1 © 3M 2013. All Rights Reserved.
Developing the Organizational Environment and People
for Value Innovation
Innovation is ...
2 © 3M 2013. All Rights Reserved.
A Century of Value Innovation
1921
3M patented and
introduced WetordryTM
waterproof sand...
3 © 3M 2013. All Rights Reserved.
3M’s First Customer-Inspired Innovation…
Two-toned cars
were in demand …
3Mer Dick Drew ...
4 © 3M 2013. All Rights Reserved.
… and he remembered
some stuff he’d seen
in the laboratory…
… and went on to invent
3M S...
5 © 3M 2013. All Rights Reserved.
Innovation doesn’t happen just by chance
Harnessing the
Chain Reaction of Ideas
Collabor...
6 © 3M 2013. All Rights Reserved.
Culture of
Innovation
Creating a Value Innovation Oriented Company
Invest in
People
Orga...
7 © 3M 2013. All Rights Reserved.
Culture of
Innovation
Organization
Structure
Creating a Value Innovation Oriented Compan...
8 © 3M 2013. All Rights Reserved.
Organization Structure
“Strategy drives Structure”
• Teams
– Holistic, co-located cross ...
10 © 3M 2013. All Rights Reserved.
Organization Structure
“Strategy drives Structure”
• Teams
– Holistic, co-located cross...
11 © 3M 2013. All Rights Reserved.
FsFiltration,
Separation,
Purification
Im
Imaging
Lm
Light
Management
Ec
Energy
Compone...
12
3M Innovation Story
© 3M 2013. All Rights Reserved.
Radial
Solar
Concentrator
Multi-focal
Intraocular
Lens
Low-profile
...
13 © 3M 2013. All Rights Reserved.
Organization Structure
• Teams
– Holistic, co-located cross functional teams
– Establis...
14 © 3M 2013. All Rights Reserved.
Localization  Asia Display Tech Center
 Asia Tape & Adhesives
 Labs: Non-wovens, RFI...
15 © 3M 2013. All Rights Reserved.
Culture of
Innovation
Organization
Structure
Invest in
People
Creating a Value Innovati...
16 © 3M 2013. All Rights Reserved.
People
• Innovation Oriented Characteristics
17 © 3M 2013. All Rights Reserved.
18 © 3M 2013. All Rights Reserved.
19 © 3M 2013. All Rights Reserved.
 Innovators…
…are Curious and Creative
…are Open-minded
…have Broad Interests
…are Pro...
20 © 3M 2013. All Rights Reserved.
The ordinary manager has a craving for order.
The leader understands that innovation is...
21 © 3M 2013. All Rights Reserved.
People
• Innovation Oriented Characteristics
• Developing a Spectrum of Talent
– Top ta...
22 © 3M 2013. All Rights Reserved.
Culture of
Innovation
Culture of
Innovation
Organization
Structure
Creating a Value Inn...
23 © 3M 2013. All Rights Reserved.
Culture
• Entrepreneurial & Collaborative Culture
– Trial & Error (“Failure”)
– Expecta...
24 © 3M 2013. All Rights Reserved.
Creativity and Innovation
“You can not make creativity a process, it is
more about cont...
25 © 3M 2013. All Rights Reserved.
necessary to
delegate
responsibility
.. essential that we
have many people
with initiat...
26 © 3M 2013. All Rights Reserved.
27
3M Innovation Story
© 3M 2013. All Rights Reserved.
2012 2013 2014201020092008 2011200720062005
Our Primary Innovation ...
28 © 3M 2013. All Rights Reserved.
 Innovator Award
 Technical Circle of Excellence
Award
 Pathfinder International
Rec...
29 © 3M 2013. All Rights Reserved.
Culture
• Entrepreneurial & Collaborative Culture
– Trial & Error (“Failure”)
– Expecta...
30 © 3M 2013. All Rights Reserved.
“I have a new idea that could
be useful to 3M, but it’s not
related to the business I’m...
31 © 3M 2013. All Rights Reserved.
From Home Prototype to Innovative Tape Slitting
Process
Old Method of Making Adhesive T...
32 © 3M 2013. All Rights Reserved.
Culture
• Entrepreneurial & Collaborative Culture
– Trial & Error (“Failure”)
– Expecta...
33 © 3M 2013. All Rights Reserved.
Connecting
to Customers
Driving Growth Through Value Innovation
Connecting to Customers...
34 © 3M 2013. All Rights Reserved.
 Know where you want to go – VISION
 Know where rest of the world is going – FORESIGH...
35 © 3M 2013. All Rights Reserved.
