The Failure of Kodak: Why New Ideas Feel Risky

Way back in the 1970s, an engineer named Steven Sasson at Kodak invented the first digital camera. Sasson’s invention was ahead of its time by a few years so one would assume that this innovation would put Kodak at the forefront of the digital revolution.

If you have read one of the many articles on the topic though, you’ll know this isn’t the case. Despite being ahead of the curve, Kodak eventually fell far behind (filing for bankruptcy in 2012). The term “Kodak moment” now connotes missed opportunities instead of magic moments to be captured on film.

As Scott Anthony points out in his article on Harvard Business Review “Kodak’s Downfall Wasn’t About Technology,” the fall of Kodak has less to do with the actual digital camera technology and more about the culture of the company surrounding innovation and new ideas.

When Sasson originally brought his prototype to management, Kodak made a large chunk of their profits from selling film for their cameras. As one might expect, this new film-less invention didn’t get a warm welcome from leaders at the company. As Sasson recounts: 1

My prototype was big as a toaster, but the technical people loved it. But it was filmless photography, so management’s reaction was, ‘that’s cute — but don’t tell anyone about it.’

The first digital camera created by Sasson at Kodak

New ideas can be both incredibly exciting and intensely stressful. On one hand, new ideas are necessary to disrupt an industry and create a unique product/service. On the other hand, they represent a change in the status quo. By definition, a new idea is a departure from what you’re comfortable with and what you may have had success with in the past.

Let’s take a deeper dive into why new ideas are so difficult to adopt pulling from Adam Grant, author of Originals, and others.

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