Innovation as a Process, and How It Has Helped the Company Gain an Edge in the Fast-Changing World of Consumer Electronics - Case Study Example

I. Introduction: Case Summary Hailed as being the worlds most innovative company (Grossman), Apple, Inc. is almost synonymous to the noun itself: innovation. Headed by the iconic Steve Jobs, one of the companys founders, the company continues to surprise the market with new products that are not only superior in functionality, but are also know for their sleek design which reflects the companys commitment to innovation and creativity. For our discussions, let us take Apples examples in looking at innovation as a process, and how it has helped the company gain an edge in the fast-changing world of consumer electronics. First, I will introduce some breakthrough products that have shaped Apples reputation for being a very paragon of innovation. Then, from various articles of reputable magazines such as Times, Business Week and The Economist, as well as interviews with Steve Jobs, I will try to collate the picture of the processes in this highly secretive, creative company which demonstrate innovation at work within Apple. By linking a few concepts we learn about innovation, I will link these concepts into what Apple has done for years in order for us to look at the companys examples on how we can apply innovation and new product development in our future careers as marketers. Now let me begin by introducing the Apple, Inc. II. Introduction: Further Background Information Apple II computer. Remember? We are too young to remember it; maybe most of us are not yet born then. It was in 1977 when the large-scale-production was created (Grossman)--this was the Apple II in an 8-bit architecture. After seven years, in 1984 Apple, Inc. had introduced the Macintosh, the original Mac, which pioneered the graphical user interface (Grossman)--the start of the revolution of consumer gadgetry and electronics. Macintosh has been described as a boxy little guy with a winning smile icon on its nine-inch monochrome screen (Levy). However, when Macintosh failed to perform as had been expected, when he was asked to change the features and he refused, he was forced to leave the company in 1985 (Burrows). When he left, Apple, Inc. became stagnant. Four years after he went back to take charge of the company, Apple was back to dazzle the global market of consumer electronics with the introduction of the iPod (Grossman). Were all familiar of the iPod, arent we? But the original iPod has changed a lot, and with generations of iPods, the new iPods can now handle photo and video as well (Apple.com). By the way, as most of you may already know, the new iPod Nano, thin as a pencil, is also capable of video recording (Apple.com). So much has changed. And what do we say about the iMac G5? The thinnest desktop on the market (Grossman)? Having all you need in a two-inch thick machine with a remote control? And then there is the Mac mini, a very small desktop computer. Then there is the Macbook to substitute Apples previous iBook and Powerbook lines. The Macbook Pro, a Macbook for more advanced and professional users. Then there is the Macbook Air—the thinnest and the lightest notebook on the planet at 3.0 pounds and 0.16 to 0.76 inch thick (Apple.com). Apple equals innovation, equals mobility as well. And of course, there is the iPhone. Listed in the NYSE under the GIS code AAPL, now, Apple, Inc. continues to come up with new products that will dazzle the market. While we can see most of its creativity in the companys hardware products, Apple, Inc. is also known for creating its own operating software—the Mac OS. This experience in software has led the company to revolutionize the global music industry, with the introduction of the iTunes—with the iPod, this is one of Apples new breakthroughs. The companys commitment to creativity and innovation are apparent in both its hardware and software products. After a brief introduction about the company, Steve Jobs—its CEO and founder, and its track record of innovation that revolutionizes the consumer electronics industry, let us look at the innovation within the company. By using two innovation concepts that we have learned, let us try to picture out how the innovation process works inside Apple. III. Innovation Concept 1: Problem-solving and brainstorming techniques One of the concepts of innovation in line with ideation, or coming up with ideas is through problem-solving and brainstorming. As problems arise, an opportunity to solve it gives rise to new ideas, new ways and new processes. The chance to create a never-tried solution gives way to innovation in the form of problems. One way to solve problems is through brainstorming. When one or more individuals brainstorm, they