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Innovation at 3M corporation

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Title: Innovation at 3M corporation


1
Innovation at 3M corporation
  • M9721015 ??? LINDA
  • M9701021 ??? MAR
  • M9701020 ??? FRIDA

2
Outline
3
Introduce 3M
  • Background
  • History

4
Background
  • Founded in 1902 at Minnesota.
  • Five businessman set out to mine a mineral
    deposit for grinding-wheel abrasive.
  • Deposits proved to be of little value
  • New 3M company focus on sandpaper products.

5
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.

6
1920s
  • The worlds 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.

7
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 3Ms
    involvement in the graphic arts filed with offset
    printing plates.

8
1950s
  • Thermo-Fax copying process, Fabric Protector,
    Cleaning Pads and several new electro-mechanical
    products ware introduced.

9
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.

10
1970s
  • Markets further expended into pharmaceuticals,
    radiology and energy control.

11
1980s
  • Post-it Note was introduced, which created a
    whole new category in the marketplace and changed
    peoples communication and organization behavior
    forever.

12
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.

13
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.

14
Traditional innovation way at 3M(1)
  • Product team comprise technical individuals
  • involve process engineers
  • ensure the particular product under development
    could be efficiently made
  • provided feedback about 3Ms 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.

15
Traditional innovation way at 3M(2)
  • Tools to identify market needs and trend by
    product developers of 3M
  • 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.

16
Traditional innovation way at 3M(3)
  • Disadvantage
  • Hiring out for market research created too many
    interfaces between development teams and
    customers
  • Information obtained was not necessarily
    proprietary
  • 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
    developing revolutionary products.

SHOULD BE INNOVATED!!
17
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

18
Lead User Method(1)
  • Definition
  • Method An accurately forecasting market
    opportunity by taping the expertise base of lead
    users.
  • Lead User
  • 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.

19
Lead User Method(2)
  • Advantage
  • richer and more reliable information
  • better products and service concepts
  • acceleration of the product and service
    development process
  • Necessary Elements
  • 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

20
Lead User process
21
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

22
Stage 2-Trends/Needs Identification
  • 5-6 weeks
  • Select a specific need-related trends
  • Digest the information from stage 1
  • Find top experts
  • Development a good understanding of major trends

23
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.
  • Meet with key managers to confirm that needs and
    concepts fit well with business interests.

24
Stage 4-Final concept Generation and learn from
lead user
  • 5-6 weeks
  • The team takes the preliminary concept developed
    toward completion.
  • 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.

25
Example of Lead User Process 3M Corporation
and Infection Control
Stage 1
  • 3M wanted to find a breakthrough infection
    control product.
  • Surgical drapes
  • Probe the team with questions
  • 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

26
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
  • easy to apply and remove.
  • Talk to a wide range of experts
  • veterinary science to medics from MASH.
  • Turn up other experts
  • Theater make-up business to veterinary sciences
    to oceanographers.

27
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.
  • Identify lead users
  • Veterinary hospitals, make-up artists in
    Hollywood
  • How to pool the combined knowledge and talent to
    develop product concepts?

28
Example of Lead User Process 3M Corporation
and Infection Control
Stage 4
  • Hold a workshop
  • 11 3M personnel and 11 outside experts
  • Focus on efficacy and cost
  • Four challenges
  • Lack of structure in many corporate meeting
  • Introverted and extroverted participants
  • Artists idea VS. surgeons squash
  • Find ways to marry very creative ideas with
    technical feasibility.
  • Lie in navigating a sea of facts
  • Interplay of QA from diverse range keep the
    process afloat.

brainstorming
29
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.

30
Example of Lead User Process 3M Corporation
and Infection Control
Recommendation
  • Economic line
  • One size fit all
  • timesaving
  • Low cost material
  • apply anti-microbial substances to skin
  • Skin Doctor line
  • 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)

31
Conclusion
  • Focus on qualitative probing of the right
    questions
  • 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

32
Thank for your attention
33
Pyramid of Experts
Cross-disciplinary networking
Mid-level experts
Mid-level experts
Top experts
Top experts
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