Kodak 2000 Annual Report Download - page 30

infoimaging is redefining our business. We are playing a leading
role in the use of images on the Web …in digitizing still and
motion picture film…in analyzing and extracting information fro m
digital pictures …in wireless and broadband transmission of
i m a g es …in storage and pre s e rv a t i on…and in dozens of other
technologies that will shape the industry for years to come.
The perf o rmance of Kodak’s principal business units in
2000 reflects this new focus.
K o d a k ’s Consumer Imaging business is entering the infoimaging
era with a dual mission: better pictures and better sharing.
For many consumers, better pictures begin with better
f i lm — such as the new, improved Kodak Max 400 film, which
delivers significantly better res ults for up to 25% of picture s
taken, when compared to 100 and 200 speed films. In the U.S.,
p remium film products such as Kodak Max and Advantix films
comprise more than 60% of film sales.
Consumer pictures can also be significantly improved by
the technologies Kodak has developed for digital photo pro-
cessing. In 2000, we introduced the Kodak I.Lab system, a high-
speed digital lab system for wholesale photofinishers that auto-
matically corrects the most common problems consumers have
with their pictures: poor exposure, dark shadows, graininess
and red eye. We’ve seen customer satisfaction rates jump sig-
nificantly among people who receive these digital prints.
As we move into the era of infoimaging, image capture
will become an ubiquitous, 24/7 activity. New devices like the
Kodak PalmPix camera, which turns your handheld org a n i z e r
into a digital camera, will help make more people “picture -
re a d y,” anytime, anywhere. And to further ensure no one misses
a potential picture-taking opport u n i t y, we are partnering with
Maytag Corporation to create a national network of high-tech
Kodak Max film vending machines that carry a fresh, refrigerated
supply of one-time-use cameras and film. Taking a cue from the
soft drink industry, we will be “putting the product where the
people are,” at leisure locations such as re s o rts, amusement
parks and zoos. Each machine will feature wireless Intern e t - c o n-
nectivity for processing debit and charge card sales and
monitoring inventory.
Our Digital and Applied Imaging division continues to find new
ways to make digital photography easy, seamless and more
accessible for people.
And there ’s no doubt about it, digital photography has
caught fire with consumers. Last year, Kodak’s sales of digital
cameras leaped 80% . In addition to marketing our own branded
p roducts, Kodak is a major supplier of CCD and CMOS sens-
ing devices — the heart of a digital camera — to other manufac-
t u rers. In fact, 25% of all the high-resolution CCDs in use today
a re from Kodak.
Last year, we introduced the Kodak DC4800 digital camera
to rave reviews. The camera combines supercrisp 3.1 megapixel
resolution with ease of use and full creative control for the
serious photographer.
Our inkjet paper and media business saw a 31% incre a s e
in revenues in 2000, with quality products such as the new
Kodak Ultima Picture Papers for prints that retain their original
brilliance for 20–30 years. Kodak was once again cited by a
recent Lyra Research study as the inkjet photo paper brand
consumers most widely pre f e r.
In our Health Imaging business, 45 new products were launched
in 2000, providing solutions in every link of the medical imaging
and information chain.
A p p roximately 50% of this division’s sales now come from
digital products, such as Kodak’s computed radiography and
digital radiography systems. In 2000, a milestone was achieved
with the sale of our 10,000th Kodak DryView Laser Imager,
with a nearly 70% increase in placements for the year. Looking
ahead, we just signed an agreement with Novation, the nation’s
l a rgest healthcare purchasing organization, to provide an esti-
mated $1.4 billion in laser imagers and medical film pro d u c t s
over the next five years.
In another exciting development, our Health Imaging divi-
sion is partnering with Intel and Cedars-Sinai Medical Center to
pilot an Application Service Provider model for the medical
imaging business. Cedars-Sinai will transmit images — c a p t u re d
and managed via Kodak digital systems — to an Intel Online
S e rvices data center. The images will be available to physicians
via the Internet and billed on a fee-per-use basis.
For our Kodak Professional division, the past two years have
been marked by numerous business challenges and accelerating
technology transition.
H o w e v e r, with a newly organized unit pursuing new gro w t h
a re as — and last year’s successful re s t ructuring of the Kodak
P o l y c h rome Graphics joint venture— we believe the business
will regain momentum as the economy picks up.
Kodak Professional introduced several bre a k t h rough pro d-
ucts in 2000. The NexPress 2100 digital color printer, developed
in a joint venture with Heidelberg, can s erve as an extension of
a company’s web site or customer call center, creating individu-
ally customized marketing materials. Names, pictures, text and
other variables can be changed “on the fly” as customer