There is much redundancy in image data such as TV signals and many techniques to redice it have been studied. In this paper, Hadamard transform is studied through computer simulation and experimental model. Each element of hadamard matrix is either +1 or -1, and the row vectors are orthogonal to another. Its hardware implementation is the simplest of the usual orthogonal transforms because addition and sulbraction are necessary to calculate transformed signals, while not only addition but multiplication are necessary in digital Fourier transform, etc. Linclon data (64$ imes$64) are simulated using 8th-order and 16th-order Hadamard transform, and 8th-order is implemented to hardware. Theoretical calculation and experimental result of 8th-order show that 2.0 bits/sample are required for good quality.