Innovation at 3M Corporation

Innovation at 3M corporation

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Group 3

Tina Leo Wendy

Agy LenyoCorrine

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A team from 3M's Medical-Surgical Markets Division applies the Lead User methodology to the field of surgical infection control and discovers not only new product concepts but also a very promising new business strategy. Focuses on:(1) 3M's approach to the management of innovation and understanding

market needs; (2) an in-depth description of the Lead User method and its potential as

applied to the medical business; and (3) The managerial challenges of introducing novel methods into a

successful organization. The teaching purpose is to explain how to introduce and conduct Lead User research to understand future customer and market needs. Allows managers and students to discuss the potential of customer input in innovation strategy formulation.

Case Background

Lead User research to understand future customer and market needs.

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Outline

3M Company

Innovation and Improvement in 3M

Lead Users Method

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

Conclusion

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3M Company - Background

Formerly known as the Minnesota Mining and Manufacturing Company

Founded on the North Shore of Lake Superior at Two Harbors, Minnesota in 1902

With over 76,000 employees they produce over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits and optical films

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3M History in Innovation

The mineral resulted (corundum) turned out low-grade and worthless and turned the business to the sandpaper business

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.

Started up stage – 1910s

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Survival stage - 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.


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Continue invention and innovation

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 electro-mechanical 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.


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Continue invention and innovation

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.


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1990s Operated in more than 60 countries, with more

than 75.000 employees 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.

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Traditional Innovation ways in 1990 Product team comprise technical individuals, involve

process engineers• ensure the particular product under development could be efficiently

made• provided feedback about 3M’s manufacturing capabilities• Face no risk if an idea turned to failure and go on to other project

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.

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Tools to identify market needs and trend by product developers of 3M in the Health Care unit Data from sales representative with daily contact with

physicians or registered nurses. Focus groups discussion: 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 ways in 1990

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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.

Focus groups didn’t answer real market needs compare to visiting costumers which provide d “innovation by serendipity”

1996 Medical business unit had gone almost a decade with only 1 successful product. Rita Shor was given mandate of developing a breakthrough product

Innovation

Traditional Innovation ways in 1990 – Disadvantages of the systems

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Breakthrough with Lead User Methodology

Lack of experience from previous market research development Want to find new ways

• Identify leading-edge customer needs• Develop concepts for breakthrough products and

services• Customer-focused product development process

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Lead User Method

Definition Collecting information about both needs and solutions

from the leading edges of the target market and from analogue markets, markets facing similar problems in a more extreme form.

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.

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Advantage: richer and more reliable information better products and service concepts acceleration of the product and service development

process Necessary for Success:

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 Method

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Lead User process

Project PlanningProject PlanningStage 1Stage 1

Trends/Needs IdentificationTrends/Needs IdentificationStage 2Stage 2

Preliminary Concept GenerationPreliminary Concept GenerationStage 3Stage 3

Final Concept GenerationFinal Concept GenerationStage 4Stage 4

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Stage 1- Project Planning

Up to 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

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6 weeks

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? Know the need for good surgical drapes 30% of infection occurred from the patient’s own

skin.

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

Stage 1

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Stage 2-Trends/Needs Identification

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

Find top experts

Generally Development a good understanding of major trends

Questionnaire Telephone

Networking Scan literature

Consulting in-house colleague

LOGOExample of Lead User Process: 3M Corporation and Infection Control

Stage 26 weeks

Make sense of all the information 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.

LOGOStage 3-Preliminary Concept Generation

Up to 5-6 weeks The group acquires a more precise

understanding of the needs it has selected as the area focus.

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

LOGOExample of Lead User Process: 3M Corporation and Infection Control

Identify important trends in infection control T ravel to extreme situation: surgical

environments in developing countries Send product developers to visit potential

customers. Identify lead users

Make-up artists possessed specialized knowledge about the materials to the skin, in Hollywood,

Stage 3

LOGOStage 4-Final concept Generation and learn from lead user

Up to 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.

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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

• 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.

Stage 4


brainstorming

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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)


Recommendation

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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

Thank for your attention

Innovation at 3M Corporation

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