You press the button, we do the rest - Caleb Soh Business Transformation MA Digital Experience Design, Hyper Island 26 April 2019
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You press the button,
we do the rest.
Caleb Soh
Business Transformation
MA Digital Experience Design, Hyper Island
26 April 2019
p3. Brand & Market
p9. Business Model Canvas
p11. Primary Resaerch
Content p13. SWOT Analysis
overview p15. Reason to Change
p17 The idea
p23. Next Steps
2
Eastman Kodak Company, commonly In 1975, Kodak was the first company to
known as Kodak, is founded in 1888. build a digital camera. In 1976, about 90%
The name “Kodak” was created because of photographic film and more than 85%
it was impossible to mispronounce and of cameras sold in the US are made by
was not any existing words in the Kodak (Usborne, 2012 and Sparkes, 2012).
dictionary, making it unique. Being Despite this advantage, the notorious
around for more than 130 years, Kodak downfall started in 2004, where Kodak
has a rich history of memorable failed to see the potential in digital
milestones that change and shape the cameras and chose to go down their
photography market. Being the leader seemingly less risky path in their film
in film processing and production, they business. This snowballed with much
have invested loads of resources into struggle, and Kodak was forced to file for
the technology of film and often a Chapter 11 bankruptcy, forcing a
invented many groundbreaking film reorganisation of their company. Since
products in the 1900s. Kodak then, Kodak has put consumer
influenced the creation of a new photography products on the shelf while
market: to provide products and focusing on print systems and services for
services to independent photofinishers. businesses in the past couple of years.
3
Market Capitalization (Macrotrends.net, 2019)
$1.05B $0.84B $0.67B $0.12B
2013 2015 2017 2019
The value of the company still continues to plunge even though B2B
services have seen some successes and potential.
Annual Revenue (Statista, 2019)
$11.3B $9.41B $1.54B 1.32B
2005 2008 2013 2018
Over the course of 13 years, Kodak has been exploring to find a good
source of income, dipping their toes lightly into different markets.
4
9.5% 1.1%
Other
Flexographic Packaging
It is understandable why Kodak has
9.4%
Enterprise Inkjet Systems
shifted to business to business(B2B)
printing services. While magazines and
newspapers are fighting hard to sustain
themselves in this digital era, businesses
12.9%
Consumer and Film
have been seeing value with traditional
prints. There is an intention in businesses
to leave a tangible experience, recognising
it's important role in a consumer’s
experience of their product. B2B media is
currently one of the most successful
5.6% 61.5%
Print Systems
sectors of publishing and marketing (Two
Sides, 2018). While harnessing this shift in
Software and Solutions the needs of businesses, Kodak has barely
found it’s place in this market for a
sustainable cause.
Kodak’s Revenue Breakdown in 2017
(Craft.co, n.d.)
5
Current Camera Industry
There is strong evidence that the camera industry is hit hard by
smartphones. But does that make it a dead industry? Not
exactly. The image shown in this slides does portray that
smartphones have impacted the industry, but if we notice the
cameras with interchangeable lenses we would notice that it
might have a stable future. The market of professionals and
enthusiasts that are willing to ditch their high-end
interchangeable gears for a camera phone is a rather small
one. (Heather, 2017)
The reason of the big hit in lower-end (cameras with built-in
lens) cameras ties to the need to share a photograph on social
media. With smartphones being more accessible to capture
Image Source: www.digitalrev.com life moments and social media limiting file sizes of media to
sustain their servers, brings the downfall of low-end cameras
due to the common purpose of their existence.
6future trends
PRINT PHOTO-
“Industry 4.0” coming in the near
future, developments in
manufacturing and data exchange
GRAPHY
will drastically change the
structure which machinery
operates. The print industry would
be affected by this change, as
automation and cross-vendor
collaboration will be in much
With “Industry 4.0” coming in the near future, There
demand.
is an anticipation
This industry
that
requires
analogacameras would
developments in manufacturing and data exchange make
good
a comeback,
amount ofwhen
time and
a survey found 30 percent of
will drastically change the structure which machinery filmresources
users were
invested
under 35
to adapt
years old.
to The sales of
operates. The print industry would be affected by this professional
these new film
demands
have also
that
started
rise. to rise in recent
change, as automation and cross-vendor collaboration years, especially Kodak and Fuji products. Hybrid
will be in much demand. This industry requires a good cameras are aggressively competing within brands as
amount of time and resources invested to adapt to well, upgrading mirrorless cameras to be capable of
these new demands that rise. (Eccles, 2018) shooting 4k videos. (Farace, 2018)
7Competitors Kodak and Fujifilm have been rivals for decades, with their core business centred around film and post-
processing services. Fujifilm faced the same crisis of a shrinking market as cameras transit from analog to
digital in the 2000s. However, Fujifilm grew its revenue by 57% while Kodak lost sales by 48% by 2010.
