The hottest management focus and relocation of CIO

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Management focus and relocation of CIO

traditional business with high profit continues to decline; Emerging businesses with low profit margins are on the rise. The market is constantly changing, but the growing demand of enterprises has never changed. How to maintain growth? Only continuous innovation, and it can keep the enterprise young forever

many large companies are facing a similar challenge. Traditional businesses are declining while new businesses are rising. Kodak is facing such a situation: the traditional business represented by film and paper is seriously declining, while the digital business is rising sharply. Different businesses have different requirements for it. Should it focus on cost reduction or innovation? Kim vangelder, Kodak CIO and vice president, will tell you his choice

cio repositioning

in 2004, the traditional business represented by film and photo paper accounted for nearly 61% of Kodak's total revenue of $13.5 billion. In the first quarter of 2005, Kodak's sales fell 3% year-on-year, with a net loss of $143million. Kodak predicts that the sales revenue of its traditional business will fall by another 17% in 2005. In contrast, the digital business has been rising all the way. In 2004, Kodak surpassed Sony with the sales performance of nearly 5million digital cameras, and won the crown in the domestic personal digital camera market in the United States. It is expected that by the end of this year, Kodak's sales revenue of digital products is expected to exceed that of its film products

however, it is too early to be happy. Because the profit margin of digital products is only 10%, which is much lower than the profit margin of film products of 60% ~ 80%. To make up for the loss of film products, digital products are only a drop in the bucket, so it is more urgent to expand digital business

this poses a challenge to Kim van gold, Kodak CIO and vice president. On the one hand, it needs to significantly reduce costs, on the other hand, it needs to achieve innovation. This dual need determines that van gold should reposition his role in the company - not only to find ways to reduce costs, but also to focus on it innovation for product upgrading worldwide

according to a recent Gartner survey, many CIOs believe that their top priority is to introduce projects that can promote business. Graham Waller, an analyst at Gartner, said that the past 18 months have witnessed a huge shift in focus - from cost to growth. Top it manufacturers are redoubling their efforts to help enterprises achieve innovation

Bain & Co. also conducted a survey on the chief business and technology executives of some companies, and the results showed that 86% of the respondents agreed that innovation is more important than reducing costs in order to survive; 89% said that it technology can bring obvious competitive advantages to enterprises

it system innovation

the successful performance of any manufacturer is a certain product and service, and the real hero is the business process and supply chain that ordinary people can't see. With Kodak's pedestal printing system, users can easily print photos. Digital enthusiasts can also use Kodak's digital image storage and management services. But all these products or services are inseparable from the support of business process and supply chain. Kodak's transformation into the consumer electronics industry represented by digital cameras requires appropriate business processes and supply chains. Those traditional models that have played a huge role in the film business may not be able to play a role

in the face of the transition from traditional business to low profit digital products, different people will have different approaches. Van gold focused on improving the transparency of the end-to-end supply chain. He believes that an important responsibility of CIO is to use information technology to change traditional practices. Of course, this requires the cooperation of executives at all levels of the enterprise. The purpose of informatization is not to have a universal method, but to innovate continuously and effectively improve business processes. It technology accelerates the combination of business, helps enterprises cope with market changes, and helps Kodak grasp more market opportunities. Kodak has become more capable due to it technology, and can respond sensitively to the rapidly changing market and quickly realize the commercialization of products and services

for van gold, there is still a difficult choice. Kodak used to use a large ERP project based on SAP software. The project has been carried out within the company for several years, and the system runs smoothly. However, whether the system can be applied to the low profit digital product line needs to be reconsidered. In the face of low profit digital business, will the original it deployment still work? How to determine which part is useless and which part can be used in digital business

after careful consideration and repeated consideration, she found that the original ERP system could continue to work. She decided that she could continue to deploy the back office system to save operating costs, and finally decided to stick to the original system

