Case Study I: Post-it Notes

One way new products are developed is to take a current product and modify it in some way. Another way is to determine how a previously developed product can be marketed or used by a particular group of customers.

The 3M Company is famous for many products, among them adhesives and abrasives. In one of 3M's most famous innovative stories from the 1980s, a 3M manager, who was a member of a church choir, wanted to mark the pages of his hymnal so he could quickly find them. A bookmark would not do because the piece of paper could easily fall out. The manager needed something that would adhere to the page but not tear it. Back at work, the manager asked one of the members of the research and development department if an adhesive existed that would do this. One did, but it never had been marketed because the company found that the adhesive was not strong enough for industrial use. At the manager's request, a batch of the glue was prepared and applied to small pieces of paper that could be used as bookmarks.

As the manager who had requested the product began to think about the new product, he concluded it had uses other than as a bookmark. Secretaries could use it to attach messages to files and managers could use it to send notes along with letters and memos. In an effort to spur interest in the product, the manager had a large batch of these "attachable" notes, now called Post-it Notes, made and began distributing them to secretaries throughout the company. Before long, more people began to ask for them. The manager then ordered the supply cut off and told everyone who wanted them that they would have to contact the marketing department. When that department became inundated with calls for Post-it Notes, it concluded that a strong demand existed throughout industry for these notes and full production began. Today Post-it Notes is one of the largest and most successful product lines at the 3M Company.

1. How did the creative thinking process work in the development of this product? Describe what took place in each of the four steps. Is the development process always the same? Why or why not?

2. Why did the manager have the Post-it notes sent to secretaries throughout the company? What was his objective in doing this? Did the act accomplish the objectives and goals? What are alternatives that could have been done to reach the same outcome? Would you make the same choice?

3. What type of innovation was this-invention, extension, duplication, or synthesis? Explain your answer then identify another example of the same type of innovation but in a different company. Describe it in your paper

4. Which of the innovation sources discussed in the chapter help account for this product's success? Explain in detail.

Case Study II: An Idea for the Dogs!

Chris Wasserberg is a salesperson for a Fortune 100 firm. He has a bachelor's degree in marketing and is one of the firm's best salespeople. It is likely that Chris will one day become a sales manager if he stays with the firm. This is doubtful, however, because he hopes to start his own business.

Since he was hired seven years ago, Chris has managed to build a nest egg of $160,000. He now is looking for a business that would require no more than $60,000-$70,000 to get started. The rest would be used for operating capital and to keep him going until the company turns profitable. In the past, Chris has gathered ideas by reading magazines such as Entrepreneur and Inc., which report new types of businesses.

Last week, Chris read a story that intrigued him. A man on the West Coast has been building custom doghouses out of expensive materials and selling them for $5,000 to $15,000 each. Chris realizes that few people can afford to pay this much for a doghouse, yet most doghouses are not distinctive, and owners simple pay $50 to $150 for basic doghouses. Chris believes a market may exist for doghouses between these two extremes, in the range of $250 to $500. Chris has done the research and believes it would not be too difficult to differentiate his product from the standard doghouse. In particular, he is considering building a house that is slightly larger than the typical one, well insulated, and floored with washable vinyl; he would put the dog's name above the door and shingle the roof. Additionally, he believes that it would be more appealing if the house has the same basic design as the owner's. The two biggest obstacles will be marketing and production-that is, getting people to order houses for their dogs and then building the houses. Chris believes that, with his background, he can handle the marketing, and it should not be too difficult to find someone to handle the construction. Moreover, until the business takes off, he believes he can continue with his sales job.

1. Is anything unique about Chris's idea? If so, what? If nothing was unique about it, was it successful? How is success defined in this case? Explain.

2. What is the first thing Chris should do to follow up on his idea? Take both a marketing and a finance position in your answer and compare and contrast the two. Explain.

3. When this is done, what else should Chris do? Outline a general course of action for him. How would Chris know his goals are accomplished?