TECHNOLOGY AND INNOVATION MANAGEMENT

N Vinay Kumar Reddy - 1902143

Praveen Nemana - 1902147
Nilima Patil - 1902151
Ogirala Venkat Rohith - 1902153
Pasila Praveen Kumar – 1902160
P Chandra Kiran – 1902163
Praveen Pallikala - 1904028
 Jamie Houghton,
1983-96 & 2002-05 CEO and Chairman
• He kept the executive management team
intact
• Instead of finding faults with the
management team, consultants and other
stakeholders
• His whole focus was how to bring the
company out of crisis
• He closed 7 plants, cut his workforce by 50%,
exited photonics business
• He ensured more cash in hand to prevent
future volatility and transformed Corning
into a high tech company
Jim Flaws, CFO
• He preserved their financial stability even in
difficult times
• While spending on R&D he ensured cash flows to
remain positive
• He handled the pressure from Wall Street to
invest and never cut funds on fundamental
research
• He had clear and active financial metrics to
protect the flow of funds for future investments
Joe Miller, CTO
• He was responsible for bringing a discipline and transparent process
for resource allocation and also ensured board was on the same page
• He gave product briefings to board members in order to make them
aware of various developments in pipeline and the amount of funding
it requires for each project
• The CTC was chaired by CTO and was responsible for overseeing the
early stage development portfolio
• Under him CTC functioned in selecting the projects and also his
guidance helped in setting the pace of the project based on the level
of market spending and receptivity
 Wendell Weeks, 2002-07, CEO
• Weeks allocated more resources to six new growth products
being launched from existing businesses
• He believed that one should have a real zeal towards learning
and technology. He spends considerable amount of time with
project teams to guide them.
• He spent more to push one or more of four new technologies
currently in early stage development to market sooner,
realizing they would likely take at least five years to become
profitable
• He allocated more resources for exploratory research.
• He pushed the management team’s commitment to double
the rate of new business creation from 1-2 new businesses
per decade to 2-4 businesses, while growing current
businesses
• He came up with the idea of pre-payment agreements which
provided upfront funding required for capacity expansions
Amory Jr., 1964-83, Chairman and CEO
• Amory Jr. approached the engineering of glass as a science,
with an emphasis on experimentation and learning
• Corning first developed an innovative design that improved
the visibility of railroad/maritime signal glass (first patent).
• Amory Jr., whose family still held about 50% of the stock,
boasted “R&D is our fastest growing activity.”
• Corning tested about 10,000 different types of glass annually
and had a library of about 125,000 discrete formulas.
John Seely Brown (Scientist &
Boardmember)
• He believed that there can be more unexpected uses for
a particular idea which lead Corning to develop adjacent
businesses using the same capital equipment
• He also ensured the board is in loop about the emerging
technologies so that they are fully aware about the
funding required in future
• His belief was that every successful technology has a tip
off point and as one technology picks up the speed there
might be another which slows down – this thinking
helped in ensuring maintaining a pipeline of technologies
Other Prominent Personalities
• Headed Strategic growth team which helped identify, screen and
develop new opportunities with rigorous testing of innovative ideas -
Mark Newhouse (SVP and Director)
• He headed the operations committee and focused on delivering
performance – Peter Volanikis (COO)
• After the collapse of fiber market, he ensured that there is a balance
between R&D spending and market sales – Knowles (Board Director)
THANK YOU
Corning: 156 years
of innovation
KEY TAKEAWAYS
LESSONS LEARNED
• Financial strength
• Long term Investment
• Diversification
• Understanding the customers
• Encourage long term
employment
 • Financial strength is critical to innovation recipe
• Reserve cash should be greater than debt

Financial • Do not always follow wall street advice

• Change the financial policies with changes in
strength product lines
• When corning sold off life science business and
turned into high-tech company, they didn’t change
the financial policy
 • The firm was built on a long term investment in
R&D and it takes about a decade to establish a new
Long term technology
• It will take another decade to deepen the
Investment technology and get the returns
• Wall street and other analysts look for short term
returns but the firm should look for long term
investment in order to sustain
 • We should be more balanced and not overly
dependent on single business
• Corning’s 70% of the revenues came from
telecommunication in 2000 but as the dot com
Diversification went bust, their revenue fell from $5B to $1.6B
 • Corning needed to better understand its
customers’ business model and its customer’s
customers’ business model
Understanding
the customers • Except consumer kitchenware Corning almost
never sold directly to the end user and was
therefore vulnerable when its primary customers
lost market share or went out of business
 • Enduring values that encourage long term
Encourage employment
• Better visibility into the future and look into other
long term options of employability so that you do not cut
your workforce based on business’s performance
employment
 The Fundamental Principle of
Investing – Never put all your
eggs in the same basket.

