apple innovation report

8/11/2019 Apple Innovation Report

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Coursework

Group Report- I nnovation at Apple

Innovator

Submitted To : Ms. Aparna Kaushik

Submitted by: Prateek Gautam

Richa Sur i

Rupali Sahni

Saumya Awasthi

Siddharth Jha

Taruna Nir ankari


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INTRODUCTION

Apple was founded by Steve Jobs, Stephen Gary Wozniak (Wozniak), and Ronald Gerald

Wayne on April 1, 1976. Working at Jobs's garage they designed a personal computer (PC) that

was sold as Apple I. The company was incorporated as Apple Computer, Inc. on January 3,

1977. Thereafter, the company grew by introducing many innovative and commercially

successful products such as Apple II (1977) and Apple III (1980). Right from its inception,

Apple had been a company committed to building great products using the latest technologies.

The strong R&D focus that Jobs and Wozniak insisted on helped Apple to differentiate itself

from its competitors.

APPLES APPROACH TO INNOVATION

At Apple, innovation is a way of life and a part of its corporate DNA.

Apple's success is attributed to its ability to develop innovative products. Over the years, the

company launched some great products in the market which became the benchmark for customer

experience. For five consecutive years (2006-2011), Apple was ranked number one on the

worlds most innovative companies list compiled by BusinessWeek. Since its inception, Apple

had focused on innovation and had ventured into those markets where it could make a significant

contribution.

APPLE ITS COMPETITORS

When it comes to smart phones, perhaps Samsung is its biggest competitor. Apple may not have

any close competitors in the tablet market, but perhaps Amazon or Microsoft qualify as potential

threats to the iPads dominance.

Google might be considered an Apple competitor on multiple fronts. Google-owned subsidiary

Motorola recently unveiled the Android-powered Moto X smartphone, which could be a possible

competitor to Apples iPhone.Google also offers the Google Drive cloud service, which could

be considered a competitor to Apples iCloud. While Apple is still rumored to be developing its

own wearable tech product, Google has already ventured into this growing market with its

Google Glass product.

Google and Apple may seem to share similar innovation patterns from afar, but under the hood,

they play totally different ball games. This way, they demonstrate their ability to build their ownidentity based on a genuinely personal innovation model.


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FORBES MOST INNOVATIVE COMPANIES LIST

Apple has been facing innovation problems since the death of Steve Jobs, the mastermind behind

the innovative culture of Apple. Apple's innovation problems were highlighted when

Forbespublished its 2013 list of the world's most innovative companies and ranked Apple at No.

79.

Apple's plummet has been dramatic. In 2011, the first yearForbesissued itsMost Innovative

Companies list,which ranks 100 firms, Apple earned the No. 5 spot. In 2012, the company

dropped 21 positions to No. 26. But the 53-place plunge in 2013 was the biggest decline yet.

Reason for the drop in Innovation Rank on the Forbes List

Forbesuses a complex algorithm to rank companies by what it calls an "innovation premium,"

which is the difference between market capitalization and a net present value of cash flows from

existing businesses. The innovation premium also takes into account anticipated growth from the

existing businesses within a company.

The innovation premium can be seen as the investor expectations built into the stock price.

Apple's ranking dropped because of what happened to the stock price in 2012. Its ranking is a

proxy of what investors think of the future of the company. Innovation Premium is a measure of

how much investor have bid up the stock price of a company above the value of its existing

business based on expectations of future innovative results

APPLES CULTURE

Applesculture is as distinct as its products are groundbreaking. Thats no accident; one leads tothe other. Its evident in every aspect of the company, every interaction with every employeefrom executive management to the salespeople in its renowned Apple stores.It all emanates from founder Steve Jobs, but the companysThink Differentmindset isnt just atag line; it captures and reinforces the companys unique cult-like culture, the way it operatesfrom top to bottom.

