Home » essay » the 3m company example essay

The 3m company example essay


The 3M Company can be described as $18 billion diversified technology company with leading positions in medical care, safety, gadgets, telecommunications, industrial, consumer and office, and also other markets. Based in St . Paul, Minnesota, 3M has operations much more than 60 countries, offering customers worldwide. 3M is one of the “top 50 “Fortune five-hundred companies and has been one of Fortune magazine’s “ten many admired corporationsfor the last a decade. Since its starting in 1902, Minnesota Mining and Manufacturing Company is becoming one of the world’s most innovative and productive corporations.

3M’s main growth technique is to generate more income when you sell more existing products into new markets and also to introduce new items into new or existing markets. 3M mission is to be the most ground breaking enterprise and the preferred dealer to consumers. 3M vision is to sastisfy customers with superior quality, benefit, and services.

A trademark the 3M Company, 3M Health Information Systems, the largest and one of the fastest-growing of 3M’s seven major businesses, serves medical, dental, pharmaceutical, and personal care marketplaces.

3M Health Information Systems is a leading provider of advanced submission software tool and providers that help health care organizations capture, sort out, and control accurate medical data. Exceeding 20 years of industry experience, 3M Information about health Systems’ alternatives help ensure the quality of info and the operations that drive an company ability to take care of revenue, comply with regulations, enhance the quality of patient treatment, and deal with resources properly.

Read more: 3MOrganizational Structure

Through this conventional paper, 4 main points will be talked about in order to determine the position of 3M technique regarding the innovation administration, especially in the health care division. To start with, lets discover the main concerns of 3M affecting it is innovation managing. The second stage will be to go over the national system of advancement in medical care. As a third point, three academical structure will be placed on 3M advancement management. Last but not least, based on the findings can get on analysis in the theories, some recommendations will probably be suggested to boost 3M innovation management.

Section 1: choose an organisation and outline the main problems which usually impact on the effective creativity management. In answering this part of the issue you may, in the event appropriate, provide examples of the latest innovation in product, services or process.

In the field of advancement management, 3M is the head. 3M’s corporate and business strategy displays anyway a few internal and external concerns which impact the powerful innovation management put in place in 3M.

The first matter which come up is that 3M has established a company goal of generating 30% of sales via products presented within the prior four years. In striving to attain this kind of goal, the business spends several cents of each and every sales money on Ur & G ” much more than twice the typical of U. S. manufacturing companies. It could be known as too much concentration of innovations even if they may be not necessary on the market. According to William Coyne, 2001 in 3M, in recognition that product life cycle are becoming shorter, the company has recently set up a fresh goal of 10 % of sales coming from product less than a yr old.

But as many business leader would accept that producing genuianely new releases is a high-risk activity: commercial product include only a 50: 40 chance of becoming succesfull, whilst consumer items fare even more difficult, with a one ten potential for succeeding. In attempt to satisfy the 30% or perhaps 10% secret, the employees make an effort to introduce new innovations within the products, even if those enhancements do not put any value to the clients whilst the business is greatly spending on R&D.

The second concern which was observed related to 3M innovation supervision. Gundling, At the. (2000) argues that 3M declared victory too early. In fact 3M contains a high publicity and popularity for advancement and this result in over confidence resulting that all employee believe that they are all pioneers. So there is noone to set the standards to get innovation, against which creativity performance can be assessed. The troubles that afflicted 3M is the environment that promotes people to work around and defy their superiors and a dedication to let the organization follow exactly where its experts and consumers lead. However , it is important for 3M worker not to fall under the trap of happy self lies or to become content with merely incremental items. In fact , according to William Coyne (2001), the company leading managers were very worried that too much of the company’s growth was caused by incremental improvement to existing products.

The third drawbacks that 3M has is the fact that they can produce overwhelming too many products than what offshore subsidiaries can manage to marketplace. Ernest Gundling (2000) states that subsidiaries employees making the effort to serve the needs of various 3m categories simultaneously, some employees happen to be kept therefore busy dealing with US or regional headquaters that they lack the time to concentrate on their customers. Because of this 3M is incredibly big yet acts little.

