. Innovation at 3M Afsal Sha 14007 Ashok Mohan 14026 Devaiah A G 14045 Irishi R 14064 Tony Sebastian 14171 Group 3, Section C
2. Case Facts • A group of talented individuals embarked to introduce leading edge market research for understanding customer needs called “Lead User Research”. • Initiative to introduce this method had now grown into a revolutionary series of recommendations that threatened to rip apart the Medical – Surgical Markets Division. • The research team now wants to rewrite the entire business unit’s strategy statement to also include more pro-active products or services. • This recommendation goes against the incremental growth approach of 3M.
3. About 3M • The 3M Company, formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in St. Paul, Minnesota. • To achieve high rates of innovation, 3M placed a heavy emphasis on R&D. • 3M followed the incremental approach of innovation and product development. • Company allows all staffs to spend 15% of their time to explore new ideas. • Major innovations are Post-it note, Waterproof Sandpaper and Mask Tape.
4. Problem Identification • The Medical – Surgical Division focused largely on surgical drapes and surgical prepping. • 3M was highly penetrated on a niche for surgical drapes and prepping in US market. • But sales in US had limited growth and overseas markets were limited by high cost of 3M products. • Because of these reasons the business unit had gone almost a decade with only one successful product. • In order to revive the business unit, senior management charged Rita Shor with the mandate of developing a breakthrough product.
5. Traditional Approach • Marketing input traditionally came from current customers and sales representatives. • 3M usually hires small research firms for market research reports. • Few market researchers also worked at 3M. • Tools used by 3M to identify market needs: • Data from sales representatives • Focus groups • Customer evaluations of current products • Site visits by 3m Scientists and technologists • These methods had disadvantages like too many interfaces between development teams and customers and information obtained were not proprietary.
6. Lead User Research • The Lead User method provides a means to unearth product development opportunities that are not immediately obvious by traditional methods. • It allows for accurately forecasting market opportunities by tapping the expertise and experience base of “lead users”. • Some lead users may be involved with just one or more of the important attributes of the problems faced by users in the target market. • Lead user methodology involves 4 stages and typically take five or six months.
7. Lead Users • Lead users are users of a product or service that currently experience needs still unknown to the public and who also benefit greatly if they obtain a solution to these needs. • Lead Users' real life experience is needed for marketing research in fast-moving fields. • Lead users of a novel or enhanced product, process or service as those displaying two characteristics: • Lead users face needs that will be general in a marketplace—but face them months or years before the bulk of that marketplace encounters them, and • Lead users are positioned to benefit significantly by obtaining a solution to those needs.
8. • There is a four step process thorough which lead user can be incorporated into marketing research. They are: • Identify an important market or technical trend; • Identify lead users who lead that trend in terms of (a) experience and (b) intensity of need; • Analyse lead user need data; • Project lead user data onto the general market of interest.
9. Lead User Research Process Stage I: Project Planning (up to 4-6 weeks) • Establish new relationships, gather support from peers. • The team also identifies the types of markets and new products of interest, the desired level of innovation, and key business constraints. • Stage I typically starts by informally interviewing industry experts to get a feel of the current trends and market needs. Stage II: Trends/Needs Identification (up to 5-6 weeks) • Starts with a four-day workshop at the beginning to come to terms with the information generated in Stage one. • Focused interviews with relevant lead user experts. • Ultimately, leads to framing a specific need related trend for which a new product can be developed.
10. Stage III: Preliminary Concept Generation (up to 5-6 weeks) • Preliminary concepts involving ideal attributes and features that will best meet customer needs in chosen area of focus. • The team informally assess business potential for the product or service being conceptualized. • Concepts come from lead users in target markets. • Business fit of concepts being conceptualized. Stage IV: Final Concept Generation (up to 5-6 weeks) • Mainly centres around a 1 to 2 day lead user workshop. • Generating altern