Ba401 3M

M3

1902 3M was founded to mine abrasive minerals as Minnesota Mining and Manufacturing Co. (MMM : 3M)

3M : HISTORICAL TIMELINE

1920 3M developed two product – waterproof sandpaper and adhesive tape.

1979 Optical Systems Unit was created to exploit light control film.


1980 Economic growth was slowing within 3M.

1986 3M reduced the labor content in its productby 35% and average manufacturing cycle time by 21%.

1988 3M merged the optical systems unit into the Safety and Security Systems Division (SSSD).


1990 3M has developed a pool of over 100 technologies and have 100 laboratories worldwide. Rob Noirjean joined Optical Systems unit as new marketing manager.

3M cancelled Light Bar project.


1991 3M merged the optical systems unit into the Safety and Security Systems Division (SSSD).

3M funded these R&D efforts at arate of between 6-7% of sales ($ 914 million)

1992 3M has developed a pool of over 100 technologies and have 100 laboratories worldwide. Rob Noirjean joined Optical Systems unit as new marketing manager.


3M’s Brands

3M have more 3,900 brunches worldwide Located within 47 divisions and sold through in 57 countries.

In Americas In Europe In Africa In Asia pacific

3M’s Brunches

Privacy Screen

Andy Wong, the manager of the Optical Systems (OS) business unit, had to decides about new project – Computer Privacy Screen - how shouldHe proceed the Authorization for Expenditure.

15% RULE

To ensure that this technology was developed and applied effectively, 3M tried to ensure an innovative and creative environment. 3M allowed employees to devote up to 15% of their time on non-program activities that were related to innovative ideas they believed could be of value to the company

New marketing manager

Andy wong looking for a professional marketing manager. Then began searching for the best candidate for the job.

Rob Noirjean saw such an opportunity as exciting.And after he submitted his application, he joined toOS in Febuary 1990. He defined areas of potential.

Noirjean’s List of Potential Market

Special Lighting Applications

Others

Outdoor Electronic Display

Automotive Lighting

Electronic Display Applications

Privacy Viewing


Others


Automotive Lighting


Privacy Viewing Museum Lighting Architectural Lighting Task Lighting Hospital Lighting (Bed Lamps) Film Processing Lighting



Others


Automotive Lighting


Privacy Viewing ATM Government Computing Corporate Computing Hospital radiology Departments



Others


Automotive Lighting


Privacy Viewing LED PDP Vacuum Florescent Electroluminescent CRT



Others


Automotive Lighting


Privacy Viewing Courtesy Lighting Map Lights



Others


Automotive Lighting


Privacy Viewing Gas Pump Displays Industrial Use Displays



Others


Automotive Lighting


Privacy Viewing Avionic display lighting Copier Internal directional lighting Analog gauge lighting applications Machine vision application Automotive CRTs Automotive switches and displays


Noirjean decided to focus on were specially lighting and privacy viewing.


COMPUTER PRIVACY SCREEN

3M conducted an informal survey among

secretaries in many division to determine their need for computer screen privacy, and the products attributes most important

to them.

“PRIVACY SCREEN FROM HELL”

Some customers complained that they could not read the screen easily. And customs officers who dubbed the pilot products “the privacy screen from hell”.

4 MAJOR RESPONSIBILITY FOR BUSINESS UNIT MANAGER

You had to attract & retain

good people

in a unit under Threat.

.

You had to attract & retain

good people

in a unit under Threat.

.

.

You had to build

the team’s

motivation &

commitment to the project.

.

You had to build

the team’s

motivation &

commitment to the project.

You had to a

responsibility to keep

senior management in the

boat..

You had to a

responsibility to keep

senior management in the

boat..

You had to ensure we kept making

progress towards

our objective.

.

You had to ensure we kept making

progress towards

our objective.

.

IN PAUL GUEHLER’S MIND…

Paul Guehler arrived as SSSD’s new divisionalVice president. He described as a “give & take” strategy. -They had to define clearly their core business. I helped them focus on three opportunities

.,computer filter .,electronic lighting .,automotive options The last one was a well-established segment & would help them survive.

