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How 3M Applies Lean Principles to Make Competitive Intelligence Impact Measurable

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How 3M Applies Lean Principles to Make Competitive Intelligence Impact Measurable

How 3M Applies Lean Principles to Make Competitive Intelligence Impact Measurable

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  • We need to grow – Our share holders expect us to deliver a return on their investment in terms of enhanced share price. The market values growth above all in determining the price of 3M stock. The market rewards growth and will reward double digit growth highly particularly in these turbulent times.Here is an example of the sources of growth for 3M .As I will show you later in this presentation 3M is if not the most, one of the most diverse companies on the planet and as such can expect to benefit from some modest market growth. We can expect some price, we provide ourselves on innovation , infact we are issues on average 3 patents everyday, this allowing us to be fairly confient that we can enter and expand new markets. Our M&A machine is in high gear but what we must do is penetrate – take share of the market we participate in. Our CI program is focused on allowing us to do just that.
  • To understand how our program fits, I need to give you some background on the challenge within 3M
  • There are many situations, from tactical to strategic, where a war game can help. You will see a few of these situations mapped on this continuum. A common application of war games is to test competitive reactions to a 3M offering. You may be developing an important new product or promotional campaign and you have many questions about how competitors will react. A war game can help you test out a few possible reactions as part of the NPI process and then develop strategies to address those responses quickly if and when they occur. Perhaps there are rumors that a company in an adjacent market is making a series of acquisitions within your market. Or a private equity firm is rumored to be considering the acquisition of one of your main competitors. What should you do? A war game prepares you to act fast when competitors change or emerge. A very practical strategic application of war games is to add insight to our strategic plans. We need to look 3-5 years into the future, and a war game is an excellent tool for that purpose. The 4th example can help us deal with black swans if and when they happen in our business. A ‘black swan’ event is one that has a low probability of occurring, but if it does occur, its impact is great. The term is derived from the previously held assumption that ‘all swans were white‘ until the discovery of black swans in Australia. Examples of black swan events in recent history impacting 3M were the earthquake in Japan and the H1Ni outbreak. Finally, some industries change more rapidly than others, but change is inevitable in all businesses. A war game is a valuable tool to model competitive and 3M responses to major changes to industry and market forces.
  • Transcript

    • 1. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyHow 3M Applies LeanPrinciples to MakeCompetitive IntelligenceImpact MeasurableA Complimentary Webinar from Aurora WDC12:00 Noon Eastern /// Wednesday 26 June 2013~ featuring ~Terry Kerby Derek JohnsonDoug Quam
    • 2. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyα Use the Questions pane on yourGoToWebinar control panel and all questionswill be answered in the second half of thehour.α You are welcome to tweet any comments onTwitter where we are monitoring thehashtag #IntelCollab or eavesdrop viahttp://tweetchat.com/room/IntelCollabα Slides will be available after the webinar forembedding and sharing viahttp://slideshare.net/IntelCollabα To view the recording and download the PPTfile, please register for a trial membership athttp://IntelCollab.com.Questions, Commentary & Content
    • 3. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbySources of Growth – Example only2012SalesEst2017SalesPlanNewProductsRevenue Growth2012SalesEst2017SalesPlanMarketGrowth2013SalesEst2018PlanPriceGrowthM & AMarketPenetration
    • 4. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyRemember that we have very strongcompetitors everywhere. I like towin, and I want this company to win. Justas we need to know our customersbetter, we need to understand ourcompetition better. …So you will hear me talk a great dealabout improving 3M’s competitivenessand winning in the marketplace.Inge ThulinPresident and CEO2/24/12
    • 5. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby3M strategies1. Expand relevance to our customers and our presence in the market place.4. Intensify capabilities to achieve regional self sufficiency5. Build high performing and diverse global talent6. Drive consistent superior levels of operational excellenceInvest in innovation: Invigorate existingmarket opportunities and focus onemerging markets2. Gain profitable market share and accelerate market penetration everywhere3. Invest in innovation: Invigorate existing market opportunities and focus on emergingmarkets
    • 6. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBUTIT’S HARD TO TAKE SHAREUNLESS YOU KNOW WHOTO TAKE IT FROM&HOW TO TAKE IT !
