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The Keys to Innovation

National University of Singapore
        20th March 2013




                                    Dr. Geoff Nicholson
                                Visiting Professor NUS
      VP 3M International Technical Operations (retired)
                        Board Director Cima NanoTech
EMBRACING INNOVATION…

 How do you define innovation?
 Is it part of your business plan?
 Is it the responsibility of all disciplines in your organization?
 Do you provide the resources to do it?
 Do you measure it?
 Are long term research groups in touch with the customer?
 What volunteer employee activities foster innovation?
 How do you encourage volunteers?
 Does your organization have a history of stories to help
  employees learn about innovation?
 Does the organization recognize innovative achievements?
REQUIREMENTS FOR INNOVATION



   Commitment
      Courage
         Confidence
Innovation is our
biggest
competitive
advantage &
the heart of
3M...

               Inge Thulin, 2012
                  3M President, CEO &
                 Chairman of the Board
640K ought to be enough for anybody.


                          Bill Gates, 1981
3M is a Global Company
                                                                                  Norway             Poland             Switzerland
                                          Canada                                                                                       Hungary
                                   United                                       
                                   States                                    Czech                              East           Austria                 Romania
                                                                          Republic Sweden                                                            
                    Puerto Rico                                                                     Finland                          Ukraine
                                                                         Germany                                                                         Russia
       Dominican                                                                                                                                         
       Republic
                                                                    Denmark
                                                                       
     Jamaica                                                                                                                                                   Korea
                                                                  Netherlands
                                                                                                                                                              
                                                                  
                                                              Belgium
                                                                                                                                                              Japan
     Mexico                                                                                                                                                      
                                                        United
                                                     Kingdom
                                                                                                                                                            China
      Guatemala                                                                                                                                                
                                                     Portugal
      El Salvador                                                                                                                                            Hong Kong
       Costa Rica                                                                                                                                                
                                                       Spain                                                                                              Taiwan
                                                                                                                                                     
               Panama                                                                                                                                            Vietnam
                                                            France                                      Pakistan
                   Colombia                                                                                                                                     
                                                           Morocco                                   UAE                                                    Philippines
                    Venezuela                                                                                         Indonesia                                  
                                                                                                                                                   Thailand
                                                                                                      Israel                                              
                     Ecuador                                                                            
                                                                Italy                                                 Malaysia
                                                                                                                                                           Singapore
                                                                                                     Egypt                                                  
              Trinidad                                                                                
              & Tobago                                           Greece                                              Sri                                New Zealand
                        Peru                                                                                                                Australia
                                                                                                                  Lanka                                   
                                                                                               Kenya                                        
                                                                                                              India   
                       Brazil Chile                              Turkey                          
                                                                                                         
                                    Uruguay                                            Zimbabwe
                                                                          South Africa      
                                          Argentina                        
                                                                                                        Key
                                                                                                            Sales & Marketing
11                                                                                                          Manufacturing/Converting
                                                                                                            Technical Capabilities
3M Innovation Resources
    Over 74,000 employees                                                 > 9,500 technical employees
    Companies in more than 60 countries                                   73 labs worldwide
    Sales in nearly 200 countries                                         30 CTC’s
    55,000+ products                                                      45 established technology platforms
    160+ factories                                                        > 2,000 patents issued in 2009
    $1.3B R&D Investment (>5% to sales)                                   40,000 issued & pending patents

                                                Global Businesses




                                                Fiber Optic Solutions
12
       November 19, 2009© 3M 2007. All Rights
       Reserved.
The MOST INNOVATIVE COMPANIES ANNUAL SURVEY-2010
How do you define Innovation?

       How do you measure Innovation?

How do you SUPPORT and ENCOURAGE Innovation?
Research is the transformation of money
            into knowledge.

             CUSTOMER

  Innovation is the transformation of
       knowledge into money.



           Geoff Nicholson
INNOVATION is the practical
application and use of creativity


Creativity is THINKING UP new
             things.

Innovation is DOING new things.