Production Possibility Frontier

THE MOST IMPORTANT QUESTION

Should you spend now or invest for the future ?

 Discuss about the organizational
culture from all dimensions ?Explain
value creation in this context?

Presented by :-
•Mukesh
•Paritosh Kumar
•Akash Mundra
•Paridhi Jain
•Mohit Srivastava
•Mohit Tyagi
•Pourush Bara
 Visionary outlook

R&D driven
Dimensions
for Involving senior management

evaluating
Enduring values
culture:-
Diversification

Learning from failures

Visionary outlook

“One of the advantages of the

At one point of time Corning’s
Houghton family has been we
sales of thin glass substrates
could take the long view. We
generated enough cash but it
never had hired guns that were
focused on building technology
going to be CEO for four years
for next generation of LCD as
and retire, which allowed us to
future options.
keep the long view.”
 When growing up, my brother and I were
taught by our father, that investing in R&D
was like a ‘religion.’

R&D R&D played a central role in corporate

strategy throughout Corning’s long history.
driven The company had a portfolio of over 40
innovation projects under way in 2007

The rising next generation of Houghton

executives, Alanson and Arthur A.,
recognized the need to compete on the
basis of superior knowledge of materials
Involving senior management

Corning believed that senior management participation throughout the

entire R&D process was critical to making better and quicker decisions
and to reduce the time to market .

The CEO spent time at the laboratory interacting with project teams. He
tried to guide the team to where they may go to develop customer
relationships & value proposition.

Morse mentioned almost daily contact with Weeks. During project stage
reviews, Weeks emphasized trust in team recommendations because of
their consistent honesty.
 Enduring values
• Management recognized that to sustain long
development cycles, it needed to have very deep
technical talent in a variety of scientific areas with a
low attrition rate which meant absorbing failure by
other means than mass layoffs and keeping the
scientific talent around to create the next success.
• What had been embedded in the company culture
was an almost religious-like belief that by having
invested in fundamental research on materials,
optics, and manufacturing development on a fairly
consistent basis, we will create another important
wealth-creating business and set of inventions.
• Corning had seven corporate values: quality,
integrity, performance, leadership, innovation,
independence, and the individual. These values were
part of the DNA of the entire research organization
and leadership, most of whom had spent their entire
career at Corning.
• Unlike many companies the values were believable.
It truly focused on integrity, honesty, loyalty, but
combined with focus on results.
 Corning understood the importance of diversification in
terms of product offerings, allocation of basic research, and
the breadth of technology development portfolio.

It realized that to avoid the danger of single product

Diversification dominance and hence the collapse experienced with fiber,
there should almost be a conscious imbalance between
R&D expenditures and sales in a particular area.

The catch was to have in the pipeline ,a set of technologies,

so one or two will be coming up speed and cross that point
just as another one slows down.
 After recovering from the telecom bubble collapse,
Corning executives and the board set out in 2004-05 to
examine “lessons learned” from not only the meltdown,
but also prior successes and failures . They pondered
over some imp. Ques. Like -- ‘What do we want this
company to look like? What are our strengths and

Learning weaknesses, and where do we need to improve?

from
failures
The executives revisited the history of the company,
including things that were successful and unsuccessful
and concluded that thay needed to basically stick to our
knitting. This was "innovation recipe”
• THANK YOU
Decisions/Strategies that
were not Correct/opt.

• Mrunal Dudhamal (1902140)

