Do you still take your Polaroid camera out on weekends? If so, you had better buy your film cartridges this year because you won't be able to next year. Polaroid just announced they are getting out of film and entirely into digital photography and printing. Too little too late when compared to Kodak which has the transition now firmly in its past.

Kodak has been the world's undisputed king of photography for over a century. It got out of much of its traditional film and papers business in virtually a flash, ahead of Polaroid which is teetering on the brink of oblivion.

So how did this 125 year old lumbering Fortune 500 giant successfully make such a dramatic transition into its current digital reality where it now commands a leading position in graphic communication? Kodak didn't do it by clinging to old product lines and antiquated marketing approaches.

We interviewed Jeff Hayzlett, Kodak's Chief Business Development Officer and Vice President along with David Lanzillo, Director of Corporate Communication and the company's Vice president of Communications and Public Affairs. When asked where Kodak turns to seek its new direction, Hayzlett said "We look up to ourselves. We got back to who we used to be. Company founder George Eastman remains a constant source of inspiration."

Hayzlett told the story of Eastman's close friend, early investor and business partner Henry Strong who was a leading manufacturer of horse buggy-whips. Strong was also a fan of the incoming automobile and successfully managed the transition of his buggy-whip business profitably through its decline. Strong's move into photography with Eastman ensured his own fortune. Kodak still makes tidy profits from its traditional films and papers business. This now represents only about a third of its revenue versus 70% just a few years ago. "The film business is fine, with good margins."

Kodak now has 19 products, each being number 1, 2 or 3 in their respective markets. Half of these products did not exist 10 years ago. Kodak has made dramatic shifts within its workforce. At its peak in 1988, Kodak had 150,000 people compared to 27,000 today. 60% of the current workforce consists of people who are new to the company within the past four years.

When asked what Kodak's current top three priorities are, Lanzillo answered "Number 1 is growth, number 2 is growth and number 3 is growth."

As part of its growth strategy, Hayzlett said "we have taken our graphics communications group from a being a passive business to $3.6 billion in four years." Acquisition was a big part of that strategy with Kodak having invested $1 billion for CREO, a global leader in the area based in Western Canada and similar investments in other companies. At the same time Kodak was making its acquisitions, it earned $2.5 billion from the sale of its health business.

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