The Deep Interplay Between Collective Leadership and Digital Transformation

If I told you that Kodak, a company that went bankrupt in 2012 due to the overwhelming competition from digital cameras, had obtained a patent for an electronic camera as early as 1977, would you believe me? Yet, you should, because this is one of the most striking examples of the lack of collective leadership, which I want to discuss in this brief treatise.

The Kodak Case

In 1977, two Kodak employees, Gareth Lloyd and Steven Sasson, developed and patented the first digital camera. This device used an electronic sensor to capture and store digital images, revolutionizing the concept of photography that had previously relied on traditional film.

Despite the revolutionary potential of this technology, Kodak’s leadership decided to ignore it, focusing instead on the profitable business of photographic films.

Lloyd and Sasson did not have a direct communication channel with the CEO or top management of Kodak. They spoke with their manager about the importance of patenting the technology for future developments, obtaining the necessary funds. However, Kodak’s executives continued to prioritize photographic films, underestimating the potential of digital cameras.

When film sales began to decline, it was too late: other companies had already captured the digital camera market. This delay in adapting and recognizing the value of internal innovations led Kodak to file for bankruptcy…