    • 7. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyPLANADJUSTCHECK DO“GRASP THESITUATION”Last Year: Revenue Target = $860MM This Year: Revenue Target = $1042MM Goals Activities J F M A M J J A S O N DLast Year: Actual Revenue = $901MM This Year: Operating Income Target = $206MM 1. New Product cycle Time acceleration (J.Miller) $5MM 1.0 1.0 1.0Last Year: Operating Income Target = $150MM 2. Bonding additional growth programs(M.Koller) $2MM 2.0 3.7 3.7Last Year: Actual Operating Income = $141MM 3. Bonding Venture products launch (M.Koller) $5MM 0.3 0.2 0.2Targets: 4. Converter addl growth (R.Marchiani)$2.8MM 2.8 2.8 2.81% additional core growth = $19.6MM 5. Converter Venture products (R.Marchiani)$5MM 5.0 5.0 5.0Leverage Venture = $15MM 6. MPSP addl growth programs (C.McKenna) $3.8MM 3.8 9.6 9.6New Prod cycle time=$5MM 7. MPSP Venture products launch (C.McKenna) $5MM 6.0 1.0 1.08. Government addl growth (N.Biderman) $3MM 3.0 3.0 3.09. Marine addl growth programs (M.Smith) $0.3MM 0.3 0.3 0.310. Northstar addl penetration (D.Burger) $2MM 2.0 2.0 2.011. Channel addl growth programs (N.Stevens) $5MM 1.0 1.0 1.012. Contractors addl penetration (D.Iverson) $0.7MM 0.7 0.7 0.713. 1% sales erosion reduction (D.Iverson) $5.3MM 5.3 5.3 5.314. e-Store - Achieve plan of $4.4MM (D.Iverson) 2.8 2.815. Increase Price to keep pace with RM inflation 24 13.8Subtotal as of 2/07 = $27.2MM sales = $4.7MM OISubtotal as of 3/07 = $32.4MM sales = $5.5MM OI +$13.8MM priceActivity Rating Key results and issues16. PSA Portfolio rationalization (B.Kesting) $3MM OI 1.5 3.1 3.1Accelerate Channel Penetration Reached 50K new customers (300K more available) 17. 10% additional LSS cost reduction (T.Gregory) $4MM OI 2.5 3.5 3.5Need new business model to reach Tier C customers Targets: 18. Thwart RM headwinds (P.Deconinck) $5MM OI 2.5 4.0 4.0Close multiple acquisitions Achieved topline revenue 19. Supply Chain Simplification-Deliver Plan(D.Schaefer)Acquisitions dilutive to P&L,need faster integration to realizesynergy Subtotal as of 2/07 = $4MM OIImprove New Product Penetration Introduced numrous new products 10% addl LSS Cost Subtotal as of 3/07 = $6.6MM OITotal revenue below expectations with longer than expectedcycle time Thwart headwinds $5MM Total as of 2/07 = $8.7MM OICost Reduction (focus COPQ) Delivered $36MM LSS Cost Savings Total as of 3/07 = $25.9 x 85% probability = $22MM OINeed to realize more yield to the bottom lineManage Raw Material Pricing Headwinds considerably more than historicalNeed higher percentage of second sourcesAchieve 8% productivity improvement Not able to achieve double digit organic volume growthNeed more effective stratgy deploymentPortfolio Management Reduced the number of D SKUsNeed to accelerate jumbo rationalizationJ F M A M J J A S O N DRationale for This Years Activities - Business Opportunity AssessmentProfit = Revenue-Cost We have opportunities to accelerate improvement in both areas Soft U.S. economy putting pressure on the Op Plan2/7 plan has $11MM of additional OI in play2/22 Gap $16.8MM-need to implement additional actionsTo meet our Op Plan we must;1) Accelerate our top line growth2) Reduce manufacturing cost3) Make up for an estimated $15MM shortfall in the U.S.Operating PlanAuthor: T.Gregory 3/25/08Version/Date: V5A. Find and delivery additional sourcesof revenue GROWTHReduce Business Erosion = $5MM1% Portfolio rationalizationA3 - Increase OI from $141MM to $206MMFocus: U.S. Performance Dept: IATD