Case Outline

The Minnesota Mining and Manufacturing Company (3M) has a long history of innovation. 3M initially branched out into health care in 1961. This unit of 3M has grown substantially since that time and in more recent years it has seen annual sales reach more than two billion dollars. This case dates back to 1997. The Health Care Unit is a core component of 3Ms business model. Although, the unit was recording significant and increasing sales, it had failed to introduce a successful product in almost a decade. A senior product specialist Rita Shor has been the in charge of developing a new breakthrough product using a new and innovative market research method called Lead User Research. After many months implementing the new market research technique, Rita and her team landed on four recommendations. Three of the recommendations would see the introduction of new product lines, whereas the fourth recommendation hinged on a complete rewrite of the Health Care Units business strategy.

About the Company

Five business men founded 3M, formerly known as The Minnesota Mining and Manufacturing Company in Minnesota in 1902. The firm is now headquartered in St. Paul, Minnesota initially stayed close to abrasives developed worlds first waterproof sandpaper in early 1920s. Over the decades 3M enjoyed national as well as global growth and the reputation of hothouse of innovation. 3M encouraged innovation through giving awards for innovation and in house grants for innovative projects. Company Employed Dual Ladder Approach Provide attractive career opportunities to senior, technical inclined individuals without having to switch to management. 3M model of expansion Splintering off decentralized units based on new key product areas that were sufficiently different from prior key technologies. Company objectives in 1990 Producing 30% of sales from product that did not exists 4 years earlier Greater than 10% annual growth in earnings per share Greater than 27% return on capital employed 20 25% on equity

The Problem
The Health Care Unit was an important component of 3Ms business model, contributing a large percentage to the companys revenue streams. Although, the unit was recording significant sales, it had failed to introduce a successful product in almost a decade. The companys working objective was to produce thirty percent of sales from products that did not exist four years earlier. Traditional market research methods were marred with shortcomings, and have proved to be ineffective in helping the Health Care Unit understand customer and market needs.

Rita Shor, a senior product specialist, with a creative mind and many years experience at 3M was tasked with developing an innovative product or process that would see unit break free of its long streak of unsuccessful products. After prolonged market research, the team comes up with four recommendations, three of them were innovative product concepts in the infection control area. But the fourth recommendation created tension in the business unit as it involves a departure from the current strategy statement.