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0NIvERSITY 0F TECBN0L0uY, SYBNEY

Case Stuuy:
Innovation at N Coipoiation (A)

Ctoop Membets Sarah Panlgkaur 10837399 Mar[orle Munoz 10718207
1hong nguyen 10723238 Claudla ?ork 10724233

@ototlol llavla uarln Monday 8pm
obmltteJ to kyuseop kwak
uote Monday 22nd AugusL 2011










CompleLed as parL of Lhe requlremenLs for 24223 nLW 8CuuC1 AnAL?SlS Anu uLvLLCMLn1

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1 now hos lMs innovotion process evo/ved since the compony wos founded? why if ot o// does lM
known os o hothouse of innovotion need to reqoin its historic c/oseness to the customer?
uurlng Lhe lasL cenLury 3M has grown from havlng one core Lechnology of adheslves and
sandpaper Lo over 30 key Lechnologles by Lhe laLe 1990s Accordlng Lo ArndL (2006) 3M's
corporaLe research vlcepresldenL Larry Wendllng sLaLes LhaL Lhere are 7 maln reasons
conLrlbuLlng Lo Lhe company's lnnovaLlve success ranglng from Lhe flrm's commlLmenL Lo
lnnovaLlon Lo cusLomer Lled research 1he developmenL and progress of 3M's lnnovaLlon has
enabled Lhe company Lo flourlsh slnce lLs lncepLlon
3M's process of lnnovaLlon sLarLed ln Lhe early 1900's ln order Lo beLLer undersLand producL
needs Lhe flrm's Lechnlclans would bypass purchaslng agenLs Lalklng dlrecLly Lo workers ln
facLorles and workplaces Cver Lhe decades 3M Lechnlcal employees were encouraged Lo devoLe
up Lo 13 of Lhelr worklng hours Lo lndependenL pro[ecLs also called 'booLlegglng' Powever ln
Lhe 1990's Lo achleve hlgher raLes of lnnovaLlon 3M soughL Lo change Lhe mlx of new producLs Lo
emphaslze producLs Lruly new Lo Lhe world lnsLead of mere llne exLenslons 1hls lnvolved
'skunkworks' Leams of Lechnlcal lndlvlduals and process englneers who Look lnnovaLlon lnLo Lhelr
own hands As a resulL 3M's Lools Lo ldenLlfy markeL needs moved from a focus on cusLomer vlslLs
Lo more LradlLlonal markeL research meLhods
3M needs Lo regaln lLs hlsLorlc closeness Lo Lhe cusLomer as LradlLlonal meLhods for undersLandlng
cusLomer and markeL needs ls noL enough Lo concepLuallze a breakLhrough producL 1he use of
LradlLlonal markeL research Lools for lncremenLal lnnovaLlon has losL lLs efflcacy as many of 3M's
producL concepLs are lefL neglecLed on drawlng boards awalLlng markeLs 1hls can be clearly seen
ln Lhe MedlcalSurglcal MarkeLs ulvlslon where Lhey 'had gone almosL a decade wlLh only one
successful producL' lL ls essenLlal LhaL 3M moves away from lncremenLal lnnovaLlons Lhrough
sLressed loglc and quanLlflable daLa Lowards new needsbased drasLlc lnnovaLlon LhaL can be
fulfllled Lhrough Lhe Lead user process whlch wlll allow Lhe company Lo once agaln regaln lLs
hlsLorlc closeness Lo Lhe cusLomer
2 now does the Leod user reseorch process differ from ond comp/ement other troditiono/ morket
reseorch methods?
1he Lead user 8esearch process developed by Lrlc von Plppel ln 1986 ls a cusLomer drlven
process ln whlch Lhe flrm aLLempLs Lo dlscover undersLand and saLlsfy Lhe laLenL needs of lLs
cusLomers or dlscover new markeL opporLunlLles LhaL are noL lmmedlaLely obvlous by LradlLlonal
meLhods 1hrough lead user lnvolvemenL a company would be able Lo galn lnslghLs lnLo fuLure
developmenL ln LargeL markeLs (Munksgaard and lreyLag 2009) by Lapplng Lhe experLlse and
experlence base of lead users 'Lhe lndlvlduals or flrms LhaL experlence needs ahead of Lhe markeL
segmenL ln whlch Lhey operaLe' ln conLrasL a LradlLlonal focus on markeL research also called
reacLlve or backward looklng (!ohnson 1998) concenLraLes on capLurlng cusLomers' prevlous
experlences wlLh a producL or servlce Lhrough convenLlonal meLhods lncludlng focus groups and
lndepLh lnLervlews
Cne of Lhe maln dlsLlncLlons beLween each process lles wlLhln lLs markeL orlenLaLlon 1he Lead
user research process ls a proacLlve meLhod seeklng Lo capLure a wlder range of lnformaLlon ln
