Journal of Information Systems Research and Innovation
11(3), 22-27, December 2017
Information Technology for Organizational Change: Lesson Learnt from Kodak
And Fujifilm
Nani Amalina Zulkanain1. Salamatu Musa2. Halina Mohamed Dahlan3. Ab Razak
Che Hussin⁴
Author(s) Contact Details:
¹amalinanan94@gmail.com
²salaamat.musa@gmail.com
³halina@utm.my
⁴abrazak@utm.my
1,2,3,4Faculty of Computing, Universiti Teknologi Malaysia, 81310, Skudai, Johor Bahru, Malaysia
Published online: December 2017
© 2017 JISRI All rights reserved
Abstract Organizational change refers to the
modification or transformation of the organization’s
structure, processes or products in order to increased
efficiency, new opportunities, skills growth, increased
profit and for competitive advantage. IT is the
combination of process information and technology to
support human works. This paper explores the impact of
information technology (IT) for organizational change in
two photographic companies, Kodak and Fujifilm.
Several impacts have been discovered which enables
these companies to sustain before and after the use of
technology in many decades. However, based on the
findings IT is seen as one of the catalyst that can change
the way an organization operate, improve sales and
increase overall performance of the organization. Thus,
the paper can serve as a significant information for
organizations to sustain in the business industry with
relation to IT implementation.
Keywords: Organizational change, Information
technology, Kodak, Fujifilm.
1. INTRODUCTION
Information technology (IT) in organization already
existed since 1980’s through the research ‘Management
in the 1980’s’ by Leavitt and Whisler (1958). One of the
reasons for applying IT in organizations is because of the
fast development of information and data from the
services and product produced by the organizations. IT is
considered not only because today’s real-time information
is important in business decisions, but also because IT
ISSN 2289-1358 © 2017 JISRI All rights reserved
becomes indispensable for managing the huge amount of
data. However, the research outcome regarding the IT
and organization changes can produce a conflict results
(Markus & Robey, 1988) and a lot of case studies from
many company are needed to sort and analyzed in order
to gain understanding about the specific problem faced by
different companies since each company have different
business functions.
The implementation of IT in organization can have a
variety of impact which pioneer study by George,
Nunamaker, and Valacich (1992) identified:
 Downsizing required only less effort by the
expertise because of the implementation of the
system
 Team communication for coordination of
meeting and resource
 Outsourcing which provide other sources for
services.
The demand of IT can provide more effective decision
making which improve the Enterprise Resource Planning
(ERP) by providing the systematic information for
resources, sales and inventories (Bloom, Garicano, Sadun,
& Van Reenen, 2014). In addition, Coombs, Knights, and
Willmott (1992) study shows that IT can give
improvement in term of social and economic issues in
organization.
Some benefits have been discovered regarding the
implementation of IT in organizational change and this
paper explores the two companies Kodak and Fujifilm to
understand impact of IT implementations. Organizational
change is an important issue in any organization. Because
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Journal of Information Systems Research and Innovation
11(3), 22-27, December 2017
it is a process in which an organization optimizes
performance as it works toward its ideal state. Miles
(2001) explains that “understanding organizational change
involves examining the types of changes within firms. No
matter its size, any change has an overspreading effect on
a firm”. Recent decades have seen increasing emphasis on
change as a critical driver of organizational success.
Change is generally a response to threat or opportunity
arising outside of the organization.
From the explanation above regarding the use of IT in
organization, the aims of this study is to: study the impact
of IT for organizational change and the lesson learnt
from Kodak and Fujifilm in implementing IT. This paper
can serve as a significant information on how to sustain in
the business industries with relation to IT
implementation. This paper consists of several sections
which are Introduction (section 1), Review of literature
(section 2), Lesson Learnt (section 3) and Conclusion
(section 4).
2. LITERATURE REVIEW
2.1 Information Technology (IT)
IT can be defined as the combination of processes,
information and technology to support human works
(March & Smith, 1995). IT is related to automation of
certain task (Bloom et al., 2014) in making the task easier
to execute with the support from humans. Information
technologies have become an important strategic resource
for organizations. IT, provide a concentration of
information that is important for good decision-making
(Galbraith, 2012).
