{"id":1828,"date":"2015-12-06T15:00:09","date_gmt":"2015-12-06T20:00:09","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/corning-incorporated-always-bright-ideas\/"},"modified":"2015-12-07T19:07:28","modified_gmt":"2015-12-08T00:07:28","slug":"corning-incorporated-always-bright-ideas","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/corning-incorporated-always-bright-ideas\/","title":{"rendered":"Corning Incorporated: Always Bright Ideas"},"content":{"rendered":"<p>Corning Incorporated (Corning) is a leader in the materials science industry. As a firm with a market capitalization of $21 billion[1] and operations in over 100 countries[2], it represents a highly effective firm whose competitive advantage lies in it&#8217;s ability to both sell products and manage innovation in a way that produces substantial value.<\/p>\n<figure id=\"attachment_1784\" aria-describedby=\"caption-attachment-1784\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Scientists.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1784\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Scientists-300x225.png\" alt=\"The three Corning scientists who first developed low-loss optical fiber Sources: Star Gazette and Corning Inc. \" width=\"300\" height=\"225\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Scientists-300x225.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Scientists.png 327w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-1784\" class=\"wp-caption-text\">The three Corning scientists who first developed low-loss optical fiber<br \/>Sources: Star Gazette[3] and Corning Inc.[4]<\/figcaption><\/figure>\n<p style=\"text-align: center\"><strong>Business Model<\/strong><\/p>\n<p>At the heart of it, Corning sells glass. For over 150 years[5], the firm has turned operational processes into business value by developing ever-more applications for glass-related products. The firm now manages product lines across five areas: display technologies, environmental technologies, optical communications, life sciences, and specialty materials[6]. Everyday day, millions of people interact with Corning products[7], whether it is touching Gorilla Glass\u00ae on their iPhones or streaming video online using data fed through Corning fiber optic cables. Simply put, Corning makes money by figuring out new uses for glass and then selling those products to the market. As represented in the Corning marketing video, \u201cA Day Made of Glass&#8221;[8], Corning is betting its future revenue growth on making interaction with glass-type materials an even bigger part of our daily life.<\/p>\n<p><iframe loading=\"lazy\" title=\"A Day Made of Glass... Made possible by Corning. (2011)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/6Cf7IL_eZ38?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The fascinating thing about the video is that it makes it seem very plausible that one day the majority of our electronic interactions will take place through an optical medium. Furthermore, Corning\u2019s model of continual product line extension represents an effective approach because it creates a large diversity of revenue streams from which the firm can capture value.<\/p>\n<figure id=\"attachment_1783\" aria-describedby=\"caption-attachment-1783\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Revenue-Growth.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1783\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Revenue-Growth-300x196.png\" alt=\"Source: Morningstar\" width=\"300\" height=\"196\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Revenue-Growth-300x196.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Corning-Revenue-Growth.png 428w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-1783\" class=\"wp-caption-text\">Source: Morningstar<\/figcaption><\/figure>\n<p style=\"text-align: center\"><strong>Operating Model<\/strong><\/p>\n<p>Effective operating models create value by judiciously managing elements like firm governance, people, processes, and technology capabilities[9]. Corning achieves success in this area by closely managing technology, process, and talent efforts in a manner consistent with its long term revenue goals.<\/p>\n<p>Key operational efforts driving growth:<\/p>\n<figure id=\"attachment_1823\" aria-describedby=\"caption-attachment-1823\" style=\"width: 379px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Slide12.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-1823\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Slide12-300x225.jpg\" alt=\"Source: Corning Inc. 2014 10K SEC Filing, figures in $million\" width=\"379\" height=\"284\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Slide12-300x225.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Slide12-600x450.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Slide12.jpg 720w\" sizes=\"auto, (max-width: 379px) 100vw, 379px\" \/><\/a><figcaption id=\"caption-attachment-1823\" class=\"wp-caption-text\">Source: Corning Inc. 2014 10K SEC Filing, figures in $million<\/figcaption><\/figure>\n<ol>\n<li>Technology Management<\/li>\n<\/ol>\n<p>Corning achieves gains in technology capabilities by re-investing a sizable portion of annual revenues right back into R&amp;D. Devoting large operational management efforts towards R&amp;D has enabled Corning to establish \u201cintellectual property as one of its most highly valued assets\u201d[10] ensuring industry growth benefits the firm.