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Almost everyone knows 3M or its products. The109-years old company is a diversifiedtechnology giant with major brands like Post-ItNotes and Scotch Tape on its roster as wellas innovative products like multi-layer opticalfilms that go into LCDs.One of 30 companiesthat make up the Dow Jones Industrial Average.

Minnesota Mining & Manufacturing Company

Foundedin 1902

$ 27B Company

Operationsin more than65 Countries

Launched over55000 products

80,000 employees globally

Profile

In 2002,3M celebrated its first Century of Innovation",

recognizing the companys remarkable success, whichis rooted in its ability to create new-to-the world

products.

3Ms formula for growth

Recruiting the right people

Right Working environmentTo let them do their things

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TIMELINE

1902-

Founded inTwo

Harbors,MN.

1916 - 3Mpaid firstdividend of 6cents a

share.

The world's 1st

waterproofsandpaper

developed

TheAdhesivesDivision was

established.

Invested5% of itssales inR & D

Introduces Thermo-Fax copyingprocess,Scotchgard,

videotape, Scotch-Brite Cleaning Pads

Dry-silver microfilmintroduced alongwith photographicproducts

Pharmaceuticals,radiology andenergy controlexpand.

IntroducesPost-it

Notes.

Salesreach $15billion

mark

2004 - Sales top$20 billion. opticalfilms for LCDtelevisions enterthe market.

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"To the outside world, what we do looks a little like magic. We create entirely new product categories andbreathe new life into markets crying for reinvention. Its been called 'the 3M effect.' Harnessing innovation foryour benefit- thats the practical magic behind 3Ms success."

- George W. Buckley, Chairman, President and CEO

Organized into Six Business segments:-

Consumer and office

Business

Display and Graphics Business

Electro andCommunicationsBusiness

Health Care Business

Industrial andTransportationBusiness

Safety, Security and ProtectionServices Business

IN-NO-VA-TION : A new idea, method or device

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William L. McKnight

(1907-1966)- Encouraged its

employees to take theinitiative and come withnew ideas.

Carlton,Okie & Drew(early 1920s)- Set the tone of

innovation at 3M.Thecompanys famous 15 %rule resulted.

James McNerney Jr.(2000)- Preserved the culture of

innovation.

- Fostered leadershipqualities amongemployees.

Fostering the Culture of innovation

RECRUITING AND RETAINING TALENT

CREATING A CHALLENGING ENVIRONMENT

KNOWLEDGE SHARING

REWARDING INNOVATION

KEY FACTORS:

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Mechanism Stimulating innovation

M HANISM D S I TI N FF T

15 % Rule15 % of an employee's time to be devoted to pursueindependent research,irrespective of their official

project.

Development ofmany innovative

products.

Genesis GrantsAround $50,000 financial support for research for

developing prototypes and conducting market tests.

Stimulated

entrepreneurship.

Own BusinessOpportunities

Opportunity to run projects depending on the sales. Stimulated internalentrepreneurship.

Dual Ladder

Enabled technical employees to move up the career

path without compromissing their

research/professional interests.

Equal advancement

opportunities.

Technical ForumsOpportunity to present their technical papers and

exchange ideas with others.

Stimulated cross

fertilization of ideas

and technology.

New Product Forums Enabled all divisions to discuss new ideasGeneration of ideas

across all divisions.

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Initiatives launched by Mcnerney

Global Sourcing

Indirect Cost Reduction

E-productivity

Six Sigma Initiative

3M Acceleration

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Pillars of innovation platform

Shared customers, channels and Brands

Shared Manufacturing

Shared Global Infrastructure.

Shared Cultural Innovation

Values,Practices,Processes and

Toolkits.

Shared world-class Technology.

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Act without compromising honesty and integrity.

Satisfy customers with innovative technology and

superior quality, value and service.

Provide investors an attractive return throughsustainable, global growth.

Respect social and physical environment around the world.

Value and develop the employees' diverse talents,

initiative and leadership.

Earn the admiration of all those associated

with 3M worldwide.

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Conclusion

Innovation is a core competencyat 3M and is at the heart of thecompanys culture.

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ARUN

GANESH

GULSHAN

PRANALI

MAYUR

RUPESH

VEENA

VIKAS