A Managed or Accidental Innovation Essay Example
A Managed or Accidental Innovation Essay Example

A Managed or Accidental Innovation Essay Example

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  • Pages: 17 (4435 words)
  • Published: May 15, 2018
  • Type: Case Study
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Several critical factors can be attributed to the success of commercializing 3M Post-it Notes and the lessons learned from managing the innovation process. Key individuals, including Silver, Oliveira, Nicholson, Fry, and Ramey, played crucial roles in this case history.

The 3M Corporation received discouraging reports in late 1978 regarding the market tests of the "Post-it Note Pads" idea. The analyses revealed that the idea was not successful. Many of 3M's keen observers of new product ideas were not surprised by this news, as they had suspected it from the start. Post-it brand adhesive had been neglected by the company even before it was developed into a notepad, when it was just an adhesive with poor adhesion.

The initial product introduced to the market by 3M was a sticky bulletin board, which did not generate impress

...

ive sales. However, despite the lackluster response, the adhesive continued to exist. Over a period of five years, starting before 1970, the peculiar substance remained in the possession of Spencer Silver, the chemist responsible for its creation. Even as the adhesive transformed into a stickum-coated bulletin board and later into notepad glue, there were doubts from manufacturing about the feasibility of mass production for these pads and skepticism from marketing about their potential for sales.

By 1978, when the test market reports were received, it appeared that all those who had criticized the Post-it Note Pad were actually correct. 3M had decided to put an end to it and bury the remains. However, two executives, Geoffrey Nicholson and Joseph Ramey, made one last attempt to save "those little yellow sticky pads". In order to understand Silver's determination i

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the face of this commercial challenge, it is important to revisit the moment he made his groundbreaking discovery.

Silver's involvement in the creation of Post-it Note Pads started in 1964 when 3M conducted a "Polymers for Adhesives" initiative at its Central Research Laboratories. 3M has consistently maintained a practice of reevaluating its products to identify opportunities for enhancement. According to Silver, every few years, 3M assembled a group of individuals who appeared to have the potential to innovate new forms of adhesives.

During the "Polymers for Adhesives" research program spanning four years, Silver discovered a promising group of monomers created by Archer-Daniels Midland, Inc. that he believed could be used as ingredients for polymer-based adhesives. ADM provided Silver with multiple samples, enabling him to begin experimenting with them. This research initiative was open-ended and encouraged by the company, as long as novel and patentable molecules were produced. During this exploration, Silver conducted an experiment using a significant amount of one of the monomers in the reaction mixture to observe its effects.

Previously, we used conventional wisdom for the amounts. "Silver did not expect what would happen if he did this but thought it would be interesting to find out. In polymerization catalysis, scientists typically follow these principles. This article is a shortened, modified version of a chapter from P. R. Nayak and J. M. Ketteringham's book Breakthroughs, which is an Arthur D. Little international study of 16 major innovations (Rawson Press, 1986). Published with permission from ADL and with additions and modifications by Professor Ralph Katz, based on his 1996 interviews with Art Fry of 3M.

Both P. R. Nayak and

John Ketteringham, Management Consultants at Authur D. Little, collaborated with Ralph Katz, a Professor of Management at Northeastern University and Research Associate at MIT, to emphasize the importance of controlling the quantities of interacting ingredients in technological innovation based on established theory and experience. Silver celebrated that the success of Postit adhesive was achieved through conducting an experiment. If Silver had taken time to think and calculate beforehand, it is unlikely that the experiment would have been carried out initially.

Despite the literature's discouraging examples and advice from well-regarded publications and experts, Silver did not give up. He understood that science requires both calculation and experimentation. According to Silver, people like him find joy in exploring new properties of materials and observing the outcomes of slightly disturbing their structure. However, convincing highly trained individuals to participate in such activities is a challenge for Silver.

Despite people's reluctance to try new things, Silver's decision to experiment with different proportions of ADM monomers resulted in a reaction that defied expectations. Although some may call it an accident, Silver referred to it as a "Eureka moment." This discovery led to the identification of the adhesive polymer used in Post-it notes. It exemplifies what drives scientists – the unexpected and consistent emergence of unique scientific phenomena.

Every time Silver assembled these items, they consistently followed the same pattern. Silver stated, "When you observe this, you realize that it must be useful! You are not trying to force materials together to make them work. The material itself wanted to do this. It desired to create Postit adhesive." From a technical standpoint, the material matched what the research

program required - a novel polymer with adhesive properties. However, upon examination, Silver observed among its other peculiar characteristics that this material was not firmly adhesive. It would generate a phenomenon known as "tack" between two surfaces, but it would not securely bond to them.

