CaseStudy-Innovation-at-3M(TN)

DoNotCopy5-699-135REV:FEBRUARY28,2003________________________________________________________________________________________________________________ThisnotewaspreparedbyProfessorStefanThomkeandResearchAssociateAshokNimgadeforthesolepurposeofaidingclassroominstructorsintheuseof“Innovationat3MCorporation(A)”and“Innovationat3MCorporation(B),”HBSNo.699-012and699-013.Itprovidesanalysisandquestionsthatareintendedtopresentalternativeapproachestodeepeningstudents’comprehensionofbusinessissuesandenergizingclassroomdiscussion.HBScasesaredevelopedsolelyasthebasisforclassdiscussion.Casesarenotintendedtoserveasendorsements,sourcesofprimarydata,orillustrationsofeffectiveorineffectivemanagement.Copyright©1999PresidentandFellowsofHarvardCollege.Toordercopiesorrequestpermissiontoreproducematerials,call1-800-545-7685,writeHarvardBusinessSchoolPublishing,Boston,MA02163,orgoto—electronic,mechanical,photocopying,recording,orotherwise—withoutthepermissionofHarvardBusinessSchool.TEACHINGNOTEInnovationat3MCorporation(A)&(B)CaseSynopsisThecasedescribesthe3MMedical-SurgicalMarketsDivision’sexperienceindevelopinganewprocesscalled“LeadUserresearch.”Initiallyperceivedasanewmethodologyforunderstandingfuturecustomerandmarketneeds,ateamfromtheDivisionappliesLeadUserresearchtothefieldofsurgicalinfectioncontrolanddiscoversnotonlynewproductconceptsbutalsoapromisingnewbusinessstrategy.Inconsequence,thedivisionescapesacycleofincrementalisminitsinnovationprocess.Thecaseissetin1997when3M’sMedical-SurgicalMarketsDivisionisaworldleaderinthesurgicaldrapesmarket.Despiteitsworlddominance,however,overalltheunitisstagnating.Inthepastdecadeithasintroducedonlyonemajorsuccessfulproduct.Now,SeniorProductSpecialistRitaShorhasbeenchargedwiththemandateofdevelopinganewbreakthroughproductwithintheexistingbusinessstrategy.TheMedical-SurgicalMarketsDivisionhasfoundfrompriorexperiencethatitsmarketresearch,whileprovidinganabundanceofinvaluabledata,doesnotalwaysprovidesufficientinformationforconceptualizingbreakthroughproducts.Shor,however,hasheardofanewprocessforlearningaboutunarticulatedcustomerneedsandtheirsolutions.Thisprocess—knownasLeadUserresearch—seekstotapintoexpertiseofcertaininnovativecustomersthatexperiencemarketneedsaheadofotherconsumers.Necessityhasmotheredsurprisingnewinnovationsthroughthehandsoftheseleadusers,anditishoped,thenewprocessprovidesawayforfunnelingtheseinnovationsintocompanies.Throughthehelpofconsultants,ShorhaslaunchedaLeadUserstudywithinherdivisioninSeptember1996.Alongtheway,followingachangeinseniormanagement,Shor’steammeetsresistancefromskepticalsuperiors,manyofwhomareusedtoworkingwithmoretraditionalapproachesthatarequantitativeandhavemorepredictableoutcomes.Drawingonexpertiseofadozenleadusersgatheredfrombackgroundsasdiverseascosmeticstosurgery,theteamcomesupwiththreeinnovativeproductconceptsintheinfectioncontrolarea.Thefourthrecommendation,however,createstensioninthebusinessunitasitinvolvesadeparturefromtheunit’scurrentstrategystatement.Inanintensedebate,Shor’steammembersaresplitoverwhethertoevenpresenttherevolutionaryfourthrecommendationtoseniormanagement.DoNotCopy699-135TeachingNote—Innovationat3MCorporation(A)&(B)2Theoptional(B)casefocusesondeepeningtheunderstandingoftheLeadUserconceptandprocess,particularlythesearchforleaduseexperts,andcanbeusedinabreakoutgroupsession.The3MPerformanceChemicalsandFluidsDivisionislookingforamarketforaninnovativerefrigerationtechnology—oneof3M’sthousandsofinnovativetechnologieslanguishingforwantofamarket.Thestudentsareaskedtohelpwiththedifficultbutcrucialtaskofselectingasetofleadusersforitsproductconceptworkshop.TeachingObjectivesThe3McasehasbeenusedinMBAandexecutivecoursesinproductdevelopment,marketingandinnovationstrategyatHBSandelsewhere.Iteachitasthefirstcaseinthesecondmoduleofthesecond-yearelectiveManagingProductDevelopment(seemoduleoverviewnoteProductDevelopmentProcessDesignandImprovement,HBSNo.603-090).Themoduleaddressesthedesignandimprovementofdevelopmentprocesses,includingfastertime-to-market,theintegrationofnewtechnologiesandnewparadigmsforstructuringhowproductsaredesigned.The3Mcaseintroducesaninnovativeapproachoftappingintoadvancedusersandhowtheirinputis“designed”intodevelopmentprocesses.Inparticular,thecaseaddressesthefollowingthemes:!Breakthroughproductsandservices:the3Mcaseseriesillustratesthedifficultmanagerialandprocessissuesthatfirmsfaceintheirattempttoovercomeincrementalismanddevelopnewbreakthroughproductsandservices.!LeadUserresearch:theserieshasverydetailedstep-by-stepdescriptionsandexamplesofhowtoconductLeadUserresearchstudies,preparingstudentsandexecutivestousetheprocessintheirownacademicprojectsorcompanies.!Managingchange:thecasematerialandtheclassdiscussionaddressthechallengesofintroducingnewandunprovenprocessesintoasuccessfulorganization.AdditionalMaterialTherecommendedteachingplanincludestheuseofavideo,“BreakthroughProductsandServic