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Enterprise-Grade Hybrid and Multi-Cloud Strategies

You're reading from   Enterprise-Grade Hybrid and Multi-Cloud Strategies Proven strategies to digitally transform your business with hybrid and multi-cloud solutions

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Product type Paperback
Published in Apr 2024
Publisher Packt
ISBN-13 9781804615119
Length 362 pages
Edition 1st Edition
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Author (1):
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Sathya AG Sathya AG
Author Profile Icon Sathya AG
Sathya AG
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Table of Contents (17) Chapters Close

Preface 1. Part 1: Challenges with Cloud Adoption at an Enterprise Scale
2. Chapter 1: Leadership, Will, and Mindset FREE CHAPTER 3. Chapter 2: A Primer on the Cloud 4. Chapter 3: Enterprise Challenges with Cloud Adoption 5. Part 2: Succeeding with Hybrid Cloud and Multi-Cloud
6. Chapter 4: Building the Foundations for a Modern Enterprise 7. Chapter 5: An Enterprise Journey to Cloud Transformation 8. Chapter 6: Building an Open and Nimble Cloud Framework 9. Chapter 7: Hybrid Cloud Use Cases 10. Part 3: Lead and Transform Your Business with Cloud
11. Chapter 8: Architecting a Cloud-Ready Enterprise 12. Chapter 9: Facets of Digital Transformation 13. Chapter 10: Leading and Innovating with the Cloud 14. Chapter 11: ESG and Sustainability 15. Index 16. Other Books You May Enjoy

Two tales of leadership, will, and mindset

In 1880, George Eastman, in partnership with Henry A. Strong, founded the Eastman Dry Plate Company with the purpose of selling dry plates for cameras. Within the decade, the company introduced a new film roll process, filed multiple patents, and revolutionized the photography industry by democratizing photographic film products to virtually everyone. By 1888, the company introduced a portable box camera that came with a film roll of 100 exposures, and in 1892, what would eventually become a common household name (Kodak), then known as the Eastman Kodak Company was born.

For much of the 20th century, Kodak dominated the photographic industry and became one of the world’s leading manufacturers of photographic film and cameras. In the early years, Kodak expanded rapidly and was able to keep competitors at bay via a combination of innovation, acquisitions, and exclusive contracts. The company was able to successfully navigate the great depression, both World War I and II, and expanded into producing cameras and films for the movie industry, cameras for surveillance satellites, and NASA space missions. From the 1930s until the 1970s, Kodak reigned supreme and enjoyed a monopoly in the photographic films and cameras business. The company’s business model remained unchanged, with R&D focused solely on photographic films and cameras, as the company enjoyed an enviable market share.

In 1934, 6,000 miles across the planet, from the land of the rising sun, a photography and imaging company was established with the objective of producing photographic films. The company entered a market that was already dominated by Kodak in the US. However, Fujifilm enjoyed a supreme market position in camera films in Japan. During the same period when Kodak was still reigning supreme, holding its grip primarily focused on photographic films and cameras, Fujifilm started diversifying, producing films for photography, motion pictures, and X-rays, and after World War II, it further diversified into medical technology in fields such as X-ray diagnosis, electronic imaging, and magnetic materials.

In the 1980s, Fujifilm entered the US market with lower-priced film and photographic supplies, threatening Kodak’s position in the market. Soon enough, Fujifilm made strong headways and took significant market share from Kodak by opening manufacturing plants in the US, employing strategies such as aggressive marketing and price cuts. This started a price war and started eating into Kodak’s profits, reducing shareholder value. This was exacerbated by Fujifilm winning the bid for the official film of the 1984 Olympics in Los Angeles, giving the company a strong foothold in the world market. This period also saw Fujilfim innovating continuously in other markets. For instance, the invention of computed radiography (CR) revolutionized the medical equipment industry and solved major challenges regarding increased radiation exposure to both technicians and patients, which was conventionally attributed to traditional radiography.

By the dawn of the 21st century, the new millennium witnessed the exponential growth of digital technology. Demand for digital cameras caused a swift decline in photographic films, requiring a change in strategy to cater to new market demands. In the early 2000s, Fujifilm also faced increasing competition from modern digital photographic companies.

