By incorporating innovative ideas, making commitments and cementing long-term partner-ships with the community, 3M's future looks extremely bright, according to the company's chairman of the board and chief executive officer, Allen F. Jacobson.
Jacobson, a 41-year veteran with 3M, the St. Paul, Minn.-based conglomerate that had $10 billion in sales in 1988 and ranks 34th on the list of America's largest companies, said if all of 3M's diversified divisions perform as they did in 1988, the future looks bright.Speaking during the dedication of a $12 million building housing 3M's Health Information Systems in west Murray Wednesday, Jacobson said 3M is committed to the health information systems business, although he admitted it was a "different type of business for us."
Apparently pulling all the right buttons as evidence by 3M increasing its sales by $1 billion in 1988, Jacobson recently was featured on the cover of Business Week magazine. His secrets of success are quality products, a commitment to his employees and commitment to the communities where 3M facilities are located.
He said opening the new building, built by the Boyer Co. but owned by 3M, is acknowledgment 3M is committed to the Murray area. "I am impressed with the skills and dedication of the 350 employees," headed by Al Eggert, HIS department manager.
In planning for 1989, Jacobson said the company expects continued, although slower growth, slightly higher inflation and a stronger U.S. dollar, which could result in slightly negative currency effects.
Even though the above factors will present challenges to the company, Jacobson said he expects higher sales and earnings this year and the company's goal is for high-quality growth. "By that, we mean growth that is both highly profitable and long term," he said.
Last year, 25 percent of 3M's sales were from new products and Jacobson said diversification will continue to be an important part of his vocabulary.
3M is divided into four sectors with HIS falling in the life sciences sector.
3M entered the hospital information business in 1983 with the acquisition of Code 3 Systems. Company officials said they entered this business on the premise that cost-containment measures in hospitals would escalate during the 1980s, paving the way for rapid computerization.
In 1987, 3M purchased Control Data's hospital information systems business, consisting of the HELP system and the Medlab laboratory system. Code 3 deals with clinical data management, Medlab is for hospital laboratory management and HELP is a comprehensive hospital information system.
3M came to the Salt Lake Valley five years ago, and its employees have been located in several buildings, according Eggert.
Other speakers during the ceremony were Lt. Gov. W. Val Oveson, Murray Mayor Lavar McMillan and H. Roger Boyer, general manager of the Boyer Co.