Each of 3M’s 45 product divisions constitute a small business in itself having its specific customer base, with its own general manager, marketing director, technical director, human resources representative, manufacturing overseer, and nationwide sales supervisor (Coyne, 1997). 3M can be described as highly decentralized company, nevertheless care is taken to decentralize to units which have been large enough being self-standing and, therefore , capable of money their own R&D. On the other hand, 3M attempts to stop divisions from getting so large that individual innovations usually do not count. 3M’s strong opinion in divisional autonomy is usually countervailed by corporate requirements of a advanced of innovations and interdivisional knowledge-sharing (Goold et ing., 1994, p. 203).

Fourthly, according to Gundling, E. (2000), 3M still unofficially practices life span employment. It is also possible to obtain fired, yet normally simply for a serious honest breach, low imcompetence, lack of motivation, or perhaps negligence. If the company chosen to reduce all their workforce, the only concern that they face can be how to preserve the experience and sense of dedication that could ensure continued innovation inside the company. In fact people laid off because of their functionality or early on retirement are well attracted simply by others businesses to function and share the ability they get through 3M experience.

Finally 3M confront not only inner concerns while seen ahead of but exterior environnement impact as well its innovation administration. In fact in accordance to Gundling, E. (2000), when a product has been authorized for marketing, 3m have to wait the review through the regulatory firms in other countries. This may slow down the innovation process of the business for instance pertaining to the launch of the Aldara cream.

Section B: Briefly indicate how a National Approach to Innovation impacts the company is actually ability to take care of innovation.

In respect to Tidd, J. et al (2001), the nationwide system of development in which a firm is inlayed, strongly impact on both the direction and the vigour of its innovation actions. He determines three nationwide factors that influence the interest rate and direction of innovation, National industry incentives and pressures; expertise in development and analysis; and institutions for corporate governance.

The innovation insurance plan whereby 3M scientists maintain regular gatherings with customers allows the corporation to utilise knowledge in the marketplace, for its innovation management.

Regarding health care products, 3M will keep innovating due to powerful competition and regulation in the US.

Competition really does also promote innovation by providing opportunity for creation of units to share costs and risks in dangerous and pricey projects.

3M enjoys countrywide competencies in production and research through the availability of universities with which it has research backlinks.

US, being a nation as well ranks excessive among nations around the world with very good innovation environment indicators. The country has continuously increased it is R&D expenditure (as a portion of GNP) from 0. 99% to 1. 60% among 1967 and 1998. ‘Tidd, J. ainsi que al (2001) estimated that US every capita and per investigator R&D spending was ALL OF US $ 650 and US $ 169, 650 respectively. R&D Personnel ratio was estimated in 3, seven hundred per million population. Tidd, J. et al (2001) posit that increased discuss of R&D expenditure as being a percentage of GDP to get USA (as well because Germany and Japan) have been responsible for the growth of significant firms in pharmaceuticals and telecommunication.

UNITED STATES has also very good institutions that promote R&D. These include, the National Institute of Wellness, which is a authorities funded body active in biotechnology R&D.

Section C: Select 3 analytical frames from the course as a means of evaluating the potency of the organization ‘s approach to innovation management.

There is 3 theoritical framework that could applied to 3M innovation managing concept.

The first style that could be used on 3M innovation management is the Knowledge creation Model.

Relating to Professor Nonaka and Takeuchi, (1995), there is two sorts of knowledge: Tacit knowledge and explicit understanding. Through this dynamic interaction between the two sorts of knowledge, personal knowledge turns into organizational know-how. And the organizational knowledge or intellectual infrastructure of an corporation encourages it is individual users to develop fresh knowledge through new experience. This energetic process is vital to company knowledge creation. This interaction between the two types of knowledge may result in what we call 4 modes of knowledge conversion ” that is, socialization (from individual tacit expertise to group tacit knowledge), externalization (from tacit knowledge to explicit knowledge), combination (from distinct explicit expertise to systemic explicit knowledge), and internalization (from precise knowledge to tacit knowledge).