Also, a longstanding issue was that this material possessed more cohesion than adhesion. It had a stronger attraction to its own molecules compared to other molecules. Therefore, if you applied it onto a surface (which could be done through spraying, which also appealed to Silver), and then placed a piece of paper on the sprayed surface, you could either remove all or none of the adhesive when you lifted the paper. While it might have a preference for one surface over another, it did not adhere well to either. To utilize this material as an adhesive for paper pieces, 3M would need to develop a new coating specifically for paper.

Silver and everyone else thought it was highly unlikely to use paper. Silver's accomplishment exceeded the typical 3M lab synthesis; it was a major discovery that he could take credit for. As he watched the reaction, Silver felt like a proud father and became infatuated with it. He knew he might never come across such a pure and simple phenomenon again. Right away, he personified this thick sticky substance and lovingly called it "my baby." Despite not being very adhesive, Spencer Silver became deeply attached to it.

When Silver presented his discovery to other 3Mers, he noticed that few people shared his admiration for this specific glue. They were more concerned about its practical uses and only

had a casual interest in the scientific aspect. Moreover, they believed that the ideal adhesive should create an unbreakable bond, while the world they lived in desired a superior glue rather than an inferior one. Despite this, 3M and other adhesives manufacturers remained dedicated to progress by concentrating on creating increasingly powerful adhesives.

Spencer Silver brought something different to the table, going against the typical qualities expected of a product. Despite not being able to specify its exact purpose, he believed it must have some value. Silver would ask people if there are occasions when they need a glue to temporarily hold something rather than permanently. He encouraged them to consider those situations and explore how this adhesive could be transformed into a product that provides a strong hold for as long as necessary, but then easily releases when desired. From 1968 to 1973, you worked on developing your first innovative creation, your gizmo.

The divisions at 3M are too busy to consider new product ideas. Despite this, Silver visited every division in an attempt to find an application for his adhesive. The organization did not object to his search and allowed him to present his adhesive at in-house technical seminars. Some people were skeptical about a glue that didn't stick, but no one told Silver to give up. Killing his project would have contradicted 3M's principles. While 3M is known for its innovation, it is more accurately characterized as an environment of nonintervention. Silver never neglected his other duties and therefore, there was no overt discouragement from 3M towards his extracurricular activities.

The corporate ethic provides the advantage of granting each

worker a sense of independence in their job. Nevertheless, the downside is that it can be difficult to persuade others to pause their work and assist with your tasks when you have an excellent idea that necessitates collaboration and sharing of both work and credit. While working on his project alone, Silver derived his main inspiration for using adhesive from a sticky bulletin board, which didn't captivate its creator much.

With a funding of 3 million from 3M, he produced a specific number of products using an inexpensive and low-tech process. The company then distributed the products through its retailer network. Unfortunately, the outcome was not surprising as the product struggled to gain traction within its niche market. Silver was frustrated by this underperformance and questioned why he couldn't come up with a superior product himself, given his responsibility. As time went on, Silver also noticed a decrease in company support.

The Polymers for Adhesives Program came to an end when 3M allocated a specific time and budget for the program. Once the time and funds were depleted, the researchers, including Silver, were reassigned. Despite some researchers, like Silver, enjoying the program, it naturally came to a halt. Silver recollected, "The adhesives program died a natural death as the company's business declined. As per the usual cycle of things, longer-term research programs were cut down. However, we had still managed to invent some intriguing materials that we wanted to promote."

The members of the Polymers for Adhesives group were assigned to new research projects. Despite being a team, they did not support each other in preserving their unique discoveries, except for Silver and his

unconventional adhesive. Consequently, Silver had to independently advocate for his adhesive's survival and secure funding for patenting it, as 3M was reluctant to provide adequate financial support.

Post-it adhesive was patented exclusively in the United States. According to Silver, "We faced significant challenges in obtaining a patent since there wasn't an obvious commercial product. It's regrettable, and I hope this changes. If 3M invests millions of dollars in research, they should support obtaining a patent." The individuals at 3M display determination with a subtle grace and politeness when advocating for something. This was evident in Silver, who silently embarked on the arduous journey of capturing the interest of his coworkers and superiors.