Firstly, Fujifilm restructured its film business by downscaling the production lines and closing redundant
facilities. The research and development departments unified their research efforts and promote better
communication and innovation culture among engineers. Fujifilm made a bold move to invest in
unexpected tech markets that works on LCD screens and cosmetics. They harvested their knowledge and
experience on film technologies and accurately predict what potential markets will thrive in the future.
Fujifilm managed to ride out of the storm via a massive restructuration and diversification strategy. (KMIA,
2018)
Canon Inc. Kyanon kabushiki-gaisha is a Japanese multinational corporation specialised in the
manufacture of imaging and optical products. They have covered a wide range of products including
cameras, camcorders, photocopiers and computer printers. Besides its superior position in innovation and
technology, Canon has been investing time and resources in social media marketing strategies that have
helped to cultivate brand awareness. Canon has also shifted its business model towards services for
business, with 44.7% of its revenue made from office multifunction devices. (Craft.co, n.d.)
HP is founded in 1939 and mainly operates through 3 segments: personal systems, printing, and corporate
investments. The company is well known for manufacturing laptops, notebooks and desktops for different
purposes, providing a vast amount of related accessories, software, support and services. While most of its
earnings is from personal systems, third of the revenue have been in the printing industry (Craft.co, n.d.).
HP printing segment has provided for individuals consumers and business of different sizes with printer
hardware, supplies, solutions, and services, as well as scanning devices. HP is a new competitor that Kodak
faces as they shift from the imaging to the printing market, having to compete with a company that has
experience in creating printing products since the early 2000s (HP, n.d.).
8BMC
Business Model Canvas
With the new digital age constantly
moulding and impacting different
industries, it is important to be
aware of different ways to
reposition the business to survive.
The business model canvas is a tool that In the case of Kodak and other
facilitates description and discussion for imaging companies, there is always
businesses. The model is built to get the a constant threat that digital
company and stakeholders on the same cameras might be overshadowed
wavelength, and alter to strategise by the constant upgrade of
alternative routes for change. There are technologies in smartphones. The
nine basic building blocks portrays the accessibility and availability of
possible opportunities and definitions cameras in smartphones and social
that the company is making revenue. media proves to suit the needs of a
(Osterwalder and Pigneur, 2010) huge customer base.
9Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Photography community Maintain Quality on Prints Kodak Film Sales Team Software & Printing:
Material Suppliers Prinergy Platform Printers Commercial Dealers Commercial Companies
Technology Companies Maintain Quality on Films Photo Papers Service Center Packaging Companies
Design consultants Customer Engagement Prinergy Support Center Product Companies
3D Printing Photographers
Vintage Merchandise
Key Resources Material Sourcing Film for:
Customer Segments
Technology Investors Camera Club Camera Enthusiasts
B2B Networks
Technology Engineers Camera Collectors
Social Media
B2B Relationships Photographers
Website
Intellectual Property of Filmmakers
Events
Material & Technology
Cost Structure Revenue Streams
Salaries Selling of Print Systems and Services
Investing in Research & Innovation Selling Software and Solutions
Production of Products Kokak Property Rental
Upgrading Software Programmes Film and Photography Product Sales
Events
10Primary Research
“It seemed like a massive opportunity to
bring back an incredible brand that had
lost its way and forgotten that it was a big
brand, and a consumer brand.”
– Danielle Atkins, Chief Brand Officer, Kodak
In an interview with Danielle, she recognised that there
is a huge potential in engaging the consumer market
(Degun, 2018). Since there was no concrete suggestion
of the approach to bring Kodak back to the spotlight, I
went ahead to explore what photographers in the
market feel about film, as well as understand better
about the needs of this potential target audience.