                     Geoff Nicholson
3 INNOVATION RESOURCES
 Over 74,000 employees                         > 9,500 technical employees
 Companies in more than 60                     73 labs worldwide
  countries                                     30 CTC’s
 Sales in nearly 200 countries                 45 established technology platforms
 55,000+ products                              > 2,000 patents issued in 2009
 160+ factories                                40,000 issued & pending patents
 $1.3B R&D Investment (>5% to
  sales)

                         Global Businesses




                         Fiber Optic Solutions
3 CORE STRENGTH: CONNECTING
    TECHNOLOGY to CUSTOMERS
  A    B                           P   S
  b    i                           m   m




  A    C   E                   N   P   S
  c    e   m                   t   o   u




  A    D   F               M   N   P   T
  d    d   c               i   w   p   t




  A    D   F   F   I   M   M   O   P   V
  m    i   e   s   s   e   o   p   r   p




  A    D   F   I   L   M   M   P   R   W
  n    o   i   m   m   f   r   d   p   e




  A    E   F   I   M           P   S   W
  s    c   l   n   d           e   e   o




3M Technology Capability




                                           NPI


                                                 Technology-enabled
                                                      solutions
      Voice of The Market
IMPACT of a FEW 3M TECHNOLOGY PLATFORMS




 Pressure Sensitive Adhesives                            Films
         Sales: $13 Billion                          Sales: $5 Billion
   Leveraged by 24 3M Divisions                Leveraged by 12 3M Divisions




      Nonwovens
                                                           Filtration
      Sales: $3 Billion                                   Sales: $2 Billion
                               Microreplication
Leveraged by 21 3M Divisions                         Leveraged by 9 3M Divisions
                                Sales: $2 Billion
                          Leveraged by 16 3M Divisions
Conventional Coated Abrasive P400
Trizact Finesse-it 466LA A5
3M Health Care Business Group


     Drug Delivery Systems

               Metered-Dose            Valves and Components            Transdermal Patches
                 Inhalers                                                  “Microneedles”




     Large market: 300 million         Inhalers: 3M is a leader     Pioneering microneedle
     cases of Asthma and Chronic       in metered-dose inhalers     technology for large molecules
     Obstructive Pulmonary             and components, as well as   Less Pain
     Disease (COPD is among            replacement propellants
     the top 5 causes of death         for CFCs, which are being    Future: Flu Vaccine Patch
     worldwide), increasing at         phased out due to Montreal
     7% per year                       Protocol mandate



            Solutions for Chronic Respiratory Disease, Hormone Delivery, Biopharmaceuticals

22
     © 2013 3M. All Rights Reserved.
The Technical Plan follows the Business Plan.



  Is Innovation part of your Business Plan?
To ACTIVATE INNOVATION YOU NEED to …


  know where you want to go – VISION
  know where rest of the world is going – FORESIGHT
  have ambition – STRETCH GOALS
  have freedom to achieve your goals – EMPOWERMENT
  draw from and work with others –
   COMMUNICATION, NETWORKING
  be rewarded for your efforts – there is nothing more
   rewarding than RECOGNITION from your peers
The 15% RULE
                              the Fuzzy
                              Front End


 Encouraged to Explore!
 Encouraged to Network and Collaborate!
 Encouraged to Experiment!
CUSTOMER INSPIRED INNOVATION

                    Market, Industry   SATISFY the
                       Foresight        Customer
    Articulated
      Needs

                         Creative
Customer                Foresight
 Insight               Opportunity
                       Development
    Unarticulated
       Needs
                      Unique Core      DELIGHT the
                      Capabilities      Customer
Large Group
                                                 Low Risk
                             Small Group       Low Failure
                             Medium Risk
 Individual
 High Risk
                                                     High
 High Failure                                 Management
No Management Involvement                     Involvement

Initial Application         Modification of      Product to
of Technology                Technology
                                              the Customer
No Schedule
                                                  Accurate
No Discipline                                     Schedule
        Chaos
                                                      High
                                                 Discipline

                                                     Order
KEYS to NEW PRODUCTS

    Culture
    New Product Expectation
    Permissive Attitude of Management
    Needs/Technology Driven
    Product Champions
  Multi-Technology
    Technical Assessment
    Bootleg Slack/Boundary Crossing
  Recognition/Rewards
What is Tech Forum?
The 3M Tech Forum is a principal organization for productive technical
interaction at the interpersonal "grass roots" level.
Through networking & communication, TF fosters an environment of
creativity and cooperation that leads to innovation and growth.

