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BUS 640 Project

How and why 3M Company is a succesful one?

Brian Roeder

on 23 February 2011

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Transcript of BUS 640 Project

Emphasis on technology and innovation
New revenue stemmed mostly from augmentation of existing
product lines Innovators were encouraged to freely come up with new ideas.
Masking Tape
Skunkwork Teams
Failure was not punished (Innovation IS NOT always getting something right) The Early Days Lagging Pipeline Long periods of not having a market changing innovation.
William McKnight - President of 3M
New products Department (Liase with product
development teams to determine marketability/feasibility early)
Became Chairman of the Board in 1949
Emphasized employee empowerment
Trusted employees More Recent YEars James McNerney
Left GE after Jeff Immelt took over from Jack Welch
Implemented Six Sigma (DMAIC)
Laid off 8,000 people (11% of workforce)
Culture shift towards cost-cutting
Lack of innovation & ambition Increased R&D spending
Ended stringent Six Sigma requirements on innovation
"Invention by its very nature is a disorderly process"
Culture shift toward innovation being the star players 13 years later Richard Sheehan, 3M employee for 34 years. Leader in the development adhesive tapes and abrasives. Also specialize in chemicals, filtration systems and software for supply chain management.
3M Top finalist for the 2010 Edison Best New Product Award
Popular Science names 3M Littmann Stethoscope "Software Innovation of the Year"

3M Awards for innovation
In-House Grants for new research ideas
Employee flex time:15% of time to explore new ideas
High emphasis on research and development
A new goal of 30% of revenue coming from products
which weren't in existence four years ago
Dual Ladder Approach to promote advancement
for technically skilled people Lead User Methods Traditional Methods LEAD USER PRINCIPLES Cross-functional teams work directly with customers.
Allows developers to learn outside traditional business focus.
Pushes developers to leading edge with radical new concepts.
Can also be complemented with traditional methods. Lacks customer contact and interaction, with large amounts of data.
Focused on the traditional customer base not looking to expand.
Incremental rather than breakthrough ideas.
Customers often blind to their own needs.
Large impact on bottom line Takes Risks using customers’ imagination.
Customer needs + new ideas = Increased $ Lead User Research Methods Stages of Success •Three out of four stages were successful •Generated product recommendations that were
innovative and would change the market •Strategic recommendation eventually rolled out
to other divisions within 3M Stage 1 Project Planning "Scouting Stage" 4-6 weeks
Identified market types and new product interest with the desired level of innovation, the "What" and "How" Lead User Team Recommedations Stage 2 Trends/Needs Select a specific need-related trend, last 5-6 weeks.
Utilize all data collected from stage 1.
Develop perameters for breakthrough products.
that prove to be more effective than current products.
Identifying appropriate experts. "Step outside the Box" Stage 4 Final Concept Generation Change in management early in stage
- Vehemently opposed to Lead User
Two and half day workshop with Lead User
- Developed criteria on how to rank products
- Ended with 3 product recommendations
and one strategic recommendation Recommendations to Dunlop The "Economy" Line
Pre-existing materials
Existing 3M adhesive
Dispensing System The "Skin Doctor" Line
Hand-held Vacuum device
Lavages Antimicrobial "Armor" Line
Focus on blood borne, urinary tract, and respritory infections
Armor catheters and tubing Recommendation Four: New Business Strategy Approach
"Upstream Containment"
Precautionary measures
Identify and track contaminates and individual risk
Pharmacological approaches The team should present the 3 new product concepts
Address identified problems with domestic growth and overseas costs
Consistent with existing business strategy
Entry into new markets THANK YOU Tom Toner
Dan Darrow
Brian Roeder
Evan Garrett AGENDA Introduction
Evolution of Innovation
Lead User Methods
Medical-Surgical Team
Recommendations Shelf Fourth Recommendation
Not concrete
Lack of skill set
Prior failure in medical diagnostics
Dunlop's position "Providing the most value for the least cost in the least elapsed time" Stage 3 Preliminary Concept Generation George Buckley Team traveled to emerging countries
- infectious diseases more prone
Unable to identify any expert lead users
Increased length of stage almost four-fold http://www.idspackaging.com/Common/Paper/Paper_59/Advances%20in%20Easy%20Opening%20Technology.htm http://www.businessweek.com/magazine/content/07_24/b4038406.htm
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