<\/p>\n<ol start=\"2\">\n<li>Process Management<\/li>\n<\/ol>\n<p>A significant element ensuring Corning\u2019s operational efforts lead to business value is Corning\u2019s <em>Growth and Strategy Council<\/em> (GSC). The GSC is comprised of its Chief Executive, Operations, and Technology officers[11] and is chartered with \u201cmaintaining a balanced and robust innovation portfolio through pacing investments in individual programs and making resource allocations between Corning\u2019s existing and developing businesses\u201d[12]. By taking steps to centralize management of the innovation process, the firm has positioned itself to make better decisions around resource management and ensure that innovation efforts are a complementary fit with the firm\u2019s business goals.<\/p>\n<ol start=\"3\">\n<li>Talent Management<\/li>\n<\/ol>\n<p>Corning has been on a hiring binge for the last several years[13]. It recognizes that investments in talent are of the utmost necessity and the only way the firm will be able to ensure that operational gains translate to revenue.<\/p>\n<p><em>&#8220;In less than three years, we needed to hire 3,000 employees, almost 1,000 engineers, and bring two facilities online in Taiwan\u2026..The main risk to operational success and capitalizing on this opportunity was talent and hiring.&#8221; &#8211; Christy Pambianchi, senior vice president of Human Resources.<\/em><\/p>\n<p>Understanding the need to attract the best technical talent, Corning recently announced[14] it had established a sabbatical program at its Sullivan Park Research and Development facility designed to attract leading glass researchers in academia to collaborate on R&amp;D programs.<\/p>\n<p style=\"text-align: center\"><strong>Summary<\/strong><\/p>\n<p>It is clear that Corning is not sitting idly by. The firm knows its competitive advantage could be fleeting if it strays away from its core competency of turning innovation into dollars. By continual efforts spent refining internal processes, it maintains the tight linkage between operating and business models required to succeed in today\u2019s marketplace. As \u201cA Day Made of Glass\u201d shows, Corning looks to be around for a very long time and stands ready to invest time and resources on efforts leading to long term success.<\/p>\n<p>Sources (Accessed between Nov 26 and Dec 6, 2015)<\/p>\n<ol>\n<ol>\n<li>Corning Financials: http:\/\/finance.yahoo.com\/q?s=GLW<\/li>\n<li>Corning worldwide operations: http:\/\/investor.shareholder.com\/corning\/secfiling.cfm?filingID=24741-15-15&amp;CIK=24741<\/li>\n<li>Star Gazette: http:\/\/www.stargazette.com\/story\/news\/2015\/09\/22\/corning-inc-celebrates-optical-fiber-milestone\/72626892\/<\/li>\n<li>Corning Inc. Website: https:\/\/www.corning.com\/worldwide\/en.html<\/li>\n<li>Corning history: http:\/\/investor.shareholder.com\/corning\/annuals-proxies.cfm<\/li>\n<li>Corning business segments: https:\/\/www.corning.com\/worldwide\/en\/about-us\/corning-business-segments.html<\/li>\n<li>iPhone usage statistics: http:\/\/www.fool.com\/investing\/general\/2015\/07\/28\/how-big-is-apples-us-iphone-user-base.aspx<\/li>\n<li>&#8220;A Day Made of Glass&#8221; video: https:\/\/www.youtube.com\/watch?v=6Cf7IL_eZ38<\/li>\n<li>Operating model description: http:\/\/www.bain.com\/publications\/articles\/winning-operating-models-that-convert-strategy-to-results.aspx<\/li>\n<li>Corning intellectual property: http:\/\/seekingalpha.com\/article\/3045646-corning-see-the-opportunity-through-the-glass?page=2<\/li>\n<li>Corning Growth and Strategy Council background: https:\/\/mitsloan.mit.edu\/LearningEdge\/CaseDocs\/08-056.Corning.GSC.Henderson.pdf<\/li>\n<li>Corning Growth and Strategy Council background: https:\/\/mitsloan.mit.edu\/LearningEdge\/CaseDocs\/08-056.Corning.GSC.Henderson.pdf<\/li>\n<li>Corning hiring info: https:\/\/www.corning.com\/worldwide\/en\/careers\/our-people\/talent-and-hiring-spur-cornings-reinvention.html<\/li>\n<li>Corning.com announcement: https:\/\/www.corning.com\/worldwide\/en\/innovation\/culture-of-innovation.html<\/li>\n<\/ol>\n<\/ol>\n<p>Notes:<\/p>\n<ol>\n<li>Referenced for additional insight : https:\/\/hbr.org\/2015\/01\/what-is-a-business-model<\/li>\n<li>Blog post featured image: https:\/\/www.corning.com\/worldwide\/en.html<\/li>\n<li>Sources not cited above are noted in main body of post.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shining a light on why you need to know about Corning!<\/p>\n","protected":false},"author":1085,"featured_media":1833,"comment_status":"open","ping_status":"closed","template":"","categories":[132,37,161,131,55],"class_list":["post-1828","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-business-model","category-innovation","category-manufacturing","category-operational-model","category-technology"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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