DuPont and the Seven Rules of Innovation

E. I. du Pont de Nemours and its company (called DuPont) has grown into a global industry leader in every field. DuPont seems to be following seven innovation rules. In this article, we will explain seven rules and how DuPont implements and uses them. According to Davila, Epstein and Shelton (2013), the first innovation rule is to play a strong leadership role. Current CEO of DuPont is Alan Cullman. According to Dupont.com (n.d.), Kullman has held this position since 2009.

DuPont ™ Kevlar® invented 50 years ago continues to challenge new challenges and our scientists continue to innovate and develop new opportunities through partnerships with communities, industry makers and governments I will. Together we bring Kevlar® strength, durability and performance to new fields. Kevlar® aramid fiber penetrates the boundary line and challenges obstacles everyday. Kevlar® allows anyone to play Dare Bigger ™

A chemist named Stephanie Kwolek invented Kevlar while working in DuPont's Wilmington laboratory. Due to the anticipated shortage of natural gas, the DuPont research team, led by Kwolek in 1964, began looking for new light but strong fibers for the tires. One day in 1965, a strange thing happened when trying to dissolve one of the polymers. She reports that this "cloudy, opalescent, low viscosity" solution is usually discarded. However, a technician operating a spinneret, Charles Smolen, convinced Kwolek to test her solution. When spun into fibers, they were surprised to find that the new fibers are not broken, unlike other famous fiber nylons of those days. Her boss and the research chief understand the importance of her discovery and a new field of aramid polymer chemistry was born. It took six years to commercialize Kevlar and eventually entered the market in 1971.

The profit margin of sales exceeded the Dow Jones index, lower than DuPont. Another strong competitor is DuPont. DuPont is a world leader in market-driven innovation and science. DuPont brings science and engineering to the global market through innovative products, materials and services that enable customers in almost all industries to meet current and future social needs. (DuPont.com) DuPont's liquidity ratio is as follows: Dupont's acid test ratio is 0.77. In order to be satisfactory, this ratio needs to be between 0.05 and 0. Acid test ratios determine whether an organization has sufficient short-term assets to pay direct liabilities without selling inventory. (Nickels, McHugh, & McHugh, 2010, p.20-21) DuPont's ratio is satisfying