Industry 4.0 and Kodak

Introduction

In 1985 Kodak had 90 percent market share of global camera film and 80 percent market share of film based cameras. These photographs show Kodak invented the digital camera – in 1975 Kodak digital camera used a TDK cassette to record digital images and then play those images on a black & white TV.

By not innovating & transforming to digital technologies – Kodak went bankrupt in 2000. In this article, we will focus on causes and reasons of Kodak bankruptcy.

Description

  • Kodak has developed from bankruptcy a far smaller but gainful company.
  • It has been taking out its wealth of about 7,000 patents and developing technologies in digital imaging and touch screens.
  • It posted uncertain profits of $12 million in quarter 3 of 2016.

Innovation in large companies

  • The economic influence of large company failure is frequently touched more broadly than the failure of a startup.
  • The failure of several of these companies is generally needless.
  • Greatest large companies have the essential resources and smart people to prosper at innovation.
  • Every large company have smart people there with great ideas.
  • Management in such companies just wants to stop getting in their own way.

Innovation Plan

  • Plan was repeatedly taught as a company’s organized struggles to use its core competencies to improve a competitive advantage as described in traditional MBA programs.
  • A company was considered to have prospered when it had applied a plan.
  • That its rivals found also hard or as well expensive to reproduce.
  • Managers were then likely to invest huge resources to protect this competitive advantage.
  • Such a view of plan partially explains Kodak’s decision to defer the digital camera.
  • At the time, its essential viable advantage was its cash cow photographic film business.
  • Showing plan as fast and defensive a competitive advantage works in business surroundings that have long term steadiness.
  • Though, such environments no longer be present.
  • The quick pace of technological development has changed the dynamics in best industries.
  • Maximum companies now essential to develop the ability to reply to change rapidly.
  • This is problematic because the management follows that are desirable to protect competitive advantages run stand to those that are need for innovation.
  • Front-runners in every large company need to change their method to plan.
  • Plan may no longer be defined as the remarkable exploitation of main capabilities to exploit gains.
  • We currently need ambidextrous organizations and leaders.
  • Planned innovation management is the capability of a company to compete in established markets with developed technologies.
  • Although at the same time sightseeing new markets with new technologies.

Industry 4.0 and Kodak

Innovation Range

  • Large companies need to stop thinking and acting as if they are a single solid institution with one business model in order to become ambidextrous.
  • As an alternative, they require to start viewing themselves as ranges of products and services.
  • The ambition is to have a balanced collection of products.
  • Therefore, the company is now involved in a systematic process of probing for new advantages that when shifts occurs.
  • The main three types of innovation are core, adjacent and transformational.
  • The company cares on making incremental changes to current products for present customers with central innovation.
  • The company now does well and relating it to new markets in adjacent innovation.
  • The company emphases on making new aids for new markets with transformational innovation.
  • A balanced range is one in which a company has products and services that shelter all three types of innovation.
  • This is the lone method to assurance that the company is being run with a short-term, medium-term and long-term assessment.
  • Companies should be financing 70 percent of their resources into core, 20 percent into adjacent and 10 percent into transformational innovation.
  • This formula is not unbroken through industries. It may change on the basis of industry standards.
  • Though, every leadership team must manage its range to make sure that it is balanced.

Innovation Management

  • Corporate leaders need to know that the processes for managing innovation are changed from those that are used to manage core products.
  • Someone with an innovative idea has to make a financial case for investment using a business plan in most companies.
  • Though, transformational innovation is about visualization the future.
  • The proposed products and business models are frequently dissimilar from the company’s current products and business models.
  • By itself, management would not have understood the projected financials play out in authenticity in advance.
  • This may lead them to discard possibly effective ideas.
  • We can use to manage innovation with the arrival of agile, lean startup and design thinking methods that has provided us with a set of tools.
  • We seizure the innovator’s idea as a set of expectations to be tested at the start.
  • We formerly test our expectations with customers using experiments.
  • The role of management is to track how well their teams are doing at line up the innovator’s ideas with a profitable business model as we repeat towards success.
  • An important code for innovation management is that only tested and validated business models are taken to scale.
  • Business model authentication is what corporate leaders should be capitalizing in as a result for new transformational ideas.

Conclusion

  • Maximum large companies are presently struggling with similar challenges like Kodak.
  • The greatest way to survive in a future that is always changing is for business leaders to transform the method they view plan, business models and innovation management.
  • Simply then do they have a chance of dodging the fortune that Kodak suffered.