The document discusses how businesses need to evolve their models to adapt to changing markets and technologies. It uses the examples of Kodak and Fujifilm to illustrate how being slow to change and clinging to old business models can lead to failure, while adapting strategies early to new opportunities can enable continued success. The presentation emphasizes that industries are constantly being disrupted and that businesses must innovate proactively, understand their capacity for change, and anticipate market shifts in order to survive long-term.

1. The Business
Revolution.
Hyper Island Master Class
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2. Terrible time to IM with your assistant, great time
to though.
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(psst - #HIMC)
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3. Hi, I’m
@darrellwhitelaw.
Technology Experience Lead / co:collective
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4. We all have a past.
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5. 2 studios
a bunch of people
lots of money
2 years
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7. Proof it works.
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8. Evolving Business
Models.
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9. The definition of “business model”
A business model describes the rationale of how an
organization creates, delivers, and captures value.
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10. Every business
changes, it’s just a
question of how
gracefully they do it.
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11. A short story.
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13. (©1888)
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15. At it’s peak.
• pioneer in technology in the late 1800’s
• built a digital camera by 1975
• accounted for 90% of film sales in US in 1976
• regularly rated one of the 5 most valuable brands
• revenue of $16B in 1996
• 145,000 employees
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16. Forecasted the death
of film would be
2010 . . . in 1979
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17. Today.
• will be bankrupt unless it sells off 1000 patents
• restructuring into multiple business units
• nine quarterly losses in three years
• revenue of $6.2B
• share price has fallen 90% in one year
• ~1,450 employees
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20. Pretty much the
same leader as
Kodak in Asia.
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21. Today.
• operating in several successful (new) markets
• consistent YoY gains
• 40% share of photofinishing market
• 78,862 employees
• generally not fucked
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23. The similarities
• both companies
• both made film at one point
• both had their business rendered obsolete
(I’d argue it stops there)
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24. Kodak
A culture of complacency:
• took too long to make acquisitions
• management held onto film business
• perfectionist mindset in new business channels
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26. Fuji
An early three-pronged strategy:
• squeeze as much money out of the film business
as possible
• prepare for the switch to digital
• develop new business lines.
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27. Don’t be lazy.
Don’t be irresponsible.
Shigetaka Komori
CEO - Fujifilm
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28. Kodak acted like a
stereotypical change-
resistant Japanese firm,
while Fujifilm acted like a
flexible American one.
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29. The lesson is?
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30. What worked in 1912 won’t
work in 2012. unless your
industry is crochet.
And then it’s probably automated, so there.
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32. Because
change is
hard, costs
money and
is risky.
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33. But I can assure you of 3 things.
Death, taxes and the CMO will
be gone in 18 months.
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34. Innovate early, often and
aggressively.
Know your company CAN
change.
Predict market changes
and act accordingly.
Find a tolerance point
between awesome and
profitable
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35. Curation &
Community.
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36. 1934 - 2003 1989 - Present
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37. MCA built an empire
based on music as a
commodity.
It worked for years.
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38. Then the bottom fell out
Uh oh.
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39. Matador on the other
hand focused on
curating a culture, and
adding value to a scene
and community.
It’s still working.
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40. Old media will adapt to find new
models of consumption
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41. “The key discovery
is that we’re not
just driving digital
growth, we’re
driving analog
growth.”
- Lisa Hsia, VP New Media Bravo
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42. Outlive
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43. There is no silver
bullet for longevity.
(don’t sleep!)
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45. Netflix, July – November 2011
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46. Every giant will fall
and every innovator
will make a mistake.
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47. But try to stay positive.
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48. The goal is to learn to
change rapidly to
recover and thrive.
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49. Thanks!
Get at me, @darrellwhitelaw or darrell@darrellwhitelaw.com if you’re legacy.
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