DivisionPerformance, Gaps and Targets This years action plan PerformanceReflection on last years activitiesWe need to accelerate Lean deploymentto realize additional factory cost savingsPerformance Gap in 2008 U.S. Operating Plan: $15MM shortfall In Operating IncomeCost: RM Headwinds, global captial investments need to be offset by broad based cost reduction efforts3/20-Oil $86 to $95-Headwinds $24 to $30-5% May priceincrease-$6.3MM+ erosion = Gap $29MM - $22MM = $7MMFollow-up / Unresolved IssuesB. Find and delivery additional COSTreduction above Op planWe need to redeploy personnel to theseextraordinary objectivesRevenue: Capturing new customers, retaining existing customers, and accelerating new products below expectations1234567891011121314151617B C D E F G H I J K L M N O P Q R S T U V W X YX-Matrix IATD Division 2008 U.S. Strategy DeploymentSupport Intl ExpansionPortfolio OptimizationOperational Excellence - Cost, Service, QualityNew Product DevelopmentBusiness Execution Process (BEP) DeploymentIncrease OI from $141MM to $206MMGrow Channel Sales from $863MM to $894MMGrow Recent Acquisitions from $50.6MM to $159.3MM; IMC SalesGrow Core Sales from $863 to $894SimplificationofSupplyChain,Products,&ProcessesOperationalExcellence-EHS&R,Cost,Service,QualityExpandIATDPSACapabilityTotalEngagementoftheWorkforcetoDeliverTrueNorthImproveOperatingIncomefrom15.4%to19.6%/SalesGrowSalesfrom$901MMto$1042MMBondingBUSalesfrom$185MMto$197MM($12MM)ConverterSalesfrom$285MMto$304MM($19MM)MPSPSalesfrom$381MMto$393MM($15MM)VentureSalesfrom$32.7MMto$134.3MM($101.6MM)NorthstarSalesfrom$17.9MMto$25.0MM($7.1MM)IMCSalesfrom$860MMto$886MMExistingChannelSalesfrom$860MMto$886MMAlternativeWaystoMarket(e-store,B&C)$2.5to$8.3MMMarketCenters(MRO,Marine,Govt)+$12MMT-ScorecardManageCOGSfrom$515MMto$598MM(57.2%)ManageSG&Afrom$218MMto$218MMIncreaseOIfrom$141MMto$206MMLeadershipDevelopment(Deploy2levelsbelowVP)Increase US GMO Penetration ratio from 15.4 to 20 (Penetration) A3 A3 A3 A3 A3 A3A3A3 A3 A3 A3 A3Move from the number 2 to number 1 PSA Innovative Company(Innovation)Reduce Fcost 1% point/year Operational Excellence (Create The Space) SpeedComplexityEmployee EngagementU.S. PerformanceTargets toImproveLong-Term("Breakthrough")Strategic ObjectivesAnnualStrategicObjectivesTop-LevelImprovementPrioritiesX Matrix,A3 “Strategy” PlansTOOLSCOMPLETED ANNUALLYupdated MonthlyA3CI projects ID
    • 8. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyThe programThe challenge
    • 9. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyThe programThe challenge MULTITechnologyNationalIndustry
    • 10. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby$30BnElectro & Energy $5BnHealth Care $6BnIndustrial & Transp $9BnSafety & Graphics $5BnConsumer and Office $4Bn
    • 11. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Sales & MarketingManufacturing/ConvertingTechnical Capabilities74 SUBSIDIARIES DOING BUSINESS IN > 200 COUNTRIESMexicoBrazilColombiaVenezuelaArgentinaChileCosta RicaEl SalvadorPanamaEcuadorPeruUruguayGuatemalaItalyFranceUKTurkeyGreeceMoroccoCanadaJamaicaDominicanRepublicPuerto RicoTrinidad &TobagoPolandCzechRepublicGermanyLithuaniaLatviaEstoniaHungaryRomaniaUkraineKazakhstanRussiaJapanChinaTaiwanVietnam ThailandSingaporeIndonesiaHong KongKoreaPhilippinesIndiaIsraelEgyptPakistanUAEKenyaMalaysiaSri LankaSouth AfricaBelgiumPortugalSpainNetherlandsAustriaSwitzerlandFinlandSwedenNorwayNew ZealandAustraliaDenmark© 3M 2011. All Rights Reserved.
