KODAK
The wild and unexpected technological breakthrough of digital imaging in 1980’s that required Kodak and Fujifilm to radically rethink their very existence. Both the companies saw the disruptive technology coming ahead. Fujifilm cannibalized the film business and Kodak wasn’t able to do it as the reengineering process had to be done.
According to Hammer in the book ‘Reengineering the corporations’ reengineering entails the radical redesign of a company’s business process. But while reengineering does start with process redesign, it doesn’t end there. Fundamental changes in business processes have implications for many other parts and aspects of an organization-every part of it, in fact. This is what Fujifilm has done and Kodak did not the execution of the process. Fujifilm started to develop in house expertise to their business, they started adding diversified portfolio to the business with a strong long term vision and became the divergent. On the other hand, Kodak was too slow in the change process and article ‘sharper focus’ from ‘The Economist’ states that Kodak believed it had a God-given right to 100% of the market, It never bothered to look over its shoulder at what was coming up from behind and relied on its strong brand. So this is the relation where book and Article from ‘Economist’ magazine are related.
Kodak monetized its R&D in one core business, photography, the digital imaging sector accounts for only about one-fifth of Fujifilm's revenue, down from more than half a decade ago. When the film business was diminishing Fujifilm’s strategy and decisions empowered them to sustain in the market and their earnings from the other investments acted as a cushion. However, according to article Kodak tried to take ‘the easy way out’ by just outsourcing the necessities and not investing in R&D for new areas was left behind by the Japanese competitor and had to face the consequences.
As said in the Hammer’s book ‘Who Will Reengineer?’ it’s the Leader, Process
According to Hammer in the book ‘Reengineering the corporations’ reengineering entails the radical redesign of a company’s business process. But while reengineering does start with process redesign, it doesn’t end there. Fundamental changes in business processes have implications for many other parts and aspects of an organization-every part of it, in fact. This is what Fujifilm has done and Kodak did not the execution of the process. Fujifilm started to develop in house expertise to their business, they started adding diversified portfolio to the business with a strong long term vision and became the divergent. On the other hand, Kodak was too slow in the change process and article ‘sharper focus’ from ‘The Economist’ states that Kodak believed it had a God-given right to 100% of the market, It never bothered to look over its shoulder at what was coming up from behind and relied on its strong brand. So this is the relation where book and Article from ‘Economist’ magazine are related.
Kodak monetized its R&D in one core business, photography, the digital imaging sector accounts for only about one-fifth of Fujifilm's revenue, down from more than half a decade ago. When the film business was diminishing Fujifilm’s strategy and decisions empowered them to sustain in the market and their earnings from the other investments acted as a cushion. However, according to article Kodak tried to take ‘the easy way out’ by just outsourcing the necessities and not investing in R&D for new areas was left behind by the Japanese competitor and had to face the consequences.
As said in the Hammer’s book ‘Who Will Reengineer?’ it’s the Leader, Process