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The following presentation is based on a case on Apple Inc about how Apple goes about implementing innovation and design thinking at their firm, and how there's a shift with the arrival of Tim Cook. The case was a part of our course called BusinessInnovation in New Environment (BINE)
And Innovation At
G R O U P 6
Some Facts about Apple……..
By 2012, Apple revolutionized the computer, music, mobile and retail industries
through it’s sleek products, innovative stores and new business models.
On March 15, 2012- Apple’s share prices reached US$600 for the first time in
it’s history even when the world economies were struggling to recover from the
worst recession since the Great Depression.
With market capitalization of about US$550 billion and annual sales exceeding
US$100 billion, Apple was worth nearly three times the industrial giant General
Electric, exceeded value of Sony Corporation by a factor of 25 and became the
most valuable publicly traded company in the world.
When Steve Jobs returned to Apple, it’s share price had hovered around $5
with an uncertain future.
Catalysts of Apple’s Success…………..
1. The new device was same as the old one; different, but same.
2. Apple’s Radical Innovations also came with a high level of consistency.
3. Apple did not solely rely upon clever strategic moves or innate sense of
market timing, but lay deep commitment to understanding people i.e. their
4. Apple kept it’s eyes on the core computer business.
5. Even through difficult times, the core commitment to product design and
development stayed alive.
Attitude adopted by Apple…..
Simplicity in Design and Use : People’s
perspective and needs followed by product designing
The minutest of details do not matter as much their
aggregation does. But at the same time those trivial
details can’t be overlooked eg: Packaging.
Discover what we can live without and what can be
developed elsewhere. Eg: Elimination of slots for
Adapting to its own technology and building upon it
(Incremental Innovation) Eg: iPod Mini – first ever to
come in colors.
Not just Fashion. Their designing went from inside
to the outside.
Problems were taken as moving targets.
It followed principle of “Simple is sophisticated“
Smallest details were looked after
Iterative customer involvement
A systematic approach...
Highly systematic and calculated approach, particularly in the products
Design team at apple plays a crucial role coming up with innovative ideas to
the way products are designed.
Very specific needs of the customers are targeted through the strategic
Strong emphasis on innovation in production and customer care and quick
response to customers’ feelings about the products.
Can it be imitated ?
Although numerous firms have been trying to imitate Apple’s innovative
approaches, it has proved a headache to them.
Dynamic and flexible innovative approaches are utilized keeping in mind
minute level details regarding customer specification and needs.
Imitation of the company innovative strategies is also curtailed because it
operates on strong patents.
Furthermore, the company innovation is multifaceted, and does not incline on
just a single area of manufacturing.
Seems like NO !!!
All these features make it extremely hard for imitators to mimic Apple’s
approaches to innovation.
Even if they do, the company discovers yet another innovation strategy
immediately, thanks to the technical and design team at apple.
•Empathy for customers/users
•Positive Social Contribution
Values that Apple management integrates
•Research driven strategy
• Change in selection and implementation of new projects.
• Better innovation capabilities.
• Focusing on minutest of details.
• Increased focus on quality.
• Better market evaluation before product development.
Changes in the business approach due to
integration of Apple’s management:
Factors which it affects
• Intended Market
•Sales and Distribution Activity
•Improved Customer Relations
• Increased Technology competency
• Better IP protection
• Manufacturing and service delivery system
How Apple’s Management affects Risk Reward
Framework for Assessing and Selecting
• Value Culture of Apple
• Cost Culture of Apple
• Resistance by the employees
• Aversion to acquisitions and mergers
• Unconventional and bold risk taking
• Simplification and elimination method of
A bit about Tim Cook
Joined Apple as SVP of Worldwide Operations in March 1998
Served as EVP of Worldwide Sales and Operations
Was COO until he was named as CEO of Apple Inc. on 24th August, 2011
Also serves on the Board of directors of Nike Inc. and the National Football
What Cook brought to the table
He let go of the people with disagreeable personalities, whom even Jobs
tolerated earlier as he focused on building harmonious culture, against the
common notion that "Apple's ability to innovate came from tension and
He believed in having the company’s views to be sustainability and climate
Although the openness to outer world increased a little bit under Cook, the
tradition of maintaining the secrecy still continued.
He helped strengthening the supply chain of the company
He personally catered to the issues brimming at the time
Further he made the Apple’s presence felt in the Capitol Hill as well as the
Wall Street, both of which were earlier kept at bay under Jobs
Under his reign, Apple Inc. has launched several new products like iCloud
Apple EarPods, OSX and the recent ones, the iPhone 6S and 6S Plus and the
iPad Pro, that stand way ahead of its competitors.
Launch of iPad Mini and iPhone 5C
With the increasing demand for smaller tablets Apple Inc launched its iPad
Mini series to compete for this growing segment, following in steps of
Samsung Galaxy Tab.
Medium Range Budget phones market capture. Apple launched its first low
price phone series iPhone 5c targeting the booming medium and low budget
Google Play effect
Based on App Annie data, Google Play has over 1.4 million available apps,
compared to just over 1.2 million for Apple’s App Store. It exceeded Apple’s
digital store in download volume.
Google play can install apps directly from the web.
Developer Friendly: Can change their metadata at anytime. Also update more
freely and quickly.
XIAOMI, HUAWEI : New challengers..
Apple CEO Tim Cook has said time and again that China is an extremely
important market for his company.
However, China is a special situation because Apple is competing against
strong domestic mobile device manufacturers. Chinese consumers are
particularly enthralled with one of Apple's top competitors in that space:
Xiaomi's mobile device market share was soaring and its unit shipments
skyrocketing. If Apple wants to compete more effectively in China, it'll need
to handle the Xiaomi issue and start to steal market share.
The recent showstoppers
Capacity- 16, 64 and 128 GB
4.7” (6S) and 5.5” (6S Plus)
A9 chip with 64 bit
architecture and embedded
M9 motion coprocessor
12 MP iSight Camera
Video recording for 4k videos
iPhone 6S and 6S Plus (Major features)
5 MP FaceTime HD Camera
FaceTime video and audio
Smart Connector for connecting
12.9” Retina Display
A9X chip with 64 bit architecture
and M9 motion coprocessor
8 MP iSight Camera
1080p HD video recording
1.2 MP FaceTime Camera