    • 12. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyAbAbrasivesBiBiotechAcAcousticsCeCeramicsAdAdhesivesDdDrugDeliveryAmAdvancedMaterialsDiDisplayAnAnalyticalDoDental &OrthodonticMaterialsAsApplicationSoftwareEcEnergyComponentsEmElectronicMaterialsFcFlexibleConverting &PackagingFeFlexibleElectronicsFsFiltration, Separation, PurificationFiFilmsImImagingFlFluoro-materialsInInspection &Measure-mentIsIntegratedSystems DesignLmLight MgmtMdMedical DataMgmtMeMetal MatrixCompositesMfMechanicalFastenersMiMicrobialDetection &ControlMoMoldingMrMicro-replicationPePredictiveEngineering &ModelingNtNano-technologyNwNonwovenMaterialsRpRadiationProcessingSeSensorsPoPorous Materials& MembranesPmPolymer MeltProcessingWoWound MgmtVpVaporProcessingSuSurfaceModificationSmSpecialtyMaterialsOpOpto-electronicsPdParticle &DispersionProcessingPrProcess Design& ControlPpPrecisionProcessingTtTrack andTraceWeAcceleratedWeatheringTechnologies are not industry specificTechnology Platforms
    • 13. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby200 Countries100 Business units46 Technology platformsX920,000 variablesThe challengeX
    • 14. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyAnd local competitors are emerging WorldwideStronger Regional Competitors Become Emerging New Multinationals
    • 15. © 3M 2013 All Rights Reserved.88,000 Number ofemployeesin 3MNumber ofemployeesdevoted solely to CI1
    • 16. © 3M 2012 All Rights Reserved. ConfidentialWar Gaming Guidebook‘Train-the-Trainer’ model
    • 17. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyTo provide 3M divisions & Countries with know-how, tools & processto efficiently; IDENTIFY their competitors UNDERSTAND their competitors MITIGATE their competitors strategyAll within the confines of 3M valuesMISSIONCOMPETITIVE INTELLIGENCE PROCESS
    • 18. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyOur Values► Act with uncompromising honesty and integrity in everything we do► Satisfy our customers with innovative technology and superiorquality, value and service► Provide our investors an attractive return throughsustainable, global growth► Respect our social and physical environment around the world► Value and develop our employees diverse talents, initiative andleadership► Earn the admiration of all those associated with 3M worldwide
    • 19. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Common Language, Tools, Methodologies Replicatable SuccessesThe programThe challenge MULTITechnologyNationalIndustryJanJulAprOct
    • 20. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Deep dive analysis C SME’S appointed So What? Now what? Analysis Daily / Weekly Alerts CI Sharepoint site Earnings reports analysis Product evaluations Key Intelligence QuestionsConfirmed or RevisedStrategy Market Competitive Factors Competitiveness of all market participants Market Key Intelligent topicsIDENTIFYUNDERSTAND War Games Trade show CI 3rd party researchMITIGATECOMPETITIVE INTELLIGENCE PROCESSCOMPETEIdentifyUnderstandMitigateCompetitor
    • 21. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Deep dive analysis C SME’S appointed So What? Now what? Analysis Daily / Weekly Alerts CI Sharepoint site Earnings reports analysis Product evaluations Key Intelligence QuestionsConfirmed or RevisedStrategy Market Competitive Factors Competitiveness of all market participants Market Key Intelligent topicsIDENTIFYUNDERSTAND War Games Trade show CI 3rd party researchMITIGATECOMPETITIVE INTELLIGENCE PROCESSCOMPETEIdentifyUnderstandMitigateCompetitor
    • 22. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby22CompetitorCOMPETITIVE INTELLIGENCE PROCESSIDENTIFYKey SuccessFactors PeopleCostCustomerServiceTechnologyDistributionBrands&MarketingComputed weight 10 9 7 5 8 4 Score %3M 1 6 9 6 6 3 217 56%Competitor A 9 6 3 9 3 9 270 70%Competitor B 9 9 6 6 3 9 303 78%Competitor C 1 3 9 1 1 1 117 30%Market segment nameReady tocompeteReadinesstocompetemetricMarket KSF’S linkeddirectly to corporateCompetitive FactorsCompetitiveness of allparticipants(including 3M)Scoring guideCompetitive Factor 9 6 3 1PeopleAbility to support (call on) ; CustomersC suite, Procurement, Clinical,Standardization comm, GPOinteractions, POE suppliers< 9 < 6 < 3CostFor Customer - Lowest treatment costto achieve the desired clinical outcome< 9 < 6 < 3CustomerServiceTechnical support 24/7, continuouseducational offering, high OTIF< 9 < 6 < 3TechnologyState of the art, supported by clinicalevidence< 9 < 6 < 3DistributionSupply to the continuum of care(including retail) "easy to find, easy tobuy"< 9 < 6 < 3Brands &MarketingHighly trusted in the marketplace (Csuite >> Patients). Leverage of thebrand around solutions. Onecompany face to the customer< 9 < 6 < 3Key Success FactorAn asset or capabilitythat a market participantmust have to sustaintheir presence in themarket segment
