SAP : IMAX Digitizes to Bring the Best Movies to a Theater Near You, Wherever You Are

Who doesn't remember the blue-hued, genetically engineered humanoid species fighting for survival in Avatar, James Cameron's smash SiFi movie hit back in 2009? The movie, which still holds the record for the highest box-office grossing film ever, was the financial turning point for IMAX, the most widely used system for special-venue film presentations.

The IMAX version of the movie was a global phenomenon generating $250 million globally, ensuring the Canadian company's future after decades of struggling for survival in a world dominted by Hollywood and its traditional way of doing things. Until then, most IMAX movies were nature documentaries shown in science museums, according to IMAX CEO Richard Gelfond, who traces the company's transformation into a Hollywood powerhouse in a 2013 Havard Business Review article.

As Gelfond described it, figuring out how to move into mainstream markets was the company's most challenging task.

Things changed dramatically in 2001 when an IMAX computer scientist figured out how to convert existing movies into the IMAX format. Instead of persuading studios and directors to film with unwieldy, expensive IMAX cameras, now any movie could have an IMAX version, completely changing the company's business model.

Transforming to Meet Market Needs

'We've been leading the way in immersive theatre experiences since 1968, but we still have a small startup feel. Innovation is at the very core of the IMAX company culture,' says Shawn Rivers, senior director of Business Applications, who joined the company in 2011.

Dedication to technology served the company well as the movie industry began to face up to the advent of streaming service options like Netflix which allow consumers to watch movies from the comfort of their living rooms instead of paying to see first-run movies in theaters.

The desire to create a more differentiated experience with bigger screens and better sound systems helped position IMAX as an innovator, and leading filmmakers, studios, and exhibitors turned to the format to deliver experiences that audiences could not find anywhere else.

But fast growth in new global markets such as China and Latin America put a strain on the company's IT infrastructure. As IMAX grew, so did the number of shadow, or unofficial, IT systems implemented by local teams. 'As a global team, we began to understand the value of one IT and realized we have greater buying power together,' explains Rivers who was sent to China to drive the company's strategy of gaining trust and building brand reputation locally. 'We had to improve processes to maintain quality and at the same time foster an entrepreneurial spirit.'

Finding the Right Technology

IMAX selected SAP to replace its legacy systems and move toward 'one single source of truth' that integrates financials, logistics, manufacturing and supply chain.

'IMAX is a high tech company, but ops was still using sticky notes and excels,' Rivers recalls. 'We are seeing the benefits of a single source of truth enabled by SAP. Technology provides the tools for us to work smarter, not harder.'

Like all companies in the digital age, IMAX is automating to counter cost and efficiency pressures. Rivers believes digitization will help bring IMAX to the next level, but there's a lot of work to be done.

'We need to understand the needs of our business partners, we need an integrated plan, and we need to house and data mine all contracts for theaters and studios. Data management is crucial to maintain a seamless data flow,' he explains.

At IMAX, custom development is managed internally , especially when it comes to master data. With 1,700 theaters in 75 countries, the company manages vast amounts of data. Digitizing content delivery has been a key priority. The team used to send movie titles to all theaters on a thumb drive. Last year it decided to send content directly to projectors, but not all theaters around the globe have the right infrastructure.

Never-Ending Story

'We're rolling this out in phases,' says Rivers. 'It will take time, but it saves costs in the long run; we'll have more flexibility to quickly replace movies that aren't doing well or pivot when we need too.'

More than 450 million people have been entertained in IMAX theatres since Tiger Child, the first IMAX movie ever was made. Whether you're watching a feeding frenzy of sharks in a documentary or an animated sci-fi feature, the thrill of a 3D immersive experience is as strong as ever, and it doesn't happen without IMAX.

Is IMAX done innovating? No way.

The company is determined to continue pushing movie technology forward with new concepts like IMAX Virtual Reality (VR) to meet the needs of filmmakers, exhibitors and fans. That's the real push behind their digital journey.

And yes, IMAX has even figured out how to bring the ultimate experience into your own home with IMAX Private Theater, if you have the space and can afford the luxury!

Follow me on Twitter @magyarj.

This story previously appeared on SAP BrandVoice on Forbes.