Concepts like conventional wisdom and status quo dont exist at Apple headquarters inCupertino. From the beginning, employees learn the Apple way: Think Different. Its not writtenanywhere and there are few processes to follow, but they learn it, just the same. And it works,

big time.
http://www.forbes.com/innovative-companies/list/http://www.forbes.com/innovative-companies/list/http://www.forbes.com/innovative-companies/list/http://www.forbes.com/innovative-companies/list/


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INNOVATION AT APPLE

Product Innovation:

Apple has built its success on its legendary Macintosh whose user interface offered a

revolutionary new way of using a computer. This product is backed up by a strategic innovation:Apple has managed a paradox: it has widened its portfolio from PC to entertainment devices, andit has kept at the same time a strong innovation focus, concentrating on a small number of

products: iMac, iPod, iPhone, and now iPad. Together, these products form a family and have

been designed within a very strong ecosystem: the range of accessories continues to grow and is

now being promoted in the Apple Stores. The most extensive ecosystem is in the software: it isthe one that embraces the iPod personal music player, the iPhone ; the iPad, and goes right

through to the iTunes music and video download service, and has helped Apple develop into a

content provider. It has been extended with the App store, a store of thousands of applications

which run on iPhone and iPad.

Apple became the leading technology company in the world by creating cutting edge products.

The company constantly innovated with its business model to respond to market needs and

challenges and to deliver quality products and services. The technology behemoth combined new

technology with simplicity to come out with cool and simple products.

Jobs said that people who buy Apple products are not "consumers." They are people with hopes,

dreams and ambitions. He builds products to help people achieve their dreams. He once said,

"some people think you've got to be crazy to buy a Mac, but in that craziness we see genius."

Process innovation:

Apple constructs complete, self-contained ecosystems around its products. The software is anintegral part of the hardware and any divorce between the software and the appearance of the

terminal could harm the brand. Apple retains control of the system and the customer is simply a

user of the product: consequently, a Windows PC is more open than a Macintosh; a fact whichhas caused some users to unlock, or jailbreak, their iPhones in order to install applicationsoutside of the Apple system. However, with the iPhone, Apple is nevertheless opening up to

developers for the first time by allowing them to create mass-market applications which Apple

then validates and publishes in the App Store where users can download them to their iPhones at

their own expense. Another characteristic of the Apple innovation process lies in the

secrecy which surrounds the design of new products. The companys executives are extremelydisciplined concerning its strategy of silence, certain rooms are protected from the eyes of

inquisitive employees by secure access mechanisms and projects are designated by code names .Apple has secured a competitive advantage for its tablet and iPhone 4 in terms of performance,

energy efficiency and production costs.
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Design Thinking:

Appleshallmark is its design. Its products have always been carefully designed and easy to use.Very early on, Steve Jobs said that computers were only slowly finding a place in the home

because they were horrible grey machines designed by engineers with no taste. With him, the

concepts of beauty and ease of us penetrated the IT world: What Apple is great at is figuring outhow to invent cool technology and making it wonderfully easy to use. Nothing is left to chance,from the shape of the products through to the cable that powers them. The designer Jonathan Ive,who once designed bathrooms, imposes his ideas on the engineers and through him, the iPod and

iMac products were to mark a turning point; they were no longer merely user friendly, theywere friendly pure and simple: beyond their functionality, they reflected aprestigious status which gave pleasure to the user, they created an emotional relationship.

Business Model:

The Apple business model is the classic model of a manufacturer marketing its own terminalsand accessories. This has recently been enriched by the online iTunes service, the applications

available in the App Store (revenue shared with the application developers) and the Apple Storedistribution network (reintegration of distributor margins), with Apple extending its control over

the industry network.

Apple created many stylish innovative products that propelled the company to the top of itsindustry. But the shift was not only a matter of product innovation. Innovation lies also in

Apples innovative business modelsnew ways to create,deliver, and capture value.For instance, the iPod and iPhone would not have had nearly as much impact if they hadn't been

matched with iTunes and the App Store respectively. Systemic innovationintegration is at theheart of Apples success. Apple works across traditional industry boundaries to create a

successful innovation-friendly ecosystem. The companies are in hardware, in software, inentertainment, and in logistics, and have mastered parts of all those industries.The App Store, for instance, the worlds largest collection of mobile applications, offershundreds of thousands ways to make iPhone even better. iTunes, innovative software with a

powerful business, shows that people would pay for music if the price is right and the interface is

simple enough.Apples innovativevalue proposition The product as an experience stimulated great ideaswhen company leaders were contemplating a new business model. For instance, Apple pioneered

into a new business space and defined a workable business model for downloading music.Another key driver of Apples financial success is growing adoption of Apple products forbusiness use. Saving time and minimizing frustration are the essence of Applesbrand promise.

This value proposition converts PC and Blackberry users to the Apple brand. Apple's innovationstrategy also involves great in-store service.

