Assignment #3 12123025

Q #1:- How Does 3m Develop Resources?

3M develop resources by different means to compete its competitors by reducing the

manufacturing cycle time. Research and Development department produce the product on the

base of customer need and wants. In old method do not check which kind of product market

required, on traditional basis one person develop the product and lunched in market. On the other

hand 3M prefer to breakthrough on improvement in existing product. In 3M develop the culture

of innovation and encourage to that person which come with innovation.

Q #2:- How does this affect its financial statement?

On the basis of development in resources company can achieve out financial objectives. 25%

sale achieved by the new product but after that percentage increase to 30%. Reduce the cycle

time and save 21% cost of cycle time and 35% cost reduces in labor content. Research and

Development department expanse relate to sale volume in range of 6.5% to 6.6%. These

objective set in five year plan and plan start from 1986 to 1990. By the help of cycle time

reduction and labor content company reduce the product cost approximately 1.4% in 1986 and

this amount is $126.784 million.

Q #3:- At 3m why innovation is a mindful replication?

For 3M to innovate more effectively cultural capabilities are critical with leadership

effectiveness to create confidence in employee minds and hearts. Employees need to know they

can take risks to be creative, experiment, think outside the box, and be rewarded for

demonstrating innovation thinking. They need to believe they are encouraged to be life-long

learners, and enabled to continually learn and improve work products or services. In 3M they

believe that dual task and climate lead to ordinary person to perform extra ordinary. To trained

there people they discuses about every aspect on daily basis as well as monthly basis. The culture

of 3M strongly develops for innovation and management encourage that person which comes

with innovation. 3M develop the culture of sharing knowledge among different units. 3M has

created measurement and reward systems that tolerate mistakes and encourage success. 3M

rewards successful innovators in a variety of ways

Assignment #3 12123025

Q #4:- How can a firm exploit streams of innovation both internal and external?

The firm can exploit streams of innovation by creating the conditions in which innovation can

arise from any one of a number of directions, including lucky accidents, and there is a purposeful

attempt to avoid putting too much structure in place since this would constrain innovation. They

combine these to enable them to offer a steady stream of breakthrough products and line

extensions/product improvements. A great strength is the integrated input from the technical and

marketing side which enables creative association coming up with new and often powerful

combinations of needs and means.

3M internally develop more innovation with the passage of time because of their internal

capability to exploit innovation quickly and with in new ways. Internally research is the basic

tool to develop the extreme of innovations. 3M consider three main internal route of success that

is Product, Process and raw material for exploit the innovation extreme. 3M create the demand of

innovative products into their customers thorough their internal capabilities. Like 3M shifted

from simple tape to electrical tape business.