3M R&D3M R&D…How 3M manages Innovation
Jan PinksterTechnical Director R&D – 3M FRANCE
Innovation Innovation DayDay IBMIBM
3M Facts3M FactsYear End 2005Year End 2005
© 3M 2004. All rights reserved.
SalesWorldwide ………..……$21.2 billionInternational …………….. 12.9 billion
EarningsOperating income……. .…. $5.0 billionEconomic profit…………... $ 2.0 billion
R&D Labs in 34 countries
R&D ExpendituresFor 2005 …...…………….… $1.2 billionTotal last 5 years ….………… $5.8 billion
EmployeesWorldwide …...………………….. 69,435United States ..……………………. 33,033Scientists worldwide..………………. 6,300
Electro and Communications Business
Consumer andOffice Business
Display andGraphics Business
Health CareBusiness
Industrial & TransportationBusiness
Safety, Security and Protection Services Business
Six Six «« BigBig BusinesseesBusinessees »»
Tradition of Innovation
1904 : First sandpaper production1926: Scotch™ Masking Tape for two-tone paintjobs in the automotive industry1939: The first retroreflective traffic signs go up1947: Introduction of Scotch® Magnetic Audio Tape1954: Scotch® videotapes for first TV recordings1956: Scotchgard™ Protector for fabric and upholstery1960: The world’s first overhead projector1967: Development of the first disposable respirators1972: Data Cartridges – a breakthrough in the field of computer data storing1980: Post-it® Notes revolutionize the office world1984: Medical Laser Imager – high-quality images from digital data1995: 3M™Trizact™ Structured Abrasives using microreplication technology1997: 3M™ Volition™ LAN Cabling for Optical fiber networks2006: Fully enhanced Membrane Electrode Assembly for fuel Cell technology
CreativityCreativity andand DiversityDiversity::
TheThe CoreCore ofof 3M business 3M business modelmodel
McKnight PrinciplesMcKnight Principles
“Management that is destructively critical when mistakes are made kills initiative, and it is essential that we have many people with initiative if we are to continue to grow.”
W. L. McKnight, 1948
Culture of Innovation Culture of Innovation – 15 % of 3M scientists’ time spent on
individual projects ending up with major innovations like: Scotch® AdhesiveTapes, Post-it® Notes, Immune Response Modifiers…
Innovation objective Innovation objective untiluntil 20032003– 40% of sales with products launched in
the past four years– Now also 10% less than 1year
Mission & VisionMission & VisionMissionMission
The 3M Tech Forum is a principal organization for productive technical interaction at the interpersonal "grass roots" level. Through networking and communication, the Forum fosters an environment of creativity and cooperation that leads to innovation and growth.
VisionVisionThe 3M Tech Forum will be:
a dynamic global organizationa leader in worldwide communication and technology exchange a catalyst for professional growth and development of all technical employees a voice of the 3M technical community effective in stimulating 3M growth and recognized for upholding 3M values
Tech Forum ChaptersTech Forum ChaptersAdhesives/Adhesion
Analytical
Applied Science
Biotechnology
Business Intelligence
Electronics
Global Technical
Global Product Stewardship
Imaging
Inorganic Materials
Intellectual Property
Processes
Product Design and Development
Project Management
Radio Frequency ID
Sensors
Software & Systems
Surface Tribology & Abrasive Resources
Tech Service
Life Sciences
Microreplication
Modeling and Simulation
Nanotechnology
New Business Development
Nonwovens
Optics
Organic Chemistry
Photochemistry
Physics
Polymer
Purpose of Tech ForumPurpose of Tech ForumTech Forum….
Leads 3M in global technical communication and networkingCreates an environment of networking and cooperation across department, division, business and country boundaries
Acts as the voice of the technical communityConduit that allows open two-way dialog between technical employees and executives to promote a healthy technical organization
Provides leadership opportunities for technical employeesDevelops future technical and business leaders for 3M
Brings the latest external technical information into 3M by dentifying, sponsoring, and hosting academic and industrial invited speakers
30 Chapters covering all major 3M core technologies play a critical role in bringing relevant outside technology into 3M
Offers broadly useful technical education and professional development opportunities for technical employees
How do we do this in 3M ?How do we do this in 3M ?