Thank You
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Developing the organizational environment and people for value innovation - Michelle Bellanca

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Developing the organizational environment and people for value innovation - Michelle Bellanca

  1. 1. 1 © 3M 2013. All Rights Reserved. Developing the Organizational Environment and People for Value Innovation Innovation is our biggest competitive advantage and the heart of 3M. “ “ Inge Thulin, 2012
  2. 2. 2 © 3M 2013. All Rights Reserved. A Century of Value Innovation 1921 3M patented and introduced WetordryTM waterproof sandpaper -- the world’s first water- resistant coated abrasive 1995 3M introduced the first metered dose asthma inhaler, free of ozone depleting chlorofluorocarbons. 1979 Thinsulate™ thermal insulation introduced 1939 First traffic sign featuring Scotchlite™ reflective sheeting erected in Minneapolis 1991 3M introduced Scotchshield™ window film, shatter-resistant, heat-and cold resistant window protection. 1985 Academy of Motion Picture Arts and Sciences gave 3M a Scientific Engineering Award for magnetic film, improving audio capabilities of movie sound tracks 1945 Scotch TM vinyl electrical tape introduced 1952 Scotchlok™ electrical connectors and Scotchkote™ insulation introduced 1947 ScotchTM magnetic audiotape introduced 3M’s first non- woven product- decorative ribbon for gifts introduced 1954 RCA used ScotchTM magnetic tape to record TV programs for the first time 1960 ScotchTM Brand Magic transparent tape introduced 1969 3M products were used in the first moon walk on July 20. Astronaut Neil Armstrong left a footprint in the lunar dust in boots made from Fluorel™ synthetic rubber from 3M 1974 3M introduced Post- it® notes, greatly enhancing office communication 1967 3M developed the first disposable facemasks and respiratory protection products 1931 3M began producing Colorquartz™ roofing granules 1925 ScotchTM masking tape introduced 1996 New products include flexible circuits for electronic products and HFEs (hydrofluoroethers), replacing ozone depleting chlorofluorocarbons 2000 3M introduced the Vikuiti™ brand for light management products that make electronic displays easier to read 2005 3M developed Aluminum Conductor Composite Reinforced (ACCR) as a solution to thermally constrained transmission bottlenecks 3M debuted its first surgical drape 1927 ScotchTM Cellulose tape introduced 2010 3MTM CubitronTM II using precision shaped abrasive granules creating the future of the abrasives industry 2009 3MTM MPro pocket-sized projector for mobile presentations and sharing photos on the go 1948 2012 3M LED advanced light, most energy efficient, longest- lasting light bulb
  3. 3. 3 © 3M 2013. All Rights Reserved. 3M’s First Customer-Inspired Innovation… Two-toned cars were in demand … 3Mer Dick Drew observed this dilemma in action while visiting customers to sell sandpaper … … but a clean paint line was very hard to achieve. 1925
  4. 4. 4 © 3M 2013. All Rights Reserved. … and he remembered some stuff he’d seen in the laboratory… … and went on to invent 3M Scotch Masking Tape 3M’s First Customer-Inspired Innovation… 1925
  5. 5. 5 © 3M 2013. All Rights Reserved. Innovation doesn’t happen just by chance Harnessing the Chain Reaction of Ideas Collaboration: Leaders, Employees, Customers Planned, Purposeful System Relentless Implementation
  6. 6. 6 © 3M 2013. All Rights Reserved. Culture of Innovation Creating a Value Innovation Oriented Company Invest in People Organization Structure How do you SUPPORT and ENCOURAGE Innovation?
  7. 7. 7 © 3M 2013. All Rights Reserved. Culture of Innovation Organization Structure Creating a Value Innovation Oriented Company How do you SUPPORT and ENCOURAGE Innovation?