DeLone and McLean (1992), categorized the success of
companies in connection to information technologies
into six major dimensions: quality of information
technologies, quality of information, use of information
technologies, customer (employees) satisfaction,
individual impact and influence of the organization. This
technology can reduce time spent in executing a task and
also the workforce in an organization.
2.2 IT for Organizational Change
Today, most of the companies either small or
multinational are using IT for their company service and
production. The use of IT make task easier and
productive because of the automating processes, digital
storage of information and accurate outcome. IT is not
only about automating the processes, but the study of IT
involves many fields such as virtual reality, augmented
reality, social media and e-commerce. However, based on
Keen (1981), top management decision is very crucial
and sensitive in choosing and using IT since it depends
on a particular kind of IT that will reflect the
organization outcome. This study discusses about the
change of technology which gives an impact towards
organization innovation.
ISSN 2289-1358 © 2017 JISRI All rights reserved
Some impacts of changes regarding the
implementation of IT in organization have been identified
as follows:
Reduce cost and time. Using IT, integration process
will be much easier, cost in spending for the system is
less, and the valuable of the product outcome is much
worth (Bharadwaj, 2000). In term of material used, with
the adaption of system, organization can reduce the
number of paper used hence reduce cost (Baroudi &
Lucas Jr, 1994). Most importantly, the coordination of
work will be easier to manage, hence resulting to less
amount of time spend on a certain task. However,
reduced number of task will cause downsizing of
manpower in the organization.
Social benefits. The introduction of social network
sites, aids in improving the communication skills among
worker by providing understandable words since all the
informal communication are applied (Jarrahi, Crowston,
Bondar, & Katzy, 2017). Bashir and Aldaihani (2017),
mentioned that the social media are mostly used by
organizations for marketing purposes such as
advertisement, upcoming event news and for
communication among staff member. In meetings for
instance, IT is used as a medium to communicate
between members such as video conference. Both relate
to each other to produce great benefits. Instead for social
communication, this data from social media can be used
for evaluation, analysis and data prediction (Davids &
Belle, 2017).
Easy access. Nowadays, many organization are
moving into providing service in virtual platform such as
selling product in website through online service because
of the benefit of fast responsiveness (Baroudi & Lucas Jr,
1994), shareable and easy to access (Bharadwaj, 2000).
The amazing of cloud service has been proved as one of
the best alternatives to keep data in cloud for the safety
and easy retrieve purposed (reference).
Increase market Opportunities. As we know
technology makes data transfer easier and faster. In
addition, the existence of link rank and ads in search
engine list introduced by Google (Page, Brin, Motwani,
& Winograd, 1999) provide a lot of chances for
organization to promote their business. This is the
marketing strategy using IT platform to increase
organization business market (Davids & Belle, 2017).
From the details above, a lot of impact are derived from
the adaption of technology in organization. Pioneer
organization of photographic like Kodak and Fujifilm
nowadays are still stable and also maintain their
organizational process. The section below discussed
further about the impact of technology used by both
companies and how they were able to cope and sustain
with the fast development of technology in this new
century.
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2.3 Kodak
Kodak 1 was founded by inventor and philanthropist
George Eastman in 1880 and the Eastman Kodak
Company was established around 1901 in Rochester,
New York which provided photographers with a full
range of products and services “You push the button, we
do the rest” was its first advertising slogan. In 1932,
Eastman Kodak was one of the world’s leading
multinational corporations with production, distribution,
and processing facilities and with one of the world’s
most recognizable brand names.
2.3.1 Impact of IT Implementation in Kodak
Kray, Rohs, Hook, and Kratz (2009) indicates that
shifting from analogue to digital photography has caused
a number of changes, ranging from the basic ‘format’ a
photograph takes (paper vs. bits) to changes in social
practices which surround photographs. A lot of
differences are visible when comparing the ways, in
which photos are taken, edited, annotated, shared and
stored. At the same time, the cost, time and effort
required for these activities has changed as well (Miller &
Edwards, 2007)
For Kodak, the invention and growth of digital
photography was clearly a disruptive technology that had
a dramatic impact on film sales. It was a once-in-a-
hundred-years change for the company. Considering that
Kodak’s core business was selling film, it was challenging
for them to adjust in the last few decades. Cameras went
digital and then disappeared into cell phones. People
went from printing pictures to sharing them online. But
still Kodak managed to restructure. As a result of these
changes, IT became necessary for Kodak in shifting to
digital products. Therefore, in 1980s Kodak’s top
management was aware of the technological
developments in imaging which lead Kodak’s R & D
(Research and Development) to produce a number of
products that incorporate new imaging technologies as
mention below:
• In 1986, Kodak invented the first megapixel
electronic image sensor, followed by a number
of new products for scanning and electronic
image capture.
