be involved with just one or more They may be involved with just one or more

attributesattributes of the problems users met. of the problems users met.

PurposePurpose unearth product development opportunities.unearth product development opportunities.

Advantage:Advantage: richer and more reliable informationricher and more reliable information better products and service conceptsbetter products and service concepts acceleration of the product and service development acceleration of the product and service development

process process Necessary Elements:Necessary Elements:

supportive managementsupportive management a a cross-disciplinary teamcross-disciplinary team of high skilled people of high skilled people a understanding of the principles of Lead User a understanding of the principles of Lead User

researchresearch Compose:Compose:

4-6 people from marketing and technical department4-6 people from marketing and technical department 12-15 hours per week spent on the project12-15 hours per week spent on the project project typically takes 5-6 monthsproject typically takes 5-6 months

Lead User Method(2)Lead User Method(2)

Lead User processLead User process

Project PlanningProject PlanningStage 1Stage 1

Trends/Needs IdentificationTrends/Needs IdentificationStage 2Stage 2

Preliminary Concept GenerationPreliminary Concept GenerationStage 3Stage 3

Final Concept GenerationFinal Concept GenerationStage 4Stage 4

Stage 1- Project PlanningStage 1- Project Planning

4-6 weeks4-6 weeks Identify the types of market, new Identify the types of market, new

products of interest, and the products of interest, and the innovation levelinnovation level

Identify key business constraintsIdentify key business constraints Interviewing industry experts to help Interviewing industry experts to help

focus in key market trendsfocus in key market trends

Stage 2-Trends/Needs Stage 2-Trends/Needs IdentificationIdentification

5-6 weeks5-6 weeks Select a specific need-related trendsSelect a specific need-related trends Digest the information from stage 1Digest the information from stage 1

FindFind top experts top experts

Development a good understanding of Development a good understanding of major trendsmajor trends

Questionnaire Telephone

Networking Scan literature

Consulting in-house colleague

Stage 3-Preliminary Concept Stage 3-Preliminary Concept GenerationGeneration

5-6 weeks5-6 weeks The group acquires a more precise The group acquires a more precise

understanding of the needs it has selected understanding of the needs it has selected as the area focus. as the area focus. Seek to informally assess business potential for Seek to informally assess business potential for

the product or service being conceptualized.the product or service being conceptualized. Interview lead user experts for technical Interview lead user experts for technical

knowledge that pertains to concept generation.knowledge that pertains to concept generation. Meet with key managers to Meet with key managers to confirm that confirm that

needs and concepts fit well with needs and concepts fit well with business interests.business interests.

Stage 4-Final concept Generation Stage 4-Final concept Generation and learn from lead userand learn from lead user

5-6 weeks5-6 weeks The team takes the preliminary The team takes the preliminary

concept developed toward completion.concept developed toward completion. Seek to ensure that all possible solutions Seek to ensure that all possible solutions

have been explored.have been explored. Lead user workshopLead user workshop

brainstorming to brainstorming to arrive at arrive at consensus on the conceptsconsensus on the concepts((1-2 1-2 days)days)

Evaluates the concepts in terms of Evaluates the concepts in terms of technical feasibility, market appeal, and technical feasibility, market appeal, and management priorities.management priorities.

3M wanted to find a 3M wanted to find a breakthrough breakthrough infection control product.infection control product. Surgical drapesSurgical drapes

Probe the team with questionsProbe the team with questions What do you know about this market?What do you know about this market? How important is the skin itself How important is the skin itself as a source of infection?as a source of infection?

Build up an invaluable database of Build up an invaluable database of informationinformation Know the need for good surgical Know the need for good surgical

drapesdrapes

Example of Lead User Process: Example of Lead User Process: 3M Corporation and Infection Control3M Corporation and Infection Control

Stage 1

Make sense of all the information Make sense of all the information gathered in stage 1gathered in stage 1

Prove more effective the current Prove more effective the current products products easy to apply and remove.easy to apply and remove.

Talk to a wide range of expertsTalk to a wide range of experts veterinary science to medics from MASH. veterinary science to medics from MASH.

Turn up other expertsTurn up other experts Theater make-up business to veterinary Theater make-up business to veterinary

sciences to oceanographers. sciences to oceanographers.

Stage 2



Identify important trends in infection Identify important trends in infection controlcontrol Travel to extreme situation: surgical Travel to extreme situation: surgical

environments in developing countriesenvironments in developing countries Send product developers to visit potential Send product developers to visit potential

customers.customers. Identify lead usersIdentify lead users

Veterinary hospitals, make-up artists in Veterinary hospitals, make-up artists in HollywoodHollywood

How to pool the combined knowledge How to pool the combined knowledge and talent to develop product concepts?and talent to develop product concepts?

Stage 3

Hold a workshopHold a workshop 11 3M personnel and 11 outside experts11 3M personnel and 11 outside experts

Focus on efficacy and costFocus on efficacy and cost Four challengesFour challenges

Lack of structure in many corporate meetingLack of structure in many corporate meeting Introverted and extroverted participantsIntroverted and extroverted participants

Artist’s idea VS. surgeon’s squashArtist’s idea VS. surgeon’s squash Find ways to marry very creative ideas with Find ways to marry very creative ideas with

technical feasibility.technical feasibility. Lie in navigating a sea of factsLie in navigating a sea of facts

Interplay of Q&A from diverse range keep the process Interplay of Q&A from diverse range keep the process afloat. afloat.

Stage 4


brainstorming

Rank the product development Rank the product development conceptsconcepts Customer preference for the new productsCustomer preference for the new products Creation of new growth for division, with Creation of new growth for division, with

the goal of double-digit annual growth.the goal of double-digit annual growth. Boosted global presence of the division.Boosted global presence of the division. Higher growth for the rest of 3M through Higher growth for the rest of 3M through

incorporation of proprietary 3M technology incorporation of proprietary 3M technology with patient protection.with patient protection.


Economic lineEconomic line One size fit all One size fit all timesavingtimesaving Low cost materialLow cost material apply apply anti-microbial substancesanti-microbial substances to skin to skin

Skin Doctor lineSkin Doctor line Hand-held vacuum mode -mop up surface liquids Hand-held vacuum mode -mop up surface liquids Original laying modeOriginal laying mode

Antimicrobial ‘armor’ product lineAntimicrobial ‘armor’ product line Consistent with current strategy of reactive Consistent with current strategy of reactive

infection controlinfection control Open the door to new business opportunities(2 Open the door to new business opportunities(2

billion)billion)


Recommendation

ConclusionConclusion

Focus on qualitative probing of the Focus on qualitative probing of the right questionsright questions Traditional method focus on quantifiable Traditional method focus on quantifiable

question and researchquestion and research Evolution or revolution?Evolution or revolution?

Combining technologies from more than Combining technologies from more than one core areas is evolution.one core areas is evolution.

Lead users method is a revolutionLead users method is a revolution Think about challenging the entire business Think about challenging the entire business

strategy.strategy. Think that we gather and use information Think that we gather and use information

differently than beforedifferently than before Provide emotional supportProvide emotional support

Thank for your attentionThank for your attention

Pyramid of ExpertsPyramid of Experts

Mid-level experts

Mid-level experts

Top experts

Mid-level experts

Mid-level experts

Top experts

Cross-disciplinary networking

Documents

(C2) Innovation at 3M Corporation