Practices and Interpretations of Technology Policy in Apple Inc - Case Study Example

The Apple Case Table of Contents Introduction 3 Practices and Interpretations of Technology Policy and Management of Technological Innovation 4 2. Inter-relationship between External Environment on Innovation 7 3. Contemporary Issues and Debates in International Technology Management 8 4. Critical Thinking and Analysis 10 Conclusion 12 References 13 Introduction Apple Inc. is regarded as an American based multinational business corporation that was established in the year 1976 by Steve Jobs, Ronald Gerald Wayne and Stephen Gary Wozniak (Linzmayer, 2004). The official headquarter of the company is located in California, United States. The company basically designs, sells as well as manufactures different sort of products that include personal computers, consumer electronics along with computer software. The company possess significant number of retail stores on a global basis in order to attract the customers to buy its broad assortment of products or services at large. In relation to manage global innovation, it has been apparently observed that the company has utilised latest technological advancements and effectual business strategies with the intention of offering better services as well as products to its valuable customers. Moreover, the company invests a significant portion particularly in its research and development (R&D) segment in order to manage global innovation within the electronics industry. Furthermore, the company employ improved marketing as well as promotional techniques for providing advanced technological and feature enriched products or services to its broad base of customers. Thus, it can be stated that the company focuses upon the important aspects that include introduction and development of advanced technologies and enhanced execution of marketing techniques among others for the purpose of managing global innovation within its organisation and the similar industry (Apple Inc., 2012). This discussion will emphasize upon determining the practices, models and theoretical perspectives of technology policy and the management of technological innovation relating to Apple. Various aspects such as the interrelationship between the external environment on innovation and issues in international technological management associated with Apple will also be portrayed in the discussion. 1. Practices and Interpretations of Technology Policy and Management of Technological Innovation With regard to the practice and theoretical perspective of technology policy and the management of technological innovation, it has been viewed that Apple has utilised the strategy of continuous developing its R&D segment as well as employing advanced technologies in order to improve its competitiveness in the global market. In this similar context, the company adopted the motto of “Think Different” for providing innovative as well as unique products to its customers as a form of managing global innovation. It can be broadly affirmed that technology is regarded as one of the imperative factors for innovation and in this context, Apple had utilised latest technological advancements while producing its different products to customers. Moreover, the company has adopted the framework of determining technological policy as well as commercial knowledge for devising effective strategies relating to operational and innovation processes (Phaal & et.al., 2001). A model regarding the practice of technology policy and management of technological innovation has been depicted hereunder. Technology Policy and Management of Technological Innovation Source: (Phaal & et.al., 2001) The different phases of technology policy and management of technological innovation include ‘identification’, ‘selection’, ‘acquisition’, ‘exploitation’ and ‘protection of latest technology’ (Phaal & et.al., 2001) Identification: In the identification phase, latest technologies that are not installed are identified (Phaal & et.al., 2001). Selection: In the selection phase, technologies that are required for producing better products are selected (Phaal & et.al., 2001). Acquisition: In the acquisition phase, the technologies that are selected are acquired in an efficient manner (Phaal & et.al., 2001). Exploitation: In the exploitation phase, technologies that are acquired would be implemented or incorporated (Phaal & et.al., 2001). Protection: In the protection phase, technologies that are incorporated are ensured to be protected through certain significant factors such as trademarks or copyrights (Phaal & et.al., 2001). Apple considers technology as a base of its strategy for developing better as well as competitive products or services in order to accomplish expected business objectives. The company initially identifies those technologies that are not well-equipped and conduct an analysis for recognising the importance of those technologies in future perspectives. On the basis of the analysis, the company select technologies that are appropriate for improving the performance and competitiveness in the global market. The latest technologies are acquired on the basis of effective functioning of R&D segment belonging to Apple. Moreover, the technologies that acquired by the company needs to be incorporated for effective utilisation of valuable resources. In order to protect the acquired technologies, Apple had adopted a technology management framework for devising better strategy, improving decision-making procedure as well as developing new and innovative products (Phaal & et.al., 2001). Apple adopts technology policy with the motive of producing and manufacturing products as well as services in a sustainable manner. The company has also adopted a proper technology management technique for better incorporation of technologies into processes as well as to accomplish the goals of the company in an effective way (Phaal & et.al., 2001). 