What are you in the business of doing? That is the question.
With new technology comes new opportunity. Opportunities for new value chains, new business propositions and new streams of revenue. As business leaders and strategists look to identify the most lucrative areas to invest in (with financial, brand and human capital) they need to articulate clearly, confidently and with conviction the answer to the question:
“What are you in the business of doing?”
Kodak Revisited
To illustrate the critical importance of this question, it is worth revisiting the Kodak story through the lens of this question. If this question was posed to Kodak leaders decades ago when they made the decision to pass on leaning into digital photography advancements, they would have said that they were in the business of printing amazing pictures and that ultimately, they were in the business of the picture film and print photography. Commenting on my post about this very Kodak issue, Eli Israel shared his experience working at Kodak during this moment and explained that the fear of change during a moment of market dominance created a lot of pushback against any new vision. This push back is characteristic of the ‘corporate immune system’ pushing back against foreign ideas and divergent ways of doing business.
The result of this unwillingness to proactively engage with the digital photography revolution was ultimately detrimental to Kodak’s business and when they reactively tried to embrace it, it was too late. The ‘Innovator’s Dilemma’ is one way to explain this situation, where by incumbent companies double down on their market performing products and services in the face of change and miss the change coming from emerging technologies that haven’t yet reached critical mass.
In an alternate universe, the Kodak leaders answered the question “What are you in the business of doing?” differently. They more closely identified with the Kodak brand, PR and marketing communications campaign of the ‘Kodak Moment’. The leaders double down on their brand being considered a key component of important moments in life. They knew that they were not in the business of film and print photography. Instead they knew that Kodak was in the business of ‘memory preservation’. And so in this alternate universe in 2024, Kodak hosts the largest NFT marketplace platform, has a large stake in neurotech companies looking to store and record memories such as Kernel, is on the board of Nectome whose researchers are working to create digital twins of people’s memories once they have died. Kodak has also bought several start ups specializing in metaverse wedding photography and videos. In the meantime, Kodak’s 360 video editing tool continues to be the leader in the market as VR video of events gains more traction as a way to experience events and relive “Kodak” moments. At the moonshot office of Kodak they are tirelessly thinking about Kodak’s future in 2030 and where the memory preservation landscape is pivoting towards. Given this scenario, one could argue that it was not an innovator’s dilemma but an Imagination Dilemma that lies at the root of the Kodak story. Where by leaders were not able to imagine a changing environment or anticipate a world where people would want less of what they had to offer.
These are some glimpses into the alternate universe where Kodak leaders understood themselves to be in the business of “memory preservation”. The fact that Kodak’s reality is so different to this alternate universe is because the mindset of Kodak business leaders at that time was not open enough to explore prospective futures of their industry. The practice of imagining potential and prospective futures is critical to business planning, investment and growth. Had there been a growth mindset culture which openly explored new trends there would have been a different decision environment.
Imagination to Soften the Edges of Fear
Eli Israel used the word ‘fear’ to describe the sentiment at the time. Fear stems from uncertainty and the unknown. Imagination sessions and thought exercises routed in social, economic, political, global and technological trends can help the unknown become more known. While it is impossible to predict the future with certainty, with imagination it is possible to imagine what macro trends could be of relevance and how the business might grow. Foresight and scenario based planning could soften the edges of the fear of change and create a decision making environment that is more comfortable with business change.
However, well before the journey of imagination begins and new business ideas and growth strategies are dreamed up, the defining starting point begins with one grounding question: What are you in the business of doing?
Technology, financial capital, human talent and brand recognition are incredible instruments of business power. But as we have seen in the Kodak example (and many others), it is imperative to understand what the company is truly all about.
So what is your company (really) in the business of doing?
Whenever you’re ready, here are three ways I can help you:
1. Consulting: reach out to explore the strategic advisory services I offer focusing on business growth opportunity areas, competitiveness, moat protection and emerging technologies. Check out my Linkedin profile for the countless glowing reviews about my advisory work.
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3. Speaking & Workshops: my global speaking engagements on emerging technologies, the 4th industrial revolution, artificial intelligence and the importance of imagination in an era of AI have been well received with comments like “I wish I met Lydia sooner” and “I deeply admire her intelligence and humanity, and of her ability to challenge and explore how to make any enterprise more impactful and successful toward the greater good.” Reach out to book me for a talk.