Silver's sole advantage was his love for the project. He firmly believed in its potential and saw a little spark in it worth pursuing. He recognized the need to remain committed and passionate in order to prevent interest from waning. Typically, during prosperous times, research and development groups emerge, conducting intriguing research. However, just as it seemed to be progressing smoothly, lean times arrive. Silver found himself trapped in the constant pursuit of more effective adhesion. His only product, the bulletin board, was completely coated with adhesive, making it sticky all over. He saw things as either sticky or not sticky, without considering the possibility of something being partially sticky. Additionally, prior to Silver's invention of self-adhesive note paper, such a thing did not exist. Note paper itself was insignificant and inexpensive; it was the durable fasteners like pins, tapes, clips, and tacks that held value when used with these small paper pieces.

Silver joined an organization that heavily

depended on various Scotch brand tapes, including magic tape, cellophane tape, duct tape, masking tape, electrical tape, caulking tape, diaper tape and surgical tape. It was hard to believe that there could be a paper that could fulfill the same purpose as these tapes in such a setting. In the early 1970s, Silver was transferred to 3M's System Research group at the Central Research labs. There he encountered Oliveira, a biochemist who also had a keen interest in objects with surprising capabilities.

Silver and Oliveira prevented themselves from becoming disheartened; as a pair, they ultimately introduced the adhesive technology to Geoff Nicholson. This occurrence, which appeared to happen by chance, possibly turned out to be the most significant accident in the history of Postit notes. In 1973, Nicholson was assigned as the leader of a fresh venture team within the Commercial Tape Division laboratory. These venture teams were established whenever there were sufficient funds, to investigate new possibilities in various sectors of 3M's business and technology.

Nicholson recently received a new budget and the authority to create new products for the Commercial Tape Division of the company. The progress in developing these products has been slow. According to 3M's policy, each division must generate 25 percent of its annual revenue from products created in the past five years. This requirement is particularly challenging for divisions like Commercial Tape that already have established product lines. Unfortunately, Commercial Tape consistently falls short of meeting this target. Prior to Nicholson joining, Silver and Oliveira attempted twice to pitch their adhesive idea to the people in Commercial Tape but were hindered by James Irwin, the division's technical

director, who informed them about an upcoming arrival of a new research project leader. Just two days later, Silver and Oliveira approached Nicholson, who was still new to the division and unfamiliar with adhesives but eager for something fresh and exciting to work on.

Silver had a habit of embracing anyone who entered his presence, while explaining his adhesive discovery repeatedly. Although Nicholson didn't fully comprehend his explanations, he found them fascinating. Nicholson felt drawn to Silver's unique and unfamiliar ideas. Eventually, Silver's adhesive, which previously lacked recognition and support, found a place to belong. Nicholson took on the task of recruiting individuals for the new venture team with hopes that one of them would bring a problem that matched Silver's solution from five years ago.

Arthur Fry, a chemist, choir director, and amateur mechanic faced a problem. He took over from Silver and faced many challenges. Before joining Commercial Tape, Fry had observed Silver demonstrate his adhesive and had been pondering what to do with it. In 1974, while singing in the North Presbyterian Church in north St., the idea suddenly clicked for Fry.

Paul, Fry explained that he had a creative moment where he used to mark the places for songs at each Sunday's service with slips of paper to make them easier to find. However, when everyone stood up or when Fry had to communicate with gestures, he would often lose track of his bookmarks. With all the chaos and demands, it's understandable why Spence Silver might feel relieved or even grateful for the minimal attention given to his role in the Post-it story.

Silver is currently located in 3M's

basement office within a large, open, multihood laboratory. Despite the lack of windows, the laboratory remains a hub of experimental activity. Silver's scientific curiosity, which was instrumental in the creation of the Postit adhesive, is still evident. In fact, he willingly demonstrates the fascinating properties of the adhesive by showcasing a glass cylinder containing the milky white polymer in its natural state. With a slight application of pressure using a plunger, the polymer magically transforms into a crystal-clear substance. The pressure is released, and the adhesive returns to its opaque state. Silver remains perplexed as to why this occurs. It truly is a remarkable phenomenon," he exclaims.

"There must be some way you can use that!" In 1974, Fry provided the first truly affirmative response after Silver had been making the same exclamation for many years. However, with the "Eureka moment" at the North Presbyterian Church came multiple other problems. Silver's adhesive was attached to a favorable "substrate" on the bulletin board, sticking better than anything else. Yet, when transferred to paper, it peeled off onto everything it touched. Without altering this property, a future for Silver's Post-it adhesive seemed impossible.

