The Pros And Cons Of Digital Disruption

Session 1 was an introduction into TO 300 as a course. Walking into this class, based off the syllabus, I expected the goal of the course would be for each student to get an understanding of every relevant technology which we should have relatively decent knowledge of in the business industry. This class provided me a clear insight into the course’s purpose and the important concept of adding value through technology. The lecture goes into depth on the measurable impacts having a digitally fit mindset offers in the fourth industrial revolution era, such as the direct financial improvements to the firm overall. In being digitally fit, a firm must be able to leverage the ideas of the four principles of digital strategy,

It was Kodak’s’ strategy to sell the cameras at low prices, and it used to earn revenue from the films; this strategy is called the razor-blade strategy. This model for photography became flop when Sony introduced a camera with floppy disk inside, in which there wasn’t any use of films. As a result of Sony’s introduction of the Mavica in 1981, Kodak took it as a threat and started investing in the digital photography. For this purpose, it has conducted a huge research on the digital photography. As exposed by Fisher in 1997, Kodak’s respond wasn’t appropriate for the digital world: “One of the mistakes we [Kodak] have made is that we [Kodak]’ve tried to do it all. We [Kodak] do not have to pursue all aspects of the digital opportunity and service side.”

1. ability is a lot of very important to success than ever: amendment goes to happen whether or not you pursue it or not—you solely ought to consider however the role of cloud computing in 2016 has evolved to know. trendy enterprises succeed once they adapt to trade and marketplace shifts and incorporate new technology into company culture and regular operations. However, digital transformation isn’t solely concerning technology, it’s concerning transferral along the ability of technology with a culture that embraces the amendment that it will lead for the organization.

Comcast brushed away its main competitor by purchasing a greater share of Time Warner. The major failures of Kodak were majorly because it failed to embrace and market new technologies for fear of hurting and damaging the company’s lucrative business in the film production at a time when new digital products were being reshaped. Management in the Kodak Company did not fully grasp how the world was gradually reshaping and therefore could not remain in the industry. They still hung on to old -fashioned technologies and assumptions how, where and who took the pictures. Large companies in the media industry should learn to embrace new trends that are appealing to the consumers’ tastes and preferences. The la carte approach is one example of such a new technology and program that should be embraced by all media companies (Einstein,

Disruptive technology is a new way of doing something that initially does not meet the needs of existing customers. This type of technology tends to open new markets and destroy old ones. While, a sustaining technology produces an improved product that customers are eager to buy. This technology provides better, faster and cheaper products on established markets.

Over the past few years technology has caused significant changes in the way enterprises conduct business.

Disruptive technology brings about many opportunities for both innovation and productivity outputs, however it can also be a risk. It includes developments that create substantial change across the economy for most people and businesses, the impact of which causes significant costs to adjust to due to capital being made obsolete and workers becoming underutilised. Clayton Christensen is considered to be the world’s top expert on the concepts of disruption innovation and technology and according to him the ‘introduction of digital disruption offers a better alternative to the present approach for solving customer problems’. Digital disruption is redefining the norm, changing both markets and competitors around the world. Whilst it can be a positive change for

Thomas Sowell discussed that Kodak was a leading film maker in 20th century, but was suppressed by the sales of digital camera three year after the year 2000. The new innovation of digital camera technology caused Kodak to become bankrupt. Although, even if the bankruptcy of Kodak caused losses like lay-offs, and smaller production of goods at a lower quality, there are benefits to bankruptcies. One benefit of bankruptcy is the government can shut down a business when the business cannot pay off its debt, which stops the use of resources that is not benefiting the economy. For example, when digital camera innovations made Kodak cameras obsolete, Kodak sales dropped and the company acquired debt. This

When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other

In my March 6 memo, I discussed the need for Kodak to revamp its core strategy and regain popularity. Eastman Kodak has been the leader of photography and printing products for nearly 130 years. Over the last few years Kodak has been in distress due to its poor fundamental shift into the digital age. Lack of strategic creativity led Kodak to misunderstand the industry in which it was operating. This lack of strategic creativity was costly for Kodak.

To account for their miscalculation in film sales, Kodak is undergoing a massive digitally based shift. Kodak plans on building a stronger base in its consumer, medical, and profession imaging products. However, this shift does not come without a price tag. Kodak’s projected spending could reach as much as $3 billion in future investments to aid the shift. With these investments Kodak claims a tremendous turnaround in revenue. Kodak anticipates reaching $16 billion in revenue by 2006 and $20 billion by 2010. To pay

While Kodak has historically been a well-established brand name in the marketplace, it struggled to find a niche when the industry morphed from a film-based market to a digital-based market. Kodak has struggled to successfully evolve its film-based business structure to the new structure of digital-based technology, which has allowed for competitors to enter the market, decreasing Kodak’s market share. Competitors (such as Canon Inc., Fuji Photo Film Co., Hewlett Packard Co., Nikon, and Sony Corp.) have posed major threats to Kodak’s livelihood. Kodak faces a 5% drop in film sales (2001-2003) and a 3% reduction in overall revenues over the same time period. In addition, revenues and net income are expected to be fairly flat (or decrease) in future estimates. Kodak faces much pressure to revitalize their business through digital imaging, a radical innovation, or risk being eaten alive in an industry they thought they controlled.

Background Eastman Kodak Company, headquartered in Rochester New York, was founded in 1889. The corporation, now multinational and focusing on imaging and photographic equipment, posted revenues in excess of $6 billion in 2011. During most of the 20th century Kodak was dominant in the photographic film industry in 1976 it held 90% of the market but began a downward slide once the Internet, digital cameras and computer processing grew. By 2007, Kodak ceased making a profit and in January 2012 filed for bankruptcy protection and ceased making cameras, video cameras and began to focus on the corporate digital imaging market (De La Merced, 2012). In evaluating Kodak's corporate strategy from the mid-1980s onward, we find that there four major management paradigms in place during this transitional period:

The Digital Nation gives us an idea of showing the pros and cons on the usage of technology. Producer Rachel Dretzin who is working with a group of a different people collaborated on digital world. Technology is used in everyday life, it’s the way we learn to socialize and even conduct war. But do you think that we are losing much of the things as were gaining? We are learning new things, however we are also decreasing the amount of social interactions as well relationships etc.

The business world continues to change dramatically as new technologies are invented. Organizations and businesses are experiencing waves of technological change and innovation and the process. Thus, management strategies of the organizations have to be altered to match the new technologies if businesses are to remain competitive and active in the market place. Digital disruption can be defined as the changes that take place when new technologies and business models affect the promise of value to be delivered by existing goods and services (McQuivey 2015). Change experienced in information and communication technology cannot be assumed as this greatly affects business governance and business models. It is indisputable that business and organizations are facing imminent and major digital disruptions and it is important for each organization to understand the issues raised by digital disruption to be able to develop specific, pragmatic, and proportional responses (Deloitte 2015). This research seeks to show how digital disruption impacts business governance and how it opens unprecedented business opportunities and possibilities. The report shows how the innovations accompanying digital disruption changes economies and markets and how they reinvent relationships between organizations, suppliers and customers.