The Idea in Brief
Waterproof sandpaper. Scotch tape. Post-it Notes. How does 3M regularly crank out breakthrough products that power its growth? How does it ensure that 30% of sales come from new products, rather than relying on improvements to existing ones?
3M employs the lead user process—a systematic way to learn from companies and individuals who are well ahead of market trends. These people are so impatient—so much in need of “the next big thing” that they’ve already made it themselves. They’re computer hackers who develop radical new software; winter mountain guides who create high-performing tents. And they far outnumber any firm’s product developers.
Lead users—not internal developers—hold the key to regularly generating breakthrough products. Here’s how to use them.
The Idea in Practice
1. Lay the foundation. Identify target markets and the kinds of innovations that will benefit your customers and your company. This gets key stakeholders on board early. Example:
3M needed a breakthrough; its pricey, infection-preventing surgical drapes showed flat growth and wouldn’t sell in less developed countries. To jump-start innovation ideas, the team studied infections by researching literature and interviewing experts. It shared learnings with management and set parameters for types of new products.
2. Determine the trends. Interview people with a broad view of emerging technologies and leading-edge applications in the area you’re exploring. Example:
By focusing its research on doctors’ needs and practices in developing countries (including visits to foreign hospitals), 3M realized it needed to redefine its goal: “Find a much cheaper and more effective way to prevent infections from starting and spreading that does not depend on antibiotics—or even on surgical drapes.”
3. Identify lead users. Network to identify and learn from users at the leading edge of your target and related markets. Identify innovations and ideas that might contribute to breakthrough products; assess their business potential and fit with company interests. Example:
Lead users turn up in surprising places. 3M learned from veterinary surgeons who routinely control infection despite difficult conditions and cost constraints, i.e., patients who’re covered with hair, don’t bathe, and have no insurance.
4. Develop the breakthroughs. Host a lead user workshop. Invite several lead users, product developers, marketers, technical and manufacturing people from your company. Example:
At 3M’s workshop, participants brainstormed six new product lines and a radical approach to infection control. The recommendations included an “armor” line for coating medical tubes with antimicrobial protection, giving 3M a good shot at a $2 billion market.
5. Change strategy. While progressing through the lead user process, watch for the need for strategic change. Example:
In researching the “armor” line, 3M learned that some people enter hospitals with high susceptibility to infection; thus, doctors want to treat them before surgery. Meeting that need required a major direction change. 3M’s management approved—impressed by the team’s research. Implementation is under way.
When senior managers think of product development, they all dream of the same thing: a steady stream of breakthrough products—the kind that will enable their companies to grow rapidly and maintain high margins. And managers set ambitious goals to that end, demanding, for example, that a high percentage of sales come from products that did not exist a few years ago. Unfortunately, the development groups at many companies don’t deliver the goods. Instead of breakthroughs, they produce mainly line extensions and incremental improvements to existing products and services. And as the pace of change accelerates in today’s markets, that’s a recipe for decline, not growth.