Lhe form of boLh spoken needs and unspoken needs (WlLell eL al 2010) from lead users ofLen
monLhs or years before Lhe bulk of Lhe markeLplace faces Lhem Cn Lhe oLher hand LradlLlonal or
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reacLlve markeL research concerns a company's efforLs Lo dlscover undersLand and saLlsfy Lhe
expressed or spoken needs of lLs cusLomers whlch are llkely Lo be based on experlences wlLh
prevlous usage
1he followlng polnLs ldenLlfy many of Lhe lnherenL dlfferences beLween Lead user and LradlLlonal
research meLhods
O Lead user meLhodology sLresses quallLaLlve problng whlle LradlLlonal research focus on
quanLlflable quesLlons
O Lead user research sLrlves Lo creaLe cuLLlng edge drasLlc lnnovaLlon whlle LradlLlonal
research ls mosLly lnvolved wlLh lncremenLal lnnovaLlon
O lnformaLlon collecLed uslng Lhe Lead user meLhods orlglnaLe from Lhe leadlng edges of Lhe
LargeL markeL and analogue markeLs (lead users) Lhe early adopLers whlle daLa from
LradlLlonal research ls collecLed from users aL Lhe cenLre of Lhe LargeL markeL
O Lead user research ls more sub[ecLlve descrlblng a need from Lhe polnL of vlew of Lhose
experlenclng lL whlle LradlLlonal meLhods are more ob[ecLlve provldlng observed facLs
Lhrough sLaLlsLlcal and analyLlcal meLhods
neverLheless Lhese lnherenL dlfferences make Lhe Lwo meLhods complemenLary Cn lLs own one
meLhod cannoL produce all Lhe lnformaLlon Lhe company wlll need for a new venLure Powever
when used ln comblnaLlon wlLh each oLher Lhe Lwo meLhods can make Lhe markeL research
process more effecLlve and dynamlc lor example ln SLage ll (needs ldenLlflcaLlon) Lhe Leam 'had
reached a sLage where secondary llLeraLure could no longer add much value' Pence Lhe Lead
user sLeps ln Lo open up new avenues of lnslghL provldlng more proprleLary lnformaLlon 1hls
ulLlmaLely leads Lo a more valuable and successful markeL research process where lnformaLlon ls
obLalned by many sources provldlng many perspecLlves
;l nos the Medico/5urqico/ teom opp/ied the Leod user reseorch process successfu//y? why or why not?
When applylng Lhe Lead user research process Lhe MedlcalSurglcal Leam dld very well ln some
areas buL was noL as successful ln oLhers ln sLages 1 and 2 of Lhe Lead user research process Lhe
MedlcalSurglcal Leam were very successful 1hey managed Lo sLay wlLhln Lhe Llme frames bulld
an lnvaluable daLabase of lnformaLlon and seL a goal Lo selecL a speclflc needrelaLed Lrend Lo
focus Lhelr research on When lL came Lo sLages 3 however Lhe Leam began Lo face some
problems
uurlng sLage 3 Lhe Leam spenL over 4 Llmes Lhe recommended Llme frame Lo flnd lead user
experLs whlch mosL llkely would have lncreased cosLs for Lhe pro[ecL overall 1he Leam dedlcaLed
mosL of Lhelr efforLs durlng Lhls sLage Lowards locaLlng lead user experLs and dld noL spend
enough Llme on concepL generaLlon even Lhough Lhls was ouLllned ln Lhe research meLhodology
SLage 4 also broughL abouL several lssues for Lhe Leam Cne of Lhe maln elemenLs of success for
Lead user research ls supporLlve managemenL uurlng Lhls phase Lhere was a change ln senlor
managemenL Sam uunlop came from a LradlLlonal markeL research background and was qulLe
crlLlcal of Lhe new concepL 1hls proved Lo be a ma[or seLback for Lhe Leam as Lhey had Lo resell
Lhe concepL Lo Mr uunlop Powever ln Lhe oLher parLs of sLage 4 Lhe Leam performed qulLe well
and Lhe Lead user workshop provlded Lhem wlLh 4 recommendaLlons Lo make Lo managemenL
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Cn Lhe whole lL can be sald LhaL Lhe MedlcalSurglcal Leam applled Lhe Lead user research process
successfully as Lhey achleved Lhe deslred ouLcome of 'unearLhlng producL developmenL
opporLunlLles LhaL were noL lmmedlaLely obvlous by LradlLlonal meLhods' Lven Lhough Lhey dld
face some lssues durlng Lhe course of Lhe research and Lhe pro[ecL dld Lake almosL Lwlce as long