are said to generate numerous alternative ideas while deferring judgment (Briggs). IV. Innovation Concept 2: Analytical attribute techniques Another concept of innovation in line with new product development is the use of analytical attribute techniques. In order to foster innovation, one or more of the three types of attributes—features, functions, or benefits—should be altered. Innovation takes place in changing either of the three types. A simple addition of a feature can be an innovation, as well as changing totally the benefits that a product offers—which can impact both the function and the benefit attributes. V. Assess Concept 1 In one of the interviews with Steve Jobs, he was asked how as the CEO systematized innovation. Here is his answer: “The system is that there is no system. That doesnt mean we dont have process. Apple is a very disciplined company, and we have great processes. But thats not what its about. Process makes you more efficient. […] But innovation comes from people meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realized something that shoots holes in how weve been thinking about a problem. Its ad hoc meetings of six people called by someone who thinks he has figured out the coolest new thing ever and who wants to know what other people think of his idea (Burrows, Business Week Online).” See how innovation works in Apple? According to Steve Jobs, it starts with a problem a few people are trying to solve. By gathering lots of ideas, not only from the inside but also from people from the outside, Apple is able to synthesize these ideas into a solution. This is one of Apples process in order to sustain its culture of creativity and innovation. Case in point, the iTunes and the iPod. Apple had seen a problem that had been plaguing the music industry for long. While the music industry had been struggling because of piracy and music companies continually engage in suing people in order to address the declining sales (Cuneo), Apple had seen a solution: the iTunes. The iTunes, described as the online music store that “simplifies the music buying process by coming up with a one-size-fits-all contract at the rock bottom price of 99¢, with most albums selling for $10 (Cuneo),” the iTunes was a major solution to the music industrys long problem. Apple saw that the problem did not spring from lack of ethics of consumers, or anything. To Apple, the problem was more of the way consumers acquire the product—the music files—through downloads in an almost no-cost alternative: the files sharing softwares. With this, Apple saw the opportunity to solve the problem by coming up with a music store where people could download the music files, but for a reasonable fee of 99 cents, at least from the point of view of the consumers. With the introduction of iTunes, the company saw yet another opportunity. While people download their music files to their Macbooks or iMacs, they do not bring these gadgets with them all the time. Another problem that requires a simple solution: a portable music player. According to an article in The Economist, the idea behind the iPod comes from a consultant the company hired for the project (Leaders: Lesson from Apple; Innovation, 9). The iPod was assembled, according to the article by combining off-the-shelf parts with in-house ingredients (The Economist 9), referring to the process of brainstorming between the people in Apple and the consultant. The creation of iPod is to complement the introduction of iTunes to the market. Two innovations that had sprung from simple problems the company took some time to sit down, ponder and create some sleek and stylish solutions. VI. Assess Concept 2 When we look at the history of Apples array of products, we can see that aside from breakthrough innovations such as the creation of iPod and iTunes, the company does minor innovations by changing an attribute of its current products, either to improve and incorporate a new technology, to respond to consumers change of preferences, or to capitalize on new emerging opportunities. For example, the companys long evolution of its line of computer. From the Macs which were the successors of the failed Macintosh in 1985, the company had evolved its product line into its iBook and Powerbook lines. From the original monochrome screen box, to the candy-colored notebooks with nice graphical user interfaces, the company has changed the attributes to suit with the changing times—to adapt the functions of these computers to the needs of the consumers. With the companys introduction of its Macbook line however, the emphasis on aesthetics—a feature, one type of attribute, has been an impetus for innovation as well. Apples Macbook lines continued to improve from the white Macbook that resembles its iBook, to a black