The hottest Corning innovation strategy creates a

2022-07-26
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Corning's innovation strategy creates a century old glass legend

Corning, known as the "American national treasure level technology R & D giant", started from glass products, and the innovation gene is deeply rooted in the corporate culture. The clear and reasonable R & D strategy and the advanced market layout enable it to follow the trend and become the world's top manufacturer of optical fiber and other high-tech components. Among all technology-based companies, Corning is one of the rare companies that can take the complete transformation of itself as the norm

for the brand Corning, most Chinese users' understanding should rest on the transparent glass pot (the glass tableware department was collectively sold by Corning in 1998). In fact, its products have become an indispensable part of modern life. Hundreds of millions of mobile devices, including the iPhone, have high-strength glass displays

what is less known is that the users of Corning are not only the general public, but also the most cutting-edge scientific research institutions. In addition to providing glass for all manned spacecraft and space stations to NASA, NASA also provides lenses and optical systems for the famous Hubble telescope and other high-end space research equipment. In june2014, Corning announced that it would provide special optical components to NASA's Osiris Rex spacecraft for its exploration plan to land on the meteor Bennu in 2018

although this veritable high-tech company is far less famous than apple, Samsung and Sony, in fact, Corning's story is not inferior to, or even better than, these famous enterprises

"national treasure level technology R & D giant"

Corning company, located in Corning, New York, is a global leader in the production of special glass and ceramic materials. These benefits can now be realized in the laboratory. It was founded by Amory Houghton in 1851. It is 163 years old this year. It is a genuine evergreen tree in the business community

more importantly, in the history of more than 100 years, Corning has been leading the way in many fields, such as electronic products, automobile emission control, telecommunications and life science, and created many products that profoundly changed human life, such as the glass bulb cover (1879), which made Edison's invention a reality, and the picture tube (1947) which made television into thousands of households, The world's leading optical cable (1970) that makes optical fiber communication widely used. All this has made Fortune magazine evaluate it as a "national treasure level technology R & D giant of the United States". In addition, Corning surpassed Microsoft (48th) to rank 36th in the list of the most innovative enterprises

today's Corning is involved in the four major fields of display technology, optical fiber cable, environmental technology and life science. It has 30000 employees worldwide, with an annual income of $8billion and a current market value of $27billion. It ranks 343 on the list of enterprises in the Forbes 500 for the convenience of customers' inquiry, which we explain according to the classification of Jinan Hengxu experimental machine

the innovation strategy is clear and unique

Corning's success over the past 100 years is a legend in the global business community. In fact, the reason is very simple, that is, continuous R & D investment and unremitting innovation. Since its inception, Corning has deeply rooted its innovation spirit in the enterprise gene

a hundred years ago, when others were making glass by experience, Corning founder huoting and his son treated glass manufacturing as a rigorous science and achieved the best product quality through systematic and rigorous experiments. As early as 1908, Corning established one of the earliest corporate R & D laboratories in American history and employed full-time R & D personnel, which was extremely rare at that time. This innovative spirit of the hotting family has been passed down from generation to generation for many years without interruption

in Corning, innovation is not just an enterprise strategy, but a religious existence. It is implemented by faith, and will continue to be carried out regardless of the years of abundance and frugality, even if there is no return in the near future. From the very beginning, the hotting family has a clear understanding of the significance of innovation, that is, innovation is not only a preparation for future profits, but also a necessary means to protect employees and the enterprise itself when the core business suddenly disappears

under the guidance of this concept, R & D and innovation have always been the main body of corporate strategy in Corning for more than 150 years, and have never changed. Little emery horting once proudly said that R & D is Corning's fastest-growing enterprise activity. Corning continues to invest 10% every year in innovation. Even in the most difficult stage like the great depression, research investment has not contracted but increased

therefore, Corning has continuously launched innovative products with excellent performance for more than 100 years, such as signal lamps for railway and navigation, high-temperature glass tableware, TV picture tubes, automotive purification ceramics, optical fibers, LCD screens and gorilla glass, which is indispensable for all. Today, Corning tests more than 10000 different glasses every year and has more than 120000 unique formulas. 25% of the company's sales come from products less than 5 years old

of course, Corning's success comes not only from blindly investing in R & D, but also from formulating clear and reasonable R & D strategies. Especially after the Internet foam crisis, Corning learned from its own experience. Through the analysis of its own advantages and disadvantages, it clearly put forward the "keynote component technology strategy" and called it Corning's innovation formula

the core of this innovation strategy is to be a facilitator or enabler, create core components for other companies' product systems, so that their products can give full play to their efficiency, and obtain high profits through their own unique patented technology. These core components are made of unique materials, excellent process and excellent processing and manufacturing capacity. If the sealing gasket of the tension machine breaks down, it can form intellectual property protection and technical barriers in these aspects

