Innovation Management
Case study An analysis of 3M, the innovation company
Introduction
Any review of the literature on new product development and innovation management will uncover numerous references to 3M. The organisation is synonymous with innovation and has been described as ‘a smooth running innovation machine’ (Mitchell, 1989). Year after year 3M is celebrated in the Fortune 500 rankings as the ‘most respected company’ and the ‘most innovative company’. Management gurus from Peter Drucker to Tom Peters continually refer to the company as a shining example of an innovative company. This case study takes a look at the company behind some of the most famous brands in the marketplace, including Post-it® Notes. It examines the company’s heritage and shows how it has arrived at this enviable position. Furthermore, the case study attempts to clarify what it is that makes 3M stand out from other organisations.
Background
Originally known as the Minnesota Mining and Manufacturing Company, with its headquarters in St Paul, Minnesota, 3M was established in 1902 to mine abrasive minerals for the production of a single product, sandpaper. From these inauspicious beginnings, the company has grown organically, concentrating on the internal development of new products in a variety of different industries. The latest review of the company’s position reveals that it manufactures over 60,000 products, has operations in 61 countries, employs 75,000 people and has achieved an average year-on-year growth in sales of 10 per cent (see Figure 16.10). Its products include Scotch adhesive tapes, fibre-optic connectors, abrasives, adhesives, floppy disks, aerosol inhalers, medical diagnostic products and Post-it Notes.
3M gave the world ‘wet or dry’ abrasives, which did so much to reduce the incidence of respiratory disease in the 1920s. It invented self-adhesive tape in 1925, light-reflective materials in the 1940s and pioneered magnetic recording and photocopying. This heritage established the
Introduction
Any review of the literature on new product development and innovation management will uncover numerous references to 3M. The organisation is synonymous with innovation and has been described as ‘a smooth running innovation machine’ (Mitchell, 1989). Year after year 3M is celebrated in the Fortune 500 rankings as the ‘most respected company’ and the ‘most innovative company’. Management gurus from Peter Drucker to Tom Peters continually refer to the company as a shining example of an innovative company. This case study takes a look at the company behind some of the most famous brands in the marketplace, including Post-it® Notes. It examines the company’s heritage and shows how it has arrived at this enviable position. Furthermore, the case study attempts to clarify what it is that makes 3M stand out from other organisations.
Background
Originally known as the Minnesota Mining and Manufacturing Company, with its headquarters in St Paul, Minnesota, 3M was established in 1902 to mine abrasive minerals for the production of a single product, sandpaper. From these inauspicious beginnings, the company has grown organically, concentrating on the internal development of new products in a variety of different industries. The latest review of the company’s position reveals that it manufactures over 60,000 products, has operations in 61 countries, employs 75,000 people and has achieved an average year-on-year growth in sales of 10 per cent (see Figure 16.10). Its products include Scotch adhesive tapes, fibre-optic connectors, abrasives, adhesives, floppy disks, aerosol inhalers, medical diagnostic products and Post-it Notes.
3M gave the world ‘wet or dry’ abrasives, which did so much to reduce the incidence of respiratory disease in the 1920s. It invented self-adhesive tape in 1925, light-reflective materials in the 1940s and pioneered magnetic recording and photocopying. This heritage established the