Kodak Applies Strategic Intent To the Management of Technology

Abstract

OVERVIEW: CEOs are looking for ways of providing focus and energy within their organizations move toward goals expeditiously and competitively. Research and development managers struggle with ways in which technology meet near-term business goals can be balanced with the longer-term investments necessary provide sustained competitive advantages in the marketplace. Concepts of and vision are ways in which this can be accomplished. process of achieving corporate vision is not easy. Kodak began to take this journey several years ago. Working with the details of how translate broad vision or into meaningful planning process for technology brings home some of lessons and values of the process. While the answers are far from complete, the Kodak experience is shared for the benefit it can provide others who are considering such an undertaking or who are in the midst of bringing vision into practice. concept of strategic intent was introduced in the literature by Hamel and Prahalad as an inferred process used by companies that had achieved results seemingly far beyond their resources and capabilities when their goals were initially set (1). Strategic intent, these authors argued, creates sense of urgency, requires competitor focus, searches for weaknesses in competitors' positions that can provide competitive advantage if appropriately addressed, and is stable over time while remaining flexible as the means used achieve the intended goals. approach differs from others in several ways. It argues for the simultaneous pursuit of lower costs and product differentiation rather than calling for focus on one or the other. It also attacks inflexible business unit-type organizations. Strategic argues that economies of scope are just as important as economies of scale. thinking in Hamel and Prahalad's initial article on this subject was extended in second article entitled, The Core Competence of Corporation (2). Competencies are described as providing the roots of competitive advantage. They represent the collective learning of the organization, especially how coordinate diverse production skills and integrate multiple streams of technologies. authors emphasize leveraging of core competencies and products as tool for gaining competitive advantage. most recent article by these authors translates this thinking the creation of new competitive space by envisioning new markets and capturing them ahead of competitors (3). Others have employed the same principles for the management of technology, but use different descriptors for the elements of the process and the process itself. An example described by Uenohara is the management process used for corporate R&D at NEC (4). Eastman Kodak Company began internal discussions of these concepts largely due the work of Hamel and Prahalad (1) during the latter half of 1985), and extensive work has been done by the management team since 1990. This concept is now integral the company's three major business sectors--Imaging, Health and Chemicals. Indeed, it was the Eastman Chemical Company within the Eastman Kodak Company that first began implement the concept of Strategic Intent. However, while is embraced by all three business groups of the Eastman Kodak Company, the company is still in the midst of the implementation of this concept. As CEO, Kay R. Whitmore has said on many occasions, represents a journey that the company is prepared take. It is direction in which the company is moving, and so the specifics of the process will continue unfold as time goes on. In that sense, it would be more appropriate be publishing this paper five years from now, when experience--and the results from this process--will be more evident. On the other hand, describing what the company has gone through date in the implementation of this process may serve interest others in the process and provide the benefit from this experience. …