Technology platforms
Technology centers
Division Laboratories
Laboratories outside of United States
MeMetalMatrix
Composites
SuSurface
Modification
FsFiltration,
Separation,Purification
DoDental &
OrthodonticMaterials
AdAdhesives
RfReclosableFasteners
AbAbrasives
DdDrug
Delivery
MrMicro-
replication
PePredictive
Engineering& Modeling
RpRadiationProcessing
AcAcoustics
DmDisplay
Materials
NmNonwovenMaterials
PmPolymer
MeltProcessing
SmSpecialtyMaterials
AsApplicationSoftware
FiFilms
IrImmuneResponseModifiers
MdMedicalDataMgmt
MiMicrobialDetection& Control
PoPorous
Materials &Membranes
PcPrecisionCoating
CeCeramics
EpElectronicPackaging
FlFluoro-
materials
ImImaging
IsIntegratedSystemsDesign
MoMolding
PdParticle &DispersionProcessing
PrProcessDesign &Control
WoWoundMgmt
CpChemical
PowerSources
FcFlexible
Converting& Packaging
FoFiberOptics
IpInks &
Pigments
LmLightMgmt
3M Technology Platforms3M Technology Platforms
3M Technology Platforms
Adhesives
Abrasives
CeramicsElectronic Packaging
Microreplication
Light Management
Specialty MaterialsNonwovenMaterials
Architecture & Construction
Automotive, Marine & Aerospace
Electronics Manufacturing
Graphic Arts
Health Care
Home & Leisure
Manufacturing & Industry
Office
Safety: Transportation & Personal
Security (Worldwide)
Utilities & Telecommunications
Integr. Systems Design
Markets
Polymer Melt Processing
Technology PlatformsTechnology Platforms-- Multiple MarketsMultiple Markets
3M Technology Platforms MarketsAdhesives
Abrasives
CeramicsElectronic Packaging
Microreplication
Light Management
Specialty Materials
Nonwoven Materials
Polymer Melt Processing
Architecture & Construction
Automotive, Marine & Aerospace
Electronics Manufacturing
Graphic Arts
Health Care
Home & Leisure
Manufacturing & Industry
Office
Safety: Transportation & Personal
Security (Worldwide)
Utilities & Telecommunications
Integr. Systems Design
Technology PlatformsTechnology Platforms-- Multiple MarketsMultiple Markets
Mix TechnologiesMix Technologies
Micro-replication
Abrasive
Reflectivetraffic signs
Scotch™ tape
Scotch-Brite™ scourers
Respirators
Micropore™surgical tape
Post-it®notes
Prod
ucts
Adhesive
Films
Non-Woven
Result Broad Product Range
AbrasivesUse of microstructured surfaces to enhance abrasive life and work- piece surface finish
AdhesionStructured placement of adhesives to limit contact area and/or to permit air bleed
Light ManagementUse of microstructured surfaces to control direction of light path
RetroreflectionUse of microstructures to direct light back toward source
MicroreplicationMicroreplication
But people donBut people don’’t buy technology, t buy technology, they buy productsthey buy products
J. Ihlenfled
Ex. Vice President R&D WW
Technology centers – (600)Technology Development 3-10 years
Division Laboratories – (3000)Product Development Today’sProduct Engineering, Control BusinessTechnical Service 0-3 years
European Laboratories – (1200)Technical Service Today’sProduct Engineering Control BusinessProduct Development 0-3 years
Selected Technology centers 0-5 years
Japan laboratories (600)China laboratories (250)
R&D R&D OrganisationOrganisation 3M3M
Mission of Technical ServiceMission of Technical ServiceExcellent understanding 3M technologies so contribution to GROWTH in his business center by being interface customer - laboratory
Communication Customer NeedsCommunication Customer NeedsCommunicate local needsCommunicate customer processes, process mapingmarket needsReport communication network:
Solve, anticipate customer (expressed) needs with 3M solutions
““Even if you are on the right track, Even if you are on the right track,
youyou’’ll get run over if you just sit there.ll get run over if you just sit there.””