Innovative Marketing and Customer Focus:

Steve Jobs was the world's greatest corporate storyteller, turning product launches into an art

form. You can have the most innovative idea in the world, but if you can't get people excited

about it, it doesn't matter. For every idea that turns into a successful innovation, there are


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thousands of ideas that never gain traction because the people behind those ideas failed to tell a

compelling story.

All the Apple product launches are hyped about for a long period of time before the launch of the

product. The need for the product is created in the minds of the consumers before the product is

launched.

Jobs made the Apple stores the gold standard in customer service. The Apple store has become

the world's best retailer by introducing simple innovations any business can adopt to create

deeper, more emotional connections with their customers. For example, there are no cashiers in

an Apple store. There are experts, consultants, even geniuses, but no cashiers. Why? Because

Apple is not in the business of moving boxes; they are in the business of enriching lives.


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PEOPLE AT APPLE : THE INNOVATORS

Steve Jobs is the incarnation of the Applephilosophy. Beyond his design and brand philosophy,

Steve Jobs, who is nicknamed the Apple guru, gavethe impression of someone with a mission

to accomplish, teaching to lavish. He was the one who stood infront of the consumers and

presented each of the product of Apple as a thing of beauty that must be owned. Steve Jobs dared

to dream and inspired the people at apple to dream big and to fulfill their dreams with an

aggressive outlook towards the work they did.

The Apple Industrial Design Group(IDg) is theindustrial design arm ofApple

Inc. responsible for crafting the appearance of all Apple products, including the Apple Macintosh

computer line.

Apple industrial design was established in April 1977 whenSteve Jobs hiredJerryManock to design the enduringApple II case. Jobs was notoriously obsessed with design and

style, rumored to linger over appliances atMacy's for inspiration and together with Manock set

about establishing the design language that would be used by Apple for the next 10 years. Steve

Jobs' return in 1997 ushered in a new era for Apple design, and the appointment of

designerJonathan Ive,drawing on the curvy style developed over the preceding 7 years and

infusing it with vibrant color and translucent details.Several members of this group, including

Stringer, were referred to over the course of the trial for their role in designing early prototypes

of theiPhone andiPad.Many others were mentioned repeatedly in court documents thanks to the

patents they hold on Apple products. As Stringer noted, there is a fairly consistent group of about

16 Apple employees whose names consistently appear on the major Apple patents of recent

years.

Christopher Stringer, a longtime member of Apple's industrial design team, had one of the

most memorable moments of the ongoing patent trial when he revealed that mostAppleproducts

are initiallydesigned by a small group of just 15 or 16 employees sitting around a kitchen table.

Jonathan Iveis the head of the industrial design team and serves as the face of Apple's design

efforts. He has overseen the design of Apple's popular i-devices, including the iMac, iPhone and

iPad. Ive was particularly close to Apple's former CEO Steve Jobs and he is seen by many as the

one most responsible for carrying on Jobs' vision for consumer products.

Shin Nishiboriended up at the center of the patent trial early on for creating a series of Sony-

inspired designs for the iPhone back in 2006. Samsung wanted to call Nishibori to testify in the

trial, but he revealed that he had just stepped down from the design team due to health issues.

Nishibori'sLinkedIn page shows that the designer worked at Apple for a decade until he left last

month.
http://en.wikipedia.org/wiki/Industrial_designhttp://en.wikipedia.org/wiki/Industrial_designhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Steve_Jobshttp://en.wikipedia.org/wiki/Jerry_Manockhttp://en.wikipedia.org/wiki/Jerry_Manockhttp://en.wikipedia.org/wiki/Apple_IIhttp://en.wikipedia.org/wiki/Macy%27s_Westhttp://en.wikipedia.org/wiki/Jonathan_Ivehttp://www.businessinsider.com/blackboard/iphonehttp://www.businessinsider.com/blackboard/ipadhttp://www.businessinsider.com/blackboard/applehttp://www.businessinsider.com/apples-designers-literally-work-together-at-a-kitchen-table-coming-up-with-apples-next-great-product-2012-8http://www.apple.com/pr/bios/jonathan-ive.htmlhttp://www.apple.com/pr/bios/jonathan-ive.htmlhttp://allthingsd.com/20120729/key-witness-no-longer-works-at-apple-doesnt-want-to-testify-at-samsung-trial/http://allthingsd.com/20120729/key-witness-no-longer-works-at-apple-doesnt-want-to-testify-at-samsung-trial/http://www.linkedin.com/pub/shin-nishibori/1a/903/894http://www.linkedin.com/pub/shin-nishibori/1a/903/894http://allthingsd.com/20120729/key-witness-no-longer-works-at-apple-doesnt-want-to-testify-at-samsung-trial/http://www.apple.com/pr/bios/jonathan-ive.htmlhttp://www.businessinsider.com/apples-designers-literally-work-together-at-a-kitchen-table-coming-up-with-apples-next-great-product-2012-8http://www.businessinsider.com/blackboard/applehttp://www.businessinsider.com/blackboard/ipadhttp://www.businessinsider.com/blackboard/iphonehttp://en.wikipedia.org/wiki/Jonathan_Ivehttp://en.wikipedia.org/wiki/Macy%27s_Westhttp://en.wikipedia.org/wiki/Apple_IIhttp://en.wikipedia.org/wiki/Jerry_Manockhttp://en.wikipedia.org/wiki/Jerry_Manockhttp://en.wikipedia.org/wiki/Steve_Jobshttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Industrial_design