 4900 members in St. Paul             9200 members Globally

                           Founded in 1951


 Membership Eligibility
 Membership in the 3M Tech Forum will be limited to regular full-time
 and part-time 3M employees who are engaged in technical work and
 who have signed a 3M employee agreement.
3M Innovation Story

     The Annual Event
          Largest event; Everyone participates
          “Internal 3M Trade Show”
          Latest & greatest 3M technologies
          Opportunities to help solve problems
          Delivered electronically to Worldwide Labs




                                       1951
30   © 3M 2013. All Rights Reserved.
RULES to AVOID INNOVATION
 Ask for a 5 year business plan
 Be suspicious of every idea that originated below you
 Insist that people go through all levels with a new idea
 Express criticism and withhold praise
 Make a decision to reorganize in secret and maximize
  surprise
 Be control conscious
 Never forget that people at the top know everything
WRONG MANAGEMENT SIGNALS


  It will never work
  We explored that thoroughly 10 years ago
  OK, if we can get somebody else to pay for it
  We’re too shorthanded to work on blue sky ideas
  It’s not in the business plan
  It’s not your job to talk to customers
3 LABORATORIES

    Locate the laboratories close to each other

 Facilitates technology sharing
 Employee transfers
 Stimulates innovation
 Provides customer exposure to breadth of 3M
  technology
 Customer Innovation Center
The ordinary manager has a craving for order.
      The leader understands that innovation is
      almost always an untidy process.

The ordinary manager wants proof for an idea before
taking action.
      The leader understands the value and
      power of faith.



                  L. W. Lehr, former 3M CEO - 1980
CHARACTERISTICS
  OF INNOVATORS

3 Innovators…
  …are Curious and Creative
  …have Broad Interests
  …are Problem Solvers
  …are Self-Motivated, Energized
  …have a Strong Work Ethic
  …are Resourceful
3 Innovators are Creative


      Inquisitive, Ask Questions
      Explorative
      Look for Solutions
      Insightful, Intuitive Thinkers
      Ideas Flow Easily
      Visionary
3 INNOVATORS are PROBLEM SOLVERS

   Experimental style - Do it first, explain it later!
   Tinker with things (hands on)
   Not afraid to make mistakes
   Willing to do the unobvious
   Practical
   Take multiple approaches to a problem
   Technically competent - as defined by hiring manager
3 INNOVATORS are SELF-MOTIVATED, ENERGIZED


         Self-starters, driven
       Results-oriented - Doers
         Passionate about what they do
       Accomplishment - urge to succeed
         Emotional, enthusiastic
       Sense of humor
         Sense of social responsibility
       Sense of contribution, value and purpose
         Courage, self-confidence
       Take initiative
3 INNOVATORS have STRONG WORK ETHIC


         Committed
         Hard working
         Work in cycles
         Flexible work habits, not structured
         Drive toward work completion
         Pursuit and dedication to results
         Tenacious
3 INNOVATORS are RESOURCEFUL




 NETWORK
                  Get things
                 done through
                    others

