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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

 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.
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 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.
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
 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
 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
 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
SHOULD
developing BE INNOVATED!!
revolutionary products.
Why 3M want to use Lead User
Method

 They want to product a breakthrough


products.
 Want to find new ways
 Identifyleading-edge customer needs
 Develop concepts for breakthrough products
and services
 Customer-focused product development
process
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.
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
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 Telephone
 Find top experts Networking Scan literature
Consulting in-house colleague
 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.
 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.
 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.
 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
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.
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?
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 br
ainstorming
 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.
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
 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)
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
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