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Julian Hoenigis a relatively recent addition to the design team. He joined Apple in 2010 after

having spent most of his career working as an exterior designer for car companies, including

Lamborghini and Audi, according to a resume on hispersonal website.

Daniel Coster'sname appears alongside Steve Jobs, Jony Ive and others from this elite group ona wide range of patents, including the iPhone 4's stainless steel design, as the well as the phone's

user interface design and the wireless keyboard that is used with the iPad.

FAILURE STORY

Apples Lisa, released in 1983 at a price just under $10,000, was the first personal computer to

offer a graphical user interface in what was an inexpensive machine at the time aimed at

individual business users. But Lisa did not take off and became the largest commercial failure for

the company since the Apple III of 1980. The machines just could not compete with less

expensive IBM PCs, which were already beginning to dominate business desktop computing.

In 1985 the board voted Steve Jobs off the board of the company because he was considered an

aesthete who only wanted to make beautiful products.

During the time that Steve Jobs was not a part of Apple, the company launched a series of

products including a usb mouse, a gaming console, a portable computer.

In 1997, Steve Jobs was hired back in the company as the management felt that the company

needed a zealot who would take the company ahead of its competitors. During this period, he

was considered the aesthete who would make beautiful products that make money.

CHALLENGES

The biggest challenge Apple is facing since the death of its founder Steve Jobs is maintaining the

innovation streak that Jobs had created and carried on for years. Since rejoining Apple Jobs gave

the world the most innovative productsiPod, iPhone, iPad, iTunes.

Then the revolutionary innovation of Apple ended with Steve Jobs illness, then death, Apple

lost the key ingredient to its ascendency. In spite of the initial rumors that Jobs had left nine

earth-shaking creations that would be rolled out, nothing materializednot even the I finally
http://www.julianhoenig.com/http://www.julianhoenig.com/


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cracked it TV product that Steve announced, via his biography. If the company produces new

category busters, it is likely to be out-innovated by a smaller, more agile competitor.

BARRIERS TO INNOVATION

Apple always launches any new idea quite early and gives a date for the product launch in the fu-ture, it starts it marketing activity early. So Apple has to be efficient to make the deadline, this

hinders any further innovative changes that could have been brought to the product as its focus

shifts on to production. Moreover under delivery pressure products are made costly, rather than

cost effective. Administrative pressure also increases as the products have to meet the launch

date, so they stop thinking about things differently. Under this daily pressure to stick to time

horizons and budgets, innovation leaves to be of prime importance until the goal is met. Apple

tries to make all its products look quite similar, this stops the creativity of the design innovation.

FUTURE OF APPLEIts the race for future, and every technology giant wants to be the premier innovator. And when

it comes toApple,you can bet they are up to creating something revolutionary like the iPod,

iPhone and the Mac. Here is a look at some unbelievable technological innovations that Apple is

working on.

1. Virtual Keyboard

Apple is working on a keyboard that will actually not exist. The virtual keyboard for iMacs and

MacBooks would allow us to use almost any flat surface as a keyboard. This would be made
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possible by using a camera integrated into the iMac/MacBook.Using this keyboard, users will be

able to type while a real-time image of their exact finger placements will appear on the screen.

2. 3D iPhone

Anything related to an iPhone is always in news and if its about a 3DiPhonethen its bound to

grab eyeballs. Apple's 3D user interface for iPhone (patent) will be using proximity sensors to

constantly display the correct depth and perspective, no matter what the device's orientation is.