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keys to innovation

  • 1. The Keys to Innovation National University of Singapore 20th March 2013 Dr. Geoff Nicholson Visiting Professor NUS VP 3M International Technical Operations (retired) Board Director Cima NanoTech
  • 2. EMBRACING INNOVATION…  How do you define innovation?  Is it part of your business plan?  Is it the responsibility of all disciplines in your organization?  Do you provide the resources to do it?  Do you measure it?  Are long term research groups in touch with the customer?  What volunteer employee activities foster innovation?  How do you encourage volunteers?  Does your organization have a history of stories to help employees learn about innovation?  Does the organization recognize innovative achievements?
  • 3. REQUIREMENTS FOR INNOVATION  Commitment  Courage  Confidence
  • 4. Innovation is our biggest competitive advantage & the heart of 3M... Inge Thulin, 2012 3M President, CEO & Chairman of the Board
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  • 8. 640K ought to be enough for anybody. Bill Gates, 1981
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  • 11. 3M is a Global Company Norway Poland Switzerland Canada   Hungary United   States Czech East Austria  Romania  Republic Sweden    Puerto Rico   Finland Ukraine  Germany   Russia Dominican   Republic  Denmark  Jamaica Korea Netherlands    Belgium  Japan Mexico  United  Kingdom  China Guatemala   Portugal El Salvador  Hong Kong  Costa Rica  Spain Taiwan    Panama Vietnam  France Pakistan Colombia     Morocco UAE Philippines Venezuela   Indonesia    Thailand Israel  Ecuador   Italy Malaysia  Singapore Egypt   Trinidad  & Tobago Greece Sri New Zealand Peru Australia   Lanka   Kenya  India  Brazil Chile Turkey     Uruguay  Zimbabwe  South Africa  Argentina   Key  Sales & Marketing 11  Manufacturing/Converting  Technical Capabilities
  • 12. 3M Innovation Resources  Over 74,000 employees  > 9,500 technical employees  Companies in more than 60 countries  73 labs worldwide  Sales in nearly 200 countries  30 CTC’s  55,000+ products  45 established technology platforms  160+ factories  > 2,000 patents issued in 2009  $1.3B R&D Investment (>5% to sales)  40,000 issued & pending patents Global Businesses Fiber Optic Solutions 12 November 19, 2009© 3M 2007. All Rights Reserved.
  • 13. The MOST INNOVATIVE COMPANIES ANNUAL SURVEY-2010
  • 14. How do you define Innovation? How do you measure Innovation? How do you SUPPORT and ENCOURAGE Innovation?
  • 15. Research is the transformation of money into knowledge. CUSTOMER Innovation is the transformation of knowledge into money. Geoff Nicholson
  • 16. INNOVATION is the practical application and use of creativity Creativity is THINKING UP new things. Innovation is DOING new things. Geoff Nicholson
  • 17. 3 INNOVATION RESOURCES  Over 74,000 employees  > 9,500 technical employees  Companies in more than 60  73 labs worldwide countries  30 CTC’s  Sales in nearly 200 countries  45 established technology platforms  55,000+ products  > 2,000 patents issued in 2009  160+ factories  40,000 issued & pending patents  $1.3B R&D Investment (>5% to sales) Global Businesses Fiber Optic Solutions
  • 18. 3 CORE STRENGTH: CONNECTING TECHNOLOGY to CUSTOMERS A B P S b i m m A C E N P S c e m t o u A D F M N P T d d c i w p t A D F F I M M O P V m i e s s e o p r p A D F I L M M P R W n o i m m f r d p e A E F I M P S W s c l n d e e o 3M Technology Capability NPI Technology-enabled solutions Voice of The Market
  • 19. IMPACT of a FEW 3M TECHNOLOGY PLATFORMS Pressure Sensitive Adhesives Films Sales: $13 Billion Sales: $5 Billion Leveraged by 24 3M Divisions Leveraged by 12 3M Divisions Nonwovens Filtration Sales: $3 Billion Sales: $2 Billion Microreplication Leveraged by 21 3M Divisions Leveraged by 9 3M Divisions Sales: $2 Billion Leveraged by 16 3M Divisions
  • 22. 3M Health Care Business Group Drug Delivery Systems Metered-Dose Valves and Components Transdermal Patches Inhalers “Microneedles” Large market: 300 million Inhalers: 3M is a leader Pioneering microneedle cases of Asthma and Chronic in metered-dose inhalers technology for large molecules Obstructive Pulmonary and components, as well as Less Pain Disease (COPD is among replacement propellants the top 5 causes of death for CFCs, which are being Future: Flu Vaccine Patch worldwide), increasing at phased out due to Montreal 7% per year Protocol mandate Solutions for Chronic Respiratory Disease, Hormone Delivery, Biopharmaceuticals 22 © 2013 3M. All Rights Reserved.
