Poor old Kodak. There are lessons here for us all
Friday, January 6, 2012 at 9:13AM In March 1995, when I was still writing technology for the Sunday Times and trying to develop my career as a novelist, I got an invitation that was simply too hard to refuse. How would I like to spend a few days in San Francisco learning about what Kodak had in mind for meeting the new world of digital photography head-on?
It was a dream freebie, much appreciated since I was working on my second novel, Epiphany, which is partly set in the city. They flew us business class, picked us up at the airport, deposited us in the Four Seasons on Nob Hill. Then left us to ourselves. None of the round of constant, tedious briefings from breakfast till midnight that most tech companies demanded.
All Kodak wanted was our presence at an event in the Yerba Buena Center for the Arts to hear a fancy, very expensive presentation. Forty five minutes or so and that was it. They weren’t even offering briefings afterwards. How can you say no?
Actually I nearly wished I had when they told me I couldn’t meet George Fisher who was running the company then. I wanted a story to write. That was my job. And the presentation was so baffling* it needed someone to explain it. Kodak was a huge company at the time, one of the best-known brands in the world. Most of us used one of their film products. Many their cameras. Hardly anyone the inkjet printers they were starting to ship.
Kodak’s digital strategy was, as far as I understood the presentation, incredibly half-hearted. The company was setting up a digital division. But it was very much a fashion thing. No one seriously believed that digital cameras and printers would, in the near future, wipe out film processing. After all, the quality was poor and the technology expensive.
I remember bearding someone and asking the key question: is the new digital division going to be an independent entity free to pursue its own future and compete with Kodak’s mainstream film business? Or will it be told: invent something but don’t damage the cash cow?
There was no straight answer but it was pretty clear the latter was the case. I seem to recall I wrote something saying that this was bonkers and digital was the future (and getting an obscene email from the managing director of a big UK film processing house as a result).
‘I told you so’ is never a nice thing to say, especially when one of the biggest company names in the world is filing for Chapter 11, as Kodak is now. But well… I told you so, and lots of other smarter people did too. In the end Kodak produced some nice cameras and apparently some good printers. But it doesn’t matter. They were too late. ‘Kodak’ doesn’t mean what it was. The brand has been catastrophically devalued, and while someone will doubtless pick it up, the opportunity to lead digital photography, the way it led the world of film, has been lost.
That’s technology for you. Who, a decade ago, would have said the biggest music retailer in the world would, within a few years, be a then struggling computer company called Apple? Or that the likes of Nokia would be knocked off its perch by that same company, and firms like HTC which were once just assembly lines for western names who used them to knock up bits of hardware?
This is a world in which things change at dizzying speed. You either keep up with them or you fail. Yes, you may make the world’s best fax machine, and sell it for the lowest price around. But it’s still a fax machine. And in case you never noticed… no one wants one any more.
Here’s what Kodak should have said to its new digital print division seventeen years ago: Go and put us out of business. Compete like crazy, with us most of all because we are the market leaders and want to stay that way. Save the company by destroying it and building something new in its place.
Sadly it didn’t learn that lesson till it was too late. The battle was lost, I suspect, back in that day in 1995 when it was a fat, comfortable, lazy company deluded into thinking the future would always be just around the corner.
I wonder: how many publishing companies will we be saying that about ten years from now?
*Here’s the press release from that event — judge for yourself.
Web/Tech 