According to Fry, the challenge was to make sure the adhesive on the note stayed in place without transferring to other surfaces. He believes that some church hymnals still have pages that stick together. The two inventors of the paper coating that made the Post-it adhesive work were Henry Courtney and Roger Merrill. Silver acknowledges their significant contribution to the project, stating that they have not received much credit for it. The Post-it adhesive has always intrigued people, but if you put

it on something and pulled it apart, it could stick to either side.

It had no recollection of its intended location. Finding a method to apply the base layer was challenging, as it had to adhere to the initial surface. Roger and Hank devised a technique to secure the Post-it adhesive. They were the ones responsible for the papers falling gracefully to the floor or descending into the deep crevice of the hymnal's binding. In a frenzy, Fry searched for his spot in the book and suddenly came up with a brilliant idea. He pondered, "If only these bookmarks had a small amount of adhesive, they would be perfect." Fry resolved to explore this concept at work the following week. Naturally, he was referring to Silver's adhesive.

In Fry's constant curiosity, a creative connection emerged between two unrelated ideas. Upon arriving at work on Monday, Fry obtained a sample of the adhesive and experimentally mixed various concentrations, resulting in the invention of what he referred to as "the better bookmark". Motivated by Silver's enthusiasm and Nicholson's dedication to innovation, Fry began to grasp the significant impact of his creative endeavor. Fry stated, "I realized that I had made a much larger discovery" and soon uncovered that the primary application for Silver's adhesive was not limited to fixed surfaces like bulletin boards.

The main use was paper to paper, and Fry had only applied adhesive to the edge of the paper to prevent stickiness on the part outside the book. While using these bookmarks for notes to his boss, Fry realized that they were not actually bookmarks but a note

system with built-in attachment and removal methods that didn't damage the original surface. Consequently, Fry has gained recognition as the champion of Post-it notes over time, which has brought him unique responsibilities.

Currently, Art Fry is no longer working alongside his old acquaintances Silver and Oliveira in a shared lab. He now has his own laboratory, which, to a chemist, signifies a high-ranking position within the organization. However, this level of prestige often leads to a solitary work environment. Nevertheless, Fry frequently steps away from the seclusion of his personal lab to represent the company and speak to large audiences of businessmen about the creative climate at 3M. He has been interviewed multiple times and is consistently recognized as the primary advocate for Post-it notes.

With the breakthrough discovery, Fry was trapped by this role of managing technological innovation because once you've learned that, you can apply it to all sorts of different structures. Courtney and Merrill's contribution was the first in a series of actions that definitely were not accidents. Despite organizational resistance after Fry's choir book epiphany, every action thereafter, including Courtney and Merrill's research, was focused on the development, production, and market success of the Post-it note.

Fry dedicatedly supported the product from development to production scale-up and was determined to persuade people to manufacture a product in a different way. Silver's responsibility was to convince his corporation that his glue was not just a minor part of the adhesive field's history. On the other hand, Fry's task was to overcome people's reluctance to deviate from their usual manufacturing practices. The engineers in 3M's Commercial Tape Division were used

to working with sticky tape that is packaged into rolls.

The engineers had to create two distinct machines in order to selectively apply glue to one side of the paper and transfer it from rolls to sheets. Additionally, 3M, a company renowned for its expertise in coatings, did not possess the equipment required to coat an uneven surface like paper with precision. They also lacked an effective means of measuring the weight of the coating. For instance, you may have observed that the adhesive layer of pads is not thicker than the remaining portion of the pad. The approach of dividing and conquering is frequently deemed optimal in both warfare and politics.

In production engineering, there appears to be a reversal of perspective. Fry brought various professionals together - including production people, designers, mechanical engineers, product foremen, and machine operators - to discuss the reasons why certain tasks seemed impossible. He encouraged them to brainstorm potential solutions for accomplishing the impossible. Being an inventor at heart, Fry also offered his own suggestions. While these problems may have troubled the production team, Fry found them thrilling. He believed that problems were valuable because overcoming them would result in a product that was easy for customers to use, yet challenging for competitors to replicate. These discussions sparked ideas among employees who recalled seeing machines and parts throughout 3M that could potentially be used to build the seemingly impossible machines they needed.