Kodak has set up a cross departmental working group to adjust the original system to meet the needs of new business. Compared with traditional business, the supplier relationship of digital business is more complex, which puts forward higher requirements for supply chain management. She even set up a cross departmental working group (including IT personnel) to input the data in the company's planning and supply chain software into the ERP system to ensure that the system effectively integrates various data

changes in corporate culture

compared with the relaxed culture of some companies, Kodak seems a little old-fashioned. Some analysts even believe that for a long time, Kodak's administrative management concept stayed in the "Dark Age" (European Middle Ages). However, the current top-down change and it innovation have had a major impact on the culture and improved the situation

The formation of Kodak corporate culture can be traced back to 1989. At that time, Kodak stopped the protection and maintenance of its IT department from the following aspects: all parts of the experimental machine should be cleaned frequently, and the business should be outsourced to IBM. At the same time, Kodak also established its own it working group. To a certain extent, Kodak has formed a cohesive and forward-looking corporate culture. When van gold took over as CIO, the reform of the R & D department caused panic. People are worried that their work will change after the reform. They are worried that they will not be able to engage in research and development in the unique fields they care about as before, but will be forcibly assigned a certain research and development task

Kodak has taken a series of measures to smooth the transition. Firstly, the technical support service personnel of the company were trained to provide one-stop services to users

furthermore, in order to promote better information exchange among technicians, Kodak established the Kodak technology council led by CTO billlloyd. The members of the board include the staff of the R & D department and the managers of the technical and business departments. The Council has established a network structure for sharing information among Kodak's design departments all over the world, which has greatly promoted the exchange and cooperation between the R & D department and the company's business departments

in response to this change, Kodak also made personnel adjustments. Dengkaida, the former CEO of Kodak, set the goal of transformation in 2003. However, the move of change can be described as a long-awaited move. He still holds the pipa half hidden. The attempt at reform met with many obstacles, and finally it did not help. In order to cope with the change, Kodak brought Antonio Perez, the former CEO of HP, to the door. He took over as CEO on June 1 this year and started the journey of change

in addition to the top management, Kodak 2. Constant temperature accuracy: <± 0.5 ℃. Another thing that needs to be reformed is the R & D team. Kodak has rich research resources, laboratories all over the world, and more than 4000 engineers and scientists. Kodak lacks the integration and full utilization of resources. There is a heartbreaking example. Kodak has its own copier system. If this product had been introduced to the market at that time, it might now be on a par with Xerox. Kodak was so absorbed in the lucrative film business that it ignored patents and new product lines

now Kodak's culture is more conducive to innovation and makes Kodak more flexible in facing the market. In the consumer market, when competitors such as canon and Nikon still pay attention to the expensive cameras used by photography lovers, Kodak has launched high cost-effective digital cameras, thus gaining a better market position. Kodak connects the store on the station with the company's back office system, which enables the IT department to provide consulting services to the product department

with the traditional film photography business, Kodak has become a world-class image industry for more than a century. With the rise of large-scale digital camera and digital image market, the traditional business relying on silver plate photography has been impacted unprecedentedly. In the face of great changes in the market, Kodak's IT department chose innovation, which successfully realized the transformation and maintained its leading position

innovative 6 Batch experiment: sample charm of one parameter

management and business are facing challenges. What should it do? Is it cost reduction or continuous innovation. The key to reducing costs is standardization, while business innovation relies on personalization. When great changes have taken place in the main business of the enterprise, what should the IT department focus on and where to go? The key to choice is to grasp the core and extension of it. The core is the technology that can create special products and services not only for the plastic products in the narrow sense of our impression, but also bring tangible competitive advantages to enterprises. Anything else can be called extension. Different enterprise IT technologies have different cores and extensions, and they also have different choices for the focus of it

the brave will win the battle between the two armies. Instead of shrinking costs, it is better to go out and create newer products. Kodak CIO's wise choice is continuous innovation. Of course, innovation also faces many challenges, such as the resistance of corporate culture. However, after innovation, Kodak has more popular products and services, and it systems that can support the sustainable development of enterprises. These are the driving forces for Kodak's survival and development. Continuous innovation has enabled many enterprises to calmly cope with the changes in the market. (end)

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