  8. 8. 8 © 3M 2013. All Rights Reserved. Organization Structure “Strategy drives Structure” • Teams – Holistic, co-located cross functional teams – Establishment: Incubation versus Integration
  9. 9. 10 © 3M 2013. All Rights Reserved. Organization Structure “Strategy drives Structure” • Teams – Holistic, co-located cross functional teams – Establishment: Incubation versus Integration • “Boundaryless” Structure – Technology & Data owned at the corporate level – Innovation model encourages sharing & combination of platforms  Uncommon connections
  10. 10. 11 © 3M 2013. All Rights Reserved. FsFiltration, Separation, Purification Im Imaging Lm Light Management Ec Energy Components Op Opto- electronics Tt Track and Trace Ac Acoustic Control Di Display Mf Mechanical Fasteners Md Medical Data Management Fe Flexible Electronics Wo Wound Management MiMicrobial Detection and Control Dd Drug Delivery Bi Biotech Applications PrProcess Design & Control Se Sensors We Accelerated Weathering In Inspection & Measurement IsIntegrated Systems & Design FcFlexible Converting & Packaging An Analytical As Application Software Es Electronics & Software Capabilities Rp Radiation Processing Su Surface Modification Vp Vapor Processing PePredictive Engineering & Modeling Pm Polymer Processing Pp Precision Processing Mo Molding Mr Micro- replication PdParticle & Dispersion Processing Processing Fl Fluoro- materials Nt Nano- technology Ab Abrasives Ad Adhesives Am Advanced Materials DoDental & Orthodontic Materials Fi Films Nw Nonwoven Materials PoPorous Materials & Membranes Sm Specialty Materials Ce Ceramics Em Electronic Materials Co Advanced Composites Materials 46 Core Technology Platforms Successful New Product Growth Builds on Uncommon Connections Shared Technology is the Heart of New Product Innovation
  11. 11. 12 3M Innovation Story © 3M 2013. All Rights Reserved. Radial Solar Concentrator Multi-focal Intraocular Lens Low-profile Overhead Projector Microlenses Stem Web Tape Control TAC Smart Adhesives Micro Comply Electrical Connectors Structured Surface Filter ISO porous Structured Surface Sensor Micro-channel cooling Fluid Transport High Flow Filter Linear Solar Concentrator Day Lighting Scotchlite DGS Internally Lit Signs Light Pole Lighted Guidance Tube Lighted Lane Marker Lane Markers Fluorescent DGS Conspicuity High-Intensity Prismatic Programmed Optics for Signs Wide Angle DGS Trizact ™ Abrasives Perfect-It™ Finishing Compound Perfect-It™ Abrasives Prism Reflectivity Cube Corner Diamond Grade Sheeting Traffic Signal Cubitron ™ II Abrasives Flexible Prismatic Engineering- Grade Prismatic Prismatic License Plate Headlight Restoration System Griplets Fabric Cubicle Grips Craft & Fabric Fasteners Reclosable Fasteners Control TAC Plus 1960 1970 1980 1990 2000 2010 Microreplication Technology Product and Technology Migration Brightness Enhancement Film LCD Film LED Light Mixing Light Control FLG X-ray Scan Notched Fiber Large-Diameter Optical Fiber Glare-free Overhead Projector Lens Total Internal Reflection Optical Lighting Film Lens Film Overhead Projector Lens LENSES ILLUMINATION REFLECTIVE MATERIALS ABRASIVES ADHESIVES MATERIALS ELECTRONICS FASTENERS FILM
  12. 12. 13 © 3M 2013. All Rights Reserved. Organization Structure • Teams – Holistic, co-located cross functional teams – Establishment: Incubation versus Integration • “Boundaryless” Structure – Technology & Data owned at the corporate level – Innovation model encourages sharing & combination of platforms  Uncommon connections • Localization: Customer Proximity
  13. 13. 14 © 3M 2013. All Rights Reserved. Localization  Asia Display Tech Center  Asia Tape & Adhesives  Labs: Non-wovens, RFID, Electronics, Energy, Nano Korea  Customer Technical Center (CTC)  Focus: Abrasives, Auto  Consumer & Office CoE Russia  Medical & Consumer Healthcare CoE Poland  Customer Centers (Mumbai, Delhi), Design Studios  Engineering Centers: Automotive, Corrosion Protection, Textile products  Water filtration, fire protection  Analytical development India  Centers of Excellence (CoE): Automotive, Dental, Telecom, Specialty Materials, Polymers, Consumer, Oil & Gas, Drug Delivery Germany/France/UK  Expansion to safety/ orthodontic products  Technologies: Bio, Nano  Specialty Materials, Hook/Loop, Molding, Non-PVC Films, Acrylic Foam Tape Brazil  SEMS (software)  Electronics, Auto  Technologies: Track & Trace, Microreplication, Liquid Filtration Japan  China Tech Center  Global Labs: HV electrical, SMS  Asia Lab: Telecom  Technologies/products: Non-woven, Reactors, Medical, Corrosion Protection  Display backlight center China  Southeast Asia region: product localization, Corp Research Lab, Medical product development & regulatory  Electronics, Fine Pitch Flex Circuitry, RFID, Cuno Singapore Think Local.Act Local. Be Local.
  14. 14. 15 © 3M 2013. All Rights Reserved. Culture of Innovation Organization Structure Invest in People Creating a Value Innovation Oriented Company How do you SUPPORT and ENCOURAGE Innovation?
  15. 15. 16 © 3M 2013. All Rights Reserved. People • Innovation Oriented Characteristics
  16. 16. 17 © 3M 2013. All Rights Reserved.
  17. 17. 18 © 3M 2013. All Rights Reserved.
