Submitted by: Submitted by callio1
Views: 125
Words: 2317
Pages: 10
Category: Business and Industry
Date Submitted: 11/05/2014 02:54 AM
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...