3M has unveiled a plan to launch 1,000 new products in the next three years — an effort it will fund by investing $3.5 billion in research and development.
Shifting Priorities
3M has undergone some major changes in recent years as the multinational chemical firm shed its healthcare business in an effort to become more focused on core areas. After a few challenging years brought on by supply chain variability and regulatory issues, 3M cut back on many of its smaller, less profitable R&D efforts. Along the way, the company lost its focus on innovation, and its R&D model became “out of balance,” according to CTO John Banovetz.
Development Areas
The recent pledge by 3M to invest billions in product development comes after a year in which the firm launched 169 new products. Its next goal is to accelerate company growth by launching more than 1,000 new products in the coming years.
3M says it will focus on verticals where it already has a presence and can innovate further. These include areas such as industrial automation, energy, electronics, safety, and consumer-facing industries like cleaning and home improvement.
Technology Is Key
New technology will largely support 3M’s strategy. The company says innovation efforts will leverage AI tools, a method company leaders say will fundamentally change how 3M conducts research. Banovetz also recently detailed a "digital materials hub” where 3M employs AI to apply technical information to over 300 product model combinations to predict performance characteristics, reducing overall costs.
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