INTERNAL INNOVATION:

PLANNING

Submitted to: Prof. Deb Bryan Submitted by: Ashwin Urdhwareshe Student ID: 0998469

The process that involves many individuals, capabilities & resources.

INTERNAL INNOVATION

This is the most crucial phase in the internal innovation strategy. The model for development is built on this phase.

The vision, mission statement, goals & objectives should be clear.

PLANNING

Incorporates the internal innovation successfully. 3Ms center quality is applying its more than 40 particular

innovation stages frequently in blend to a wide exhibit of client needs.

Follows NPVI for new product development and innovation. Spends heavily on R&D. Technology oriented and driven.

Follows internal innovation and emphasis on actual data and facts before going for an innovation.

Follows QFD for new product development process. Has developed Centers for Excellence and Culture of

Innovation in the organization which emphasizes on R&D and also on promoting new innovation and ideas.

3M PALL

Encourage creativity for innovation Rely on proper market analysis showing facts & figures for innovation.

They focused on Portfolio Management, R&D and business transformation for getting higher profits

They focused on Pall Enterprise System (PES) which aimed on global operation on single ERP for profits in the market. (CoE) and (CoI)

Implied disruptive technology for growth. Use NPVI for internal innovation

Developed Center of Innovation for growth. Use QFD for new product manufacturing.

V/S

The sales which the company made were its all-time high; $32 billion and they returned $7.9 billion to their shareholders.

The company's earnings-per share went up to $7.49 in this year

3M ANNUAL REPORT 2014

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$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2008 2009 2010 2011 2012 2013 2014

Earning Per-share $

Earning Per-share $

Figure 5: Earnings per share in $

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5

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35

2008 2009 2010 2011 2012 2013 2014

Net Sales ($ in billion)

$ in billion

Figure 6: Net Sales (billions)

The firm developed a new Center of Excellence which is highly focused on R&D for their product development

The capital expenditures improved by 32% and the net sales went to $2,789.2 million.

PALL CORPORATION ANNUAL REPORT

Sales by Region

America 32%Asia 27%Europe 41%

Figure 6: Sales by Region ( $ in Million)

On analyzing the two organizations it is understood that both the firms focus on their R&D and they spend significantly for making of new product.

Also, these firms perform the market research and understand their customers on what kind of product do they need.

CONCLUSION

In my opinion, every organization as its different way for innovation and development.

While doing the research it was understood that investing on R&D is very essential but smart investing is necessary which 3M does.

The financial reports gave us a clear picture about the company and proved it to be third on the list of innovating companies in the world.

RECOMMENDATION

Internal Innovation provides greater control process. It gives a much better understanding of the

technology. It has the ability to develop next level technology that

can make great profit for any company. Innovation is the next big thing in today's

technological era and the planning for innovation is more important for any new product to come into market and make profit for the company.

LESSONS LEARNED