The Kodak Moment That Didn’t Last
Businesses fail for numerous reasons. A large contributor to failure is the lack of attention to user feedback. In this rapidly changing world, it is crucial for businesses to be open to change and to have the ability to adapt business models accordingly.
A good example for a business that failed to recognize this is Kodak.
It is understandable that the last few decades would have been challenging for Kodak seeing as their core business was selling film. Cameras went digital and then smartphones took over. People started sharing photos online instead of print.
Kodak understood that photos were going be shared online, and they actually acquired a photo sharing site called Ofoto. This could have been the pioneer of a new category of life networking where individuals could share photos, updates, etc. (Facebook, anyone?) Yet they had not embraced the fact that this was the direction in which the world was going. Instead they used this platform to get more people to print digital images.
In 2012, Kodak sold the site to Shutterfly for less that $25 million, following bankruptcy. This happened around the same time that Facebook acquired Instagram for $1 billion.
Kodak hadn’t prepared themselves for the time when digital photography would take over and replace film. Instead they chose to focus on improving the quality of their film, and failed to embrace the new business model opportunities that came with this disruptive change.
They failed in realizing that online photo sharing was the new business, not just a way to expand the printing business.
Scott D. Anthony, Harvard Business Review
How can we connect this with user experience?
In UX, there are mainly 3 types of assumptions:
- Problem assumptions: These are related to the respective problem you’ve been given. For example, if we consider Kodak, a problem assumption would have been that customers were looking for a new platform to share photos, without printing them. While we know, in hindsight, that people were, indeed, having this problem, it would’ve been difficult to know for sure at the time whether this was a real problem without effective user research.
- Solution assumptions: These are typically present in briefings when a UX Designer or UX team is tasked with designing a solution that is based on assumptions. For instance, with the Kodak example, a solution assumption could be to create a website/app that allows users to upload photos and share them online. Do we really know if this is the right solution? Now we do. But back then, research would have been necessary.
- Implementation assumptions: These are related to the way we are going to create a solution. In the Kodak example, they could have been related to assuming people would download the app (web or mobile).
What can we learn from Kodak’s misfortune?
- It is crucial to define the problem we are solving for customers. Only then can we come up with the appropriate solution.
- Disruption is a good thing! It causes business models to shift and it allows for fantastic growth opportunity.
- It is important to avoid complacency and stay innovative.
- Agility is key- always be ready for reassessment and adaptation.
Instead of embracing change, Kodak ended up at the wrong end of disruption. I think this is an important lesson in business but also in life. Instead of looking at disruption and change as a threat, we must look at it them as opportunity to grow!