  18. 18. 19 © 3M 2013. All Rights Reserved.  Innovators… …are Curious and Creative …are Open-minded …have Broad Interests …are Problem Solvers …are Self-Motivated, Energized …are Visionary …are Comfortable with Ambiguity …are Not afraid of Failure …are Resourceful Characteristics of Innovators
  19. 19. 20 © 3M 2013. All Rights Reserved. The ordinary manager has a craving for order. The leader understands that innovation is almost always an untidy process. The ordinary manager wants proof for an idea before taking action. The leader understands the value and power of faith. L. W. Lehr, former 3M CEO - 1980
  20. 20. 21 © 3M 2013. All Rights Reserved. People • Innovation Oriented Characteristics • Developing a Spectrum of Talent – Top talent; Conscious attention to skill sets – Dual Ladder System
  21. 21. 22 © 3M 2013. All Rights Reserved. Culture of Innovation Culture of Innovation Organization Structure Creating a Value Innovation Oriented Company How do you SUPPORT and ENCOURAGE Innovation?
  22. 22. 23 © 3M 2013. All Rights Reserved. Culture • Entrepreneurial & Collaborative Culture – Trial & Error (“Failure”) – Expectations & Measurement – Reward & Recognition “If you build fences around people you get sheep.” William McKnight Former 3M CEO
  23. 23. 24 © 3M 2013. All Rights Reserved. Creativity and Innovation “You can not make creativity a process, it is more about controlling chaos.” Comment by George Buckley, 3M Chairman & CEO June 2008
  24. 24. 25 © 3M 2013. All Rights Reserved. necessary to delegate responsibility .. essential that we have many people with initiative mistakes will be made William McKnight, Former 3M CEO
  25. 25. 26 © 3M 2013. All Rights Reserved.
  26. 26. 27 3M Innovation Story © 3M 2013. All Rights Reserved. 2012 2013 2014201020092008 2011200720062005 Our Primary Innovation Metric is NPVI 21% 22% 23% 25% 29% 31% 32% 33% 34% 35% 37% 38% 40% Core New Product Sales Year 1 New Product Sales NPVI = New product vitality index (products introduced within the past five years, divided by total sales) 2015 2016 2017 International new products now ~70% of total
  27. 27. 28 © 3M 2013. All Rights Reserved.  Innovator Award  Technical Circle of Excellence Award  Pathfinder International Recognition  Pathfinder Awards  Merchant Awards  Elite Awards  Marketing Professionalism Award  Star Performance Club  Global Marketing Excellence Programme  Pyramid of Excellence  James A. Thwaits International Engineering Achievement Award  Community Volunteer Award  Product Responsibility Recognition Programme  Process Technology Award  Summit Award  Merlion Excellence Award  Carlton Society  Golden Step Award  Corporate Quality Achievement Award  Lewis W. Lehr Career Quality Award  Individual Quality Achievement Award  Team Quality Achievement Award  Chairman’s Environmental Leadership Award  Maintenance Conscious Engineering Award  Engineering Achievement Award Rewards and Recognition Rewarding and Recognizing Innovation inAllAreas
  28. 28. 29 © 3M 2013. All Rights Reserved. Culture • Entrepreneurial & Collaborative Culture – Trial & Error (“Failure”) – Expectations & Measurement – Reward & Recognition • Individual Initiative: 15% time
  29. 29. 30 © 3M 2013. All Rights Reserved. “I have a new idea that could be useful to 3M, but it’s not related to the business I’m working in right now.Am I allowed to work on it?” 15% The 15 Percent Rule has been the catalyst for some of 3M's most famous products, such as Scotch® Tape and Post-it® Notes. time Freedom to Explore = Freedom to Grow
  30. 30. 31 © 3M 2013. All Rights Reserved. From Home Prototype to Innovative Tape Slitting Process Old Method of Making Adhesive Tape 15%time Today Multiple patents $1 million cost savings annually 15% Time Reaps Rewards in Manufacturing
  31. 31. 32 © 3M 2013. All Rights Reserved. Culture • Entrepreneurial & Collaborative Culture – Trial & Error (“Failure”) – Expectations & Measurement – Reward & Recognition • Individual Initiative: 15% time • Open Innovation – Intolerance for “Not Invented Here” – Asia Style Innovation
  32. 32. 33 © 3M 2013. All Rights Reserved. Connecting to Customers Driving Growth Through Value Innovation Connecting to Customers… Anywhere and Everywhere IBG Developing Cutting-Edge Technology & Business Models
  33. 33. 34 © 3M 2013. All Rights Reserved.  Know where you want to go – VISION  Know where rest of the world is going – FORESIGHT  Have ambition – STRETCH GOALS  Have freedom to achieve your goals – EMPOWERMENT  Draw from and work with others – COMMUNICATION, NETWORKING  Be rewarded for your efforts – RECOGNITION To Activate Innovation you need to: You are the Catalyst…
  34. 34. 35 © 3M 2013. All Rights Reserved. Thank You

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