• Chetan Nawle (1902146)
• Niharika Agarwal (1902148)
• Nikunj Daga (1902149)
• Parimal Fating (1902158)
• Raviraj Pishe (1902164)
• Sayli Pote (1902166)
What Happened
• The worldwide telecommunications crash happened
in 2002 really hit Corning at its worst where the
company had to take $5.4 billion loss. Company’s
stock plunged and crashed to the lowest from
$100.00 to $1.50.
• On top of what has happened financially in 2002,
Corning had issue in prioritizing business proposals
as too many business diversification has been made
such as optical fiber cables in mid-1960s, medical
products/services design in 1970 and converter in
auto exhaust systems in 1974. Lost focus as
objectives are not clear within the organization.
• The concept of “patient money”, Corning has lost
money for 14 years on their display business before
becoming profitable in 1999.
• During telecommunications crash era, senior
management only realized that Corning didn’t perform
enough or optimally on risk management and strategic
balance specifically –
1. Prioritization of Business
2. Understanding the customer
3. Decisions on acquisitions
• Corning purchased Pirelli’s US subsidiaries at a price
165 times its annual revenues.
• Corning had disaster where they have lost a lot under the
same leadership of Ackerman.
• Even during the fiber prices plunge in 1998 and Corning’s
stock fell two-thirds Ackerman kept on course and increase
expenses on R&D from $175 million in 1995 to $560 million
in 2000.
• Innovation at Corning followed what was referred to as the
“Governance of Innovation Pipeline”. The process required
building a deep understanding of specific technology and
solving with a unique combination of material and
processes. The innovation process was overseen by several
managers who used Corning’s Governance of Innovation
Pipeline to move new business through stages of product
development.
• The company sold off their life sciences businesses which
were very stable cash producers which resulted into a high-
tech company with more volatility and they hadn't change
their financial policy too.
What should be done?

Corning must limit the number of

attendees at the GSC meetings. Corning
should only permit the key decision
makers, employees who have had a long
history with the company, and employees
with expertise on the business model being
presented to attend. Implementing this
option would help facilitate open
discussion at the meetings as less people
would be involved; and this option would
be free to implement.
Corning must screen the proposals that are
scheduled to be presented at the meetings.
By reviewing the proposals prior to the
meetings, by doing this the GSC would be
able to prioritize the opportunities and
ensure that only the most viable prospects
are presented.
• Some of the barriers that happened in Corning are they didn’t
know enough about environmental and social issues, they
weren’t able to make a clear link to why it mattered for their
business and they could understand the link, but they had
competing priorities. Due to this we need input from outsiders to
gain different perspective in understanding our strategic plans.
• Corning to hire specialists to collaborate with the key decision
makers on the GSC and to facilitate the decision-making process.
• The company closed 7 plants, cut its workforce by 50%, exited
the photonics business and sold its precision lens business for
making rear projection TVs to 3M for 850M in cash and took a
$1.3B restructuring cost.
 In Corning, ongoing workforce planning
was temporarily disturbed when
attention shifted to meeting new
Using HR tools, they could evaluate
regulatory demands. Corning have to
human strategic resources, identify the
study, monitor, implement and improve
factors constraining Corning’s business
on Recruitment, Retention, Professional
processes and analyze how these factors
Development, Leadership/High-Potential
would affect the talent pool
Development, Performance
Management, Feedback/Measurement,
Workforce Planning and Culture.
• Patient Capital: A company must make very large gambles involving
multiple millions of dollars for something that can take 20 years to pay off
because keystone technologies were built on a foundation of long-term
investing in R&D. If you capture things from the very beginning on an
internal rate of return basis, they often can look terrible, because it might
take 6-7 years before you get your first revenue and much longer to turn a
profit.
• Wrong strategy - Focusing on only single product Diversification: There
should be given Importance of diversification in terms of product offerings,
allocation of basic research, and the breadth of technology development
for other business instead of focusing on a single product. Initially during
the telecom explosion, Wall Street analysts and even many investors, were
saying, to focus on only telecom instead of hanging onto other confusing
parts of the business but if they followed other advice and would have sold
LCD glass then they wouldn’t exist now so the strategy to be used is never
let this company be about one product. “ To avoid the danger of single
product dominance and hence the collapse experienced with fiber, there
should almost be a conscious imbalance between R&D expenditures and
sales in a particular area.
Thank You
Corning 156 years of Innovation