    • 23. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Deep dive analysis C SME’S appointed So What? Now what? Analysis Daily / Weekly Alerts CI Sharepoint site Earnings reports analysis Product evaluations Key Intelligence QuestionsConfirmed or RevisedStrategy Market Competitive Factors Competitiveness of all market participants Market Key Intelligent topicsIDENTIFYUNDERSTAND War Games Trade show CI 3rd party researchMITIGATECOMPETITIVE INTELLIGENCE PROCESSCOMPETEIdentifyUnderstandMitigateCompetitor
    • 24. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyFocus on the Vital Few Complete deep dive analysis Define Key Intelligence TopicsUNDERSTANDCreate an “Alert network” Establish CI Sharepoint process Quarterly earnings call Appoint C SME’s So What?Now What?Define Key Intelligence QuestionsCOMPETITIVE INTELLIGENCE PROCESS
    • 25. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredby Deep dive analysis C SME’S appointed So What? Now what? Analysis Daily / Weekly Alerts CI Sharepoint site Earnings reports analysis Product evaluations Key Intelligence QuestionsConfirmed or RevisedStrategy Market Competitive Factors Competitiveness of all market participants Market Key Intelligent topicsIDENTIFYUNDERSTAND War Games Trade show CI 3rd party researchMITIGATECOMPETITIVE INTELLIGENCE PROCESSCOMPETEIdentifyUnderstandMitigateCompetitor
    • 26. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyLeads to revision or Confirmation of StrategyMITIGATE A competitive Intelligence process used toAnticipate a competitors Future ActionsWar Gaming1.Start with the question(s) you want to answer about your competitor.2.Prepare briefing documents for the team .3.Deploy teams ( 4-6 people per team) to answer the question4.Entire group (all teams) review each teams response5.Entire group refine to establish the group view6.Set / adjust strategy based on your new understanding7.Take actionWhat is it?How do I conduct a War Game?What’s the benefit ? - A deeper understanding of a competitors capability.- All team members get on the same page.- Confidence that we have the right plan to win.KeyIntelligenceQuestionsTrade show CI3rd party researchCOMPETITIVE INTELLIGENCE PROCESS
    • 27. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBusiness Competitiveness IndexMeasuring Success•3M•BG’s•Divisions•Regions•Countries•Markets
    • 28. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBusiness CompetitivenessIdentify high growth marketsInvestment PrioritizationMeasure Our SuccessAligns BusinessGroups/Countries/MarketsBusiness Competitiveness Index - Designed to meet multiple planning needsBusiness Competitiveness Index (BCI)• Increase transparency to investors• Discuss progress with investors• Target share discussions in reviews• Simplify planning• Provide enterprise-wide visibility
    • 29. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBCI designed with critical questions in mind• Are we taking share (unit/volume) in our markets across the globe?• How to provide greater clarity to current/potential investors?• Bridging strategy & operations, way to track our progress?• Which markets do 3M products ultimately serve? By product code? Bycountry?• Do Divisions/Countries align on priority markets & share gain potential?• How to identify & align on potential market gaps & future opportunities?• Validate high growth opportunities above external consensus, where can3M outperform?• Leverage 3M’s International breadth to leap frog competitors?• Do our investments align to these markets?• How can we deploy capital spending and M&A on targeted marketsand regions?
