Discuss Research – Eastman Kodak and the Power associated with bothersome Technologies

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It’s basically incredible that ten many years into the electronic trend, Eastman Kodak is trying to figure out exactly what business they may be in. To get decades Kodak completely outclassed the particular chemically based photo using process. You shoot the particular roll of film, and after that you physically took the particular move to a programmer, and produced a 2nd trip to pick upward the particular finished images. Their just competition within the industry was the particular japan company, Fuji. The particular upstart would just consume aside each year from Kodak’s marketplace, but never ever becoming a genuine danger to Kodak’s prominence.

At the same time from outside the market, Polaroid back in the particular late 50s invented the camera in which the particular chemical based development associated with the particular pictures got place inside the electronic camera. The picture has been prepared in about sixty seconds. Polaroid developed the wonderful business plus produced a fortune for every its shareholders and the professional creator, Dr. Edwin property.

What happened following was a company devastation, and Kodak must possess learned from Polaroid’s mistakes. Dr. Land came upward with the moving image development program. They put hundreds of millions related with dollars into the chemically dependent system. This would allow customers in order to take moving pictures. The particular films would be created chemically within the camera program, the same as the particular particular still picture program after that utilized.

Exactly what Polaroid not just did not plan for, but didn’t want to even imagine was that will the disruptive technology would certainly be made from one more industry that would fundamentally destroy Polaroid’s business design. the japanese would develop digital photography. The quite first Japanese VHS plus Betamax camera systems grew to become available. the particular digital based technology produced therefore much more sense compared to Polaroid chemically based program. this forced Polaroid in order to power down its movie program items. It also come in the instant compose off of hundreds associated with millions associated with bucks (equivalent to great today) that it would certainly not recover.

Now I request you, Kodak was within the business, we understand that. they will saw exactly what this new-technology did in order to Polaroid right away. Couldn’t they will imagine that it may happen to them? The particular answer is certainly apparently not really. The administration team on Eastman Kodak has already been brain dead for the purpose of on least 20 years. The particular administration team and the particular Board associated with Company directors should have been ended more than a 10 years ago for major inefficiencies. They took an amazing cash generating machine, in addition allowed it to convert right into a boring, mundane 2nd course company.

They basically made a decision in order to ignore what was arriving, and exactly what has been coming was a TIDAL WAVE, that would attract aside Kodak’s traditional company. Kodak could have selected to lead the specific digital revolution. They can possess chosen to get the billions of dollars of cash generated simply by way of a conventional chemically based techniques, plus redeploy in other high-end technology driven businesses this kind of as digital imaging within the health care market. No, neither choice happened. The company chose rather, to complete NOTHING. Try in order to maintain the circumstances has been the order of the particular day.

today Kodak is definitely faced with the “what do we perform now” decision? It is simply a query of exactly how many years it requires prior to the Kodak way of doing company (chemical processing) completely evaporates. There are numerous of lessons in order to be taken using this instance of a formerly very first class company going tummy upward because of a good inappropriate business structure. Amongst them are:

• every single company must absorb the particular particular central thesis associated with Clayton Christensen’s two textbooks, “The Innovator’s Dilemma”, plus “The Innovator’s Solution”. Harvard teacher Christensen was the particular individual who gave the particular term, disruptive technologies, or even even what happens whenever a new creativity arrives in and completely creates away a company’s earlier dominant technology.

• Simply no enterprise has the high-class of sitting down on the rear end, plus keeping track of on its cash fixed to keep it within business forever.

• Theodore Levitt of Harvard frequently talked about “What corporation are you in? inch you’d probably better make certain that you are consistently thinking about how in order to obsolete your own personal business, mainly because your competitors are preparing on it all the particular time.

• every single corporation should have an inner group that is individual and in addition in order to the company. The only function of the group would be to arrive up with methods in order to destroy the company simply by establishing better products, or even even better technologies that will would obsolete you may actually current technology. Photocopied years ago created Photocopied PARC (the PARC appears for Palo Alto Study Center) within 1970. These people intentionally place it within Palo Alto, ca since they didn’t want in order to have their own thinking polluted by the environment within Rochester, NY, the lifeless town. The same town as Kodak’s corporate mind office by the method.

You want to speak about achievements; Xerox PARC came up with the particular particular mouse that all of us use upon personal computer systems. They also created the particular particular graphical user user interface that you make make use of of on your PERSONAL COMPUTER, and the basic kind of the personal pc was obtained from Xerox PARC by sam Jobs. Photocopied completely did not money in on any associated with these creations. The individuals in Rochester were simply like asleep at the particular switch since the guys from Kodak. There has in order to be something about the particular air these people breathe within Rochester that lulls all of them into a sense related with complacency.

• Businesses have to buy smaller sized companies that are generating the innovating systems that will will put them away of company. If these people wait until the systems enters an actionable phase, it is too costly to purchase. illustrations are usually Yahoo and microsof company, each of whom recently acquired an opportunity to purchase Google for the purpose of millions associated with bucks. Google at this point provides a market cap linked with $150 billion, plus is practically untouchable.

Is certainly it too late for the purpose of Kodak to save alone? The solution is possibly yes. Very seldom may a company in this kind of a volitile manner find the particular managerial talent, and a lot more importantly COURAGE in order to change itself internally. The particular current administration team is certainly too interested in continuous its own benefit package deal plus retirement benefits, in order to make the tough, hard, and necessary choices in order to be transformative. Hopefully, additional American companies, and investors can learn from the particular sour story that Kodak needs to teach all of us. Good luck.


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