2. Inter-relationship between External Environment on Innovation Technology alliance is considered to be an important factor for growth as well as to enhance the business as well as the operational performance of a company in this competitive global market. A company cannot acquire all the necessary technology for developing innovative ideas while making products. This raises the notion of Open Innovation (OI) which signifies that companies are required to acquire both internal as well as external ideas and information for enhanced performances in the competitive market globally (Chesbrough & et.al., 2008). External environment and innovation are inter-related as innovation is regarded as an important factor for successful performance of a company in a longer time period. Moreover, innovation facilitates a company in gaining competitiveness with respect to the products or services that are offered in the business market. It can be stated that rapid development of technologies had augmented global competition and for which companies are required to be more innovative as well as competitive in order to enhance market share, profitability as well as productivity by a greater extent (Hussain & Ilyas, 2010). There exists a severe competition in the business market due to the significant factors of increased level of globalisation and introduction of innovative technological advancements. In relation to Apple, it has been observed that the company has considered technology to be a core business strategy for building competitiveness in the business market. Moreover, the company also realised that there lies the necessity of employing latest technologies in order to generate unique or innovative products as well as to perform successfully in the business market in comparison with others (Eible-Spanyi, n.d.). With regard to determine the interrelationship between the external environment that include technology policy on innovation, it has been viewed that Apple adopted technology policy with the intention of producing as well as offering better innovative as well as featured enriched products to its valuable customers. According to the company, the main objective of technology policy is to improve R&D segments as well as the activities related to innovation. In this regard, Apple conducts an increased research of its business sectors as well as market segments for gathering important market information for attaining its desired business targets by a significant level. Furthermore, external environment analysis facilitates Apple by delivering valuable information for making different effective decisions (Chea, 2008). 3. Contemporary Issues and Debates in International Technology Management According to Blackwell and Fazzina (2008), OI is considered to be an important factor for providing better opportunity to acquire significant information or ideas from external sources. All these information certainly assist the different companies in experiencing better innovation facilities as well as enhancing R&D segment. It can be affirmed that there are certain companies that possess several valuable internal sources but a significant portion of companies adopt the concept of OI in order to improve their respective R&D activities that supports them to perform more effectively. Moreover, the companies are utilise latest technology as well as external sources of innovation such as OI in order to attain more competency as compared to the competitors prevailing in the business market. Though, the companies embrace OI as a significant element for improving their production function but it may also lead to cultural conflicts that can hamper their business or operational performance at large (Blackwell & Fazzina, 2008). According to OECD (2008), globalisation as well as advancement of technology has intensified competition in the global market. Moreover, with this amplified competition in the business market, companies realised to perform their operational functions in an effective manner. Thus, in order to perform effectively, companies are required to enhance their respective R&D segment for developing better innovative products. Moreover, with rapid development of technology, companies may face the risk of severe competition from their chief business market competitors who possess latest or advanced technologies. Furthermore, adoption of latest technologies by individual companies may increase their operational costs which in turn reduce their profit margins by a considerable level. There must be a balance between internal as well as external ideas for enhanced business performances of companies. Therefore, OI is considered as an important element that broadly utilises by the companies that in order to improve R&D segment and innovation operations (OECD, 2008). According to Chesbrough (2005), OI is a flow of internal as well as external information or idea that supports the companies in improving their profitability along with productivity