Innovation at 3m

M EMORIAL U NIVERSITY OF N EWFOUNDLAND - M ARINE I NSTITUTE

C ASE S TUDY #4

Innovation at 3M Corporation (A)

Author: John Paul H ANDRIGAN Professor:

April 11, 2013

Executive Summary The Minnesota Mining and Manufacturing Company (3M) has a long history of innovation. They are known for such products as the Post-it R , which revolutionized the way individuals communicate, masking tape, and waterproof sandpaper. Beyond these innovative products, 3M initially branched out into health care in 1961. This unit of 3M has grown substantially since that time, and in more recent years it has seen annual sales reach more than two billion dollars. The Health Care Unit is a core component of 3M’s business model. Although, the unit was recording significant and increasing sales, it had failed to introduce a successful product in almost a decade. This did not jibe well with one of the company’s key objectives, which aimed to see at least thirty percent of sales originate from products that did not exist four years earlier (Thomke & Nimgade, 1998, p. 3). Rita Shor, a senior product specialist, and a hand-picked group of subject matter experts were tackling this challenge using a new and innovative market research method called “Lead User Research.” This method addressed some of the shortcomings of the more traditional market research methods implemented by the company. After many months implementing the new market research technique, Rita and her team landed on four recommendations. Three of the recommendations would see the introduction of new product lines, whereas the fourth recommendation hinged on a complete rewrite of the Health Care Unit’s business strategy. Rita and her team were spending considerable time discussing the best path forward and trying to determine the ultimate recommendations they would make to the senior management team of the unit. Given the degree of change that would result from implementing the fourth recommendation and the waning desire...