In response to this challenge, Fujifilm focused on business transformation and embarked on a digital transformation journey. The company invested heavily in new technologies, such as digital imaging and healthcare, and began to diversify its product portfolio. Under the leadership of Shigetaka Komori (2003–2021), Fujifilm underwent a bold structural reform and strategically acquired companies in chemical, healthcare, and electronics to diversify and complement Fujifilm’s business model. He was instrumental in overseeing Fujifilm through the decline of the photo film industry and transforming it into a healthcare, medical, and office equipment maker. Under Komori’s leadership, the company looked at the fields to which its expertise in chemical technology could be adapted and started acquiring companies that would complement its business. They moved into digital X-rays and endoscopes, gaining a 70% world market share of tac film, an essential component of all LCD screens. Another area the company pursued was cosmetics, and it launched an anti-aging skincare line in 2007, which helped expand Fujifilm cosmetics worldwide. As a result of these efforts, Fujifilm has been able to successfully transition to the digital age and maintain its position as a leading global conglomerate.

Kodak’s response to the digital challenge of the 21st century was quite different. With Antonio M. Perez at the helm, Kodak, in 2005, began outsourcing development and manufacturing, which were originally done in-house, and divesting its digital camera manufacturing and operations. By 2007, Kodak succumbed to competitive pressures, exited the film camera market entirely, and started investing heavily in a potential high-margin printer ink business. This was a departure from the razor and blades business model that was a cornerstone of Kodak’s business strategy. However, Kodak eventually exited the inkjet market owing to pressures from dominant players such as Hewlett-Packard. Kodak was removed from the S&P 500 in 2010 and, with declining profits, ultimately filed for bankruptcy in 2012. Since the bankruptcy, Kodak has been trying to diversify into other markets, such as pharmaceutical materials and digital printing products and services, with mixed outcomes.

To understand how deep Kodak’s denial of the upcoming digital disruption was, in the 1980s, Kodak conducted extensive research on technology advancements and the potential of digital photography to take over film technology. The results showed that digital technology was poised to disrupt Kodak’s bread-and-butter film business. The good news was that the change would be gradual, giving Kodak the opportunity to adapt and transition. Kodak did little to prepare for this despite the results of the study. To put this into perspective, under the leadership of George Eastman, Kodak took the technology disruptions head on: first, when they let go of the lucrative dry-plate business to move to film roll technology, and second, when they adopted color photo films despite having a dominant position with black and white film technology [10].

In perspective, Kodak’s failure can be attributed to its oversight of capitalizing on the digital disruption opportunity, its over-reliance on brand marketing, banking on acquisitions for expansion into newer territories, and, more importantly, the failure to embrace an innovation continuum for several decades at the turn of the century, at a time when it was most needed. On the contrary, Fujifilm capitalized on the digital revolution opportunity and continued innovating ahead of the market and diversifying into other markets where its chemical expertise was complimentary, leading the digital transformation [11].

The primary factors in Fujifilm’s successful digital transformation were the following:

  • Innovation continuum: Fujifilm had a long history of research and development, and it continued to invest heavily in new technologies. This unwavering focus on innovation allowed Fujifilm to stay ahead of the competition, gain market share in new territories, and develop new products and services that met the needs of its customers.
  • Visionary leadership: Fujifilm has been led by a strong and visionary leadership team that has been able to guide the company through the digital transformation process.
  • Employee engagement: Fujifilm has been able to successfully engage its employees in the digital transformation process. This has been achieved through a number of initiatives, such as employee training and development programs and employee feedback mechanisms.
  • Customer focus: Fujifilm’s unwavering focus on customers has been a key factor in its success in the digital transformation process. The company has been able to understand the needs of its customers and develop products and services that meet those needs.
  • Financial resources: Fujifilm leveraged its financial resources to invest in the digital transformation process. This has allowed the company to invest in new technologies, hire top talent, and develop new products and services.
  • A commitment to sustainability: Fujifilm has a long history of environmental stewardship, and it has continued to invest in sustainable technologies and practices. This commitment to sustainability has helped Fujifilm to reduce its environmental impact and improve its bottom line.

In the next section, we will investigate how enterprises can lead digital transformation.

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Enterprise-Grade Hybrid and Multi-Cloud Strategies
Published in: Apr 2024
Publisher: Packt
ISBN-13: 9781804615119
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