3M Optical Systems
Questions
- What practices make 3M such an innovative company?
- What is Any Wong’s role as the OS Unit’s general manager?
- How effective has he been?
- What is Paul Guehler’s role as division vicepresident? How effective has he been?
- What should Andy Wong do with the computer screen AFE? If he gets the AFE, should Guehler fund it?
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Case Outline
- The Situation Background of 3M Corporation
- Internal Context at 3M
- Corporation Background of Optical Systems (OS)
- “High-Tech”: Spends twice the U. S. Industry Average on R&D (6-7% of sales)
- Strong emphasis on new products and technologies
- Fosters individual’s innovation within the workforce (“15% rule”) Internal Context at 3M Corporation
- Respect for the individual – “Stimulate ordinary people to produce extraordinary performance”
- Supportive policies/practices – 15% bootleg rule – “Make a little, sell a little”
- High standards, stretch objectives – 10% sales growth, 20% PBT, 27% ROCE – 30% sales from new products
Internal Context at 3M Corporation
- Acceptance of “well-intentioned failure”
- Share/leverage resources – “Technology belongs to company” Background of Optical Systems (OS)
- OS Track Record (1979-1990) – Formed in 1979 through consolidation of several 3M optical technologies – Experienced 11 year microlouver development effort with minimal products – Lost between 3 to 5 million dollars per year – “Technology in Search of a Market”
- OS Changes Focus (1991-1992) – In 1990 new top management appointed – Focus on applications for technology
The Product is Born
- In late 1990, the OS Team launched the computer privacy screen
- Product used “microlouver” technology to offer privacy of screen information
- By early 1991 the OS Team saw poor market reaction due to the large number of sizes needed and high purchase price
- Product was modified and re-launched in late 1991 with minor changes, but to no avail The Product is Re-Born
- Through prior-product analysis, market research, and harnessing some of 3Ms other technologies, a 3rd generation was created and readied for market in 1992. It combined features of competitor’s such as anti-glare, anti-static and anti-radiation
- Was ready for decision on “Authority to Proceed” Wong’s Options Go
- Learning from two previous launches
- Met rigorous threephase proces
- Team closest to market, competition, technology (trust them, don’t second-guess)
- Committed team (motivational impact)
- Last chance for OS
- Wong must be the champion Postpone/Cancel
- Poor market research
- Poor product concept
- Price too high
- Unrealistic market share forecasts
- Unrealistic risk assessment
- Needs more data, further study
Other Options
- Self fund
- Mentor’s support
- Outsource Guehler’s Options Approve
- Project passed three-phase review – Shouldn’t second-guess now Reject/Send Back
- Recognize as “well intentional failure”
- Has other high-profile “Pacing Projects”
Problems with product, price, marketing strategy
- Lacks internal support
- Cost relatively low ($750K)
- OS unit believes, committed
- Don’t want to kill OS unit – Big project in pipeline (Needs 30% new products)
Wong’s Role/Effectiveness
- Attracting good people – Noirjean, Melby Developing/motivating his team, building unit’s capabilities
- Creating, pursuing growth opportunities
- Keeping management “in the boat” Guehler’s Role/Effectiveness
- Empower frontline manager to find/develop attractive opportunities
- Coach/nurture/support frontline managers to develop confidence and capabilities
- Set standards/goals for and develop selfdiscipline among frontline
- Balance between discipline and support Desimone’s Role
- Sets, communicates, monitors standards and objectives
- Protects, reinforces norms and values – Respect for individual Primary focus on organizational context more than strategic content
Cite this Page
3m Optical. (2018, Feb 17). Retrieved from https://phdessay.com/3m-optical/
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