The Innovation Company Essay Example

percent rule is almost pointless due to every project is different and everyone has different roles which may require more time that may cut into their 15 percent. There are others who may have a lot more free time to spare and can dedicate more than 15 percent towards innovation. The other factor is if deadlines need to be met in producing a new producing a new product then obviously the 15 percent rule will be increased to speed up the R&D process. Realistically the 15 percent rule should be used as an average not a benchmark for product innovation.

4Encouraging product and brand managers to achieve 25 per cent of sales from recently introduced products would be welcomed by shareholders, but what happens if a successful business delivers profits without 25 per cent of sales from recently introduced products?

If the successful company returns profits without the 25% of sales then that company takes a loss. They would loose money from that product that was not successful, (pull it from the market and revamp/reintroduce), as well as from having to pay what they promised to those shareholders. If they do not deliver what they promised, then they are more than likely to loose their backing for future products.

5Some people may argue that 3M’s success is largely due to the significance given to science and technology and this is the main lesson for other firms. Discuss the merits of such a view and the extent to which this is the case.

3M were formed around one technology, sandpapers. Now a days 3M make use of hundred technologies & more like

the membranes, the biotechnology, the artificial intelligence, the high vacuum thin films & also the superconductivity. Such technology underpins products which company develops & manufactures. “While the company is technology-intensive, this does not imply a single-minded, technology-push approach to innovation” (Trott 545). Even though the company has invested 6.5 percent of their annual sales turnover for R&D.

They are investing to help with the production of their innovative ideas. “Money has been used for employing over seven thousand scientists & technologists for developing the new & the interesting technology. It is such a technological intensity, which provides company with competitive benefit for competing with their rivals” (Trott 545).

Explain how the innovation dilemma affected 3M. The dilemma was due to the first outside CEO coming into the company. This CEO brought with him a program that helped the manufacturing/logistics side of 3M to obtain operational efficiency. However, this program was less than favorable with the R&D department. It stifled R&D and caused a decrease in new product innovations, which dropped the company's sales and ranking. After the departure and replacement of the CEO, the negative impact of the program was realized and removed. The company was able to regain its creativity now that it was once again focused on growth and innovation instead of process and short-term profits.