Innovation and Technology Management - Essay Example

Innovation and technology management Introduction Apple Inc. has a very interesting history of more than 30 years comprising numerous twists and turns. The company was considered appropriate for this paper because, Apple has been rewarded with the title of the most innovative company by a number of organisations such as Forbes and BCG consultancy. Apple is one of the earliest companies that embraced technological innovation without considering its consequences and uncertainty associated therein. Most of its credit goes to Steve Jobs as his creativity helped the company gain huge market share in the consumer electronic gadget industry. In the following sections, brief history of Apple and gradual growth of the company through technological innovation have been discussed along with role of Steve Jobs therein. History of Apple Inc Apple is a multinational corporation which was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. However, Wayne left within some period while Jobs and Wozniak continued in the business. The vision of Jobs and Wozniak was to develop a user friendly computer device and change consumers’ perception regarding computer. Wozniak developed first computer of Apple, Apple I which however did not gain much recognition. Wozniak and Jobs introduced Apple II in 1978, which was a revolutionary move as they developed colour graphics for the first time. Sale of the device grew from $7.8 million in 1978 to $117 million in 1980. Apple raised its first IPO (Initial Public Offerings) in 1980 and started trading as a public company (Mac World, 2014). In 1983, Wozniak left the company due to diminishing interest in Apple’s daily operations. In 1984, Apple developed the Macintosh which was a huge success in the consumer market. After this brief success, power struggle among executive members of the organisation resulted in departure of Steve Jobs. Absence of guidance from prominent leaders resulted in declining market share and financial problems in the firm. Steve Jobs returned as interim CEO in 1997 after Apple purchased his company, neXT. During late 1990s, expert suggested that Apple should shutdown and pay off its shareholders, but Jobs brought in turning point of the company by inducing the iMac. Following iMac, iPod was introduced in 2001 while iPhone was unveiled in 2007. In 2008, Wal-Mart’s online music store faced stiff competition from iTunes store. In 2010, the technological innovation at Apple moved a step ahead with entry of iPad (Terrell, 2008; Mac World, 2014). In 2011, death of Steve Jobs left Apple seeking direction and leadership. The company selected the former COO (Chief operating Officer) of the company, Tim Cook as its new CEO. This move was considered viable from logical as well as strategic perspectives given Cook’s experience in the organisation (Apple, 2014a). The innovative era of Apple The era of innovation at Apple initiated with the entry of Steve Jobs during late 1990s when the company was close to bankruptcy. Steve Jobs was considered as the man who learnt from his mistakes and failures. He was also known as creator of reality distortion field in the technology industry as he had the ability to persuade anyone of anything by reframing the reality. Innovation at Apple grew as Jobs introduced his mental model innovation. Mental model innovation, as per experts, is creation of reality distortion field where the creator reframes a problem in such a way, which convinces the listeners to buy the ideas of the creator. Mental model innovation does not give rise to creative solution to a problem, but allows individuals to develop a new approach to the solution or reality (Terrell, 2008; Mac World, 2014). The strategy that Jobs implemented in selling Apple’s products was to convince buyers using mental model, which made it easy for consumers to buy his business model and subsequently the product. For instance, Jobs could very easily convince gadget lovers that they should wait for iPhone instead of buying products of other companies, even though iPhone was the first product of its kind (telecommunication product) by Apple. Jobs’ strategy resulted in consumer buying and loving whatever he was selling instead of the actual product (Kaipa, 2012). Jobs established a strong connection between business model innovation and mental model innovation. Jobs reframed the entire concept of a phone when he launched iPhone in 2007. Consumers and competitors of Apple, prior to the launch of iPhone, pictured convergence of camera, phone, touch screen and iPod as tablet but Jobs changed their perception and diverted the same towards iPhone. Even though the concept was criticised by competitors such as Microsoft, iPhone was one of the earliest innovation and development in the smartphone industry. The launch of iPhone and its popularity has significant impact on the business models adopted by most phone carriers. Apple not only sold the handsets but also takes a share of monthly revenues of carrier companies. Through App store, Apple earns certain amount of royalty with respect to anything (subscription, renewal and apps) that has been sold or purchased through iPhones (Apple, 2014b). Apple was probably the first company that developed coloured iMacs which further attracted consumers. If that was not sufficient, Jobs came up with brand message of Apple, ‘Think Different’ and convinced consumers to exhibit preference towards Mac over PC through the ‘Get a Mac’ commercial. Between innovation and cost leadership, Steve Jobs chose the former so that Apple can gain a differentiated market position with respect to its competitors. Apple’s innovative approach and value addition had positive impact on the premium positioning of the products of the company. Jobs implemented almost all innovative business models that most companies during that time were hesitant to implement. Reframing at different stages, namely, mental model innovation, business model innovation and product innovation helped Apple products gain competitive advantage in the market (Kaipa, 2012). Technological innovation in Apple Technological innovation is very important for surviving in a highly competitive industry. Apple is well known for designing and marketing consumer electronics, personal computers and computer software. The most in-demand hardware products include Mac