By Group 1 –

• Nikunj Garg - 1901073

• Poras Narnaware - 1901080
• Prabhat Kumar – 1901081
• Nousha Surendran - 1902152
• Pragya Jaitly - 1902169
• Sayali Wathore - 1903013
• Prateek Saxena - 1904027
Introduction
• The executive team at Corning has committed to double the rate of
new business creation per decade, while at the same time growing
the company's current businesses, including glass substrates for LCD
displays.
• Their strategy, built on more than 150 years of successful innovation,
is to invent "keystone components" which uniquely enable other
companies' products and earn high margins from its proprietary
technology.
• As part of the company's mission to be around for another 150 years,
the executive team is also committed to devote considerable
resources to basic research "in faith" that it will create new, high-
margin businesses that will drive corporate growth in 10-20 years and
enable the company to "reinvent" itself, even though they will not be
around to reap the benefits of this investment.
 The executive team must choose how to allocate finite RD&E
resources between
1. "pushing" one, or more, of four brand new businesses with
considerable potential in the development pipeline to the
market sooner;
2. allocating more resources to six new products being
launched from existing businesses; or
Overview 3. spending more on exploratory research.
In making these decisions, the executive team must consider
the impact of their decision on not only near-term earnings,
but on how it will enable Corning to diversify over the medium
to long term in terms of the quality and quantity of its portfolio
of new technologies in the development pipeline and new
businesses being launched, especially so that it is not overly
dependent on sales of a particular business like LCD glass.
 • 1908 : developed a borosilicate glass that could withstand high
Signal Ware temperatures without breaking
• Major player in light bulb making after innovation of Ribbon
Light Bulbs Machine
• Dow-Corning was a global leader in silicones with $4.4B in sales in
Joint Ventures/ Silicones 2006.
Corning 156
Years of TV Tubes • By 1950, Corning was the only major manufacturer of TV bulbs.

Innovation
Fusion glass • In the early 1960s ,thin flat glass for automotive windshields that
required no grinding or polishing
• develop ceramic substrates for use in catalytic converters designed to change
Ceramic Substrate automotive exhaust pollutants to harmless by-products

Fibre Optics • In 1997, Corning began to invest heavily in photonics with the
intent of becoming a provider of complete fiber optic systems

Flat Panel Displays •Corning adapted its fusion glass technology developed two decades earlier for use in
making thin glass substrates for LCD displays
 Market value of more than $100 B and with broadened product
portfolio.

High investments R&D and advance technology thus

experiencing strong growth in telecommunications.

Good budget expenditure on optics/photonics with more than

2000 patents.

Strengths Good business awareness as they shed business which had 9%

or less contribution of stocks valuation.

Investments in people to bring them to research.

Changing according to financial strength, diversification and

enduring values that employed long term employment.

Deriving 70% business from their recognized business i.e.

telecommunication.
 • Corning sometimes lacked the capital,
management and marketing capabilities to take
advantage of its research and instead formed
several joint ventures (Example: Corning formed
Weakness a 50-50 joint venture with Dow Chemical).
• Depending upon a single business and creating
a single product dominance. Investing most
research dollars on a single business (Telecom).
 Opportunities
Access to International Talent in Global Market - it can help in bringing the talent into
domestic market and expanding into new areas Managing uncertainty, Market research,
Research & development, Technology

Reducing Cost of Market Entry and Marketing into International Markets –globalization
along with boom in digital marketing and social media has considerably reduced the risks of
market entry and marketing in international market

Increase in Consumer Disposable Income - can use this trend to expand in adjacent areas
Managing uncertainty, Market research, Research & development, Technology.

Changing Technology Landscape –can use these developments in improving efficiencies,

lowering costs, and transforming processes.
 Tough Competition

New Players

Threats Recession

Pluming Demands

Uncertain Market
 • R & D played a central role throughout their Journey, Company
spent average 33% on R & D. During the Depression, even with
plummeting sales, Corning preserved its research base and
R&D spending rose to 6% of sales in 1934. It shows companies
strong belief in Innovation

• Company always had a long term vision as required in

Conclusions technological innovations. Despite being un-popular decisions

at wall street, It took long term decisions and that helped it
immensely in terms of patents and first mover advantages.

• Company was always rooted to its 7 core values. It maintained

a very good relationship with employees, utilised their
expertise. They followed transparent process for smooth
functioning so that everyone was on the board.
Group 2
• Pradeep Prajapati-1901082
• Raj Kantykumar-1901090
• Mrinmoy Rajkhowa-1902129
• Narendra Kumar-1902144
• Pagalavan M-1902154
• Manish Kumar Singh-1905022
• Prashant Chandola-1905025
Initial product Portfolio

Signal ware Light bulbs TV tubes

Ceramic
Fusion glass Fiber optics
substrates

Flat panel
displays
Technology portfolio: New products for
existing business

New generation Handheld

Diesel filters
LCD glass screens

High-throughput
Bendable fiber
screening
Technology portfolio: New businesses

Green lasers Micro reactors

Mercury abatement for

Silicon on glass
coal fired plants
 Patient Capital

Focused extensively on R&D

Diversification Learning

Technology Material Research

Management Process Innovation

Patent protection

Partnership with other market players

Understanding the Customer Requirements

R&D Budget
THANK YOU
Lessons Learnt &
Value Creation

Team Members:
1.Pranav Hareendran – 1902170
2.Nilay Srivastava – 1902150
3.Kuldeep Kothari – 1905021
4.Kshitiz Singh –
5.Parth Sharma –
6.Prasenjit Das -
 The innovation recipe required deep
Corning needed to better
understanding of not only a specific
understand its customer business
technology but also the
model and its customer’s customers
identification of the problems faced
business model.
by its consumers.

