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Corning Micro Array Technology

Corning entered the DNA microarray business in the 1980s seeing it as a natural progression from its expertise in glass and life sciences. However, it lacked the necessary expertise in molecular biology and faced many technical challenges in developing its microarray products. Its microarray division struggled due to lack of clear leadership, siloed teams, and inadequate knowledge in the new field. The venture was further impacted by budget cuts when Corning's telecommunications business declined, forcing it to shut down its microarray division. While the DNA microarray market seemed promising, Corning was not well positioned to compete against the dominant and technically advanced player Affymetrix.

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50% found this document useful (2 votes)
2K views

Corning Micro Array Technology

Corning entered the DNA microarray business in the 1980s seeing it as a natural progression from its expertise in glass and life sciences. However, it lacked the necessary expertise in molecular biology and faced many technical challenges in developing its microarray products. Its microarray division struggled due to lack of clear leadership, siloed teams, and inadequate knowledge in the new field. The venture was further impacted by budget cuts when Corning's telecommunications business declined, forcing it to shut down its microarray division. While the DNA microarray market seemed promising, Corning was not well positioned to compete against the dominant and technically advanced player Affymetrix.

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talk2arfat
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© Attribution Non-Commercial (BY-NC)
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Corning

Microarray
Technologies

Presented to: pendyala sir.


Group members:

Arfat ansari 9101


Irshad Ansari 9102
Riyaz 9125
Ashita Shetty 9151
Naresh Parmar 9139
Corning Over A Period Of
Time
• 1870’s: Light bulbs
• 1920’s: pyrex
• 1980’s: fibre optic cable
• Telecommunication
• Nontelecommunication: life sciences,
energy sector, computer screens,
automotive.
Life Sciences
• Life sciences: 2% of total revenues.
• Takeover of costar: innovation
• Life sciences need to be divested.
Major component in the business of life

science was:
• DNA microarray: a glass slide containing
thousands of microscopic DNA
samples.
Biggest competitior:

• Affymetrix: expensive equipment,


closed systems, patents, legal staff.

Innovation Process




• Dual leadership: senior management


and general managers of the division.
1.
• Program managers.
Study Conducted
Team Structure at Corning
Microarray









Microarray Business
Manufacturing systems:

• Gen 1: use existing robots for printing


process.
• Gen 2: proprietary system.

Problems:

• Mixing of DNA.
• Cleaning material.
• Physical and Life scientists.
• The venture was not making progress
as expected due to various reasons.
Reconstituting microarray






• Shifting base to New York.

Product Launch
• Gen 1 yeast microarray.
• Formation of CORNING MICROARRAY
TECNOLOGIES.
• Gen 2 launch eminent.
• Problems with Affymetrix.
Sudden Cutbacks
• Fibre optic cable orders started
falling drastically.
• Bioinformatrix
• Funding to CMT completely stopped.
• Personal discomfort and unfamiliarity.
• Telecommunication shows no signs of
improvement.
• Debt rating falls.

DNA microarrays a sensible
growth opportunity?
• No, though it seems like a natural
progression, it did not suit their
growth needs.
• No previous expertise in the field.
• People selected to do the project also
had limited knowledge in the field.
• Market viability was high however due
to delays in execution they suffered
losses.
• Venture was risky as markets were new
and so was the product.
Did corning have adequate
expertise for molecular
technology?
 Even though they had taken efforts to get
a team in place they faced problem like:
• Very few microbiologist were hired, mostly
people from inside only were reshuffled.
• They did not have the necessary expertise.
• Many unforeseen problems were faced by
them for which their experts were
unable to find solutions.
• Their best talent was taken in
telecommunications sector.
Why did initial micro array
team falter?
• Dual leadership
• Roles not well defined: huntington.
• Reporting structures were complex.
• Heads of departments had no proper
knowledge about this new field.
• Information was not passed on, lack of
cohesion.
• More concentration on individual teams
rather than the company goals.
• Best leaders were sent to
telecommunications and so CMT team
Greg Brows Priorities
• Bring scientists, engineers and
businesspeople together.
• Gain trust by sharing of information and
decisions.
• His mandate was to diagnose the
problem and take actions required.
• Get the team together, address
conflicts and come up with
appropriate solutions.
• Expectations were reset and he had to
live up to them.

How micro array venture was
affected by buildup and
subsequent decline of
telecommunication business?
• Corporate wide budget cuts, Funding
stooped so had to rework their
budget plan.
• brought it down to $15million.
• human genome DNA was not
launched even though the product
was fully ready. Great loss to
company.
• Micro array division was only shut
ph over time trace perceptions of mic
Pe Launched
rf
or
maPe
ncrc
e en Un printed
glass
ofta
mige
cr
o
ar Yeast Micro array
ra product
y Shut down

Time
How secure do you think is
Affymetrix position in the
market in 2002?
• Very strong and secure position.
• No immediate threat.
• supplied complete systems, including the
microarrays, and was the market leader, of
which 44% of customers used.  Affymetrix
provided long-standing warnings that |they
suspect patent infringements and they
intended to litigate.
• Been in the market for long time and can thaw
new entrants easily.
• People aware of the product and the quality, so
even though the price is high,they will prefer
its products.

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