  • 23. The Technical Plan follows the Business Plan. Is Innovation part of your Business Plan?
  • 24. To ACTIVATE INNOVATION YOU NEED to …  know where you want to go – VISION  know where rest of the world is going – FORESIGHT  have ambition – STRETCH GOALS  have freedom to achieve your goals – EMPOWERMENT  draw from and work with others – COMMUNICATION, NETWORKING  be rewarded for your efforts – there is nothing more rewarding than RECOGNITION from your peers
  • 25. The 15% RULE the Fuzzy Front End  Encouraged to Explore!  Encouraged to Network and Collaborate!  Encouraged to Experiment!
  • 26. CUSTOMER INSPIRED INNOVATION Market, Industry SATISFY the Foresight Customer Articulated Needs Creative Customer Foresight Insight Opportunity Development Unarticulated Needs Unique Core DELIGHT the Capabilities Customer
  • 27. Large Group Low Risk Small Group Low Failure Medium Risk Individual High Risk High High Failure Management No Management Involvement Involvement Initial Application Modification of Product to of Technology Technology the Customer No Schedule Accurate No Discipline Schedule Chaos High Discipline Order
  • 28. KEYS to NEW PRODUCTS  Culture  New Product Expectation  Permissive Attitude of Management  Needs/Technology Driven  Product Champions  Multi-Technology  Technical Assessment  Bootleg Slack/Boundary Crossing  Recognition/Rewards
  • 29. What is Tech Forum? The 3M Tech Forum is a principal organization for productive technical interaction at the interpersonal "grass roots" level. Through networking & communication, TF fosters an environment of creativity and cooperation that leads to innovation and growth. 4900 members in St. Paul 9200 members Globally Founded in 1951 Membership Eligibility Membership in the 3M Tech Forum will be limited to regular full-time and part-time 3M employees who are engaged in technical work and who have signed a 3M employee agreement.
  • 30. 3M Innovation Story The Annual Event  Largest event; Everyone participates  “Internal 3M Trade Show”  Latest & greatest 3M technologies  Opportunities to help solve problems  Delivered electronically to Worldwide Labs 1951 30 © 3M 2013. All Rights Reserved.
  • 31. RULES to AVOID INNOVATION  Ask for a 5 year business plan  Be suspicious of every idea that originated below you  Insist that people go through all levels with a new idea  Express criticism and withhold praise  Make a decision to reorganize in secret and maximize surprise  Be control conscious  Never forget that people at the top know everything
  • 32. WRONG MANAGEMENT SIGNALS  It will never work  We explored that thoroughly 10 years ago  OK, if we can get somebody else to pay for it  We’re too shorthanded to work on blue sky ideas  It’s not in the business plan  It’s not your job to talk to customers
  • 33. 3 LABORATORIES Locate the laboratories close to each other  Facilitates technology sharing  Employee transfers  Stimulates innovation  Provides customer exposure to breadth of 3M technology  Customer Innovation Center
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  • 40. The ordinary manager has a craving for order. The leader understands that innovation is almost always an untidy process. The ordinary manager wants proof for an idea before taking action. The leader understands the value and power of faith. L. W. Lehr, former 3M CEO - 1980
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  • 46. CHARACTERISTICS OF INNOVATORS 3 Innovators… …are Curious and Creative …have Broad Interests …are Problem Solvers …are Self-Motivated, Energized …have a Strong Work Ethic …are Resourceful
  • 47. 3 Innovators are Creative  Inquisitive, Ask Questions  Explorative  Look for Solutions  Insightful, Intuitive Thinkers  Ideas Flow Easily  Visionary
  • 48. 3 INNOVATORS are PROBLEM SOLVERS  Experimental style - Do it first, explain it later!  Tinker with things (hands on)  Not afraid to make mistakes  Willing to do the unobvious  Practical  Take multiple approaches to a problem  Technically competent - as defined by hiring manager
  • 49. 3 INNOVATORS are SELF-MOTIVATED, ENERGIZED  Self-starters, driven  Results-oriented - Doers  Passionate about what they do  Accomplishment - urge to succeed  Emotional, enthusiastic  Sense of humor  Sense of social responsibility  Sense of contribution, value and purpose  Courage, self-confidence  Take initiative
  • 50. 3 INNOVATORS have STRONG WORK ETHIC  Committed  Hard working  Work in cycles  Flexible work habits, not structured  Drive toward work completion  Pursuit and dedication to results  Tenacious
  • 51. 3 INNOVATORS are RESOURCEFUL NETWORK Get things done through others