In the 1970s, Eastman Kodak employed more than 15,000 people in Rochester, New York, where it was the most recognized brand in imaging. In 2012, Kodak filed for bankruptcy, and today it’s a shadow of its former self. In the optics industry, Eastman Kodak is the cautionary tale about what happens to companies that fail to recognize a disruptive technology and act on it.
Once a multibillion-dollar company, Eastman Kodak was in the business of making film, and they were great at it. Their R&D teams were more focused on chemicals than electronics. Nonetheless, one engineer named Steve Sasson was given a CCD to play around with, tasked to find out if it could be useful to Kodak, and in 1975 he built the first prototype of an electronic camera.
Kodak's first digital camera created by created by Steve Sasson. Photo credit: George Eastman House
The camera was bulky—the size of a toaster—the image was terrible, and Kodak execs were not impressed. Why would anyone want this large electronic imaging device, awkwardly wired into a TV screen? That experience was vastly inferior to the ability to print high-quality color photographs, make scrapbooks, and share photos with family and friends. So, Kodak doubled down on film. It made good business sense.
Before you scoff, dear reader, keep in mind your gift of hindsight.
In the 1970s and ’80s, while Sasson worked to refine his device and Kodak marched toward better and better film, most households had just one screen: a bulky CRT television. There were no pocket-sized consumer electronic devices, aside from calculators. In short, there was no frame of reference for a handheld digital camera or a related display.
We all know what happened next. By the early ’90s, laptops were more common, Moore’s law was canon, and other imaging companies (Nikon, Canon) were off to the races developing digital cameras. Kodak, which had more than a decade-long head start, had failed to see their advantage. And now, a “Kodak moment,” once a catchphrase about a cherished memory, has overtones of a cautionary tale about the fate of companies that fail to embrace change.
There are good reasons that many companies fail to embrace disruptive innovation. One is that companies don’t want to risk deep investments on a technology that lacks a broad market. Another is that it can be very difficult to see when it’s happening. Despite the dynamic sound of the phrase, disruptive innovation is rarely explosive or rapid. Disruptors usually start slowly and grow quietly; incumbents often don’t notice, or they hesitate until it’s too late.
In this first issue of 2023, we look at photonics technologies that could disrupt major industries like healthcare, automotive, and potentially even glass lens manufacturing. Turn off notifications and other disruptions and enjoy.
Gwen Weerts, Photonics Focus Editor-in-chief
