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Journal of Information Systems Research and Innovation 11(3), 22-27, December 2017

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 Zulkanain 1 . Salamatu Musa 2 . Halina Mohamed Dahlan 3 . Ab Razak Che Hussin

Author(s) Contact Details:

¹amalinanan94@gmail.com

²salaamat.musa@gmail.com ³halina@utm.my abrazak@utm.my 1,2,3,4 Faculty 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

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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.

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innovation. ISSN 2289-1358 © 2017 JISRI All rights reserved Some impacts of changes regarding the implementation

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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Journal of Information Systems Research and Innovation 11(3), 22-27, December 2017

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

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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;

the traditional photography

Harvesting

business.

2.4 Fujifilm

Fujifilm 2 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/

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ISSN 2289-1358 © 2017 JISRI All rights reserved good role in control and coordination (Kornberger, 2017)

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 Universiti Teknologi Malaysia, Malaysia.

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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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