Perhaps as low as $99

$140 for retail price

COMPUTER PRIVACY SCREEN

$70 for distributors

Faced two basic problems…

In February 1991, the first custom privacy filters were shipped. Sales gradually rose, reaching a level of about $10,000 a month. Growth stalled out due to two basic problems.

Distributors kept calling for different sizes.

Customer reaction to paying over $100 for a formed sheet of plastic was one of surprise.

Faced two basic problems…

Their decision was to put the filter in standardsize frames which would hang over the front of the monitor rather than fit exactly on the screen.

4-Phase Development Process…

Phase-IDeveloping the product concept

Phase-IIUndertaking the Feasibility Assessment

Phase-IIIDeveloping the Business Plan

Phase-IVIntroduction

32.627.4

Existing Filter Personal Computer installations ( pre - 1990 )(million)

Other filter3M filter fit

From Noirjean’s market research.







6.35.3

New Filter Personal Computer Sold (estimated in 1990)(million)

Other filter3M filter fit







1990 1991 1992 1993 1994 19950

20406080

100120140160

5370

86101

118136

Total Estimated Market Value ($)






The market had become increasingly competitive, with the four largest players.

ACCO -- a leading manufacturer of office suppliers Polaroid -- good brand image & strong reputation Fellows -- office products manufacturer & supplier to the banking & financial service industry. Optical Coating Laboratory Inc., -- the pioneer of the antiglare computer filters in the market.






25

37

14

13

11

Market Share (%) of the Filter Market

Other smaller suppliersOCLIACCOFellowsPolaroid






Noirjean concluded that 3M would have two important sources of advantage over competitive products. The unique privacy filter feature. The distribution.

Its offer by the company’s access to office supply channels through its Commercial Office Supply Division (COSD) & to computer distribution outlets through the Data Storage Markets Division (DSMD).






3M did some benchmarking of our competitors’ products, and eventually designed an inexpensive frame with all their features & a unique innovation.

While the competition had to offer seven sizes of each of their models, we developed a squeeze adjustment feature that allows us to offer only two.






The business plan also required the team to develop sale forecasts & risk assessment.

HIGH RISK

LOW RISK

MEDIUM Lamination Source .,Existing Competition .,Emerging Competition

Light Control Film .,Supply .,Laminate Durability .,Frame Source .,Back-order Status .,Low Sales Demand






One senior manager within the division asked Wong if OS wouldn’t be better off switching from his aggressive but unsuccessful growth mode to a harvest strategy , that would probably help Andy Wong’s personal evaluations, which had been low for he last three years.






3M stock chart 1997 - 2009

3M stock chart in January - November 2009

3M organization chart..

Alan JacobsonChief Executive

Executive V.P.Life Sciences Sector

Industrial & Consumer Sector

Information & Imaging Technologies Sector

Pharmaceutical Dental & Disposals Group

Group V.P.Traffic & Personal Safety Products

Medical Products Group

Paul GuehlerVP – Safety & Security

Systems Division

Filtration Products Division

Filtration Products Division

Health & Environment

Division

Material ControlDivision

Media Network Division

National Advertising Company

3M organization chart..

Paul GuehlerVP – Safety & Security Systems

Division

Andy WongManager – Optical

Systems

Personal Safety

Verification Systems

Electronic Article

Surveillance

Traffic Control Systems

Jeff MelbyProduct

Development & Service

S.Middendorf

Administration

Rob NoirjeanSales &

Marketing

Marc Miller Production

Control

Terry JonesManufacturing

Tech& Assurance

Jim PookPant

Superintendent

…. About Optical Systems

Andy Wong… is a manager of OS unit. He had great confidence in his team.He used to be laboratory manager and businessManager.

He had four options for his team project: to postpone the proposal, to try to fund it byoutsourcing a standard frame, cutting inventory,and to try to get divisional funding.


Paul Guehler …was a division vice president of Safety & Security Systems Division (SSSD). OS is one of five subunits in SSSD but it occupied more of his time than any others.

He always gave a consult to Wong and support Optical Systems Unit all the time, through he was a division vice president.


“Desi” DeSimone… had emphasizedThe need for even greater company objective from

“ 25% of its sales be generate by products introduced within the past 5 years”

To the new greater objective “ 30% of sales from products introduced within

The past 4 years”

THE END

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Ba401 3M