as a result, these key components can not be imitated by other enterprises. More importantly, they have become the enablers of larger product systems and have broad growth space. This R & D strategy can give full play to Corning's integration advantages in the three fields of materials, process and processing and manufacturing, making it difficult for its competitors to match

because it is a breakthrough in the basic materials required by the B2B market, the biggest feature of this R & D model is that the investment is huge but the return cycle is long. Moreover, Corning does not have much control over the results because it is not sold to end consumers. Under this business model, Corning is actually more like a pharmaceutical company. It must be willing to make a big bet at any time, invest a huge amount of money, and then be willing to wait for more than ten years to get a return. For ordinary enterprises, this innovation model can not be implemented. However, Corning has been good at this kind of long-term and tenacious innovation since its birth. This spirit is deeply rooted in Corning's corporate genes and employees' personalities, and has become a magic weapon for Corning's long-term prosperity

R & D investment is patient and ahead of schedule

Corning's innovation strategy of providing core components for high-value product systems often requires radical innovation in both materials and processes. Therefore, the R & D investment, especially the fixed cost, is very large. Moreover, the development of this core component technology takes a long time, and it takes at least 10 years on average to make achievements. For example, Corning took 14 years to develop the display technology, while both optical fiber technology and LCD took 15 years to finally make profits

Corning has shown great patience in R & D investment and put forward a unique patient money concept, that is, the company will firmly provide long-term, sustained and patient financial support for promising R & D projects. Corning's four major businesses have performed well because of the strong support of patient capital over the years

such a long-term vision of innovation requires a unique corporate culture, that is, calm and resolute, firm and resolute, unswerving in the identified goals, unswervingly advancing no matter what difficulties they encounter, never eager for quick success, impetuous and changeable. Only with this psychological quality and mentality can we successfully implement Corning's unique innovation model

however, this extremely long-term management concept and style is definitely an anomaly in the global business community. This is directly related to the fact that the hotting family has controlled Corning for many years. Although Corning was listed in 1945, the vast majority of its shares are still held by the hotting family. It was only after 2000 that the family shareholding gradually faded, but the hotting family still had a far-reaching impact on Corning. The biggest advantage of family business is that it has a long-term foothold. Wendell weeks, the current president, has a deep understanding of this. He once said that Corning would never parachute a president who had been working for only four years. Corning people have always regarded Corning as a lifelong career

Corning not only invests patiently in R & D projects for a long time, but also has great courage and insight. It often invests in advance. Before the market demand is formed, Corning relies on its own judgment on the industry prospect to complete the strategic layout

in the early 1960s, Corning started the research and development of optical fiber. After 10 years, Corning has obtained all 12 basic patents in this field. By the mid-1970s, when the economy was depressed, Corning had to lay off a large number of employees, and the optical fiber market was far from formed. At t, Corning's only potential user in the United States, predicts that such demand will not occur until 30 years later. However, little emery, the president at that time, was far sighted and decisive in building the factory. By 1981, Corning's layout in the optical fiber industry had been completed. At this time, the total investment was more than 100million dollars, but there was no income. However, due to the advanced strategic layout, after the rapid development of the optical fiber market, Corning soon defeated many powerful competitors and took the lead

in the field of LCD display, Corning is the same. It began research and development in the early 1980s. At the beginning, it created a new process, which can form an ultra-thin and ultra flat glass interface, far better than its competitors. By the middle of the 1990s, Corning had expected the outbreak of market demand and took the lead in investing more than US $1 billion to set up a plant in Asia. When the market took off again, it was fully prepared to defeat Japanese enterprises and achieve hegemony. After more than 15 years of patient investment, the LCD business finally brought Corning huge profits in 1999

Corning's success in environmental friendly ceramic materials for vehicles also stems from this bold and forward-looking investment. It took the lead in building factories in the early 1970s without any orders. Since then, Corning's products have achieved great success and become the industry standard of the automotive industry. Corning's boldness and courage is also the core reason for its continued success

strategic transformation is resolute and decisive

Corning's lasting prosperity also stems from its continuous and significant changes. It has reshaped itself many times in the past and carried out in-depth strategic transformation. The high-tech industry is changing rapidly in terms of technology, competitive environment and user demand. An enterprise can maintain long-term excellent market performance only if it has the determination, courage and the ability to change at any time

Corning started with the production of professional glass, providing signal lamp glass for railway and navigation. Since then, it has launched a series of extremely successful high-temperature resistant glass tableware, which has entered thousands of households in the United States. In the 1950s, Kang

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