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Corning Incorporated
By: Adebowale Alonge, Elizabeth Doragh, Jessica Maclin, Jasmine Howard, Chunhui Hou, and Kyle Currie
About Corning Incorporated
• Employees: 30,000
• Industry Classification: Diversified Electronics
• Revenue for 2014: $9.7 billion
Objectives
• Has created an opportunity identification process to identify breakthroughs in the next 5 to 20 years
• To identify these breakthroughs and increase innovation, management has established seven questions and an innovation recipe
Corning’s Seven Questions
From Stage 0 to Stage 1
1. What, if any, are the key megatrends driving the opportunity?2. Is the opportunity large?3. Is the problem significant-requiring a step change in cost or
capability?4. What is the hypothetical (quantified) value proposition?5. Is Corning’s approach unique? Is there a possibility for
significant differentiation?6. Does it fit Corning’s materials and process expertise?7. Are the required resources available?
Strategic Growth
• Purpose: to collaborate with corporate research to identify and develop new, large, and profitable business opportunities
• Focus: specifically “white space” markets, technologies, and industries in which Corning did not have a presence in yet
• Three primary functions:– Exploratory Markets and Technologies– Business Development– Government Programs
Strengths• Created to identify and develop new profitable
opportunities• Strategic Plans potentially gives corporation
monopolistic powers• Uses an outside-in approach• Variation of ideas can be gathered • Innovation process allows ample time to build
knowledge, feasibility, practicality and profitability
Weaknesses• May lead to an oversaturation in brand and
product lines • Mercury Abatement technologies decrease
consumer buying power• Supplier loyalty may mean buying a substitute• Slow turn around time with commercialization• A long innovation process may lead members
to lose focus• Bottleneck effect in supply chain and R&D
Opportunities• Corporate innovation will help penetrate new
markets• Using technology and supplies that have
been used saves time, money, supplies, and company cohesion
• Creating a diverse portfolio with different markets
• Ability to join global markets
Threats• “New” companies may face a mature market
with high barriers of entry or exit• Considerable competition once a trend
matures• Each new technology must pass the Seven
Questions and Innovation Recipe to ensure differentiation and uniqueness
SWOT Analysis
Background: > electricity demand growing in emerging economies 4% per year>coal will continue to be the dominant fuel>coal prices have remained stable and is readily available
Issue trying to solve: Coal emissions
Impending U.S Legislation to cap and reduce mercury emissions from coal-fired power plants (first country in the world to regulate)
Mercury Abatement Example
Input about the process
• Successful: By using SGO they have increased innovative culture
Diverse Teams and collaboration Strategic Alignment Solving problems with already acquired resources
• Fix:x Expediting the process
x Balancing innovative efforts with innovative outputsx First to market
x Whole new point of measurabilityx Who are the key players? Who should they be?x What are the incentives?