They considered seeking assistance from individuals who could offer support. Fry explained, "In a small company, if you had an idea that involved various technologies and had to purchase the necessary equipment to

combine them, it would likely be unaffordable. Alternatively, you would have to find the most cost-effective and smallest options." In contrast, at a larger company like 3M, we have access to numerous technologies and experts who possess comprehensive knowledge in various fields. Additionally, we have an abundance of equipment scattered throughout the company, enabling us to piece together solutions during the initial stages. This aligns with the old 80:20 rule, wherein approximately 80 percent of the required equipment and materials can be sourced internally and obtained by a resourceful champion." Furthermore, there was Fry's basement where he had engaged in debates with several mechanical engineers regarding a challenging aspect of production involving adhesive application on continuous paper rolls.

He stated it was possible; they claimed it was impossible. Fry constructed a small-scale basic machine in his basement and then modified it until he had solved the issue. The machine functioned and would function even better once the mechanical engineers had the opportunity to improve it. However, Fry faced a worse problem: the new machine was too large to fit through the door of his basement. If he couldn't remove it from his cellar, he couldn't exhibit it to the engineers. Fry accepted the consequences of his brilliance and did what was necessary. He demolished an outer wall in his ground-level basement and delivered his machine via caesarean section!

Within two years, Fry and 3M's mechanical engineers developed a series of unique machines that coated yellow paper with its "substrate," applied adhesive, and cut the sticky paper into small note pads. These machines are proprietary to the company and ensure the high-quality consistency and

dependability of Post-it Notes. The complexity of replicating 3M's machinery contributes to the scarcity of similar products in the market. Despite this, there were specific needs for products like book binding tape for libraries and PMA adhesives for the art market. Post-it Notes, although not a high-priority product initially, eventually captivated the company's marketing team who were convinced others would share their enthusiasm.

The marketing group at 3M faced a challenge in selling their product, as it seemed unlikely that anyone would pay for scratch paper. Despite the group's familiarity with Post-it Notes, they did not include any samples in their marketing materials for the new product. Instead, they opted to describe the note pads in brochures and send samples separately. These samples would only be opened if recipients were intrigued by the brochures. Unfortunately, the 3M marketing group found themselves trapped by their own way of thinking. Their role was to explain products, not demonstrate them. Thus, they lacked the words to combat the negative perception associated with "scratch paper." Consequently, without the ability to effectively explain their product, selling it became a challenge. Despite the efforts of Nicholson, who had successfully popularized Post-it Notes within 3M, his influence in promoting them externally was limited.

After the unsuccessful fourcity market test, Nicholson and Ramey, along with their boss Joe Ramey, wanted to determine why the product had failed. They questioned whether 3M's conventional marketing approach had adversely affected an innovative product. To delve deeper into this matter, they chose to visit Richmond, Virginia - one of the trial cities.

Ramey was an experienced marketing troubleshooter who understood that some market problems

are too advanced to be solved. Despite this, he went to Richmond because he liked Nicholson, not because he believed in Post-it Notes' chances of surviving. If Nicholson and Ramey had not gone to Richmond, it is highly likely that 3M would have stopped pilot production of Post-it Notes, retired the newly designed machinery, and allowed competitors to bring imitations of the product to the market. Fry and the engineers worked on their unique machines and mass-production methods in a pilot plant located in the Commercial Tape lab.

The project team systematically outlined all the necessary components, processes, tests, and intermediate stages required for the production of the ultimate output. According to Fry, the quality is exceptional, as there have been less than 75 complaints since the nationwide introduction of Post-its in 1980. The pilot plant generated an abundant supply of Post-it note prototypes to cater to all the company's offices. Nicholson's office received all the adhesive pads, which were then distributed to every office at 3M through his secretary's program.

When given Post-it Notes during the early stages of the program, secretaries on the fourteenth floor (where senior managers work) quickly became addicted to them. Jack Wilkins, who was the marketing director of the Commercial Tape Division at that time, described how people were captivated by this discovery. According to Wilkins, using Post-it Notes was like trying marijuana - once you start, you can't stop. Surprisingly, despite the enthusiasm from secretaries and marketing personnel like Wilkins, those responsible for introducing Post-it Notes to the market were unimpressed. The marketing organization within the division constantly faced fear and resistance towards this unfamiliar product

that threatened its overall success.

The marketing department had ceased interacting directly with consumers, which is ironic considering that in 1914, the well-known 3M hero, William L. McKnight, had initiated a tradition of direct consumer contact. In that year, he established a tradition within the company.

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