    • 30. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBCI Dashboard - ExampleNominal ($)Real (units)LegendAbove Near Mkt Less thanMarket Growth MarketNote: Division estimates based on Feb QOR, BCI estimates based on February forecast release with revised mappingRED = Non Competitive and requires an A3MINALBCI Division BCI Division BCI Division BCI Division BCI Division BCI Division BCI Division BCI DivisionAAD 3.6% 8.8% 3.5% 8.0% -0.5% 4.8% -3.7% 4.4% 8.4% 8.2% 6.3% 19.7% 6.0% 14.6% 9.4% 11.6%ASD 3.7% 8.4% 3.9% 4.9% 0.1% 7.2% -1.6% 14.6% 7.5% 3.9% 10.8% 24.0% 7.4% 5.8% 7.2% 14.4%CHIM 3.4% 2.1% 3.3% 0.5% 4.2% -7.0% 1.9% 4.5% 8.6% 29.0% 5.6% -4.3% 3.5% 11.1% 8.2% 12.2%CMD 4.4% 5.8% 2.9% 6.0% 0.0% -1.3% -2.3% 5.2% 8.2% 8.9% 11.9% 18.6% 9.4% 9.0% 11.6% -4.8%HCD 4.8% 7.3% 2.6% 5.4% 2.6% 3.8% 0.9% -10.8% 6.8% 8.0% 12.7% 24.9% 4.9% 12.2% 9.6% 11.1%IATD 3.9% 9.7% 2.5% 5.8% -0.4% 5.5% -1.5% 8.5% 7.0% 11.9% 10.1% 32.0% 7.3% 13.8% 7.3% 13.5%IPD 5.7% 7.2% 5.9% 3.6% 4.1% 6.0% -1.2% 1.7% 6.8% 15.7% 8.4% 23.9% 10.8% 15.1% 8.3% 16.3%IsPD 6.7% 6.0% 4.4% 9.2% 1.1% 2.6% -1.4% 8.9% 7.1% 6.2% 13.8% 9.2% 13.0% 0.6% 14.5% -1.6%PSD 3.1% 10.2% 1.8% 6.9% -1.0% 6.5% -2.1% 5.6% 6.3% 9.1% 8.3% 23.8% 6.5% 15.8% 8.8% 15.6%SOSD 1.5% 3.1% 0.4% 3.3% -1.7% 3.4% 0.0% -1.0% 4.8% 11.4% 3.4% 17.5% 3.1% 2.0% 9.1% 10.2%APAC LATAMWorldwide USA Canada W. Europe CEE MEABCI Division BCI Division BCI Division BCI Division BCI Division BCI Division BCI Division BCI DivisionAAD 2.4% 6.6% 3.6% 6.2% 1.1% 3.0% -2.1% 3.1% 4.9% 6.2% 0.4% 19.1% 3.6% 13.5% 3.8% 4.2%ASD 2.7% 7.3% 3.4% 3.8% 1.5% 7.1% -0.2% 13.8% 3.1% 2.6% 2.5% 20.8% 4.7% 4.8% 3.8% 12.1%CHIM 2.0% 3.3% 2.4% 2.6% 2.1% -5.4% -2.8% 3.3% 3.0% 25.9% 2.6% -4.6% 1.3% 10.5% 2.3% 6.9%CMD 3.4% 5.1% 3.5% 5.2% 1.9% -1.4% 0.8% 3.4% 2.8% 7.1% 4.5% 17.4% 6.0% 10.9% 5.7% -6.8%HCD 1.6% 5.9% 3.4% 5.3% 0.7% 4.1% -2.7% -11.1% 0.9% 5.4% 5.9% 20.4% 2.2% 10.3% 3.0% 7.3%IATD 2.9% 8.0% 2.7% 4.0% 1.0% 4.9% -0.2% 7.0% 2.8% 10.2% 2.9% 28.0% 4.9% 12.9% 3.6% 10.4%IPD 2.2% 7.1% 2.4% 4.6% 2.9% 6.8% 0.2% 13.1% 1.1% 2.1% 4.1% 13.3% 3.7% 22.2% 3.4% 13.6%IsPD 3.1% 7.9% 2.1% 14.2% 0.7% 5.7% -0.2% 7.1% 4.2% 4.1% 4.3% 8.2% 6.5% 0.6% 3.5% -4.5%PSD 1.9% 8.4% 2.0% 5.9% 0.6% 6.4% -0.5% 4.2% 2.7% 6.9% 2.4% 20.8% 4.2% 15.1% 3.2% 10.1%SOSD -0.4% 3.4% -1.4% 3.5% -3.2% 4.2% -2.8% -5.2% -0.4% 5.7% 2.7% 19.2% 2.0% 6.6% 3.7% 6.3%Worldwide USA Canada W. Europe CEE MEA APAC LATAMDivision