and market share. Moreover, there has been a shift in the perception of OI from closed end to open end. Thus, it can be affirmed that globalisation as well as developed technologies has increased the utilisation of the concept of OI within the companies and is considered to be an important factor for the companies to improve competitiveness at large (Chesbrough, 2005). According to Yu (2012), innovation is considered as an important element for the companies to improve their competencies and perform with better competitiveness in the global competitive market. It is to be mentioned that with continuous innovation, companies will be able to acquire competitiveness for a longer time period and can attain superior competitive position over their chief business market contenders. Furthermore, companies are required to utilise the external innovation information as well as ideas for developing better capability in order to perform effectively in the competitive global market environment (Yu, 2012). 4. Critical Thinking and Analysis Due to the significant factors such as increased level of globalisation and introduction of innovative technological advancements, external along with internal sources of innovation assist the companies to perform effectively as well as competently in the global business market. Moreover, the companies utilise the aforementioned sources in order to raise and enhance their profitability along with productivity at large. On the basis of the application of knowledge and understanding from the aforementioned analysis, it can be comprehended that the perception of OI as a form of external innovation source supports the companies in developing their R&D segment to perform effectively in the business market. On the basis of the above discussion, it has been viewed that Apple utilises latest technology for improving its R&D segment and also to develop innovative or unique products for its valuable customers. Furthermore, Apple considers innovation as well as adoption of latest technology as a core element of their business activities. The company utilises latest technology as well as innovation in an effective manner in comparison with its competitors. Hence, it can be stated that Apple should adopt OI in order to improve its competitiveness as well as develop innovative products for customers (Yu, 2012). Conclusion Apple is regarded as a well renowned multinational corporation that produces, sells as well as designs different products such as personal computers, computer software and consumer electronics among others The company considers innovation as well as technology to be a core element that impose significant impact upon its business operations. It has been viewed that the company has been mainly concerned with producing innovative as well as featured enriched products for improving its competitiveness, profitability along with productivity and market share. Increased level of globalisation and introduction of innovative technological advancements had ultimately increased competition in the global business market. In this regard, the notion of OI has acquired an important aspect for the companies to improve their innovation function as well as competitiveness. Moreover, with the assistance of OI, companies such as Apple would be able to operate in an effective manner for maintaining better competency as well as innovation in this competitive global business market. Furthermore, OI has been utilised by many companies to improve innovation operations as well as to perform effectively with better R&D facilities. References Apple Inc., 2012. United States Securities and Exchange Commision. Form 10-K. [Online] Available at: http://investor.apple.com/secfiling.cfm?filingID=1193125-12-444068&CIK=320193 [Accessed December 15, 2012]. Blackwell, K. & Fazzina, D., 2008. Open Innovation: Facts, Fiction, and Future. Open Innovation Nerac. [Online] Available at: http://www.innovationmanagement.se/wp-content/uploads/2012/12/Open-Innovation-Nerac.pdf [Accessed December 15, 2012]. Chesbrough, H., 2005. Open Innovation: A New Paradigm for Understanding Industrial Innovation. Dynamics of Industry and Innovation: Organizations, Networks and Systems, pp. 1-27. Chesbrough, H. & et.al., 2008. Open Innovation: Researching a New Paradigm: Researching a New Paradigm. Oxford University Press. Chea, A. C., 2008. Competing on Innovation: How Exemplary Innovators Leverage Their External Environment to Harness Innovation and Create Value. International Journal of Business and Management, Vol. 3, No. 8, pp. 23-30. Eible-Spanyi, No Date. Innovation in a Re-emerging Economy: Lessons from the Hungarian Experience. The Innovation Journal: The Public Sector Innovation Journal, Vol. 11, No. 2, pp. 1-12. Hussain, M. F. & Ilyas, S., 2010. Environment for Innovation: Gaining Competitive Advantage. African Journal of Business Management, Vol. 5, No. 4, pp. 1232-1235. Linzmayer, O. W., 2004. Apple Confidential 2.0: The Real Story of Apple Computer, Inc. No Starch Press. OECD, 2008. Open Innovation in Global Networks. OECD Publishing. Phaal, R. & et.al., 2001. A Framework for Supporting the Management of Technological Innovation. The Future of Innovation Studies, pp. 1-14. Yu, W., 2012. Study on the Relation between Organizational Learning and Innovation from the Perspective of Process Improvement. 2012 International Conference on Innovation and Information Management (ICIIM 2012), Vol. 36, pp. 93-96. Read More