Innovation at 3M

Group 3, Section C
Afsal Sha

14007

Ashok Mohan 14026

Devaiah A G
Irishi R

14045

14064

Tony Sebastian

14171

Case Facts
A group of talented individuals embarked to introduce leading edge
market research for understanding customer needs called Lead User
Research.
Initiative to introduce this method had now grown into a revolutionary
series of recommendations that threatened to rip apart the Medical
Surgical Markets Division.
The research team now wants to rewrite the entire business units
strategy statement to also include more pro-active products or services.
This recommendation goes against the incremental growth approach of
3M.

About 3M
The 3M Company, formerly known as the Minnesota Mining and
Manufacturing Company, is an American multinational conglomerate
corporation based in St. Paul, Minnesota.
To achieve high rates of innovation, 3M placed a heavy emphasis on R&D.
3M followed the
development.

incremental

approach

of

innovation

and

product

Company allows all staffs to spend 15% of their time to explore new ideas.
Major innovations are Post-it note, Waterproof Sandpaper and Mask Tape.

Problem Identification
The Medical Surgical Division focused largely on surgical drapes and surgical
prepping.
3M was highly penetrated on a niche for surgical drapes and prepping in US
market.
But sales in US had limited growth and overseas markets were limited by high
cost of 3M products.
Because of these reasons the business unit had gone almost a decade with
only one successful product.
In order to revive the business unit, senior management charged Rita Shor with
the mandate of developing a breakthrough product.

Traditional Approach
Marketing

input

traditionally

came

from

current

customers

and

sales

representatives.
3M usually hires small research firms for market research reports.
Few market researchers also worked at 3M.
Tools used by 3M to identify market needs:

Data from sales representatives

Focus groups

Customer evaluations of current products

Site visits by 3m Scientists and technologists

These methods had disadvantages like too many interfaces between development
teams and customers and information obtained were not proprietary.

Lead User Research

The Lead User method provides a means to unearth product development
opportunities that are not immediately obvious by traditional methods.
It allows for accurately forecasting market opportunities by tapping the
expertise and experience base of lead users.
Some lead users may be involved with just one or more of the important
attributes of the problems faced by users in the target market.

Lead user methodology involves 4 stages and typically take five or six
months.

Lead Users
Lead users are users of a product or service that currently experience needs

still unknown to the public and who also benefit greatly if they obtain a
solution to these needs.
Lead Users' real life experience is needed for marketing research in fast-

moving fields.
Lead users of a novel or enhanced product, process or service as those

displaying two characteristics:

Lead users face needs that will be general in a marketplacebut face them months or
years before the bulk of that marketplace encounters them, and

Lead users are positioned to benefit significantly by obtaining a solution to those

needs.

 There is a four step process thorough which lead user can be

incorporated into marketing research. They are:

Identify an important market or technical trend;

Identify lead users who lead that trend in terms of (a) experience and (b)
intensity of need;

Analyse lead user need data;

Project lead user data onto the general market of interest.

Lead User Research Process

StageI:ProjectPlanning(upto4-6weeks)

Establish new relationships, gather support from peers.

Theteamalsoidentifiesthetypesofmarketsand new products of interest, the

desired level of innovation, and key business constraints.

Stage I typically starts by informally interviewing industry experts to get a feel of

the current trends and market needs.

StageII:Trends/NeedsIdentification(upto5-6weeks)

Starts with a four-day workshop at the beginning to come to terms with the
information generated in Stage one.

Focusedinterviewswithrelevantleaduserexperts.

Ultimately, leads to framing a specific need related trend for which a new product
can be developed.

Stage III: PreliminaryConceptGeneration(upto 5-6weeks)

Preliminaryconceptsinvolvingidealattributesandfeaturesthatwillbestmeetcusto
mer needsinchosenareaoffocus.
The team informally assess business potential for the product or service being
conceptualized.
Concepts come from lead users in target markets.
Businessfitofconceptsbeingconceptualized.
StageIV:FinalConceptGeneration(upto5-6weeks)
Mainly centres around a 1 to 2 day lead user workshop.
Generatingalternativeproductconcepts using the research knowledge.
Evaluate the concepts in terms of technical feasibility, market appeal, and
management priorities.
Refinestheconceptsemergingfromtheworkshopandpresents
backed by solid evidence.

recommendations

Disadvantages of Lead User Research

The final outcome is unpredictable
A lot of dedication and patience is required from the
research team as well as from the management.
Requires a lot of human resource commitment.
This methodology is very lengthy and time consuming.

Lead User Research at 3M

Stage 1: Project Planning (6 weeks)
The team leaders probed the team for answers to questions about the
market, polices, technical details etc.
In the process, the team built a invaluable database of information.
Stage 2: Trends/NeedsIdentification (6 weeks)
Started with 5 day workshop to make sense of information gathered in
Stage 1.
Contacted experts who were lead users in various fields.
Developed parameters for the breakthrough product like it should be
easy to apply and remove, prove more effective than current products etc.

Stage 3: PreliminaryConceptGeneration (6 months)

International fact finding visit to developing countries which had high
growth potential.
A Variety of lead users were found with expertise about different relevant
attributes.
Stage 4: FinalConceptGeneration(weeks)
A two and a half day workshop to answer the question Is there a
revolutionary
approach to infection control?
The invitees successfully rose to the challenges and generated numerous
product concepts.
Came with the 3 product ideas and a revolutionary strategy despite
facing multiple challenges.

Background :

Product Innovation Charter

Stagnating drapes sales in the surgical-medical division. Sales in US market had limited
growth and overseas markets were limited by high cost.

Focus:
The focus of the company is on reducing infections from the skin through surgical drapes and
surgical prepping. Creating a Competency in surgical drape technology in a cost containing
environment.

Goals Objectives:
The goal is come up with a breakthrough product within the current business strategy that can
revive the business unit.

Guidelines:
The new product should be within the existing business strategy of the unit.

Solutions/ Recommendations by the

Research Team
Economy Line : One-size-fits-all strategy and time-saving
dispensing systems will boost product acceptance
Skin Doctor Line : hand held devices for antimicrobial
substances.
Antimicrobial Armor Line : An armor product line to armor
catheters and tubes from unwelcome microscopic visitors.
Upstream Containment of Infections: Enter into the area of early
intervention in the disease process.

Observations
Lead user research methodology is very unpredictable. It can lead to
discovery of products that are never though before.
In 3M, management gives more stress on traditional approaches. The
focus on incremental growth is so much that there are thousands of 3M
product concepts and inventions awaited markets and languished on
drawing boards and R&D labs.
The company should move from its incremental approach and
restructure its business strategy to focus on new product innovation.

Value Creation
Developing cost effective products can help to capture markets in
developing countries.
Introducing products for Upstream containment of infection can
help 3M to be the leader in that sector.
3Ms heavy emphasis on R&D will help them to discover
revolutionary products.

Thank You