Innovation Management at 3M

7/22/2019 Innovation Management at 3M

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Thou Shalt not kill an idea!

Group 8

Mia Osawa - 114566

Mikko M. Pesonen - 115324Shreeya Shakya114397


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OUTLINE


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3MInside Story


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Was a near FAILURE but founders

PERSISTED.

Established 1902in Minn. USA William L. McKnight, hired in 1907aged 20

TRANSFORMED 3M into

one of the MOST INNOVATIVEcompanies

50,000+ Products through ORGANIC growth and ACQUISITIONS

PRODUCTPORTFOLIO

CONSUMER Electronics

&

Energy

HEALTHCARE INDUSTRIAL SAFETY &

GRAPHICS


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UNDERLYINGTECHNOLOGY

.8,200researchers worldwide; 4,100in the United States


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INNOVATIONPrinciples

If you put fences aroundpeople, you get sheep. Give

people the room they

need.William McKnight, 3M


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INNOVATIONFRAMEWORK

INNOVATION

Incentives

R n DSpending

Culture

HeavyR n D Investment : increase RnDspending to 6% by 2017 from 5.3% in 2011

New metric New Product Vitality IndexTo measure sales from product

Patentsto protect intellectual property

15 per cent Rule promoted corporateculture of freedom and innovation

3M Technology Forum encouragedinnovators network, interact and share

their knowledgeand problems

High Customer InteractionHelped to identify users

Problems

Decentralized and OrganicStructure

Risk Taking Culture encouraged byCompany principle and informal long

term employment contract

Genesis Grant Program - $50K to

support innovative productsCarlton Societyhighest recognition for

Valuable employee

Golden Step Awardsales reaching $5m

Alpha Grantsinnovation in non-technical front


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GLOBAL REACH

70+ Countries

85 Laboratories

35+ business

units


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GLOBAL REACH

ORGANIZATION STRUCTURE

Matrix structurefosters collaboration across different subsidiaries

Knowledge transfer

Knowledge transfer through expatriate assignment, KM tool and

Open communication channels

autonomyAllowed subsidiaries to initiate local product development

Tailored to meet local needs


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ACNE Dressing story

3M taiwan analysis


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ACNE DRESSINGBrief Story


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ACNE PRODUCT DEVELOPMENT

Technology Base: Hydrocolloid Dressing = Health care product for hospitals, drugstores.

Step 1:

accidental

innovation

Step 2: wound

treatment

Step 3: 3M,

NPD & NPIS

From a camping trip

Through research

To an Acne treatment product


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NPISand ACNE DRESSING Analysis

POST LAUNCHLAUNCH

SCALE-UPDEVELOPMENT

FEASIBILITYCONCEPT

IDEA

Product / sales

potential

Technical &

Financial aspects,

Target market

Accidental InnovationFrom wound recovery

to Acne treatment


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Impressivesales

Taiwan Potential in Asia Pacific

Heavy investments from HQ (early 2000s onwards)

3rdRnD center after Minnesota and Japan (Shanghai, 2005)

TAIWAN: STRENGTH AND WEAKNESSES


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3M Taiwan Analysis

+ Location: gateway to East Asia, 3M already

present in the market since 1969, important

and growing market

+ 3M collaboration with Taiwanesegovernment

+ Taiwanese Silicon Valley

++ Very innovative subsidiary++ Infrastructure in place

++ Competent task force

++ Familiar with local NPD

+ + Prior work experience with HQ

WEAKNESS

No prior experience in healthcare

product development

Chung (responsible for Acne

development) not experienced withNPD

Cost of production uncertainNo global market knowledge


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3M Taiwan Dilemma

TO GO OR NOT TO GO?


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Challenges of NPD

Launch strategies

Our recommendations


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19/22

1919

Global

strategy

Transnational

strategy

International

strategy

Multi-

domestic

strategy

Low High

Low

High

Local responsiveness

Co

streductio

npressure

s

The corporate strategy defines the R&D

requirements of the company

Each subsidiary has substantial autonomy and

control of critical business activities

Possible Strategies for TaiwanTaiwanSTRENGTH

TaiwanWEAKNESS

> InnovativeCulture>Proper infrastructurein

place

>Prior experience in local

product developmentin

other technologies

>Prior experience working

with HQ> Good Local Market

Potential

> Leadership inexperienced

in NPD

> Inexperienced in

healthcare NPD

> Costof production

uncertain

> No Global market

knowledge


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Autonomous

regional R&Dcentre

Network of

regional R&D

centre with

support of HQ

Autonomous

technology R&Dcentre

Network of

technology R&Dcentre with HQ

coordination

Less centralised More centralised

Technology

Regional

market

Approach to managing Global R&D

Primaryfocus

Each R&D centre performs regional innovation and all centres work

together on projects of common interest

Utilisation of resources of the network and support from HQ

Strategy for RnD in Taiwan


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Knowledge

Technical

Managerial

Information

platform

ResourcesTechnology

Systems

Benchmarking

Cost

Communication

Resource sharing

Expatriate

system

Regionalnetworks

Incentive

schemes

NPD Launch ManagementPutting it all Together

IntegrationSolutionChallenges


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Thank You!

Q n A

Documents

Innovation Management at 3M