Example - Innovation at 3M Corporation

8/12/2019 Example - Innovation at 3M Corporation

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Innovation at 3M corporation



Background

Founded in 1902 at Minnesota.Five businessman set out to mine amineral deposit for grinding-wheelabrasive.Deposits proved to be of little

valueNew 3M company focus onsandpaper products.



1910s

New investor were attracted to 3M,such as Lucius Ordway, who movedthe 3M company to St. Paul.Early technical and marketinginnovations began to producesuccesses. The company paid its firstdividend of 6 cents a share in 1916.



1920s

The world’s first waterproofsandpaper, which reducedairborne dusts duringautomobile manufacturing wasdeveloped.Masking Tape was invented- aninnovative step towarddiversification and the first ofmany Pressure-Sensitive Tapes.Technical progress resulted inCellophane Tape for box sealingand soon hundreds of practicaluses were discovered.



1940s

3M was diverted intodefense materials forWWII, which was followedby new ventures, such asReflective Sheeting forhighway markings,Filament Adhesive Tapeand the start of 3M’sinvolvement in the graphicarts filed with offset

printing plates.



1950s

Thermo-Fax copyingprocess, Fabric Protector,Cleaning Pads and severalnew electro-mechanicalproducts ware introduced.



1960s

Dry-Silver microfilm wasintroduced along withphotographic products,carbonless papers,overhead projectionsystems, and a rapidlygrowing health carebusiness of medical anddental products.



1970s

Markets further expended intopharmaceuticals, radiology and energycontrol.



1980s

Post-it Note was introduced, which created awhole new category in the marketplace andchanged people’s communication andorganization behavior forever.



1990s

Sales reached the $15 billion mark. 3M continued todevelop an array of innovation products, includingimmune response modifier pharmaceuticals;

brightness enhancement films for electronic display;and flexible circuits used in inkjet printers, cell phonesand other electronic devices.



Nowadays

In 2004, sales topped $20 billion for the first time,with innovative new products contributingsignificantly to growth. Recent innovations include

Post-it Super Sticky Note, Transparent Duct Tape,optical films for LCD televisions and a new familyof Cleaning Products that give consumers the rightscrubbing power for a host of cleaning jobs.



Traditional innovation way at 3M(1)

Product team comprise technical individualsinvolve process engineers

ensure the particular product under development could beefficiently madeprovided feedback about 3M’s manufacturing capabilities

Allowed for technical employees to take mattersin their own hands.

Marketing input traditionally came from currentcustomers and sales representatives.Product developer focus on finding new angles ortwists on the early trends.



Tools to identify market needs and trend byproduct developers of 3M

Data from sales representative with daily contact with

physicians or registered nurses.Gather some 30 nurses biannually from across the nationin a room to obtain reactions to proposed products.Customer evaluation of currently marketed products.

Site visits to observe physicians and nurse at work, withthe intent to identify unforeseen needs.Data on risk factors for diseases.




DisadvantageHiring out for market research created too manyinterfaces between development teams and customersInformation obtained was not necessarily proprietary

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

Understanding customer and market needs would notsuffice

customers were somewhere blind about their own needs, andthus could not provide clues about developing revolutionaryproducts.


SHOULD BE INNOVATED!!



Why 3M want to use Lead UserMethod

They want to product a breakthroughproducts.

Want to find new waysIdentify leading-edge customer needsDevelop concepts for breakthrough products andservicesCustomer-focused product development process



Lead User Method(1)

DefinitionMethod : An accurately forecasting marketopportunity by taping the expertise base of” lead

users.” Lead UserThe people whose experience are ahead of the marketsegment.They may lead in either target or analogous market.They may be involved with just one or more attributes ofthe problems users met.

Purposeunearth product development opportunities.



Advantage:richer and more reliable informationbetter products and service concepts

acceleration of the product and service developmentprocessNecessary Elements:

supportive managementa cross-disciplinary team of high skilled peoplea understanding of the principles of Lead User research

Compose:4-6 people from marketing and technical department12-15 hours per week spent on the project

project typically takes 5-6 months

Lead User Method(2)



Lead User process

Project PlanningStage 1

Trends/Needs IdentificationStage 2

Preliminary Concept Generation

Stage 3

Final Concept GenerationStage 4



Stage 1- Project Planning

4-6 weeksIdentify the types of market, new

products of interest, and the innovationlevelIdentify key business constraints

Interviewing industry experts to helpfocus in key market trends



Stage 2-Trends/NeedsIdentification

5-6 weeksSelect a specific need-related trends

Digest the information from stage 1

Find top experts

Development a good understanding ofmajor trends

Questionnaire Telephone

Networking Scan literature

Consulting in-house colleague



Stage 3-Preliminary ConceptGeneration

5-6 weeksThe group acquires a more preciseunderstanding of the needs it has selectedas the area focus.

Seek to informally assess business potential forthe product or service being conceptualized.

Interview lead user experts for technicalknowledge that pertains to concept generation.Meet with key managers to confirm thatneeds and concepts fit well withbusiness interests.



Stage 4-Final concept Generationand learn from lead user

5-6 weeksThe team takes the preliminary conceptdeveloped toward completion.

Seek to ensure that all possible solutions havebeen explored.

Lead user workshop

brainstorming to arrive at consensuson the concepts ( 1-2 days)Evaluates the concepts in terms of technicalfeasibility, market appeal, and managementpriorities.



3M wanted to find a breakthroughinfection control product.

Surgical drapesProbe the team with questions

What do you know about this market?How important is the skin itselfas a source of infection?

Build up an invaluable database ofinformation

Know the need for good surgical drapes

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

Stage 1



Make sense of all the information gathered instage 1

Prove more effective the current productseasy to apply and remove.

Talk to a wide range of experts

veterinary science to medics from MASH.Turn up other expertsTheater make-up business to veterinary sciencesto oceanographers.

Stage 2





Identify important trends in infection controlTravel to extreme situation: surgical

environments in developing countriesSend product developers to visit potentialcustomers.

Identify lead users Veterinary hospitals, make-up artists inHollywood

How to pool the combined knowledge and

talent to develop product concepts?

Stage 3



Hold a workshop11 3M personnel and 11 outside experts

Focus on efficacy and costFour challengesLack of structure in many corporate meetingIntroverted and extroverted participants

Artist’s idea VS. surgeon’s squash Find ways to marry very creative ideas with technicalfeasibility.Lie in navigating a sea of facts

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

Stage 4






Economic lineOne size fit alltimesavingLow cost materialapply anti-microbial substances to skin

Skin Doctor lineHand-held vacuum mode -mop up surface liquidsOriginal laying mode

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

Open the door to new business opportunities(2 billion)


Recommendation



Conclusion

Focus on qualitative probing of the rightquestions

Traditional method focus on quantifiable

question and researchEvolution or revolution?Combining technologies from more than onecore areas is evolution.

Lead users method is a revolutionThink about challenging the entire business strategy.Think that we gather and use information differentlythan beforeProvide emotional support

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Example - Innovation at 3M Corporation