Apple is a company for whom innovation has always been at the heart of its strategy and for whom the most successful periods in the company’s history have always coincided with times of sustained creativity and delivery of new technologies that have changed the world. Innovation and new product development have always been critical to the operations of the Cupertino, California- headquartered firm that has managed to stay as perhaps the most valuable company in the world thanks to its ability to churn out leading devices across the multiple product categories where it has a presence (Mitchell, 2014).
Business Model and Strategy
When Steve Jobs came back to management, he set up a culture of innovation that permeated the fabric of the firm from top to bottom. At Apple, innovativeness is not just to do with products but also extends to the company’s business models. It has come up with new and creative ways to harness synergies for creating, capturing, as well as delivering value to its stakeholders. Working within the boundaries of the traditional industry boundaries, Apple has found ways to create an ecosystem that not only encourages but also supports the process of innovating (Adams, 2015). As a matter of fact, the company has a policy of having its innovation two years ahead of time. In that regard, therefore, it stays two years ahead of the competition and thus always has a strategic advantage over its rivals (Bajarin, 2012). According to the author, at the time, that Apple released its first iPad, Microsoft said that it was two years away from coming up with such a product. That clearly illustrates the strategic thinking at the company that has enabled it to stay ahead of the competition and leaves everyone else struggling to catch up with the enterprise.
Delegate your assignment to our experts and they will do the rest.
The success of the innovative ventures that Apple has undertaken boils down to a strategy and philosophy that serves as an enabler for the company’s innovation. Apple is one organization that entrenches creativity as part of its everyday operations, and that has enabled it to become a behemoth of innovation. Apple employs a model where it takes a wholesome approach to coming up with new products. It includes hardware, software, logistics, and entertainment, what one may call systematic value integration. When Apple came up with the iPod, it also came up with iTunes. Many say that the unprecedented success of the iPod is all down to the digital music store that enabled users to access all their favorite music with a lot of conveniences (Bajarin, 2012). In the case of the iPhone, the firm came up with the App Store where the users could access thousands of applications and even more content for their devices. Looking at the iPod and the iPhone, one thinks they might not have had much of an impact without the iTunes and the App Store (Adams, 2015).
Major Inventions
While Apple has yet to pioneer a product that is an industry first in the last couple of years, it has built a reputation of coming up with products that completely changed the game. First, the company came up with the iMac, an all- in- one computer that came optimized for browsing the internet (Mitchell, 2014). The iMac changed how people accessed the internet by having only two steps required to set up a connection, unlike the Windows system that was complex when setting up and therefore made browsing such a painful experience (Mitchell, 2014). It revolutionized the personal computer industry and marked out Apple as a serious contender in the market.
According to(Mitchell, 2014), the rolling out of the iMac came less than an a year after the return of co- founder Jobs at the company’s helm and he would go on to lead it on a journey of unparalleled innovation. On 23rd October 2001, Apple introduced the world to the iPad. The world’s first portable music player changed the game completely and made the devices that existed such as Sony’s Walkman irrelevant (Mitchell, 2014). One may say that Apple did not invent stuff; they just changed how people did what they used to do. Before 2007, the world had already started to experience the possibility of smartphones, but Apple took it to another level with the iPhone that among other things did not require a stylus and supported multitasking (Adams, 2015). As such, the iPhone effectively became the world’s first full touchscreen phone.
One of the philosophies that Apple employs in its operations is that it only makes products if it can do it better than what everyone else does. As such, Apple has not invented product categories, but it has only improved on what was existing (Bajarin, 2012). The Mac was not the first computer with a graphical user interphase, but it came in and recreated what was available then, and went ahead to make it better. In what has become an established trend, most of Apple’s products do not come as entirely novel concepts but as improvements of what is in the market or even on its products. What has set Apple apart is the company’s timing as well as its unparalleled ability to see market insights that other people fail to see (Mitchell, 2014).
The story of the iPod is perhaps the most remarkable narrative of any company. Its traces its origin to the digital policy that Apple adopted under Jobs’ leadership. Back then, Jobs observed that the world was rapidly transitioning to being digital (Bajarin, 2012). The computer was the central device, what Jobs described as the digital hub and people would plug in all manner of devices such as MP3 players, camcorders, and digital cameras. In doing so, users had the opportunity to edit the pictures they took or even manage large digital music collections (Mitchell, 2014). Jobs then discovered that the Mp3 players at the time were horrible and did not offer great value for the customers. He instructed his team to come up with a better version of the product and that culminated in Apple launching the iPod. The initial reception was not as positive, and customers had particular reservations about its price. However, Apple listened to their views and made improvements to the product that would go on to achieve massive success (Bajarin, 2012). Apple did not discover the Mp3 player. However, it is the company that reinvented it and made it a better product (Mitchell, 2014).
