3m Optical

3M Optical Systems

1) Company & Case Overview:

* Established in 1902 to mine abrasive minerals in Minnesota. In 1920, they evolved into a sandpaper manufacturer, eventually hitting hard times. They had a dramatic turnaround when waterproof sandpaper & adhesive tape were developed.

* By 1992, they had developed a portfolio of over 100 technologies rooted in adhesives, abrasives and coating technologies. They also had almost 4,000 profit centers and 47 divisions operating in 57 countries.

* A micro louver technology was created and operating within the New Business Ventures Division, but was eventually disbanded on the belief that it would be more successful “operating within a mother unit.” As a result, in 1979, Optical Systems business unit was created to exploit and capitalize on the light film control technology. Unfortunately, the technology though was not much more successful in the OS Unit, and was losing approximately $3-$5 million each year. Andy Wong was appointed to manage and turn around the unit.

* Wong implemented a 3-year plan to streamline, collaborate, and consolidate the OS Unit. He also looked for potential applications of the technology and saw Museum Lighting, ATM’s, and Government Computing. Through this exploration, they stumbled across government computing.

* Wong then needed to develop the new multi-protection filter to be used in the government-computing concept, as well as to test the concept itself. The steps Wong took were:

1. Developing the product itself by fine-tuning it. This process also showed him that they had a competitive advantage with their existing distribution network and with the technology itself.

2. Undertaking a feasibility analysis to see if they could scale the technology to make a profit. A hidden gem in this process was that Wong brought in internal and external expertise and found it to be wildly successful.

3. Developing a business plan. Final calculations showed that a...