11interviews highlights
Dominic Tan Yves Burgener Alexis Holm Jonathan Chow
“When I look for a camera, I “I have little knowledge of “There is little to hear from “Kodak as a brand holds
look at the noise digital cameras in recent Kodak nowadays, with so much nostalgia to
performance, sharpness and times, photographers usually much to hear about cameras photographers like me.
dynamic range, sadly Kodak pick one medium and stick brands fighting to outshine Shooting film feels more like
does not offer me that now.” with those gears all the way.” phone cameras.” a specialised interest in this
digital generation.”
“There is this a kind of “The meaning of film holds a “There is more beauty in
anticipation in shooting film. great value to me, the physical photos, I will only “The features in the camera is
It’s known to require more process of shooting and print out photos I care for.” what I chase now, I am
skill, so there is this curiosity if developing gets me excited. constantly looking at how
I really did well this time.” My photographs are a gift to different specifications can
people that I care about.” suit my photography and
videography needs.”
12SWOT
Analysis
The SWOT is a basic tool commonly used to identify a
company’s strengths. weaknesses, opportunities and threats.
The strengths and weaknesses are controllable internal
factors while the opportunities and threats are external
uncertain factors that affect the organisation (Phadermrod,
Crowder and Wills, 2016). These distributions of themes
across the quadrants are used to identify problem-solving
topic related strategies, under some considerations that it
might not display complex issues and employee's
perspectives accurately (Bull et al., 2015).
13Kodak has a strong iconic brand
Rich 130 years history
S Technological advancement on imaging, materials and deposition science
Socially responsible
Over 7500 commercial imaging patents
Bankruptcy hurts brand name, weakens market dominance
W Not all products are available in their online store
Lack of focus in a market of their choice
Lack of breakthrough in inventing new groundbreaking technology
Depths of intellectual property holds potential for partnerships
Technologies like 3D printing and automation can be leveraged to position Kodak in “Industry 4.0”
O Consumer products are yearned for in this brand
Technology adaptation to upcoming trends provides a chance to reposition to a new market
New competitors will emerge when exploring new markets
Retaining customers will be a challenge due to strong competitors existence
T It will be difficult to earn trust and acceptability of their products
Reduction of the use of printing in the current digital age
Substitute products will rise, like how mobile technologies are enabling better camera phones
14Reason to Change
With an amazing heritage brand like Kodak, leveraging that nostalgic element is
important, but if you want to build a future business you can’t just rest on solely on
heritage. – Danielle Atkins, Chief Brand Officer, Kodak (Degun, 2018)
It is rather clear in the research that Kodak has a gap to fill in the consumer market. With past
earned respect from photographers, Kodak audience might be curious to see what the next
steps of this company are. While technology and innovation might not be enough to sustain the
company and earn trust from customers again, there is always a potential in discovering and
forming a new market that might replace some existing industries. History could repeat itself
when Kodak produced films and started a new market of service, but we have to consider some
of the five forces that shape industry competition. (Porter, 2008)
The print property and resources can be and should be considered reliable revenue to support
Kodak towards investing time and money into finding a breakthrough towards innovating a
radical product for consumer use. I would recommend that Kodak continue to upgrade their
printer technology to keep up with the market and have a stable source of income. However, in
the next slide onwards I would propose a proposition for a radical consumer product.
15Reason to Change
How might we leverage on Kodak’s
brand and create something
innovative to support photographers?
With amazing consumer cameras and strong social media presence, there are loads of other options to fill a professional
photographer’s seat. Companies and brands now do not hire professionals because of their technical skills, but more of a
common vision and style. They allow photographers to be the ‘art directors’ of the job, which is something that has changed
dramatically in this industry compared to the past. (Levinson, 2015)
16The Idea.
Overview
Kodak Krome is a lineup of technology products to connect
film into the digital world. This lineup of products aims to be
compatible with other brands, incorporating the film
experience into modern cameras.
17The Idea.
Part I
The first product, Kodak Krome Classic, is a Secure Digital(SD)
card that has a software integrated into it. We can sell the
classic film effects of Kodak films individually, when a picture
gets taken and written in the SD card, it will automatically be
edited with the film effect.
The output of the file would be a working RAW file that has
been touched on. These SD cards could be sent to a Kodak
service centre to be developed, and we can have experienced
editors to do some quality control to the photographs before
print production.
