Case 3m

Case summary:

3M overview

● founded in Minnesota 1902

● originally focused on industrial products, gradually diversified into consumer markets

● strong brands and reputation as an innovative company

in 2004:

● sales US$20 billion, revenue US$2,9 billion, international sales 60% of total

● 189 sales offices worldwide, 15 of these in the US

● employed 67 071 people, 49% in the US

The 3M Way to Innovation

● 5-6% of sales p.a. into R&D, 1000 dedicated scientist / engineers (most in Minnesota)

● operations managed in 7 business segments

○ health care the biggest in sales (20%)

○ common technologies shared between segments to facilitate innovation

○ segments divided into divisions representing product lines

■ own sales, marketing and tech support staff

> small, decentralized structure > minimized bureaucracy > empowerment to divisions

● distinct corporate culture created by William L. Knight in the first half of 20th century

○ employees given as much responsibility as possible

○ innovation, risk taking and teamwork emphasized

○ many different ways and mechanisms of rewarding innovative employees

● key growth driver: investment in technologies (>40 technological platforms, exhibit 4)

○ access shared through all segments worldwide

3M’s Innovation Across Borders

● 7 interrelated areas for innovative activities within 3M globally:

○ sales and marketing techniques

○ product packaging

○ product adaptation

○ commercialization of new technologies

○ acquisition of technical information

○ co-design

○ original inventions

● in many subsidiaries focus was on bringing the company’s existing resources to meet local customer needs (and not on inventing new technologies)

● standard pattern for new products: developed by headquarters > tested in American market > if successful, gradually introduced to subsidiary customers

○ however as the global expansion continued, subsidiaries were encouraged to initiate local pd.

● global innovation...