Socialization is known as a process of creating common tacit knowledge through shared experiences. For socialization, we need to develop a “field of interaction, exactly where individuals share experiences and space as well, thereby creating common unarticulated beliefs or embodied skills. In the case of 3M, personal tacit knowledge which usually 3M requires through their particular recruitment procedure to only consider knowledgeable workers and that tacit knowledge will be transferred through team working, for instance the division managers nust know each staffer’s first name(Mitchell, 1991).

Externalization is a method among individuals within a group. During this sort of face-to-face communication people share beliefs and find out how to better articulate their thinking, although instantaneous opinions and the simultaneous exchange of ideas. This mode is triggered with a dialog. Actually when an staff come up with a merchandise idea, he or she recruits an action team to develop it(Mitchell, 1991).

Combination is known as a process of building new and existing precise knowledge to a systemic expertise, such as a pair of specifications for any prototype of your new product. Often , a recently created idea should be combined with existing know-how to work out as planned it into something concrete. For instance in respect to Gundling, E. (2000), 3M’s Technological Forum can be described as means for most technical people share technologies, practices, plans, and methods. Exchange of technical personnel knowledge to be able to divisions, or perhaps other countries where 3M has procedures, is common.

Internalization is a technique of embodying direct knowledge in to tacit, functional knowledge including know-how. This kind of mode is definitely triggered simply by “learning by doing or using.  Precise knowledge documented into text, sound, or video forms facilitates the internalization process. Consequently , manuals, a quintessential sort of explicit know-how, are widely used for internalization. That has been done in 2002 when 3M printed the publication which is a system of 3M voices, memories, facts and experiences from your company’s 1st ¦ years: The creativity century, the 3M tale.

The second version that could be placed on 3m advancement management is the culture-innovation model

The ground breaking culture of 3M is the driving force to get the company’s constant innovation and growth into a major around the world, large-scale producer. Applying the theory developed by Teece, we examined that 3M has developed contrasting assets, in terms of research potential residing in person knowledge and technical experience held simply by 3M scientists. Furthermore, this culture offers helped the corporation develop powerful capabilities by simply analysing and anticipating long term customer requires (opportunities) and translating these types of opportunities in to product originality, by merging various contributory assets within a competitive, hardly inimitable method.

3M a well-known company, whose culture has led to a large number of new products yearly for decades, probably the premiere firm in taking new products to market. 3M’s creation process is dramatically unlike most, however it is highly successful by new product development. Innovative new goods from 3M because of a well-thought-out set of systems which support emergent activity.

3M’s business strategies clearly promote a modern spirit. These types of strategies consist of: 30% if perhaps sales must result from goods less than 4 years old; technical people can spend 15% of their time about projects that belongs to them choosing; every single division has access to systems developed anywhere in the company and has the responsibility to share the technological demands of its customers throughout the company.

3M’s corporate lifestyle is very supportive of risk taking, teamwork, innovation, and entrepreneurship. Failing is viewed as a learning knowledge; employee contact are informal and on a first-name basis; the technical base is definitely diversified and technological exchange is encouraged through the company; and 3M keeps a strong commitment to develop customer-driven products. These types of principles have the ability to been followed at 3M for decades.

The precise human resource (‘HR’) strategy will help 3M create innovation, maintain research talent and reduce automobile turnover by giving scientists personal research time, rewarding advancement and implementing a positive approach toward product failures. As demonstrated in the case, the particular HR insurance plan along with the progressive culture is the milestones in the development and the success in the company over several years of operation. By providing the framework intended for innovation, 3M allows the innovation method to be controlled almost totally by the person scientists, whom are encouraged to believe “outside the square and develop new products within the specs required by market.

The third framework which will apply 3M innovation supervision will be the organic structure.

The organic composition is more adaptable, more adaptable to a participative form of administration, and less concerned with a precise structure. The organic business is open to the environment to be able to capitalize after new possibilities.

Organic companies have a set structure with only one or two degrees of management. Toned organizations stress a decentralized approach to supervision that encourage large employee participation in decisions. In 3M, this translates into a framework where the majority of employees network into at least five levels: section, division, group, sector and company. Pertaining to purposes of innovation, the real key level is the division. Each of the company’s 40-some divisions builds up, manufactures and sells its very own products, every has a structure appropriate to its market. Most categories include functional departments split labs, making, marketing, sales, logistics and so forth as well as cross-functional teams.

