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3MGroup 2: NguynThHin

ngThLin

LiThanh TrangL PhngTho

NguynThThoLy

NguynNhThAnhNhChinh

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Outline

Introduction

Innovation in 3M

Conclusion

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3M

Formerly known as the Minnesota Mining andManufacturingCompany

With over 76,000 employees they produce over55,000 products, including: adhesives, abrasives,laminates, passive fire protection, dental

products, electrical materials, electronic circuitsand optical films (cht kt dnh, cht mi mn,cn mng, phng chy cha chy th ng,sn phm nha khoa, vt liu in, mch in

t v phim quang hc)

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3M: A brief history

Established in 1902, producing abrasives and adhesives products.

Benefited from product innovation in the early days

The culture of individual entrepreneurship

The McKnight era, 1929-1966

Organizational design for continuous changes

The Lou Lehr era, 1980-1985

Reorganization and reorientation

The Jake Jacobson era: 1986-1991 The orientation to competition in existing markets

Main characteristics:

Changes and evolution in adaptation to environments

Changes in organizational attributes for innovation

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3M: The Permanently Changing Organizations

One of the ten most admired corporations Fortune

annual poll of American CEOs.

The 3M model:

Continuous technological innovation Institutionalized individual entrepreneurship

Market responsiveness

How is this possiblewhat are the challenges?

Institutionalized individual entrepreneurship?

Growth versus decentralization?

Balance between structure, culture, versus change?

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Innovative Culture in 3M

3Ms culture fosters an environment ofinnovationInnovation of culture in 3M:

- Give people time to follow their dream.

- Make it a part of the experts job to share theirknowledge.

- Result must be measured.

- Be honest and know when to say no.

- Promote a career not a job.- Internationalize your management team.

- Keep spending on research and development.

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Vietnamese Honda motor companyRespect the ideas of the employers as well as

employees

Create a friendly and active working environment

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INNOVATION

MANAGEMENT

Building a innovative organization

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Recognition & reward

Reinforcement of core values

Sustaining circulation

Allocating slack & permission to play Patience

Acceptance of mistakes & encouragement of risk-taking

Encourage bootlegging

Policy of hiring innovators

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Recognition reward Schemes to acknowledge innovative activities

Recognizes effort > achievements

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Reinforcementof core values

Innovation is respected

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Sustainingcirculation

Different people + Different perspectives

= creative combinations

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Allocating slack &

permission to play

Curiosity-driven activities

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Patience

Acceptance of the need for stumbling in motion

as innovative ideas evolve and take shape.

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Acceptance of mistakes &

encouragement of risk-taking

Mistakes will be made, but if a person is essentially right,

the mistakes he or she makes are not as serious, in the long

run, as the mistakes management will make if its dictatorial

and undertakes to tell those under its authority exactly how

they must do their job

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ncourage bootleggingGiving employees a sense of empowerment

and turning a blind eye to creative ways

=> get around the system acts

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Policy of hiring innovators

looking for people withinnovator tendencies and characteristics

An opportunistic mindset

Formal education or training

Proactivity and a high degree of persistence

A healthy dose of prudence

Social capital

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May Saigon 2 Company

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VNU-UEB

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Eurowindow

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Innovation in organization structure

3M used to be organic structure, which links

people in different functions into a coherent.

3M divided most employees network into at

least five levels: department, division, group,sector and company

What is organic structure? Its advantage &

disadvantage?

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What is organic structure

the organization has characteristic:

Flatness: communication & interaction are horizontalLow specialization: knowledge resides wherever it is most

useful

Decentralization: great deal of formal and informalparticipation in decision making

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They have a flexible approach to the continually changingfinancial and customer environment.

They can be very responsive and quick to make changes

Staff structures are also very fluid, with wide ranging jobdescriptions

They cope better with unstable environments

The employees are very much involved in decisionmaking and problem solving; this enhances motivation,commitment and gives a variety of perspectives

The ease of ability or change enablesorganic organizations to be more creative and imaginative

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Disadvantage

No Boundaries

Unproductive Directives:

Ineffective Leadership

Communication Barriers

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Case in Viet nam

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Process*Develop:

- Structure- PoliciesGuide innovative activity: picking up signals through

implementation

*Parallel routes through their systemInnovations can come from many ways:

- Market interactions

- Deep technology research

- collaboration- unexpected discovery

*Association skill:

Technical knowledge awareness of real / latent market

needs => creative combination

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System for innovation & extensions:

*1st : formal stage-gate (a trial by fire), based on

established productsWell-known but need encouraging innovation

champions to take non-linear ideas

*2nd : incubator stage:o ideas are encouraged & development funds are

available

o reject loose targetso strict business plan appraisal for projects

=> funnels and clear gateway

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Honda Viet Nam

Manufacturing Process: 2nd system

- Event / Competition:

o employees speak out their ideas at any time

o prize for the valuable contribution.

- The good idea will apply to the process

- Implementing R&D from fortunate discoveryby their staff

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Innovation Strategyand

Leadership

- CEOs have been strongly associated with enacting

and supporting the innovation culturewhich

characterizes the firm

- The overall innovation strategy is focused on two

core themesdeep technological competence andstrong product development capabilities

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Innovation Strategy

Setting stretch targets, a focus for the wholeOrganization.

Allocating space and time for staff to exploreideas.

Encouragement employees working oninnovation projects in their own time and oftenaccessing resources in a non-formal way

Encourages intrapreneurship (internalentrepreneurial behaviour) rather than peoplefeeling they have to leave the firm to take their

good ideas forward.

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Innovation Strategyand Leadership

in Vietnam

CEOs should take time to understand the

potential of their employees and the prospect

of their organization.

Encourage and incentive with new ideas which

have good outcome or improvement.