Download - Innovation Management at 3M
-
7/22/2019 Innovation Management at 3M
1/22
Thou Shalt not kill an idea!
Group 8
Mia Osawa - 114566
Mikko M. Pesonen - 115324Shreeya Shakya114397
-
7/22/2019 Innovation Management at 3M
2/22
OUTLINE
-
7/22/2019 Innovation Management at 3M
3/22
3MInside Story
-
7/22/2019 Innovation Management at 3M
4/22
Was a near FAILURE but founders
PERSISTED.
Established 1902in Minn. USA William L. McKnight, hired in 1907aged 20
TRANSFORMED 3M into
one of the MOST INNOVATIVEcompanies
50,000+ Products through ORGANIC growth and ACQUISITIONS
PRODUCTPORTFOLIO
CONSUMER Electronics
&
Energy
HEALTHCARE INDUSTRIAL SAFETY &
GRAPHICS
-
7/22/2019 Innovation Management at 3M
5/22
UNDERLYINGTECHNOLOGY
.8,200researchers worldwide; 4,100in the United States
-
7/22/2019 Innovation Management at 3M
6/22
INNOVATIONPrinciples
If you put fences aroundpeople, you get sheep. Give
people the room they
need.William McKnight, 3M
-
7/22/2019 Innovation Management at 3M
7/22
INNOVATIONFRAMEWORK
INNOVATION
Incentives
R n DSpending
Culture
HeavyR n D Investment : increase RnDspending to 6% by 2017 from 5.3% in 2011
New metric New Product Vitality IndexTo measure sales from product
Patentsto protect intellectual property
15 per cent Rule promoted corporateculture of freedom and innovation
3M Technology Forum encouragedinnovators network, interact and share
their knowledgeand problems
High Customer InteractionHelped to identify users
Problems
Decentralized and OrganicStructure
Risk Taking Culture encouraged byCompany principle and informal long
term employment contract
Genesis Grant Program - $50K to
support innovative productsCarlton Societyhighest recognition for
Valuable employee
Golden Step Awardsales reaching $5m
Alpha Grantsinnovation in non-technical front
-
7/22/2019 Innovation Management at 3M
8/22
GLOBAL REACH
70+ Countries
85 Laboratories
35+ business
units
-
7/22/2019 Innovation Management at 3M
9/22
GLOBAL REACH
ORGANIZATION STRUCTURE
Matrix structurefosters collaboration across different subsidiaries
Knowledge transfer
Knowledge transfer through expatriate assignment, KM tool and
Open communication channels
autonomyAllowed subsidiaries to initiate local product development
Tailored to meet local needs
-
7/22/2019 Innovation Management at 3M
10/22
ACNE Dressing story
3M taiwan analysis
-
7/22/2019 Innovation Management at 3M
11/22
ACNE DRESSINGBrief Story
-
7/22/2019 Innovation Management at 3M
12/22
ACNE PRODUCT DEVELOPMENT
Technology Base: Hydrocolloid Dressing = Health care product for hospitals, drugstores.
Step 1:
accidental
innovation
Step 2: wound
treatment
Step 3: 3M,
NPD & NPIS
From a camping trip
Through research
To an Acne treatment product
-
7/22/2019 Innovation Management at 3M
13/22
NPISand ACNE DRESSING Analysis
POST LAUNCHLAUNCH
SCALE-UPDEVELOPMENT
FEASIBILITYCONCEPT
IDEA
Product / sales
potential
Technical &
Financial aspects,
Target market
Accidental InnovationFrom wound recovery
to Acne treatment
-
7/22/2019 Innovation Management at 3M
14/22
Impressivesales
Taiwan Potential in Asia Pacific
Heavy investments from HQ (early 2000s onwards)
3rdRnD center after Minnesota and Japan (Shanghai, 2005)
TAIWAN: STRENGTH AND WEAKNESSES
-
7/22/2019 Innovation Management at 3M
15/22
3M Taiwan Analysis
+ Location: gateway to East Asia, 3M already
present in the market since 1969, important
and growing market
+ 3M collaboration with Taiwanesegovernment
+ Taiwanese Silicon Valley
++ Very innovative subsidiary++ Infrastructure in place
++ Competent task force
++ Familiar with local NPD
+ + Prior work experience with HQ
WEAKNESS
No prior experience in healthcare
product development
Chung (responsible for Acne
development) not experienced withNPD
Cost of production uncertainNo global market knowledge
-
7/22/2019 Innovation Management at 3M
16/22
3M Taiwan Dilemma
TO GO OR NOT TO GO?
-
7/22/2019 Innovation Management at 3M
17/22
Challenges of NPD
Launch strategies
Our recommendations
-
7/22/2019 Innovation Management at 3M
18/22
-
7/22/2019 Innovation Management at 3M
19/22
1919
Global
strategy
Transnational
strategy
International
strategy
Multi-
domestic
strategy
Low High
Low
High
Local responsiveness
Co
streductio
npressure
s
The corporate strategy defines the R&D
requirements of the company
Each subsidiary has substantial autonomy and
control of critical business activities
Possible Strategies for TaiwanTaiwanSTRENGTH
TaiwanWEAKNESS
> InnovativeCulture>Proper infrastructurein
place
>Prior experience in local
product developmentin
other technologies
>Prior experience working
with HQ> Good Local Market
Potential
> Leadership inexperienced
in NPD
> Inexperienced in
healthcare NPD
> Costof production
uncertain
> No Global market
knowledge
-
7/22/2019 Innovation Management at 3M
20/22
Autonomous
regional R&Dcentre
Network of
regional R&D
centre with
support of HQ
Autonomous
technology R&Dcentre
Network of
technology R&Dcentre with HQ
coordination
Less centralised More centralised
Technology
Regional
market
Approach to managing Global R&D
Primaryfocus
Each R&D centre performs regional innovation and all centres work
together on projects of common interest
Utilisation of resources of the network and support from HQ
Strategy for RnD in Taiwan
-
7/22/2019 Innovation Management at 3M
21/22
Knowledge
Technical
Managerial
Information
platform
ResourcesTechnology
Systems
Benchmarking
Cost
Communication
Resource sharing
Expatriate
system
Regionalnetworks
Incentive
schemes
NPD Launch ManagementPutting it all Together
IntegrationSolutionChallenges
-
7/22/2019 Innovation Management at 3M
22/22
Thank You!
Q n A