The Innovator’s Dilemma: Lessons from Kodak

The failure of Kodak in light of digital photography is often attributed to their inability to recognize or adapt to a disruptive technology. However, the real issue lies in what Clayton Christensen referred to in 1997 as the "innovator's dilemma." This is the difficulty that established companies have in evaluating new innovations, comprehending their true value, and developing something new instead of adapting to existing structures. Kodak was aware of the impact of digital photography, but instead tried to adapt the technology to their existing product portfolio, resulting in missed opportunities. The lesson is that companies must release themselves from the never-ending optimization circle, instead transforming and embracing revolutionary ideas, even if it means taking risks or facing a dilemma.