The iPhone has an almost similar remarkable story. On 9th January 2007, Steve Jobs went up the stage to give perhaps his most incredible speech in which he presented the world with the first ever iPhone (Elmer- DeWitt, 2015). For many, the iPhone is perhaps the one disruptive innovation from the company in spite of it being an improvement on what was already existent. Also, critics point out that the firm has lost its innovative nous ever since it launched the iPhone. At the launch, Jobs presented the iPhone as three things in one. First, it was a wide- screen iPod that packed additional feature of touch controls (Adams, 2015). As such, it bore all the characteristics of the iPod including access to iTunes. Secondly, it was a mobile phone that would revolutionize the industry and change people’s perception of the phone. The third aspect of the iPhone was that it came as an internet device. Accessing the internet was something that mattered a lot to Jobs, and he wanted to change how people browsed online content. In its bid to stand out, Apple put a real web browser on the iPod, choosing not to go with the WAP browser, then popular on phones with internet capabilities. Again, Apple did not invent the smartphone but only made it better.
Environmental Factors That Influence Apple’s Innovation
Like any other company, Apple has had influences that shape its journey to innovation. They serve as the motivation that drives the entity to do what it does and keep it going all the time. The blue ocean strategy proposed by Rene Mauborgne and W. Chan Kim perhaps offers the best way to evaluate the innovation at Apple. The company has created for itself blue oceans; havens of uncontested markets that have effectively nullified the threat of rival firms. At the heart of this scenario is the amount of work that the company has put it in, combining both hardware and software. As such, one may say that the need for the company to create for itself a market where it can lock in customers to its ecosystem is a prime driver of its journey towards innovation. The company’s management at each point saw an opening in the market which they used to their advantage and helped them gain mileage in the industry.
Unlike many of its competitors, Apple chose to focus not on the competition and what they do but instead trained its attention on customers and on making products that excite them and capture their imagination (Mitchell, 2014). The creation of iTunes was a moment of genius that helped turn things around for Apple. It made it possible for customers to access unique content such as music and TV. Most importantly, it helped sell the iPod as it gave customers a reason to buy the product (Mitchell, 2014).
The innovation at Apple does not just stop at the products, but also extends to their sale and marketing. The company also reinvented customer service and the in- store experience that the customers receive when visiting a physical outlet (Bajarin, 2012). Apple understood that it was not enough to just have a great product; the amount of things that people want to do with the device may result in some possible complexities. As such, the people purchasing the products may need someone to walk them through the product and provide them with the guidance that they need to make maximum use of the gadget. In 2002, Apple opened its first retail store in the Japanese capital Tokyo, and it was a decision that most of the industry could not comprehend (Bajarin, 2012). Part of the decision to open up Apple shops was to give the products an Apple touch, something that Jobs felt lacked when the distribution of the company’s products was through major retail stores such as Walmart and Costco. The staff at the stores are well- trained, and they know the products inside out and are therefore qualified to explain all about the devices that Apple sells (Bajarin, 2012).
Relationship between Innovation and Corporate Strategy
In 2015, Boston Consulting Group (BCG) named Apple as the most innovative company in the world. In achieving this feat, Apple continued its stranglehold on the position that it had occupied since the ranking’s inauguration in the year 2005 (Adams, 2015). That is the clearest indication that peers, as well as other people in the industry, have a deep regard for Apple’s processes and products. The success of the company in building a culture of innovation owes a lot to the deliberate moves by management to entrench a tradition of discovery into the fabric of the firm and provide strategic direction for the same. The management has to take a lead on the company’s innovation and elevate it to be part of its operational and tactical strategy. In doing so, the result is that it becomes a tradition, an integral component of the organizational culture and norms, and thus everyone will strive to contribute to the innovation process (Elmer- DeWitt, 2015). Apple has successfully cultivated a culture of innovation at its organization over the years. In doing so, the management has not only mainstreamed the processes of coming up with innovative solutions an important cog for the company’s success but also made it an integral part of the firm’s operations and the path to success (Adams, 2015).
One of the most impressive things about Apple’s leadership is that when signing off on a new product, they have to love it themselves, and that means they become the biggest critics. The practice goes back to Jobs who would put himself in the customer’s shoes and critique a product as though it was made for him. This kind of thinking has made it possible for Apple to transform its innovation from being driven by processes to an undertaking driven by the organizational culture in the entity (Elmer- DeWitt, 2015). The company cares about the experience that their customers derive from using their products. As such, the management is always keen to see that the gadgets that the entity makes meet the expectations of the customers and even exceeding them (Adams, 2015). The reasoning that the management employs is simple and has a foundation on exciting the customer as a critical pillar to the company’s success.
The Role of Management
The management of Apple has played a significant role in the company’s innovation endeavors. They have identified the goals that they want the organization to meet and have communicated them to the creative people for them to execute. Keeping things simple is something that the people at Apple insist on and believe is critical towards maintaining and promoting the culture of innovation at the organization. They prefer not to complicate their products and thereby make them easy for customers to use. In doing so, it makes it easier for customers to make their decision. For example, Bajarin, (2012) points out to the fact that Apple has only one brand of the iPhone. The advantage of such a move is that it makes it less complicated for users. Even though there are variants that the company unveils each time, the core of the product remains unchanged and therefore makes it easy for customers to deal with the product (Bajarin, 2012). Not only does that aspect benefit customers but it also benefits the staff too. Having a single product each time means that staff members can easily master all there is to it and; therefore, better- positioned to explain to the customers about it than if they would have to know about multiple products. The management earns credit in this regard because it is responsible for the decision and therefore has ensured the continued success of the company (Bajarin, 2012).
