How does 3M distinguish between incremental and fundamental innovations?
3M has been known for decades as an entrepreneurial company that pursues growth through innovation. It generates a quarter of its annual revenues from products less than five years old. 3M started life as the Minnesota Mining and Manufacturing Company back in 1902. Its most successful product - flexible sandpaper - still forms an important part of its product line but this now comprises of over 60000 products that range from adhesive tapes to office supplies, medical supplies and equipment to traffic and safety signs, magnetic tapes and CDs to electrical equipment. Originally innovation was encouraged informally by the founders, but over more than a century some of these rules have been formalised. But most important of all there has built up a culture which encourages innovation. And because this culture has built up a history of success, it perpetuates itself.
3M started life selling a somewhat inferior quality of sandpaper. The only way they could do this was by getting close to the customer - demonstrating it to the workmen that used it and persuading them to specify the product - an early form of relationship selling. This was the first strategic thrust of the fledgling business - get close to the customer and understand their needs.
However, the company was desperate to move away from selling a commodity product and competing primarily on price and its closeness to the customer led it to discover market opportunities that it had the expertise to capitalise on. The first such product was Three-M-Ite™ Abrasive - an abrasive cloth using aluminium oxide for durability in place of a natural abrasive. This was followed by waterproof sandpaper - an idea bought from an inventor who subsequently came to work for 3M. This was followed shortly by Wetordry™ - a product designed for use by the car industry in finishing body-work. And with this the second strategic thrust of the company was developed - to seek out niche markets, no matter how small, which would allow it
3M started life selling a somewhat inferior quality of sandpaper. The only way they could do this was by getting close to the customer - demonstrating it to the workmen that used it and persuading them to specify the product - an early form of relationship selling. This was the first strategic thrust of the fledgling business - get close to the customer and understand their needs.
However, the company was desperate to move away from selling a commodity product and competing primarily on price and its closeness to the customer led it to discover market opportunities that it had the expertise to capitalise on. The first such product was Three-M-Ite™ Abrasive - an abrasive cloth using aluminium oxide for durability in place of a natural abrasive. This was followed by waterproof sandpaper - an idea bought from an inventor who subsequently came to work for 3M. This was followed shortly by Wetordry™ - a product designed for use by the car industry in finishing body-work. And with this the second strategic thrust of the company was developed - to seek out niche markets, no matter how small, which would allow it