I heard a speaker recently mention Type I and Type II failures. The way they described it was, a Type I failure is an irreversible failure and a Type II failure is reversible.
One might say that Kodak is a case study in Type I failure. A recent article in Harvard Business Review summed up the story pretty well. A generation ago, a ‘Kodak moment’ was something worth cherishing. Today, it represents the need for businesses to be agile. Kodak’s decisions about their business model had irreversible consequences to the organization.
A Type II failure can involve a range