Design Thinking and Innovation at Apple

-Manas Ranjan Tripathy

MBA International Business

Apple

• During 1970’s, computers were used by Governments or Large Companies and were mostly handled by specialists

• The notion that computers can be used for individual use was unimaginable

• Apple Computer, Inc was founded in 1976 by Steve Jobs, Steve Wozniak and Robert Wayne with a goal to create computers that supported and fostered individual work

• Their aim was to reduce complexity to make potential customers fall in love with the computer

Design Thinking

• Design Thinking is a solution-oriented method used by designers to solve complex problems, and find desirable solutions for clients

Apple’s Aim

To create computers for individual use

Make computers simple to use

Make people fall in love with their products

Apple’s Approach

• Simplicity in Design and Use:Figure out the needs of people

Achieve it technically through creativity and innovation

Take care of smallest details

No compromise on functionality

“Simplicity is the ultimate sophistication”

E.g.- The simple iPod design had unreplicated success

• Beyond Fashion:Create product that can express itself on the outside as well

Tap into popular and fashionable trends

E.g.- G4 Cube

Apple Timeline

• 1976- Founded

• 1978- Apple II

• 1984- Macintosh Ad (Superbowl)

• 1985- Steve Jobs Axed from Operations Role

• 1985-1997- Varied Regimes (Dwindling Profits)

• 1997- Steve Jobs Returns

• 1998- IMac debut

Apple II

1984 Superbowl Ad

IMac

Product Development Strategy and Execution

• Early Years:Products developed from scratch and had unique hardware with proprietary OS

Apple’s market share fell after IBM entered the PC Market and Steve Jobs was axed

• During 1985-1997:Constant change in strategy due to change in regime

On account of competition from IBM-cloned devices, company was not able to decide which products to develop and produce

Debates on licensing Mac OS and entering unknown segments like the Business Market (dominated by Windows and Intel)

Some success like the PowerBook (1990)

Many failures like the Newton PDA

Approaches resembling other companies were seen

Complexity and confusion increased for Apple and its Customers (Too many products developed)

Product Development Strategy and Execution(After Jobs Return)

Excellence in Execution Immediately after return Licensing Program

was stopped, 70% of New Projects were scrapped, manufacturing was moved

abroad and a website was launched for direct sales

Quest for “Insanely Great Products” resumes

Tim Cook assigned to clean up manufacturing and distribution

Platform Strategy Create a Platform or Architecture that can

accommodate development and production of derivative products (Both

H/W and S/W) Shared or Reuse of Assemblies

High Efficiency, Lower Costs, Simplicity Benefits to Apple, its Suppliers and its

Customers

Customer Involvement Design based on Users needs and Desires

Participatory Design More User Testing creates smoother

software Cut-Paste and editable Dialog Box were

innovations which cropped up due to Customer involvement

Beautiful Products Passion and close attention to new materials and manufacturing techniques to

continuously create beautiful products After making the successful ‘pristine white

iPod’, they went on to create colorful iPods using different materials and a new

production technique

CEO as Chief Innovator• Jobs ‘Design Sense’ was Confident and Refined

• He was committed to finding “a beautiful elegant solution that worked”

• Because of him Apple focused on problem solving for individuals when the trend in 1980s was creating enterprise solutions

• Jobs had hands on involvement in decision making, from strategy toproduct and service design to packaging

• Jobs was the Front Man to dramatically introduce products to the customers in extravagant events

Bold Experimentations

• “Play it safe, that’s the most dangerous thing we can do. We have to get bolder…”

• Entered Retail business at a time when everyone was moving online

• Stores opened at prime locations with Tech Repair Guys called “geniuses” who serviced phones at the “bar”

• The concept took off as foot traffic (Apple and Non-Apple customers) were drawn to these elegant surroundings that hosted beautiful products

• Apple Stores generated highest revenue per square foot in entire retail sector

The Path Less Trodden

• Even as the rest of the world moved towards open source systems, Apple still makes softwares and chips in-house

• They keep product launches secret

• Very few apps have been developed by Apple for its App Store

• Apple has eliminated features in the name of progress

• Still Apple is able to create and sell products people want by constantly learning and adapting

The Way Ahead for Apple

• In order to sustain itself, Apple will have to continue to come out with innovative products

• It should try to expand to newer segments as it has done before

• It should continue to stick to the ideologies of Steve Jobs and create elegant solutions

What to take away from the case?• Be solution oriented and innovative

• Adapt to changes

• Take Risks