3M Case

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Company: Minnesota Mining and Manufacturing Revenue: $16 billion Headquarters: St. Paul, Minn Type: Conglomerate Markets: Health care, safety, electronics, telecommunications, industrial, specialty materials, graphics, electronics and communication, consumer and office. Employees: 65000, presence in 60 countries.

KM and Innovation
Knowledge Management A central competency that enables every corporate initiative, business process, and individual employee to maximize customer satisfaction, sustainable profitability, and growth. Innovation The process whereby creative ideas become value to the company. Expert Definitions Innovation is a process, not just a creative idea. An innovative person can take a creative idea (or product) and be successful in the marketplace. William Coyne, retired senior vice president of, 3M, research and development (R&D).

KM and Innovation Best Practices


3M expects 5 corporate performance initiatives:  Six Sigma  3m Acceleration  eProductivity  Sourcing effectiveness  Indirect cost control According to Barry Dayton, organization s five corporate
performance initiatives, its ability to leverage its many technology platforms in its major market areas, and the company s culture drive innovation .

Business Model
3M competitive advantage: 1. shared world-class technology. 2. shared customers, channels, and brands. 3. shared manufacturing. 4. shared global infrastructure. 5. culture of innovation. Innovation at 3M start with a connection between a customer need and a technology to fill that need. Commercialization involves putting those two pieces together and turning them into a product. New product innovation is viewed as an organic growth cycle. Post-launch phase of the product is very vital to the company.

Issue and Role of KM


y Collaboration issue due to the enormous size,

structure and diversified nature of the company. y People thought of 3M as 50 smaller companies operating under one corporate umbrella. y Customers wanted 3M to operate as one entity. y KM could be an initiative to leverage these skills and capabilities.

Knowledge Creation and Culture of Innovation


Freedom and individual initiative Platforms Connections Customer Focus Everyone is a business builder
15 per cent rule 2X/3X challenge 35 technology platforms with a rich and diverse technology portfolio Encourages scientists to go with salesman to interact with customers. DFSS for voice of customer needs Stories to celebrate heroes of innovation

Build relationship with customers

RECRUITING STRATEGIES
Creativity

Strong Work Ethic

Broad Interests

Traits & Characteristi cs Energizing Problem Solving

Self Motivating

Resourcefuln ess

LEADERSHIP ATTRIBUTES- COMPANY ATTRIBUTESCharts the Corse

Raises the Bar

Energizes Others

Resourcefully Innovates

Lives 3M Values

Delivers Results

3M VALUES
y 3M s Values goes back 100 Years & created Social &

Cultural Structure based on sharing information rather than hoarding it. y 3M valuesSuperior Quality II. Value and Service III. Provide Investors an attractive return through Sustained Quality and Growth IV. Respect the Social & Physical Environment
I.

y 3M- looking for Long Term Relationship (with Key Univ, Key Dept & Faculty). y 3M- Gives Intern Opportunities to best Candidates. y 3M- Has a relationship with Placement Office for Recruitment.
y

3M has 300-400 Intern St.Paul Campus.

TRAINING Training Programs Includes1) New Employee Orientation 2) Two-Day Tech Forum Orientation 3) Mentoring Programs in Technical areas.

INDICATORS OF SUCCESS/CHANGE

2001: Sales from 1 yr old Product = $1.8 Bn

3M measures Success in Traditional NPD Metrics Organization Goal: 35% of Sales Comes from New Products in last 4 yrs

Goal 2: 10% Sales from Year old products

MEASURE OF SUCCESS
 2 Ways: External Indicators
  

Percentage of Total Sales coming from New products Number of New Products per year Number of Patents per year

Internal Indicators  Number of Products protected by Patents  Measurement of Investment in different types of Research  Product Modification  ROI by product Category

SURFACE CONDITIONING DIVISION (SCM)-CASE STUDY (SCM)-

Revamp entire New Product Intro Process

Cross Functional Team came with a solution Goal- To Reduce Time to Market from 18 to 4 Months this provides Resources savings.

To change its Biz Rel with vendors from 1 of a $ transaction to Collaborative Partnership

SCMSCMWanted these!!!
To use a systems approach and put in a model

To Increase its Speed to Market by more than a factor of 3

Finally the avg New pdt Cycle was 2.5 Months, and SCD Achieved it after identifying their necessities

LEARNING'S FROM CASE STUDY


y SCD was rose into such Successful one because of their change in nature of

relationship with vendor.


y They addressed the Concerns of Vendors and reduced the Packaging and made

a generic one and it helped in Vendors Profit and thus to SCD s success.
y SCD reduced the types of packages to just 12 from 100. y SCD had a global team and hence they had global technologies in place. y Bottlenecks : Packaging Process and it needed to be revised and they came up

with a collaborative system ( e.g. Lotus Notes Database with Online Approvals) & borrowed from another 3M Division

y Other Outcomes for SCD:

Reduction in Cycle Time Improved Metrics & Tools Increased Productivity & Sales Process Map.

3M For 3M, the link between KM and innovation is embodied in one of its favorite quotes: Innovation is the transformation of knowledge into money.

LEARNINGS FROM 3M
 Overall, 3M continues to wrestle with how to effectively position its KM effort

in the midst of five aggressive corporate initiatives.


 It is beginning to operationalize its notion that KM is a foundational

organizational competency that enables the initiatives, business units, and employees to maximize customer satisfaction and sustainable profitable growth.
 3M launched- It has launched a number of programs and initiatives to

stimulate more innovation and growth, including 3M Acceleration, 2X/3X, and Design for Six Sigma (DFSS). The lesson is that a delicate balance exists between process rigidity and the chaotic fuzzy front end of innovation. 3M has learned that it needs to adjust the balance toward a process mindset.

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