18The Idea. Part II
The second product: Kodak Krome Custom calls for customisation, it allows the integration of Photoshop and Lightroom presets
to form a personalised digital film for the use of more advanced photographers. This is especially useful for photographers who
have a consistent style of editing, styles which brands and clients pay to get. It has the same output as the previous model, an
edited RAW file that is capable of a few touchups on editing softwares. The goal of this product is to improve the workflow of
photographers who face tight timelines, enabling them to deliver their photos on the same day.
19The Idea.
Part III
Last but not least, we have the Kodak Krome Experience. This is targetted
for enthusiasts who enjoy the process of film, without heavy investments
into an analog camera. It works like a camera grip, but films of roll could be
inserted into the compartment, allowing photographs to be burnt digitally
when a photograph is snapped on the digital camera.
With this grip on, it will disable the camera’s preview or live view modes,
thus giving the photographer the full experience of the anticipation of the
photograph. These films could be developed in a Kodak service centre as
well, with the negatives framed up for keepsake, as well as the output of
the photos available digitally or printed.
20Target Audience (Personas)
Tom Jane Paul Daisy
Wedding Photographer Event Photographer Enthusiast Photographer Social Media Influencer
Tom is a freelance photographer Jane is an event photographer, Paul is an enthusiast who loves Daisy is a Youtube artist who has
that has a strong website portfolio she is sometimes required to set collecting a range of films. He loads of content lined up for daily
that portrays his unique editing up a photo booth on the job, and appreciates the process of posts. She travels frequently and
style. He is faced with tight might be stationed to a particular developing film strips. Paul does updates her Instagram to keep her
timelines on the job, in order to location to shoot guests. She has not like digital cameras and followers engaged. She keeps her
deliver his photographs for the to work long hours and filter believes that there is more quality gears light because she needs to
wedding night of his clients. He is through thousands of photos at in photos produced from films. He move frequently from place to
loyal to his camera brand due to the end of the day. Jane is well informed with detailed place. Daisy does not research
having much experience and appreciates socialising and taking specifications of film and cameras. much or looks at the trends of
familiarity with it. selfies in her outing with friends. cameras.
21Customer Journey Mapping
Emotion Curious Interested Skeptical Anticipation Happy Joy
Touchpoint Social Media/ Kodak’s Website Physical Store Product Interaction Printed Physical Family/Friends/
Advertisements Photos Colleagues/Social
Media
Task Find out what Kodak is Learn about new Test product in store Find out in detail if the Discover final output of Share experience with
doing now product product suits their the photos new discovery
personal workflow
Influence Content brings Website shows output Readily accessible Software mimics film Cost of first Quality print and
nostalgia to viewers of product, with demo demo booths, with tech behaviors successfully development is covered successful product
videos intending to experts to speak about in digital cameras in the price of the brings ease to users, as
impress viewers the details of the product they start to fit it into
product their workflow
222020
Start to engage with the target
audience in social media, about the
beauty of film and analog photography
2023
Upgrade in technology and innovation
for the current print assets Kodak owns
Timeline for
implementation 2025
Invest time and money to innovating a
groundbreaking product that either
disrupts the market, or creates a new
market in photography
2025-2030
Launch product of innovation, or
possibly Kodak Krome in this context.
23Further considerations
The presentation has highlighted a possible Kodak has loads of potential to get back on its
solution to leverage Kodak’s rich brand history feet, being where they are today. The attributes
and suggest for a radical innovation for a product discovered from the Business Model Canvas
that lives up to its slogan. The aim of this Model as well as the SWOT shows that there are
presentation is not to propose how feasible a a few options of opportunities for this company.
new technology could be, but it demonstrates As much as technology is constantly enabling
how innovation we could possibly relive the good mobile devices, physical cameras with their
times of Kodak. People in the past looking up at current progressions are far from being obsolete.
this organisation for great innovation and The important lesson that Kodak is much more
technology, and the reality is everyone is waiting well aware of, is to adapt to the ever-changing
to discover what’s Kodak next move after their industry that is dictated by the advancements of
mishap in 2012. technology.
24YOU PRESS
THE BUTTON,
WE DO THE
REST.
25Primary Research
Alexis Holm – Freelance Wedding Photographer
Personal Communication(2019).
Dominic Tan – Enthusiast Photographer
Personal Communication(2019).
Jonathan Chow – Filmographer Student
Personal Communication(2019).
Yves Burgener – Film Enthusiast
Personal Communication(2019).
26References
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