I don't think they failed to imagine a world without analog technology. They failed to produce a painless transition.

The had amazing technologies. I had digital cameras of samsung, Sony and Kodak and the Kodak product was the one I loved more.

Sony and Samsung were stupidly weak to sand, bad battery consumption and some other minor quirks. The Kodak camera was ugly as hell but it worked (thinking some parallel to Nokia products).

Kodak thought "our brand is what people buy so if we offer people will buy".

Fujifilm nailed it. Created a diversified products, put a hand to their patents in plastics chemicals and other things and started to sell technology. So they diversified.

Kodak released products over engineered at slow peace. They still biding in analog products, meanwhile their digital products never took off. Kodak was the mayor patent holder in its time in optical, chemical, plastic and other things. But they were a GIANT biding in sell products and never understood their clients. They never understood their technology value and never understood what the market wanted. One day they stopped to sell and Kodak went out of business.

Kodak also demoed the first professional DSLR in 1988, and released the first commercially available DSLR in 1991. In fact Kodak, with their series of Nikon based DSLRs, basically owned the professional digital photography market throughout the 90's.