• Computer-assisted image storage and retrieval
systems for storing, retrieving, and editing
graphical and microfilm images.
• Data storage products included floppy disks
(Verbatim was acquired in 1985) and 14-inch
optical disks (1986).
• Plain-paper office copiers (Kodak acquired
IBM’s copier business in 1988).
• The Photo CD system (1990) allowed digitized
photographic images to be stored on a compact
1 https://www.kodak.com/corp/default.htm
ISSN 2289-1358 © 2017 JISRI All rights reserved
disk, which could then be viewed and
manipulated on a personal computer.
• In 1991 Kodak launched its first digital camera,
the 1.3-megapixel DCS-100.
However, Kodak invested heavily in digital photography,
but middle managers and the culture of the organization
made it impossible for the company to capitalize on that
investment. When confronted with a rare, discontinuous
change from technology, senior management in a firm
faces the daunting task of changing the organization to
embrace the new technology which affected Kodak
status to some extent.
Even though it was a destructive technology at first,
Kodak responded to the digital revolution with some
strategies. During 1993–2011, Kodak’s digital strategy
encompasses five themes:
 An incremental approach to managing the
transition to digital imaging;
 Different strategies for the consumer market
and for the professional and commercial
markets;
 External sourcing of knowledge through hiring,
alliances, and acquisitions;
 An emphasis on printed images;
 Harvesting the traditional photography
business.
2.4 Fujifilm
Fujifilm2 starts to operate in 1934 as a photographic film
company. This Kodak’s competitor in 90’s become the
most influential company globally. First, it was the most
successful imaging industry in Asian and become
multinational throughout the world competing with
Kodak and Konica. Fujifilm gain their victory reputation
during the Second World War. This time was used by
Japan as an opportunity to leverage skills not only in war
appliances but also in daily life.
Fujifilm have their own success and failure story. Fujifilm
originated from Japan and seek for market share in
United States, thus Fujifilm have an agreement with
Eastman Kodak in 1950 for amateur roll film
(Frankenberger, Gassmann, Sauer, Lee, & Meister, 2015).
It was this period that Fujifilm started learning and
developing good quality product that were widely
introduced in United State. In 1972, Fujifilm
independently survived in United States market.
2.4.1 Impact of IT Implementation in Fujifilm
IT becomes necessary in applying digital product.
Fujifilm became dedicated to implement IT by trying to
approach other field of business function like cosmetic,
health and supplements to increase their profit margin
2 http://www.fujifilm.com/
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Journal of Information Systems Research and Innovation
11(3), 22-27, December 2017
(Frankenberger et al., 2015; Kodama & Shibata, 2016).
This was a strategy taken, in order to develop the new
business talents for being stable in technology and
physical platform. The aggressive growth with different
kind of core business functions adapted by Fujifilm have
improved the business structure in variety of ways. For
Fujifilm, including Technology to the business operation
was the main focus with reference to different kind of
industry achievement.
The key word here is restructuring. Due to the fast
development of technology and rivalry in the market
share with competitors, Fujifilm was able to restructure
the business structure and plan by strengthening research
and development (R & D) and adapt with new kind of
technology to increase sale (Kodama & Shibata, 2016).
The technology applied was safely used by customers. In
addition, all the publications 3 regarding the use of
technology, materials and technique in producing the
product are publish and uploaded for customers view. By
doing so, Fujifilm can increase their customers trust.
