Research Question: In the global marketplace, is it necessary for the 3M Corporation to develop technological innovations to stay competitive?
Management 610 – Organizational Theory (Section 9022)
March 29, 2014
Turnitin Score: Submission id #411105110
The purpose of this research is to follow and learn how a company as old as 3M has invented a winning strategy. During and after the years following the worst economic downturn since the great depression 3M has weathered the storm. They have managed to use their own long held proven, innovative processes and metrics for success. These innovative technological ideas used should be looked at closely. The lessons learned from them could be of great use to any company looking for longevity. Upon further examination of the 3M’s collaborative teams and consumer feedback processes, it becomes clear that the way into the homes and businesses of the world is to listen intently to what people need not inventing products to sell because you think they people need them.
In the global marketplace, is it necessary for the 3M Corporation to develop technological innovations to stay competitive?
A Review of the Literature
The 3M Corporation was founded one hundred and twelve years ago in 1902. Forming the company was five businessmen; Henry S. Bryan, Hermon W. Cable, John Dwan, William A. McGonagle, and Dr. J. Danley Budd all from Two Harbors, Minnesota and all were from totally diverse occupations.
Their initial focus was to mine for mineral deposits in the Lake Superior town of Two Harbors, Minnesota but the focus shifted to supplying mining material. After not succeeding at mining they moved the Minnesota Mining and Manufacturing Co., to Duluth, Minnesota. One of their first innovations was to create better sandpaper products. The five leaders of 3M recognized if they were going to be competitive, innovation should be key to their success.
Reaching out to their customers to come up with innovative and exciting products was the purpose of 3M. Yet, these men understood through trial and error that developing everyday useful products would be the realization of 3M’s prosperity. But, In the global marketplace, is it necessary for the 3M Corporation to develop technological innovations to stay competitive?
Every global business in the world has challenges and hence is the struggle to stay ahead of the competition. The plan is to produce products and innovate processes in order to keep your competitive edge. All the same, if businesses fail to innovate, they run the risk of losing customers to competitors that they have worked so hard to maintain. In order to maintain its competitive edge innovation has to be a key driver between 3M and its rivals. Gunther (2010) said, “3M has long been synonymous with innovation” (p. 73).
How Has Technological Innovations Shaped the 3M Corporation?
A good adage to forecasting the future is to make it. In this regard, 3M fosters organic growth by constructing new products that are not on the market but needed by its customers. Its innovative business model has contributed not merely to new products, but also new businesses, such as industrial abrasives, pressure-sensitive adhesive films, and Fluoro-chemicals.
In order to continue growth, 3M recognizes the value of Research & Development (R&D). 3M allocates 6 percent of its annual revenue to R&D. Innovation can help you identify what opportunities exist today, or are likely to come out in the hereafter.
Successful businesses are not just answering to current customer or organizational needs, but often anticipate future movements and produce an idea, product or service that allows them to meet this future demand rapidly and effectively. Even as technologies and trends shift useful innovation will help you stay ahead of your competitor.
Innovation is not just about designing a new product or service to sell, it's also…