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 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?

Video on Strategic Growth and Innovation

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

“Outside-In” Approach

Corning’s Innovation Process

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

Potential Solutions to the Problem

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?

Any Thoughts or Questions