    • 31. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyBusiness Competitiveness Index – Post 2013 RhythmBCI ProcessPlanningWorkbooksStrategic PlanOperatingPlan &MeasurementRevisedMappingOutput• Quarterly estimate of expected market performance(across 230 markets & ~50 countries and regions)Output• Align products to markets (by country/region)• Projected Share Gain (real & nominal)• Total market Penetration (real & nominal)Output• Priority markets and countries/regions• Expected share gain by marketOutput•Track share gain against :•Key Markets•Product Codes•Countries/Regions• Share of Total Market (real & nominal)Output• Implement revisedmapping for next FYTiming: Nov-DecTiming: October – Updated QtrlyTiming: August-SeptemberTiming: June-AugustTiming: OngoingBusinessCompetitivenessdrives strategy
    • 32. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyTerry KerbyBiographiesDoug Quam is Market Insights Manager in 3Ms Center of Marketing Expertise.He is responsible for supporting 3Ms global marketing community with marketintelligence resources and tools. His most recent contribution is the developmentand launch of the Competing to Win center, an online site providing 3Mers withresources and tools to support their competitive intelligence initiatives. Doug hasworked in a variety of divisional and corporate roles including marketresearch, competitive intelligence, Design for Six Sigma (marketing blackbelt), product marketing, and business model innovation. Doug managed themarket research and competitive intelligence operations for one of 3Ms largestdivisions. He holds an MBA from the University of St. Thomas in St. Paul, MN.Terry J. Kerby has over 30 years of experience in International businessmanagement. Terry’s past roles within 3M include, Managing Director of 3MIsrael, Global Business Director, Initiative Leader and General Manager of 3MMicrobiology. From 2007-2012 Terry was the responsible for Strategy and LeanSix Sigma at 3M’s $5Bn Health Care business; it was in that role that heestablished a high impact competitive intelligence program. In 2012 Terryassumed the role as the Director of Competitive Intelligence for 3M CompanyWorld Wide. Terry holds an M.B.A. from Ivey School of Business, Canada and istrained at the Master Black Belt level in Six Sigma.Doug Quam
    • 33. The Intelligence Collaborativehttp://IntelCollab.com #IntelCollabPoweredbyQuestions and CommentsTerry Kerby► +1 (651) 733-2077► tjkerby@mmm.comThe Intelligence Collaborative is the online learning and networkingcommunity powered by Aurora WDC, our clients, partners and other friendsand dedicated to exploring how to apply intelligence methods to solve real-world business problems.Apply for a free 30-day trial membership at http://IntelCollab.com or learnmore about Aurora at http://AuroraWDC.com – see you next time!Doug Quam► +1 (651) 736-5879► djquam@mmm.com