3M’s resulting formal structure might look like a bureaucracy’s analytical structure on an business chart. However in fact , the structure works less just like a bureaucratic penitentiary than a program, from which employees are expected to find out and provide customers. For instance, like the units in a living thing, the departments in different division include semi-permeable limitations. Sales people not necessarily trained simply in revenue. They understand their division’s technology to enable them to describe products to clients. Moreover, they’re expected to work with people in the marketing and study departments with their divisions and to network throughout the company.

Similarly, technical and manufacturing people regularly check out customers developing facilities to master about their businesses. As a result, they sometimes observe possible uses of 3M products individuals shoppers haven’t considered. As an example, about 15 years ago, technological people were visiting an auto manufacturer’s factory and learned that the rivets they will used to keep side molding to doorways were rusting and corroding. So the technical people returned to the laboratory and designed an fat foam mp3 that replaced the pointe and resolved the problem.

In addition , 3M includes a flexible organisational structure, having a “dual ladder approach, permitting employees with technical history to advance in their career without having to switch to management. Furthermore, we assessed the fact that dual step ladder reveals a matrix inside corporate organisational structure allowing the organization to respond promptly to sell opportunities and assemble quickly multi-disciplinary groups of staff. This internal organisational structure is certainly not visible externally and it is quite difficult to be duplicated by competition, due to the excessive complexity from the relationships that establish in this particular matrix (span of command word and delegation of authority).

Section G: Based on the analysis in section C explain how a organization could improve the supervision of advancement:

Based on the findings inside the third query 3M offers managed to innovate continuously and create a large pool of goods (over 31, 000 products), achieving ongoing profitable development over time. Therefore suggesting fresh recommendations for the advance of 3M innovation supervision is a difficult approach yet any company actually 3M has its own limitation thus few recommendations will be recommendable:

As explained in the third question, the lack of a system to guide product developers who are seeking to create breakthroughs can be described as problem actually for a organization like 3M, long known for its success with innovation. The innovation tradition the company has nurtured plus the continuous purchases of research and development (‘R&D’) over many decades has helped 3M get “deep roots in many competencies as an example in used technology to get health care. Nevertheless willing to create although incredibly new products and services might be essential to long term growth and profit, firms must initial survive to get at the future. That necessity is likely to focus companies strongly about making incremental improvements to keep sales up and current customers and Wall Street analysts happy.

Second, developers just don’t know tips on how to achieve breakthroughs, because there is usually no powerful system in position to guide and support their efforts. Employees knows only that thirty percent of sales must are derived from products that had not been with us four years earlier. And so even if the product could have a life circuit more than four years, 3M reduce this in order to conform to the secret. For the Medical-Surgical Market segments Division to obtain future growth it would be highly recommended that the division maintain a balance among incremental and revolutionary innovation. As well as endorsing more the activities like marketing or personalisation for the item created in the health care department because the cost of investment put in place for the creation of thoses goods will be just recovered if the product stays in the market for a longer time than 3M would. By simply shortering the merchandise life pattern, it boosts the R&D expenditure.

Even the most effective innovating firms such as 3M may create organizational paperwork that decelerates innovation. One of the most successful pioneers know that just spending more in R&D is not enough; not is expecting customer needs. 3M engages a strategy an excellent source of decentralization and autonomy for its divisions, or “units. Actually “3M likewise does not stick to the traditional way of organizational design. 3M constantly achieves it is goal of having 15 percent of its revenue are derived from new products by giving managers with the latitude to move from one organization unit or laboratory to a new without bureaucratic obstruction. It is during the knowledge creation process that Project groupings, operating with few constraints from the formal organization, come together to accomplish a job and disband when their particular work is done.

One of my personal recommendation about the 3M framework is to blend R&D with Sales and Marketing, consequently creating a range of small cross-departmental innovation groups. Realignment of goals and business preparing would be vital during this phase and reappointment according to respective parts of expertise must be communicated absolutely, offering option thoughtfully designed posts, relating salary to performance. Linkage between these kinds of teams must be fabricated carefully.