Macbook—to defy the stereotype white Mac. Its Macbooks all now evolve from a polycarbonate enclosure to ones with precision aluminum body—like its previous generation of Macbook Pro (Apple.com). For every new generation of Macbooks, new function and features have been added. From the covers, there is also the 7 to 8-hour lasting batteries, as well as some new other features such as new components, more capacity, new designs, etc. In order to innovate continually, Apple improves its products by changing a feature or function of its product. Its newest line? The Macbook Air, the thinest and lightest notebook on the planet, weighing only 3.0 pounds. The new generations of Macbooks serve a purpose: to keep the masses enthralled while it continues its innovations, to retain its reputation. While the company develops new breakthrough products like iTunes and iPod, it does not mean it can idle and take a long time before a new product is released. New products are released, as new features are changed and incorporated in the older lines. For Apple, newer generations are totally new products as many new features are incorporated. This is also apparent in the companys iPod and iPhone lines. When there was the iPhone—an iPod, a smart phone, and many more--but with no 3g capability, a few months later, an iPhone 3g was introduced. Now theres iPhone 3G S—the fastest, most powerful iPhone yet (Apple.com). For iPods, adaptation in order to capitalize on other opportunities in different sub-segments of the market, functions have been modified in line with the innovation, as a result of differences in preferences. Theres the iPod Shuffle for those who prefer the no-frills and smallest music-players. This too has evolved, at least in terms of features. Then theres the iPod Nano, as thin as the pencil. The new Nano is also as thin as the pencil, but has a video recording ability. The new iPod Classic has evolved from being a music player, to portable video player, which also handles images, as the newer generations offer more capacity. Lastly, the iPod Touch--a great iPod; a great pocket computer; and a great portable game player (Apple.com).. VII. Overall Conclusion The worlds most innovative company—Apple, Inc. has adopted innovation as a way of doing things. From the breakthrough innovations that have solved problems like the iTunes and the iPod, to smaller innovations of adding new features and functionalities to existing product lines, the company is truly a paragon of innovation. In order to continually innovate, Apple knows the importance of the speedy delivery of products to the market in order to respond to consumer preferences. This is done by Apple by altering features and functionalities, a few ways to innovate. While the company continues to improve its current product lines, it looks forward to creating breakthrough products in a much longer time. These products, we can say, are in response to problems where the new solution offers new benefits to consumers, a sort of different way of doing things. Even some modification to its product line creates really new products. With the companys efforts to innovate as apparent in its new products that come to market in a short period of time after the last ones release, we know that Apple is all about being different, in a good way. Steve Jobs talked of a possibility of a TiVo-like iPod in the future. I no longer doubt that Apple can do that. And I am even one of those who are counting on it. Works Cited "Apple, Inc. " Apple.com  2009. Web.  5 Sep. 2009. . Burrows, Peter.  "Can the iPod Keep Leading the Band?;. " Business Week  8 Nov. 2004: ABI/INFORM Global, ProQuest. Web.  5 Sep. 2009. Burrows, Peter. "He Thinks Different." BusinessWeek (Nov. 2004): 20-20. Business Source Premier. EBSCO. 5 Sep. 2009 . Cuneo, Alice Z. "iPod and iTunes." Advertising Age 74.46 (17 Nov. 2003): S-6-S6. Business Source Premier. EBSCO. 5 Sep. 2009 . Grossman, Lev. "HOW APPLE DOES IT. (cover story)." Time Canada 166.17 (24 Oct. 2005): 42-46. Business Source Premier. EBSCO. 5 Sep. 2009 . "Leaders: Lessons from Apple; Innovation. " The Economist  9 Jun 2007: ABI/INFORM Global, ProQuest. Web.  5 Sep. 2009. Levy, Steven.  "OK, Mac, Make a Wish. " Newsweek  2 Feb. 2004: ABI/INFORM Global, ProQuest. Web.  5 Sep. 2009 Scanlon, Jessie.  "Apple Sets the Design Standard. " Business Week (Online)  8 Jan. 2007: ABI/INFORM Trade & Industry, ProQuest. Web.  5 Sep. 2009. Schlender, Brent.  "Apples bumper crop. " Fortune  3 Feb. 2003: ABI/INFORM Global, ProQuest. Web.  5 Sep. 2009. "The resurrection of Steve Jobs." Economist 376.8444 (17 Sep. 2005): 68-68. Business Source Premier. EBSCO. 5 Sep. 2009 . "The Seed of Apples Innovation." BusinessWeek Online (12 Oct. 2004): N.PAG. Business Source Premier. EBSCO. 5 Sep. 2009 . Read More