Executive perspective(3m)

Social Business Symposium

The Executive PerspectiveIan Hardgrove July 22, 2011

© 3M 2011. All Rights Reserved.


Agenda

What it’s really all aboutChangeIrresistible collaborationPull or perish?Pitfalls and perilsPitfalls and perilsTo Tweet or not to Tweet?QuestionsQuestions





What’s it all about?

Facebook – friends and familyLinkedIn – a new job or electronic Rolodex®Twitter – information

…It’s about Change



About change….

“Many of us, especially those who have achieved success, tend to believe the approaches we used in the past will continue to work in the future We hold continue to work in the future. We hold onto assumptions about the path to success that we developed along the success that we developed along the way…often without bothering to make them explicit or testing to see if they still hold true”



Why should I change my formula for success?

“The world is transforming around you. The truth is, things you did to get there will no longer work to keep you there. Some of the changes are highly visible Some of the changes are highly visible while others are occurring in the deep background, barely discernible unless background, barely discernible unless you know where to look. Factors that seemed marginal just fifteen years ago have accelerated with impressive speed as the digital infrastructure came to

t t d il li ”© 3M 2011. All Rights Reserved.

penetrate our daily lives”


Change

“In fact things are radically different from the way they used to be. We no l li i th longer live in the industrial economy of the 1950’s or even that the 1950 s or even that of the 1970’s. And the techniques we used to qmaster those worlds are no longer effective”



Some evidence….

Change has been substantialThe pace is extremely rapidFuture change may be unimaginable



WillWill



It’s a small world after all…but Smart is now too big?



Yes - It’s a smaller world after all….



Share-a-ride instead?



The trade show is dead…long live the tradeshow?The trade show is dead…long live the tradeshow?



Amazon bigger than Wal-Mart? On track for $100M…Market Cap $77BMarket Cap $186B



Stock Price Changes in the Last 10 Years

Apple: +3,930% Amazon: +2,120% CNOOC Ltd.: +1,140% Green Mountain Coffee: +2,840% HMS Holdings: +4,670% g ,Imax Corp.: +3,390% Intuitive Surgical: +1,830% g , %F5 Networks: +1,170% Priceline: +1,530%


Priceline: 1,530%


Change

“We need to know what we must do to adapt to the changes, not just to survive but thrive. We need to make sense of how the world is changing around us, getting our bearings, before we can begin the journey and make progress”



45 Core Technology PlatformsAb

Abrasives

BiBiotech

A C E Nt P

PmPolymer

Melt Processing

S

SmSpecialty Materials

AcAcoustics

CeCeramics

Ad Dd

EmElectronicMaterials

Fc Mi

NtNano-

technology

Nw

PoPorous

Materials & Membranes

SuSurface

Modification

Pp TtAdhesives Drug

Delivery

AmAdvancedMaterials

DiDisplay

FlexibleConverting & Packaging

FeFlexible

Electronics

FsFiltration,

Separation,

IsIntegrated Systems &

MeMetal Matrix Composites

Microbial Detection &

Control

MoMolding

Nonwoven Materials

VpVapor

Processing

OpOpto-

electronics

PrProcess Design &

pPrecision

ProcessingTrack and

Trace

Materials

AnAnalytical

DoDental &

Orthodontic Materials

Electronics Separation, Purification

FiFilms

ImImaging

Systems & Design

LmLight Mgmt

Composites

MfMechanical Fasteners

MrMicro-

replication

RpRadiation Processing

Processingelectronics

PdParticle & Dispersion Processing

gControl

WeAccelerated Weathering

AsApplicationSoftware

EcEnergy

Components

FlFluoro-

materials

InInspection &

Measure-ment

MdMedical

Data Mgmt

PePredictive

Engineering & Modeling

SeSensors

WoWound Mgmt

Successful new product growth builds on uncommon connections




45 Core Technology Platforms…plus some new ones?Ab

Abrasives

BiBiotech

A C E Nt P

PmPolymer

Melt Processing

S

SmSpecialty Materials

AcAcoustics

CeCeramics

Ad Dd

EmElectronicMaterials

Fc Mi

NtNano-

technology

Nw

PoPorous

Materials & Membranes

SuSurface

Modification

Pp TtAdhesives Drug

Delivery

AmAdvancedMaterials

DiDisplay

FlexibleConverting & Packaging

FeFlexible

Electronics

FsFiltration,

Separation,

IsIntegrated Systems &

MeMetal Matrix Composites

Microbial Detection &

Control

MoMolding

Nonwoven Materials

VpVapor

Processing

OpOpto-

electronics

PrProcess Design &

pPrecision

ProcessingTrack and

Trace

Materials

AnAnalytical

DoDental &

Orthodontic Materials

Electronics Separation, Purification

FiFilms

ImImaging

Systems & Design

LmLight Mgmt

Composites

MfMechanical Fasteners

MrMicro-

replication

RpRadiation Processing

Processingelectronics

PdParticle & Dispersion Processing

gControl

WeAccelerated Weathering

AsApplicationSoftware

EcEnergy

Components

FlFluoro-

materials

InInspection &

Measure-ment

MdMedical

Data Mgmt

PePredictive

Engineering & Modeling

SeSensors

WoWound Mgmt





The future of interactive marketing at 3M….

