Group 1
Chapter 7 Case Study
Innovation and Change
3M Case Study Analysis
3M is a globally renowned technology company that aims to
deliver innovative products and services to its customers and their
communities. Founded in 1!" and head#uartered in St. $aul%
Minnesota& 3M operates in many segments% including Industrial% Sa'ety%
Graphics% (lectronics)(nergy% *ealthcare% and Consumer. +he company
has over ,!%!!! patents and patent applications% as well as over
--%!!! products to o.er its customers.
/ith a 'ocus on innovation% 3M had a speci0c standing goal o'
3!)-& meaning 3!1 o' its yearly sales should come 'rom products that
are less than - years old. +his was used as a guideline 'or the company
so that they were constantly innovating% enabling them to have a
steady supply o' new products and services to o.er consumers. +en
years ago% however% when the previous C(2 was hired% the company
was unable to meet that goal. 2nly "11 o' pro0ts came 'rom new
products% but that is not an absolutely terrible thing.
3s C(2 o' 3M% we do not necessarily believe it is imperative 'or
the company to stic4 strictly to the 3!)- goal. /hen the previous C(2
stopped 'ocusing on that and implemented some Si5 Sigma processes%
pro0ts increased 3-1 to the highest they had ever been. 3M was also
able to reduce costs and increase e6ciency. Funding was also cut 'or
Group 1
Chapter 7 Case Study
Innovation and Change
the divisions that per'ormed the lowest% which would be a precedent
we would continue to implement.
It is also completely absurd to allow employees to spend hal' o' a
wor4day per wee4 doing whatever they want as long as it relates to
innovation. /hile this policy encourages a creative wor4 environment%
it is a complete waste o' money. +hese scientists and engineers are
getting paid large amounts o' money% and there is no doubt that
employees will ta4e advantage i' given that amount o' 'ree time.
So% as C(2% the decision has been made to stic4 to using Si5
Sigma procedures to reduce costs and increase e6ciencies% as
opposed to 'ocusing on innovation. 3M has already 'allen out o' the top
ran4ed innovative companies in the world% which would ma4e it
e5tremely di6cult to catch bac4 up to leading innovative companies.
*owever% with a 71!- billion mar4et cap% it is #uite 'easible 'or the
company to ma4e ac#uisitions o' companies that are producing more
innovative products.
/e% as a company% would li4e to continue providing our
customers with new and ingenious products. /e will not set a speci0c
number% or limit to the number% o' companies we plan to ac#uire.
Instead% we will have a multi'unctional team dedicated to scouting
companies producing innovative products% 'or potential buyouts. It is
much easier 'or a company to remain competitive when they ta4e
Group 1
Chapter 7 Case Study
Innovation and Change
advantage o' their strengths% and 3M is clearly able to e5cel using Si5
Sigma procedures.
doc_797678726.docx
Chapter 7 Case Study
Innovation and Change
3M Case Study Analysis
3M is a globally renowned technology company that aims to
deliver innovative products and services to its customers and their
communities. Founded in 1!" and head#uartered in St. $aul%
Minnesota& 3M operates in many segments% including Industrial% Sa'ety%
Graphics% (lectronics)(nergy% *ealthcare% and Consumer. +he company
has over ,!%!!! patents and patent applications% as well as over
--%!!! products to o.er its customers.
/ith a 'ocus on innovation% 3M had a speci0c standing goal o'
3!)-& meaning 3!1 o' its yearly sales should come 'rom products that
are less than - years old. +his was used as a guideline 'or the company
so that they were constantly innovating% enabling them to have a
steady supply o' new products and services to o.er consumers. +en
years ago% however% when the previous C(2 was hired% the company
was unable to meet that goal. 2nly "11 o' pro0ts came 'rom new
products% but that is not an absolutely terrible thing.
3s C(2 o' 3M% we do not necessarily believe it is imperative 'or
the company to stic4 strictly to the 3!)- goal. /hen the previous C(2
stopped 'ocusing on that and implemented some Si5 Sigma processes%
pro0ts increased 3-1 to the highest they had ever been. 3M was also
able to reduce costs and increase e6ciency. Funding was also cut 'or
Group 1
Chapter 7 Case Study
Innovation and Change
the divisions that per'ormed the lowest% which would be a precedent
we would continue to implement.
It is also completely absurd to allow employees to spend hal' o' a
wor4day per wee4 doing whatever they want as long as it relates to
innovation. /hile this policy encourages a creative wor4 environment%
it is a complete waste o' money. +hese scientists and engineers are
getting paid large amounts o' money% and there is no doubt that
employees will ta4e advantage i' given that amount o' 'ree time.
So% as C(2% the decision has been made to stic4 to using Si5
Sigma procedures to reduce costs and increase e6ciencies% as
opposed to 'ocusing on innovation. 3M has already 'allen out o' the top
ran4ed innovative companies in the world% which would ma4e it
e5tremely di6cult to catch bac4 up to leading innovative companies.
*owever% with a 71!- billion mar4et cap% it is #uite 'easible 'or the
company to ma4e ac#uisitions o' companies that are producing more
innovative products.
/e% as a company% would li4e to continue providing our
customers with new and ingenious products. /e will not set a speci0c
number% or limit to the number% o' companies we plan to ac#uire.
Instead% we will have a multi'unctional team dedicated to scouting
companies producing innovative products% 'or potential buyouts. It is
much easier 'or a company to remain competitive when they ta4e
Group 1
Chapter 7 Case Study
Innovation and Change
advantage o' their strengths% and 3M is clearly able to e5cel using Si5
Sigma procedures.
doc_797678726.docx