session 2 apple

8/2/2019 Session 2 Apple

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Apple innovation; a case study

Ahmad Al-Rubaie


2/13

Agenda

Apple as a leading innovator

Apple financial performance

Apple history & innovation background

Apples innovation strategy

Apples innovation takeaways

Steve Jobs innovation secrets


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One cannot talk about innovation withoutmentioning Apple Inc.

Source: Innovation 2010, BCG

To gauge opinions, we asked respondents to name the company they consider mostlikely to topple Apple within the next five years. The two names mentioned most often,perhaps not surprisingly, were Google and Microsoft. But it is worth noting that the thirdmost frequent response was "no one" suggesting that many believe Apple will not fadeanytime soon.

For the fourth straight year, respondent ranked Apple and Google the two mostinnovative companies, with Apple once again the hands-down winner. Apple has heldthe op spot in our survey since 2005.

Apple Inc


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Since the year 2000 Apple has shownstrong results

In 2000

Apple revenues were about$8 billion.

Apple posted net profit closeto $800 million

Increase revenue more than 450% in 8 yearsIncrease net profit more than 1700% in 10 years

Were armed with the strongest product line in our history, the

most talented employees and the best customers in our industry. And$25 billion of cash safely in the bank with zero debt, Steve Jobs,CEO ofApple, October, 2008 Earnings

In 2008

Apple revenues were about$37.5 billion

Apple posted profit of over$6 billion


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The trend continues

In 2010

Apple revenues were over $65 billion

Apple posted profit of over $14 billion

Increase in revenues more than 800% in 10 years

Increase in revenues more than 170% in 2 years

Increase net profit more than 1700% in 10 years

Increase in net profit more than 230 % in 2 years


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It has not always been great successes

1984

1998

1976

2001


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Apples culture is embedded in its roots


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The apple product line evolution tells astory


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Apple leverages a combination of Top-

Down and Bottom-Up innovationstrategy to create new innovations

Management & organisation driven,

highly structured and process oriented. Customer driven, spontaneous and

with deep understanding of customer

need


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Apple Innovation Takeaways

Build Products that are cool, intuitive, simple to use and provide themost amazing experience

Take calculated risks and boldly enter new markets. E.g. iPod, iPhoneChange the playing field by creating new business models. E.g. iTunesCapture the changing landscape and ecosystem of the markets andbuyers

Grow the market share with buyers as they grow and their needs grow

kids, teenagers, young adults, adults, parents....

Provide multiple products / touch points to buyers so they can buy andsubscribe to more products all glued through iTunes

Creativity begins with asking questions

Innovation happens when you find answers No questions, no answer

More questions, better answer

Source: Apple innovation Strategywww.InnovationMain.com


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Apples innovation culture is closelycoupled with that of its leadership

Do what you love

Put a dent in the universe

Kick-start your brain Sell dreams, not products.

Say no to 1,000 things.

Create insanely different experiences.

Master the message


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A leadership that understands innovation

Were gambling on our vision, and wed rather do thatthan make me-too products.

Creativity is just connecting things.

Innovation comes from saying no to 1,000 things tomake sure we dont get on the wrong track or try to do toomuch.

Part of what made the Macintosh great was that thepeople working on it were musicians, and poets, andartists, and zoologists, and historians who also happenedto be the best computer scientists in the world.

A lot of companies have chosen to downsize, and maybethat was the right thing for them. We chose a differentpath. Our belief was that if we kept putting great productsin front of customers, they would continue to open theirwallets.

Steve Jobs


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A leadership that understands innovation

We are absolutelyconsumed by trying to

develop a solution that isvery simple, because asphysical beings weunderstand clarity.

Jonathan Ive

session 2 apple

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