Book, iPhone, iPod and iPad while software include Mac OS, iOS (operating software for iPhone, iPad and iPod) iTunes media browser, iWork suite (productivity software), iLife (multimedia and creativity software), Aperture, iPhoto and iCloud. Apple’s technological innovation has always been consumer centric as it helped in value creation for company as well as its consumers. Apple created simple products that served consumer needs instead of technological demand. Finally, Apple gained competitive advantage by delivering products and software that empower consumers through high quality of user experience (The Telegraph, 2014). iPod: when Apple launched iPod, the product was one of its kind, as it was not a mere updated version of walkman. The idea was to create a product that consumers can relate with; and which would serve purposes beyond playing music. The iPod software brought in digital music revolution as it provided consumers the liberty to create music playlists and shuffle songs. Additionally, latest models of iPod are also capable of video streaming, gaming and include features such as calendar, notes, Wi-Fi utility and contact storing (The Telegraph, 2014). iPad: Apple developed iPad with an intention to serve almost all consumers belonging to different age group and having different life style. The device is not only a portable tablet but the iOS software offers media consumption facilities to consumers. The idea is that the technology can be used by parents to teach young kids or to let them play games given that phone or laptop may not serve the purpose accurate (phone being too small while laptops are heavy and large). Alongside, iPad became popular with professionals such as pilots and physicians because they can carry everything in it instead of physical charts or manuals (Kaipa, 2012). iTunes: Presently, iTunes is the largest online seller of digital music as it continues to outperform various online music stores such as Wal-Mart and Amazon. iTunes is an essential component of the entire product line of Apple. The software can seamlessly organise and integrate playlists in a user’s iPod, iPad, iPhone and other devices. The prime technological advantage of iTunes is that the single software allows music download, synchronisation, playlist creation and integration (Apple, 2014c). iPhone: The exclusivity of iPhone lies in the fact that it integrates features of a basic phone with that of iPod and devices such as tablets. Apple sets an example in the smartphone industry for most of its competitors as it created iOS and cloud-based app store so that consumers can have easy access to numerous apps and software in their iPhone. The demand of iPhone has been soaring continuously because of the services such as multi-touch screen, visual voicemail, accelerometer and web browsing (Guardian Liberty Voice, 2014). Critical evaluation of apple in context of the people, technology and the marketplace of 21st Century People: The 21st century consumers prefer products that are holistic in nature. Consumers want products that reflect their identity and can be related to their personalities. Additionally, consumers want more value out of a single product. Steve Jobs recognized this trend long back and developed the products which have helped Apple gain significant market share in the consumer electronics industry. Apple products are not only commodities for utility but have become fashion trend as well. Furthermore, products such as iPhone and iPad are social symbol for a number of individuals. Generally, most companies develop products for earning profit but Jobs portrayed that he was creating these products for bringing in change in the society (Reuters, 2008). Technology: Apple is considered as one of the earliest companies that have been involved in revolutionizing the industry through technological innovation. Apple developed its smartphone and set an example for other companies who followed the trend. The idea of colored Macs was initially conceptualized by Steve Jobs which is yet to be replicated by other companies. Apple is probably the first company that introduced thinnest laptop, the Mac Book. Directly or indirectly, Apple is significantly responsible for technological revolution. Besides hardware and software development, Apple has successfully incorporated cloud computing in its products and services so that traditional approach of physical locations is eliminated. Marketplace: A marketplace is driven by competition and the level of competition in global technological market has increased manifold with Apple’s innovation. Various companies such as Google, Microsoft, Samsung, Amazon and Wal-Mart are facing stiff competition from Apple. Additionally, laptop makers such as HP, Dell and Lenovo are also facing competition from Apple because of products such as Mac Book and Macintosh line of computers. Apple has diversified its product line which has a comprehensive impact on its competitive position in the market. The company competes in different sectors of technological development at without an extra effort (International Business Times, 2013). Conclusion The paper is a comprehensive approach to understanding growth and success of Apple in past 30 years. The company was started by three people; two of them eventually moved out due to disinterest while Steve Jobs continued with Apple. The company has a very interesting past consisting of numerous ups and downs. It was gathered that, Jobs faced failure at different junctures in the business but did not give up. Additionally, it was also found out that the entrepreneur was a great thinker as well as a mental model innovator. Steve Jobs left Apple in the late 1990s as a result of power struggle in the organization but resumed as interim CEO of Apple in 1997 when the company was on the verge of bankruptcy. He introduced a number of products that brought in revolution in the technology industry. Presently, Apple products are not considered as mere technological gadgets; instead they have become a part of consumers’ lifestyles and identities. The paper has further discussed the implications of the company in context of consumers, marketplace and technology in the 21st century. Reference list Apple, 2014a. Diversity. [online] Available at: [Accessed 06 October 2014]. Apple, 2014b. Apple products. 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