Will RogersWill Rogers
Where New Growth Platforms AreWhere New Growth Platforms AreMaking A DifferenceMaking A Difference
Sensors / Diagnostics / Indicators
Track and Trace
Separation / Filtration
Identification / Authentication
Vehicle Management/ Intelligent Highways
$46B 10%
$6B 20%
$20B+ 10%
$5-10B 12%
N/A N/A
IB E&C HC TR C&O D&G SSPS OUS- Indicated areaof interest
Mkt.Size Growth
Nanotechnology $20B 20%
Growth Platforms Leveraged by Multiple Businesses
Corporate Research LabCorporate Research LabVisionVision
C & OC & O
D & GD & G
E &
CE
& C
TB & IB
TB & IBSS
&PS
SS&
PS
HCHC
TechnologyTechnology
CRMLCRML
SEMSSEMS
CR
AL
CR
AL CR
PL
CR
PL
Role of theRole of theCorporate Research LaboratoryCorporate Research Laboratory
Develop significant technology to drive/support 3M’s future businesses
Align technology with high growth markets
Provide technology to support Big B core growth
Externalize technology development/acquisition
Develop a global technology plan
Serve as an entry point for high potential technical staff on a global basis. Re-prime the hiring pipeline on a global basis
MeMetalMatrix
Composites
SuSurface
Modification
FsFiltration,
Separation,Purification
DoDental &
OrthodonticMaterials
AdAdhesives
RfReclosableFasteners
AbAbrasives
DdDrug
Delivery
MrMicro-
replication
PePredictive
Engineering& Modeling
RpRadiationProcessing
AcAcoustics
DmDisplay
Materials
NmNonwovenMaterials
PmPolymer
MeltProcessing
SmSpecialtyMaterials
AsApplicationSoftware
FiFilms
IrImmuneResponseModifiers
MdMedicalDataMgmt
MiMicrobialDetection& Control
PoPorous
Materials &Membranes
PcPrecisionCoating
CeCeramics
EpElectronicPackaging
FlFluoro-
materials
ImImaging
IsIntegratedSystemsDesign
MoMolding
PdParticle &DispersionProcessing
PrProcessDesign &Control
WoWoundMgmt
CpChemical
PowerSources
FcFlexible
Converting& Packaging
FoFiberOptics
IpInks &
Pigments
LmLightMgmt
AmAdvancedMaterials
BiBiotech
VpVacuum
Processing
PpPrecision
Processing
NtNano
Technology
3M Technology Platforms3M Technology Platforms
EBOEBO’’ss
EmergingEmerging Business Business OpportunitiesOpportunities
Innovation RealitiesInnovation Realities
Customer IntimacyInnovation is a Team SportTop Management: Covert Champions/Double AgentsMosaic ThinkingTools in the ToolboxIt Takes a Special Talent
“Make more, make new from what we can do”
The Innovation ImperativeThe Innovation Imperative
Innovation Personal SatisfactionInnovation SurvivalInnovation Competitiveness
Innovation Growth
Connecting customers to technology to change the basis of competition
Fluid, flexible, mobile resources
Passion for business building15% time: creative,
independent thinkingMindset for problem solving
Collaborative TeamsTechnology
Sharing/TransferExternal Technology
SourcingWorldwide Networking
Maintaining Our StrengthsMaintaining Our Strengths
Building Strength on Strength
Sending wrong signalsSending wrong signals
It’ll never work
We explored that thoroughly 10 years ago
OK, if we can get somebody else to pay for it
We’re too shorthanded to work on blue sky ideas
It’s not in the business plan
It’s not your job to talk to customers
Need to balance business goals with risk-taking
Requires higher level leadership game - following rules of resourcing and allocating wisely
Disruptive technologies challenge core business stability
Metrics are difficult to establish for very unique projects
Entrepreneurs have to compete with existing business for budget, operating resources, people
Leading Innovation: Leading Innovation: Some ChallengesSome Challenges
Rewards and RecognitionRewards and Recognition
Circle of Technical Excellence and Innovation
Dual Ladder
Genesis Grants
Carlton Society