*Why has Corning been able to “reinvent itself” so successfully? *What role is t
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*Why has Corning been able to “reinvent itself” so successfully?*What role is the Leadership Council design to play in this process ?
*How does the Leadership Council and Cornings Leadership reflect key concepts in our readings? 10-103 July 13, 2010 MITSloan Conexia: Entering the U.S. Market Katie Barrett, Anand Mohanrangan, Teru Tanaka, Yipeng Zhao "So, where do we go from here?" asked Luis Navas. Sitting in the Buenos Aires office of Conexia, a leading Argentinean IT services company that provided insurance claims solutions for the healthcare industry, Navas, the CEO, was continuing a long series of discussions with his partners Sebastian Letemendia, COO, and Alfredo Semeniuk Director of Sales. On this particular day in mid-January 2010, they had just walked out of the final presentation given by a team of students from MIT Sloan's Global Entrepreneurship Lab (G-Lab) who had been helping Conexia devise a US. market entry strategy for its Real-Time Adjudication (RTA) solution As Conexia's senior management had anticipated, entering the U.S. market posed a wide variety of challenges. In addition to the lack of brand awareness for Conexia's RTA product and the disjointed claims processes followed by U.S. health insurance companies, the U.S. healthcare market was going through a number of regulatory changes. Thinking back to a series of discussions with the G-Lab team, Letemendia said, "I knew it would not be easy. But I still believe we can provide value to U.S customers." Navas agreed: "Considering our long-term growth goals, entering the U.S. marke is a necessary step for Conexia. But in light of the challenges ahead, is it the step we should take now?" Real-Time Adjudication (RTA) of Medical Insurance Claims Real-time claims adjudication was an IT solution which allowed health insurance companies (typically called payers) to pre-authorize medical services before they were rendered by doctors (providers). Traditionally, claims were submitted after the provider treated patients, leaving both patient and provider financially uncertain: patients about how much they would ultimately be This case was prepared by Kate Barrett, Anand Mohanrangan, Teru Tanaka, and Yipeng Zhao (MIT Sloan MBAs, Class of 2010) under the supervision of lecturer M. Jonathan Lehrich. Copyright © 2010, Katie Barrett, Anand Mohanrangan. Teru Tanaka, and Ypeng Zhao. This work is licensed under the Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. To view a copy of this license visit ttp Norativccommonsomliconscsnend 3.0 or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, Calfomnia. 94105, USA
Explanation / Answer
Why has Corning been able to "reinvent itself" so successfully?
Corning has been so successful because it clearly articulates an innovation strategy that is closely associated and linked with its business strategy and the company’s core value proposition. Because of such a strategy, the investments made in the product development, R&D, etc. have a direct impact on the top line and bottom line of the company. Also, throughout the company’s history since 1851, innovation has been deeply rooted in the culture of the company.
As per their latest investor strategy report, the company plans to invest approximately $10 billion in concentrating its RD&E investment. The company also invests 10 percent of its revenues for research and development initiatives.
What role is the Leadership Council design to play in this process?
The role of the leadership council is strategic in nature and they set the innovation direction of the company. The recent move towards Digital and how Corning can enable digital through their world-class products such as touch screen glasses, high-resolution display products, etc. are driven from the leadership council, right from the conception to design to actual distribution and marketing of the product.
Leadership Council also provides advice and support to ongoing innovation and growth programs.
How do the Leadership Council and Corning's leadership reflect key concepts in our readings?
The Leadership Council and Corning's leadership reflect that a company has to continuously challenge and evolve themselves with the changes in the market and keep innovating to keep themselves ahead of the market and competition. The way technology is disrupting the businesses, only innovation and strategy to realize will be successful in the long run. It also highlights the need to reinvent continuously as per the market forces and be proactive in technological pursuits in the market.
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