The patent also talks about hovering hand gestures hinting touch-free gesture controlled iPhones

in the future.
http://www.mensxp.com/technology/reviews/855-apple-macbook-2010-review.htmlhttp://www.mensxp.com/technology/reviews/855-apple-macbook-2010-review.htmlhttp://www.mensxp.com/technology/reviews/855-apple-macbook-2010-review.htmlhttp://www.mensxp.com/technology/phones/7969-coolest-iphone-accessories.htmlhttp://www.mensxp.com/technology/phones/7969-coolest-iphone-accessories.htmlhttp://www.mensxp.com/technology/phones/7969-coolest-iphone-accessories.htmlhttp://www.mensxp.com/technology/phones/7969-coolest-iphone-accessories.htmlhttp://www.mensxp.com/technology/reviews/855-apple-macbook-2010-review.html


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3. An Electromagnetic Laptop-Tablet Hybrid

There is nothing actually new about a laptop-tablet hybrid. One from every major company is

available in the market. However, as expected, Apple tweaked the existing concept of the laptop-

tablet hybrid by using an electromagnet to help snap the screen into place, along with the ability

to wirelessly transfer power from the base to the tablet.

4. The iBike

Apple scored the patent for a smart bike or as the world would like to call itthe iBike way back

in 2010. The bike will function in sync with the user's iPhone or iPod allowing users to get

feedback on their "speed, distance, time, altitude, elevation, incline, decline, heart rate, power,


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derailleur setting, cadence, wind speed, path completed, expected future path,heart rate,power,

and pace.

5. Smart Touch Bezel/Body

Apple is so ambitious that it wants to take touch beyond the screen and on the bezel. Apple is

working on a super smart, predictive bezel that ignores unintentional touch, but is capable of

accepting inputs beyond the screen. Individual patches of touch-sensitive material could also be

turned on or off.

6. Shake To Print
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If this comes true, Apple will add a whole another dimension to printing altogether. As opposed

to the traditional menu system printing, Apple is working on a system that will allow you to

merely shake your phone to send a print command. It will also enable the ability to easily print a

combination of documents, photos, and web pages, all from one menu.

7. A controllable, Transparent Display

Move aside curved screen, Apple is working on a transparent display. This Sci-fi patent details a

transparent display technology that will conceal a camera, strobe, and even the finger print

sensor beneath the transparent display. The display would turn transparent when needed, makingthe camera or fingerprint sensorvisible and accessible.


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RECOMMENDATION

Apple should look at aggressive

expansion into new, emerging markets around the

globe.

Implementation of effective products and price differentiation to attract emerging market.

Explore various retail channel to max sales and minimum risks.

Huge opportunity to build brand reputation

CONCLUSION

Innovation and opportunity are two very important factors. However, the success is more on the

executor level. Execution is vital. Jobs and Cook were able to do a great job in reaching the goals

of the company. The levelheadedness of Cook after Jobs brilliant leadership is one thing that has

sustained the success of Apple.

People want to try something new but there are times when they are unaware of what they really

want. The innovative strategy of Apple is the companys secret weapon to keep up with thecompetition and remain on top of the industry. When it comes to hottest technologies like the

smartphone, no other company can beat Apple.

Until today, the company is continuously growing and meeting the diverse demands of

customers. Innovation is the key and with Apples team of brilliant minds, it will continue to

provide the market with the best gadgets. When innovation is done properly, success will surely

follow.

Many companies invest millions of dollars on research and development. With Apples

Innovation Factory, it is sure to come up with new ideas and trends that people from around theglobe will patronize.


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REFERENCES

1. http://appleinsider.com/articles/13/02/12/cook-apples-culture-of-innovation-refuses-

to-recognize-limits2. http://www.pcpro.co.uk/blogs/2014/03/13/why-apple-cant-be-insanely-great-after-

steve-jobs/

3. http://www.innovarsity.com/coach/bp_product_design_apple.html

4. http://www.innovationexcellence.com/blog/2011/06/02/google-versus-apple/

5. http://www.itworld.com/it-managementstrategy/192487/apples-greatest-triumphs-

and-worst-failures

6. http://entrepreneurs.about.com/od/becominganentrepreneur/a/How-To-Get-Your-

Inner-Steve-Jobs-Working.htm

7. http://appleinsider.com/articles/13/02/12/cook-apples-culture-of-innovation-refuses-

to-recognize-limits

8.

http://money.cnn.com/2012/04/25/markets/thebuzz/
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