Innovation of Fujifilm not only limited to photography
and film, as mention above. Fujifilm also involve in other
business functions. These skills of managing different
business enable Fujifilm to leverage the use of
technology in many field for example, the creation of
“Formulation, Targeting and Delivery (FTD)”
technology applied in cosmetic and supplements
industry. In addition, high investment needed for
funding the imaging technology (Baron, 1997) but the
risk is well aware by Fujifilm because of future target that
technology can be applied thoroughly for digital product.
Fast action and flexible in making changes made Fujifilm
stands firm even many industries such as Hawlett-
Packard and Casio start to produce their digital products
such as printers and camera. This is because the pioneer
of the photography and film company have own
manufactured products that parallel with R & D studies.
They already have regular customer.
3 LESSON LEARNT
Another goal of this paper is the lesson learnt from
Kodak and Fujifilm in response to the challenges and
threats of ICT and digital cameras that changed the
process of photography. The lesson learned are as
follows:
Business structure. Kodak invested heavily in
digital photography, but middle managers and the culture
of the organization made it impossible for the company
to capitalize on that investment. When confronted with a
rare, discontinuous change from technology, senior
management in a firm faces the daunting task of
changing the organization to embrace the new
technology. However, the manager itself should play a
3 http://www.fujifilm.com/about/research/report/
ISSN 2289-1358 © 2017 JISRI All rights reserved
good role in control and coordination (Kornberger,
2017) the use of technology applied in business. At the
end, business structure as well as the good management
plays an important role in guiding the success of business
functions to gain capability with technology.
IT innovation. The success of industries is
depending on the way they sustain following the trends
adapted by customer. Fujifilm utilized an innovation
process by analyzing the capabilities of future product
and services (Kohn, 2016). Detail research and
development is needed for further analysis and
justification of future products. Same cases with Kodak
where the shifting into digital product and made changes
has turn the whole industry to implement digital
strategies.
Best strategies to implement IT. Another reason
for Kodak and Fujifilm to sustain was because of
effective and efficient strategies they used in
implementing IT for business purposes. The product
mostly was based on market demand with the
enhancement of technology. The business maintains the
original business but also takes an action to enhance
skills to improve the product using the technology
development (Jarrahi et al., 2017).
The above lessons from past experience of Kodak and
Fuji needs to be considered well for adapting IT in an
organization. Most importantly, should always be
creative to invent new product that are useful to different
fields of business and also following the current trend. It
basically can leverage the business scope and provide
opportunities in making new network of business.
4 CONCLUSIONS
Since pioneer industries are matured in term of
experiences. These experiences become a guideline for
them to innovate new products in future. Both Kodak
and Fujifilm also invest for better facilities and IT
appliances. In order to maintain or make changes, this
significant information becomes valuable as part
guidelines in organization. Learning with the expertise
will provide us with wide knowledge and experience that
we can adapt in future. Technology already shows prove
as one of the platform or catalyst that can change the
way of organization operate and improve sales. Kodak
and Fujifilm are still stable and sustain until today. In
order to sustain the development of organization in
using technology, organization should: explore other
fields in order to gain more knowledge; be innovative
and creative; restructure business structure to adapt with
new environment; recognize treats and opportunities for
new information and technologies used; explore different
strategies to different customer and use the external
sourcing for skills and knowledge.
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AUTHOR PROFILES:
Nani Amalina Zulkanain received the degree in
Information Systems Engineering from Universiti
Teknologi MARA, Malaysia in 2016. Currently, she is a
research student in the Faculty of Computing at
Universiti Teknologi Malaysia, Malaysia.
Salamatu Musa received the degree in Information
Technology (IT) from Kebbi State University of Science
and Technology, Aliero, Nigeria in 2011. Currently, she
is a research student in the Faculty of Computing at
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11(3), 22-27, December 2017
Journal of Information Systems Research and Innovation
11(3), 22-27, December 2017

Halina Mohamed Dahlan received the Ph.D. degree in

Decision Science from the University of Manchester, in
United Kingdom. Currently, she is a senior lecturer in
the Faculty of Computing at Universiti Teknologi
Malaysia, Malaysia.

Ab Razak Che Hussin received the Ph.D. degree in

Ecommerce Trust from the University of Manchester, in
United Kingdom. Currently, he is a senior lecturer in the
Faculty of Computing at Universiti Teknologi Malaysia,
Malaysia.

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