as expecLed when applylng a new sLraLegy for Lhe flrsL Llme Lhere wlll always be some areas for
lmprovemenL 1he Leam should learn from Lhelr mlsLakes here and Lhe nexL Llme Lhls concepL ls
applled Lhe research process should run more smooLhly and hopefully nexL Llme Lhe research can
produce more useful producL developmenL concepLs wlLh fewer errors and/or compllcaLlons ln
Lhe process
4 What shou|d the Med|ca|Surg|ca| Lead User team recommend to Dun|op the three new product
concepts or a new bus|ness strategy? What are the r|sks to the new Lead User process at 3M? What are
the r|sks to the Med|ca|Surg|ca| bus|ness un|t?
Conslderlng Lhls ls Lhe flrsL Llme any buslness unlL ln 3M has pursued Lead user markeL research lL
ls remarkable LhaL Lhe Leam uncovered such revoluLlonary flndlngs Cf Lhe four recommendaLlons
Lhe flrsL Lwo 'represenLed sLralghLforward llnear exLenslons' Lhe Lhlrd opened Lhe door Lo a $2
bllllon markeL and Lhe flnal proposed a revoluLlonary change whlch could change Lhe dlrecLlon of
Lhe buslness unlL 1hese flrsL Lhree recommendaLlons appear very promlslng for 3M and allgn wlLh
Lhelr 'lncremenLallsL approach' whllsL sLlll allowlng Lhem Lo be lnnovaLlve Pence Lhe Medlcal
Surglcal Lead user Leam should recommend Lhe Lhree new producL concepLs
lL ls probably besL Lo Lry Lhe relaLlvely rlskfree opLlon flrsL and aL leasL valldaLe LhaL whaL Lhe Lead
user research had uncovered ls ln facL Lruly proprleLary and can lead Lo new proflLs lf Lhe flndlngs
or recommendaLlons were lmplemenLed successfully Also lf Lhe Lhree producLs become
successful ln Lhe markeLplace 3M can become confldenL ln applylng Lhe Lead user process Lo
many of lLs oLher buslness unlLs Lo creaLe more breakLhrough producLs
Powever lf Lhe producLs are noL successful lL may noL be due Lo Lhe Lead user process lLself buL
due Lo pracLlcal errors ln lmplemenLaLlon 1hus lL may be LhaL Lhe Lead user process sLlll becomes
lmplemenLed due Lo orlglnallLy of flndlngs and noL re[ecLed slmply due Lo unsuccessful
lmplemenLaLlon Also referrlng back Lo quesLlon 3 Lhe Leam had achleved lLs purpose ln flndlng
someLhlng Lruly revoluLlonary and alLhough Lhere are sLlll correcLlons Lo be made Lo Lhe Lead user
process lL ls unllkely LhaL lL wlll be ellmlnaLed from 3M compleLely 1hus Lhere ls a low level of
rlsk Lo Lhe Lead user process aL 3M lf Lhe Leam recommends Lhe Lhree new producL concepLs
ln Lerms of rlsks Lo Lhe MedlcalSurglcal buslness unlL Lhls ls also qulLe mlnlmal 1he Leam ls
confldenL LhaL senlor managemenL would approve of Lhe recommendaLlons slnce Lhey had 'scope
for synergy wlLh 3M's exlsLlng acLlvlLles and buslness unlL sLraLegy' Also Lhe Lhree producL
recommendaLlons were regarded by exLernal experLs as 'concreLe concepLs' whlch would help
Lhe Leam convlnce Mr uunlop LhaL Lhey are capable of concepLuallzlng a breakLhrough producL
Conversely 'lf Lhe Leam proceeds Loo qulckly wlLh Lhe fourLh recommendaLlon senlor
managemenL may pull Lhe plug on everyLhlng Lhe producL recommendaLlons as well as Lhe Lead
user meLhod lLself'
1hus lL would be beLLer Lo recommend Lhe less rlsky opLlon Lo a somewhaL conservaLlve and
crlLlcal senlor managemenL lnsLead Lhey can reporL Lhelr fourLh flndlng a more elaboraLe and
rlsky venLure as an addon concern for Lhe buslness unlL Lo conslder ln Lhe fuLure
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eferences

ArndL M 2006 Ms eveo llllots of looovotloo 8eLrleved AugusL 19 2011 from
wwwbuslnessweekcom
!ohnson Mu 1998 costomet Otleototloo ooJ Motket Actloo renLlcePall new !ersey
Munksfaard k8 and lreyLag v 2008 'ComplemenLor lnvolvemenL ln producL developmenL'
Iootool of 8osloess ooJ loJosttlol Motketloq vol 26
WlLell L krlsLensson CusLafsson A and Lofgren M 2010 'ldea generaLlon cusLomer co
creaLlon versus LradlLlonal markeL research Lechnlques' Iootool of etvlce Moooqemeot vol 22
no 2

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