Corning almost never sold directly to

the end user and therefore was Corning generally had a small
vulnerable when its primary number of customer for each
customers lost market share or went technology.
out of business.
Understanding the Customer

Key to success is
It is also essential to gain
collaboration with smart
insightful data about the
customers who are
consumer’s consumers
technology leaders and
and not rely on the experts
more often are not Asian
such as Wall Street.
or European companies.
 It is important to endure values and keep
managerial and scientific talent intact
through good times and bad times.
Enduring
Values that Corning realized that to sustain long
encourage development cycle, it needed to have very
deep technical talent in variety of scientific
areas with a low attrition rate.
long term
employment This means absorbing failure other than mass
layoffs and keeping scientific talent around to
create the next success.
There are 7 corporate values that corning incorporated which are part
of Corning’s DNA and form the bedrock of the company to operate:
Quality, Integrity, Performance, Leadership, Innovation,
Independence and the individual.

Corning had four generations of scientists working for a

career span of 25-40 years, therefore, the research lab of
corning could pass on the knowledge of the products that
they excel into the next generation.

Enduring Values that encourage long

term employment
 R&DE,
Innovation &
Marketing
How Corning dealt with crisis

New product for

existing business
Marketing

Corning During New Businesses

Crisis
R&D and
Kept Investing
Innovation
Innovation specific to different businesses
Element of the Recipe
Marketing Strategies
New Products for existing Market Corning Market Segment
Segment
• Diesel Filters • Display Technologies
• New generation LCD Screens • LCD Glass Substrates
• Handheld Screens
• Bendable Fibers
• Environmental
• High throughput screening
Technologies
• Telecommunications
• Life Sciences
Creation of New businesses
• Green Lasers • Specialty Materials
• Micro Reactors
• Mercury abetment for coal-fired
Plants
• Silicon on the glass
 Strategy to come out of crisis
Stage 1
Stage 1
• Seeking technical solution.
• articulate a value proposition
with the promise of
significant
• sustainable differentiation
based on IP, know-how and
specialized capital
equipment.
Stage 2 Stage 3
Stage 2 Stage 3
• The Strategic Growth team
focused on interacting with the • The acceleration phase, in
market place and getting feedback which it made pilot
on the component to articulate a quantities and prepared
business proposition. It funded all
activity associated with the to introduce the product
program, and built the for commercial sales:
organization required to staff the
capability. In 2007, Corning had
four promising technologies that
were ready to enter Stage 3
Thank You
 CORNING – 156 YEARS
OF INNOVATION
GROUP 3
NISHTHA SINGH (1901074)
POORVIKA SINGH (1901079)
PRIYA SINGH (1901084)
R MAURYA (1901088)
BASUPALLY MOUNICA REDDY (1901087)
 TOPIC TO BE
DISCUSS-

• Lesson learned-
Financial strength
Patient capital
Diversification
• Role of wall street and and
their influence/contribution in
the innovation
• Renaissance of corning
 • Financial strength was critical to the innovation recipe, due
to the high cost and risk of the long-term bets that the
company has made.
• Flaw noted that “when we move into development, the
key for us is to pace ourselves and to be certain before
FINANCIAL we move to the next stage, as each stage gets

STRENGTH •
increasingly expensive.”
Flaw made certain that Corning maintained positive net
cash enough to ensure that when market downturns took
place, they would still be able to fund basic research on a
consistent basis.
 • Keystone Technologies- Requires long-term R&D
investments.
• It might take decade for technology to establish and be a
PATENT Keystone Technology. Something that new firm would

CAPITAL •
never switch to.

Implies extremely long development cycle and high fixed

cost structure.
 • Diversification in terms of product offerings, allocation of
basic research, and the breadth of technology development
portfolio.

DIVERSIFICATION • KEY CHALLENGE – Selling this strategy to investors.

• Growth of every successful technology has a hockey stick

shape.
PROCESS

Access
needed

Select
technology
Determine
scale
THANK YOU…….