Archive — Kodak
Why big companies squander brilliant ideas — Tim Harford
How inflexible organisational structure could be one of the main inhibitors of innovation. This article is full of fascinating examples, but I found the Sony example the most striking.
…the silo that produced the PlayStation had almost nothing to do with the silo that produced portable CD players. The Memory Stick Walkman was like the tank: it didn’t fit neatly into any category. To be a success, the silos that had been designed to work separately would have to work together. That required an architectural change that Sony tried but failed to achieve.
Seemingly, there’s no straightforward answer to this:
Kodak’s position may well have been impossible, no matter what managers had done. If so, the most profitable response would have been to vanish gracefully.