Looking at most of the innovative outcomes at Apple, one notices a pattern where they all started with a few people and there was no formal structure or hierarchy involved (Elmer- DeWitt, 2015). The fact that there is a very little corporate oversight on the innovative undertakings is the most significant move from the management that goes towards facilitating the company’s creative ventures. That ensures that the people involved in the creative processes go about their business unhindered and with the creative license to put all their ideas into whatever they do without fear of someone not being appreciative of their work or always looking at it disapprovingly (Bajarin, 2012). Further, the company avails its resources at the disposal of its people and therefore goes a long way in promoting the innovation. It is important that those driving the company’s innovation get all the support that they can get regarding financial as well as other types of resources such as facilities so that they can fulfill their mandate in the best way possible. Part of the reason why Apple has remained so successful is by combining its people skills with matching levels of resources to achieve the best outcomes.
The Consequences of Innovation
If there is one company that has benefited from being innovative, then it has got to be Apple. Not only does innovativeness affect the performance of a particular organization, but it also increases its ability to compete (Mitchell, 2014). In a market that is so volatile and is subject to wild swings in the way that entities in the industry perform, it is of much importance that any given company sets itself apart by having a blueprint that guides how it innovates. In the case of Apple, coming up with revolutionary products helped it transform from a struggling and loss- making entity to the most coveted organization in the world. Its success has come as a result of building products that never fail to excite the market and always make the customers remain loyal to the company and its brand (Mitchell, 2014).
The Role of Industry
While the mobile phone and technology market remains the preserve of the big brands, smaller brands and startups are entering the market. They may not pose an immediate threat and may not prove disruptive, but they nonetheless have been causing changes in the market especially in the lower ends (Bajarin, 2016). In another angle, the smaller companies may have the innovative technologies but then lack the resources and capabilities to actualize them. As such, the bigger brands may acquire them and take advantage of their technology for their growth. Apple has always demonstrated this through the acquisition of startups and other smaller firms that it thinks have something exciting that may complement their business (Elmer- DeWitt, 2015). In 2005, the company bought Fingerworks. The purchase would prove an inspired one as it was what made Apple develop its simplified operating system as well as the multitouch technology. That is just one of the several examples in which Apple has made purchases of other companies and leveraged their capabilities for its growth (Bajarin, 2012).
The Role of Investors
The technology sector is highly capital- intensive and coming up with a new product or innovation requires substantial resources. A number of investors who have got the capital exist and they always look out for the most exciting ideas or startups to fund (Bajarin, 2012). Venture capitalists and angels have always played a critical role in the innovation process by channeling the funds towards the innovators and helping them actualize their creative concepts. While one may have the most groundbreaking idea or thought, it may not matter much if they do not have the necessary resources that would help transform it from a mere thought to something solid and tangible. In the case of Apple, though, the firm is quite different because it has mostly depended on its internal funds and capabilities to cater for its innovative ventures. As such, the management always strives to avail the necessary resources towards the innovative ventures and thereby to create an internal model for success (Bajarin, 2012).
The Role of Additional Sources of Innovation
When a certain entity produces a new product or an exciting innovation especially in technology, in most of the cases it is usually a combination of the company’s efforts as well as other factors within the environment. Competition is a critical consideration for many techies. Not only does it keep each company on toes but many companies also look to copy or replicate the ideas of their rivals (Bajarin, 2012). Sometimes that may result in disputes and ugly wars such as the long drawn- out legal battle pitting Apple and chief rival Samsung over patent infringement. Technology firms always look to universities and colleges for talent to drive their innovations. As such, Silicon Valley in California in the United States attracts many technology companies because the region not only contains a cluster of related companies but also because it is close to a host of top universities that churn some of the best talents for the entities (Bajarin, 2012).
Conclusion
Apple is one of the most innovative firms in the world and has experienced a lot of success as a result of coming up with new and innovative products. There are several factors that make a company turn to innovation. First, it is a tool that helps entities against competition and helps them remain relevant in the market. The management of any organization plays a very critical role in shaping the innovative strategies that the company adopts. Finally, innovative companies have a lot to gain as a result of coming up with exciting solutions.
References
Adams, S. (2015). Is Apple The World's Most Innovative Company?. Forbes Magazine. Retrieved from http://www.forbes.com/sites/susanadams/2015/12/08/is-apple-the-worlds-most-innovative-company/#2200f0b17557
Bajarin, T. (2012). 6 Reasons Apple Is So Successful. Time Magazine. Retrieved from http://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/
Elmer- DeWitt, P. (2015). Why Apple, Tesla, and Uber Are Not 'Disruptive'. Fortune Magazine. Retrieved from http://fortune.com/2015/12/17/apple-tesla-uber-not-disruptive/
Mitchell, W. (2014). Why Apple’s product magic continues to amaze – skills of the world’s #1 value chain integrator. Strategy & Leadership, 42(6), 17-28. http://dx.doi.org/10.1108/sl-10-2014-0074
