(c2) Innovation At 3m Corporation

Innovation at 3M corporation M9721015 林怡伶 LINDA M9701021 李家駒

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

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

Conclusion

Introduce 3M  

Background History

Background  

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Founded in 1902 at Minnesota. Five businessman set out to mine a mineral deposit for grindingwheel abrasive. Deposits proved to be of little value New 3M company focus on sandpaper products.

1910s New investor were attracted to 3M, such as Lucius Ordway, who moved the 3M company to St. Paul.  Early technical and marketing innovations began to produce successes. The company paid its first dividend of 6 cents a share in 1916. 

1920s The world’s first waterproof sandpaper, which reduced airborne dusts during automobile manufacturing was developed.  Masking Tape was invented- an innovative step toward diversification and the first of many Pressure-Sensitive Tapes.  Technical progress resulted in Cellophane Tape for box sealing and soon hundreds of practical uses were discovered. 

1940s 

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

1950s 

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

1960s 

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

1970s 

Markets further expended into pharmaceuticals, radiology and energy control.

1980s 

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

1990s 

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

Nowadays 

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

Traditional innovation way at 3M(1) 

Product team comprise technical individuals 

involve process engineers 

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ensure the particular product under development could be efficiently made provided feedback about 3M’s manufacturing capabilities

Allowed for technical employees to take matters in their own hands. Marketing input traditionally came from current customers and sales representatives. Product developer focus on finding new angles or twists on the early trends.

Traditional innovation way at 3M(2) 

Tools to identify market needs and trend by product developers of 3M 

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Data from sales representative with daily contact with physicians or registered nurses. Gather some 30 nurses biannually from across the nation in a room to obtain reactions to proposed products. Customer evaluation of currently marketed products. Site visits to observe physicians and nurse at work, with the intent to identify unforeseen needs. Data on risk factors for diseases.

Traditional innovation way at 3M(3) 

Disadvantage 

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Hiring out for market research created too many interfaces between development teams and customers Information obtained was not necessarily proprietary 

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

Understanding customer and market needs would not suffice 

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

Why 3M want to use Lead User Method 

They want to product a breakthrough products. 

Want to find new ways  Identify

leading-edge customer needs  Develop concepts for breakthrough products and services  Customer-focused product development process

Lead User Method(1) 

Definition 

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Method : An accurately forecasting market opportunity by taping the expertise base of” lead users.” Lead User 

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The people whose experience are ahead of the market segment. They may lead in either target or analogous market. They may be involved with just one or more attributes of the problems users met.

Purpose 

unearth product development opportunities.

Lead User Method(2) 

Advantage:   

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Necessary Elements:   

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richer and more reliable information better products and service concepts acceleration of the product and service development process supportive management a cross-disciplinary team of high skilled people a understanding of the principles of Lead User research

Compose:   

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

Lead User process Stage 1 Project Planning Stage 2 Trends/Needs Identification Stage 3 Preliminary Concept Generation Stage 4 Final Concept Generation

Stage 1- Project Planning 4-6 weeks  Identify the types of market, new products of interest, and the innovation level  Identify key business constraints  Interviewing industry experts to help focus in key market trends 

Stage 2-Trends/Needs Identification   

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

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Telephone

Find top experts Networking Scan literature Consulting in-house colleague

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Development a good understanding of major trends

Stage 3-Preliminary Concept Generation 5-6 weeks  The group acquires a more precise understanding of the needs it has selected as the area focus. 

Seek to informally assess business potential for the product or service being conceptualized.  Interview lead user experts for technical knowledge that pertains to concept generation. 

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Meet with key managers to confirm that needs and concepts fit well with business interests.

Stage 4-Final concept Generation and learn from lead user 5-6 weeks  The team takes the preliminary concept developed toward completion. 

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Seek to ensure that all possible solutions have been explored.

Lead user workshop  brainstorming to arrive at consensus on the concepts(1-2 days) 

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

Example of Lead User Process: 3M Corporation and Infection Control Stage 1 

3M wanted to find a breakthrough infection control product. 

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Probe the team with questions  

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Surgical drapes What do you know about this market? How important is the skin itself as a source of infection?

Build up an invaluable database of information 

Know the need for good surgical drapes

Example of Lead User Process: 3M Corporation and Infection Control Stage 2 Make sense of all the information gathered in stage 1  Prove more effective the current products 

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Talk to a wide range of experts 

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easy to apply and remove. veterinary science to medics from MASH.

Turn up other experts 

Theater make-up business to veterinary sciences to oceanographers.

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

Identify important trends in infection control Travel to extreme situation: surgical environments in developing countries  Send product developers to visit potential customers. 

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Identify lead users 

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Veterinary hospitals, make-up artists in Hollywood

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

Example of Lead User Process: 3M Corporation and Infection Control Stage 4 

Hold a workshop 

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11 3M personnel and 11 outside experts

Focus on efficacy and cost br ainstorming Four challenges  

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Lack of structure in many corporate meeting Introverted and extroverted participants  Artist’s idea VS. surgeon’s squash Find ways to marry very creative ideas with technical feasibility. Lie in navigating a sea of facts 

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

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

Rank the product development concepts Customer preference for the new products  Creation of new growth for division, with the goal of double-digit annual growth.  Boosted global presence of the division.  Higher growth for the rest of 3M through incorporation of proprietary 3M technology with patient protection. 

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

Economic line    

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Skin Doctor line  

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One size fit all timesaving Low cost material apply anti-microbial substances to skin Hand-held vacuum mode -mop up surface liquids Original laying mode

Antimicrobial ‘armor’ product line  

Consistent with current strategy of reactive infection control Open the door to new business opportunities(2 billion)

Conclusion 

Focus on qualitative probing of the right questions 

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Traditional method focus on quantifiable question and research

Evolution or revolution?

Combining technologies from more than one core areas is evolution.  Lead users method is a revolution 

 Think

about challenging the entire business strategy.  Think that we gather and use information differently than before  Provide emotional support

Thank for your attention

Pyramid of Experts Cross-disciplinary networking

Top experts

Top experts

Mid-level experts

Mid-level experts