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

Inge Thulin, 20123M President, CEO &

Chairman of the Board

Innovation is our

biggest competitive advantage &

the heart of 3M...

640K ought to be enough for anybody.

Bill Gates, 1981

11

Key

Sales & Marketing

Manufacturing/Converting

Technical Capabilities

El Salvador

Jamaica

Guatemala

Mexico

China

Korea

Japan

Taiwan

Hong Kong

Vietnam

Philippines

Thailand

India

Malaysia

Indonesia

New Zealand

Australia

Singapore

Sri Lanka

UAE

Switzerland

Austria

Greece

Italy

Pakistan

Egypt

Kenya

ZimbabweSouth Africa

Morocco

France

Germany

United Kingdom

Belgium

Netherlands

Denmark

Norway

Sweden

Finland

Spain

Portugal

Poland

CzechRepublic

Hungary

Russia

Turkey

Romania

Ukraine

East

Israel

Argentina

Dominican Republic

Venezuela

Panama

Puerto Rico

Trinidad& Tobago

Brazil

Uruguay

Chile

Peru

Colombia

Ecuador

Costa Rica

Canada United

States

3M is a Global Company

12November 19, 2009© 3M 2007. All Rights

Reserved.

Over 74,000 employees

Companies in more than 60 countries

Sales in nearly 200 countries

55,000+ products

160+ factories

$1.3B R&D Investment (>5% to sales)

> 9,500 technical employees

73 labs worldwide

30 CTC’s

45 established technology platforms

> 2,000 patents issued in 2009

40,000 issued & pending patents

Fiber Optic SolutionsFiber Optic Solutions

3M Innovation Resources

Global Businesses

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

Over 74,000 employees Companies in more than 60

countriesSales in nearly 200 countries55,000+ products160+ factories$1.3B R&D Investment (>5% to

sales)

> 9,500 technical employees 73 labs worldwide 30 CTC’s 45 established technology platforms > 2,000 patents issued in 2009 40,000 issued & pending patents

Fiber Optic SolutionsFiber Optic Solutions

3 INNOVATION RESOURCES

Global Businesses

Voice of The Market

Technology-enabled

solutions

3M Technology Capability

3 CORE STRENGTH: CONNECTING TECHNOLOGY to CUSTOMERS

NPI

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IMPACT of a FEW 3M TECHNOLOGY PLATFORMS

Films

Sales: $5 Billion

Leveraged by 12 3M Divisions

Pressure Sensitive AdhesivesSales: $13 Billion

Leveraged by 24 3M Divisions

Microreplication

Sales: $2 Billion

Leveraged by 16 3M Divisions

Nonwovens

Sales: $3 Billion

Leveraged by 21 3M Divisions

FiltrationSales: $2 Billion

Leveraged by 9 3M Divisions

Conventional Coated Abrasive P400

Trizact Finesse-it 466LA A5

3M Health Care Business Group

22

© 2013 3M. All Rights Reserved.

Drug Delivery Systems

Solutions for Chronic Respiratory Disease, Hormone Delivery, Biopharmaceuticals

Pioneering microneedle

technology for large molecules

Less Pain

Future: Flu Vaccine Patch

Transdermal Patches

“Microneedles”

Large market: 300 million

cases of Asthma and Chronic

Obstructive Pulmonary

Disease (COPD is among

the top 5 causes of death

worldwide), increasing at

7% per year

Metered-Dose

Inhalers

Valves and Components

Inhalers: 3M is a leader

in metered-dose inhalers

and components, as well as

replacement propellants

for CFCs, which are being

phased out due to Montreal

Protocol mandate

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

Encouraged to Explore!

Encouraged to Network and Collaborate!

Encouraged to Experiment!

the Fuzzy

Front End

CUSTOMER INSPIRED INNOVATION

Market, Industry

Foresight

Customer

Insight

Unique Core

Capabilities

Unarticulated Needs

Articulated Needs

SATISFY the Customer

DELIGHT the Customer

Creative

Foresight

Opportunity

Development

Individual

High Risk

High Failure

Small Group

Medium Risk

Large Group

Low Risk

Low Failure

Initial Application

of Technology

Modification of

TechnologyProduct to

the Customer

No Discipline

Chaos

Accurate

Schedule

Order

No Management Involvement

High

Management

Involvement

No Schedule

High

Discipline

Culture

New Product Expectation

Permissive Attitude of Management

Needs/Technology Driven

Product Champions

Multi-Technology

Technical Assessment

Bootleg Slack/Boundary Crossing

Recognition/Rewards

KEYS to NEW PRODUCTS

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.

Founded in 1951

4900 members in St. Paul 9200 members Globally

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

© 3M 2013. All Rights Reserved.

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

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

3 Innovators…

…are Curious and Creative

…have Broad Interests

…are Problem Solvers

…are Self-Motivated, Energized

…have a Strong Work Ethic

…are Resourceful

CHARACTERISTICS

OF INNOVATORS

Inquisitive, Ask Questions

Explorative

Look for Solutions

Insightful, Intuitive Thinkers

Ideas Flow Easily

Visionary

3 Innovators are Creative

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 PROBLEM SOLVERS

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 are SELF-MOTIVATED, ENERGIZED

Committed

Hard working

Work in cycles

Flexible work habits, not structured

Drive toward work completion

Pursuit and dedication to results

Tenacious

3 INNOVATORS have STRONG WORK ETHIC

Get things

done through

others

3 INNOVATORS are RESOURCEFUL

NETWORK