Assignment#3 Zunaira Bibi(14221004), Ahsan javed butt (13121001)

3M: PROFILE OF AN INNOVATING COMPANY

Q1. How Does 3m Develop Resources?

3M STRATEGIES FOR RESOURCES
REDUCTION IN RESEARCH AND DEVELOPMENT COST

3m should reduce its annual budget of research and development and increase of $1
billion should not be incurred in this venture. 3m should allocate 6% to 6.6% of sales on
research and development only. As the company is already too much diverse and research
and development have enough annual budget to sustain itself. This strategy will help the
company to sustain growth and this cost cut will then be used to achieve 25% sale
increase of products introduced in past five years.

REDUCTION IS MANUFACTURING COST

3m should back up Desimone unit manufacturing cost by 10% in real terms and 35%
reduction in cycle time. This cost cut will allocate resources for 3m to refocus on quality
initiatives to produce products that are high in quality and will meet the expectations of
its customers.

REDCUTION IN OVERSEAS SALES INITIATIVE PROGRAMS

3m should reduce its target of 50% sales of overseas ventures as Jake Jacobsons
proposed to 25% sales target in overseas. This will ensure the company to refocus its
strategy of 25% sale increase of products developed in last 5 years and will help ensure
the target of 30% sales of products produced in past 4 years. The marketing initiative
overseas should focus only on products developed in past 5 years.


Assignment#3 Zunaira Bibi(14221004), Ahsan javed butt (13121001)


Q3. At 3m why innovation is a mindful replication?

INNOVATION AT 3M

At 3m innovation is the key to success in this competitive market. To 3m innovation is
about how you shape things to meet the demands of customers. 3ms innovative culture
leds it to invest heavily on research and development to find new customers and
understand their existing needs and new development opportunities. As an example of
3ms simple tape business led by their customer pulled them to research and development
which resulted in reflective tape used of traffic control and safety systems and magnetic
tape users led the company into new applications in audio and video recording. In 3m its
all about how to utilize existing resources in a more mindful and diverse way by
exploring new opportunities in the market of existing customers. See (exhibit 1) for how
3m uses its research and development process in mindful replication of products.
















Assignment#3 Zunaira Bibi(14221004), Ahsan javed butt (13121001)


Exhibit 1

Mindful Replication of Products at 3M.


SCOTCH TAPE
SCOTCH MAGNETIC
TAPES
(Used for applications in
audio and video recording)
ELECTRICAL TAPE
(Used by traffic control and
safety systems)
Research & Development
(Existing market research)
3M INITIATIVES
Market research.
Using existing
resources to
manufacture new
diverse products.