Innovation is a team sportTrue innovation is rarely achieved by an individual, it’s mostly a small team

Fl h M b Flash Mobs Collaborative innovation – random acts of collaboration between previously unknown peoplepreviously unknown people

Future innovation will be like thatScary….what about the IP….what about control…what about Scary….what about the IP….what about control…what about control….The future will see lessening controls and the reduced power of

h d i d f ll


push and increased power of pull


Be pulled or perish?

New collaboration with end-user Customers, non aligned industry members

d tit ill and even competitors will be the norm….are we ready for it?ready for it?IT systemsOrganizational Organizational understanding and acceptance


acceptance


Symbol of unpaid collaboration…

10 years old Jan 15, 201117m articles in 270 languagesThe promise and perils of crowd-sourcing content



The 3M Opportunity

An Ecosystem of Ideasof Ideas

TrustedPartnership

World Class Innovation

Unparalleled Collaborative QualityCulture

Uncommon

Creative PassionCurious Problem Solvers


Connections


What will we do differently to succeed?

“Small teams of top talent will outperform talent will outperform better-funded big ones” ones

Steve JobsCo-founder of Apple and


ppFounder of Pixar


Design rendering – landscaping 220 entrance

3m 220 outside viewsam chermayeffto:Thomas Heim/US-Corp01/3M/US Thomas Heim/US Corp01/3M/US J.06/17/2011 01:34 PMCc:

h ffsam chermayeffShow Details



Design rendering – Global headquarters – 220 visitor lobbyg g q y



Design rendering - Great hall/conference area -1st floor 220g g



Design rendering – Employee entrance – 224 lobby



Design rendering – Community plaza “daytime view”



Design rendering – Community plaza “nighttime view”



Website or Wiki Blog?



Pitfalls and Perils….Pitfalls and Perils….

Most Visible 3M Ranks 3rd

Most Reputable Companies 3M Ranks 4th

Most Reputable Companies 3M Ranks 4th

Most Admired Companies Top Public Companies M I i C iMost Admired Companies 3M Ranks 15th

Top Public Companies3M Ranks 7th Most Innovative Companies

3M Ranks 3rd

7 time ENERGY STAR® Sustained Among Best Companies f L d hi


Excellence Award Winner for Leadership


Common Legal Issues – Traps for the Unwary

Copyright InfringementP i T t Cl iPrivacy Tort ClaimsFalse AdvertisingDefamatione a a oDisclosure of Material ConnectionsConfidential InformationTrademark InfringementProduct LiabilityYou are What You PostYou are What You Post



Privacy Policies….

I see a world of pain coming out of these privacy policies.Advice to consumers: There is no privacy on the consumer web; assume everything you post is either public t d ill b t E j th b b t b t today or will be tomorrow. Enjoy the web, but be smart when posting private information.Ad i t CIO d t i d i i k A Advice to CIOs and enterprise decision makers: As always, life is more complicated for the enterprise. Although Google Plus may become the default public social network Google Plus may become the default public social network, it’s absolutely not a private repository for corporate intellectual property. Remind employees that Google Plus is


p p y p y ga general-purpose communication tool to be used only when privacy and security don’t matter.


Did I mention bandwidth?

From Google+ to Lync to Facebook, application developers are rushing to embed video into the social , collaborative experience collaborative experience. Employees exposed to those applications will come to expect the applications will come to expect the same in the Most corporate networks today simply Most corporate networks today simply are not equipped to deliver enterprise-grade video.


g


Social media in IndonesiaEat, pray, tweet

WHAT does the most populous Muslim nation do in its spare time? Increasingly it swaps do in its spare time? Increasingly, it swaps gossip online. Indonesia is now the world’s second-largest market for Facebook and the third-largest for Twitter according to several third largest for Twitter, according to several web research firms. For industry insiders, however, the most exciting statistic is not how many Indonesians use social media, but how y ,many still don’t. Of 230m or so Indonesians, fewer than 20% are connected to the internet.Foreign firms see untapped potential. g pp pFacebook doesn’t even have an office in Indonesia, yet it has grown like crazy, to 30m users.

© 3M 2011. All Rights Reserved.Source: Jan 6th 2011 | JAKARTA | Economist Print Edition


© 3M 2011. All Rights Reserved.© 3M 2011




Irresistible Opportunity?

“Spectators never win “Spectators never win --Spectato s neve winSpectato s neve winPlaying in the game is the Playing in the game is the fi dfi dfirst step towards first step towards winning”winning”

Lawrie Lawrence

winningwinning

Australian Olympic Swimming Coach1994



To Tweet or Not to Tweet…That is the question



3M Connections…Lotus



Yammer











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Differences between Western and Asian Culture

^-^ or ^.^:-) (Happy);_; or T.T(* *)

:-( (Sad):-o (Surprised) ( _ ) : o (Surprised)



Looking ahead…

When we understand our Customer better we will understand what we need to focus on from a marketing perspective.Customer behavior needs to be understood at Customer behavior needs to be understood at the country and market level.... nearly impossible to do well from the “Center”"Marketing“ is always in a transitionThe transition is accelerating with eMarketingI believe social media will be a quintessential I believe social media will be a quintessential part of our lives….both business and personalDo we want to embrace it? Can we afford not


to?


QuestionsQuestions
