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Kodak Reorganizes Into Five Divisions

Friday, December 05, 2014

Press release from the issuing company

ROCHESTER, N.Y., – Kodak has established a new organizational structure to make the company faster-moving, more competitive and more entrepreneurial. The company will have five market-focused business divisions: Print Systems; Enterprise Inkjet Systems; Micro 3D Printing and Packaging; Software and Solutions; and Consumer and Film.

These divisions will be end-to-end operating units with responsibility and accountability for portfolio, product design, engineering, services, sales, purchasing and supply chain.

“Kodak has an extraordinary product and service portfolio, groundbreaking scientific and engineering expertise, and a world-famous and highly trusted brand,” Kodak Chief Executive Officer Jeff Clarke said. “We now have the right organizational structure for deploying those strengths to drive growth. We designed this structure to sharpen our focus on performance, predictability and accountability for business results.”

Kodak’s new operating divisions, their markets and leaders are:

Print Systems Division: Led by Brad Kruchten, President, Print Systems, and Senior Vice President, Kodak, this division will serve graphic arts and commercial print customers with printing plates (including the rapidly growing KODAK SONORA Process Free Plates), computer to plate (CTP) imaging solutions, electrophotographic printing solutions (EPS), OEM toner and all equipment services.

Enterprise Inkjet Systems Division: Philip Cullimore, President, Enterprise Inkjet Systems, and Senior Vice President, Kodak, will lead this division, which will serve existing and future inkjet printing customers with KODAK PROSPER Systems (including the PROSPER 6000 Press, the world’s fastest and most powerful commercial inkjet press); KODAK VERSAMARK Systems; Print on Demand Solutions (PODS); and ink OEM solutions.

Micro 3D Printing and Packaging Division: Philip Cullimore will also lead this group on an interim basis as President, Micro 3D Printing and Packaging, which serves packaging customers and display OEM partners with products such as KODAK FLEXCEL NX Systems and Plates, legacy packaging solutions and touch sensor films.
Software and Solutions Division: Eric-Yves Mahe, President, Software and Solutions, and Senior Vice President, Kodak, will lead this unit which includes Kodak Technology Solutions, Kodak’s go-to-market engine to prioritize and monetize Kodak innovations in partnership with Kodak Research Labs; KODAK Unified Workflow Solutions; Brand Protection Solutions; Kodak Services for Business; and Design 2 Launch solutions to manage and coordinate use of brand assets.

Consumer and Film Division: Steven Overman, President, Consumer and Film, and Senior Vice President, Kodak, who is also Kodak’s Chief Marketing Officer, will lead Kodak’s most consumer-facing division, with responsibility for consumer inkjet solutions, motion picture and commercial films, synthetic chemicals, and brand licensing. This division is responsible for the exploration of other potential initiatives in the consumer space.

Kodak is combining its current four regional sales organizations into two: Europe, United States and Canada, Australia and New Zealand (EUCAN) and Asia, Latin America, Middle East and Africa (ALMA). These will be led by John O’Grady, Managing Director, EUCAN, and Vice President, Kodak, and Lois Lebegue, Managing Director, ALMA, and Vice President, Kodak. Common service and back office support will be hosted in a shared service model in each region for all businesses.

The company also is optimizing its corporate functions by eliminating overlap and enhancing accountability. The corporate functional leaders are:

· John McMullen, Chief Financial Officer and Executive Vice President;

· Mark Green, Chief Human Resources Officer and Senior Vice President;

· Steven Overman, Chief Marketing Officer and Senior Vice President;

· Patrick Sheller, General Counsel, Secretary and Chief Administrative Officer and Senior Vice President;

· Terry Taber, Chief Technical Officer and Senior Vice President; and

· Kim VanGelder, Chief Information Officer and Vice President. VanGelder will now report to CEO Jeff Clarke.

These changes will be effective January 1, 2015.

 

Discussion

By Gordon Pritchard on Dec 05, 2014

I guess they believe that splitting the company into five market-focused business divisions won't lead to increased silo product thinking and instead encourage a more integrated approach to solution development and customer engagement. Especially at a time when print service providers are taking a more holistic, single source, approach to meeting customer needs - i.e. commercial printers including packaging, variable data, short run, and 3D printing in their service offerings.

I also guess that combining its current four regional sales organizations into two: Europe, United States and Canada, Australia and New Zealand (EUCAN)
and Asia, Latin America, Middle East and Africa (ALMA) makes sense in this culturally homogenized world. After all, African culture, sensitivities, and regional needs are so in tune and similar to those of "Asia" that there is no need for a more localized presence. And sales folks in Europe will enjoy racking up airline loyalty points when travelling to New Zealand in order to pursue new sales opportunities in Hobbitland.

I wish them well but, from the description, I cannot see how this version of the annual reorganization of Kodak can be a move that will make the company faster-moving, more competitive and more entrepreneurial.


 

By Henry Freedman on Dec 05, 2014

This reorg makes it easier to sell off individual units. Note while they announced a better economic position recently, a very significant portion of their income came from a one time nonrecurring patent payment that will not repeat next time they report their financials. Love their scientists and engineers but their management is way out of skill balance to match what is coming from their competitors.

 

By Rossitza Sardjeva on Dec 06, 2014

I think at Kodak understand that Print systems devision and Inkjet systems are most important and even these two parts have to be present one devision- Print systems including Digital printing systems....

 

By Robert Godwin on Dec 08, 2014

Yeah, this is looking like the old Kodak: silos. Good science and technology; poor sales structure = powerless sales people.
Maybe they should move to a VAR model and let more nimble and energetic sales teams find the opportunities.

 

By Les Csonge on Dec 08, 2014

Will be very interesting to see what "develops" ;-)

 

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