By creating this as an independant workforce they will be delegating responsibility, flexibility. They shall be able to access fast, good communication will probably be involve to talk about the obtainable information. This method will enable the company to maintain all the information and go forward quickly to the next step on a real time basis.. By permitting R&D, Potential to mix and to participate in decision-making, their recommendations could have transformed the outcome simply by allowing them to react in a timely manner and adjust their very own strategies to suit their customers. It is also advised to start with tiny grouping of activities since it is reducing risk and remain tight control and maintain that organic framework put in place inside 3M. Finally creating independent small models that can rapidly respond to customers’ needs or perhaps changes in the business environment. The supervisor is likely to have a more personal marriage with his or perhaps her workers in order to stimulate them to succed in their goals.


3M, which acquires 30% of sales coming from new products inside four years, offers an sort of how a lifestyle of development can take main and become essential to the carrying on success of a company following nearly a century. Even if 3M is the model of innovation supervision for others, it has some limitations in its proper tradition, structure and HRM plan which lead 3M to generate some advancements that allow them to excell in their competitive advantage. The national system of innovation is a foundation of their actual path. After analysing the three theoritical frameworks, there is no doubt that 3M innovation managing provide the efficiency at all level.

Total Phrase Count: 3108

Section A: 569

Section B: 283

Section C: 1321

Section D: 935


3M Company, 2002, A Century Of Innovation, 3M Company, USA

3M Company Annual Record, 2003 3M Company, UNITED STATES

Achtmeyer, W. F. (2002), 3M Corporation, Centre to get Global Leadership, available on http://mba.tuch.dartmouth.edu

Boxal, G. and Purcel, J., (2003), Strategy and Human Resource Management, PalgraveMacMillan, New York.

Cobbenhagen, J. (2000), Successful Creativity: Towards a brand new theory intended for the management of small , and medium-sized entreprises, Edward Elgar Publishing Limited, UK

Cohen, W., Nelson, R. and Walsh, J. (2002), Links and Influences: The effect of general public research on industrial R&D, Management Science, Vol. forty eight, pp 1-23

Frohman (1980) in Cobbenhagen, J. (2000), Successful Advancement: Towards a new theory intended for management of small and medium sized entrprises, Edward Edgar Publishing Ltd, UK).

Goold, Campbell and Alexander (1994), Corporate Level Strategy: Creating value in the multi-business firm, John Wiley and Daughters, New York

Gundling, E. (2000), The 3M-way to innovation: Balancing people and revenue, Kodansha, London

Larkins, 3rd there’s r. J., (2000), Government exploration program agglomération, available on http://www.fas.org/man/congress/2000/000510-larkins_may_10.htm

Lorentzen, A. (2003), Understanding and knowledge bases in the learning process of Polish firms, Aalborg University, available on http://www.druid.dk/conferences/summer 2003

Mn Statutes, the year 2003, Ch 116J. 885, on http://www.state.mn.us/stats/116J/

Nonaka and Takeuchi (1995), The knowledge-Creating Firm, Oxford Press, New York.

Avoir, M. At the. 1998, Competitive Advantage: Creating and nourishment of outstanding performance, Free Press, Nyc

Mitchell Russel, (1991), Masters of advancement: How 3M keeps it is new product arriving

Terziovski, M. Samson, G and Glassop, L. (2001), Creating Business Competence through management of organisational advancement, Research daily news, available on http://www.fsed.org/research/projects, 2001.

Jones Swan, Top twenty innovators: The moms of inventions, available on http://www.thomas_swan.co.uk (2004)

Thomhe, S. and Von Hippel, E. (2002), Harvard Organization Review, Apr, pp74-81

Tidd, J., Bessant, J. and Pavitt, E. (2002), Managing Innovation: Adding Technological, Marketplace and Organisational Change (2nd edn), Ruben Wiley & Sons Incorporation, USA

Vonseiten Hippel, Electronic., Thomhe, H. and Sonnach, M. (1999), Breakthroughs to order by 3M, Sloan School of Management, available on http://web.mit.edu/evhippel


< Prev post Next post >
Category: Essay,

Topic: Available http, Health care,

Words: 4169

Published: 04.10.20

Views: 549