The Innovation Secret of Steve Jobs - Essay Example

Introduction Apple Inc is a major business that deals with various electronic products like mobile and computers as well as computer software. AppleInc has been at the forefront of innovation and the improvement of existing products. Apple and its charismatic executive, Steve Jobs have been credited with many changes, innovations and improvements that have come to change the industry and consumer electronics. This paper examines the innovation management system of Apple and how it affects the companys survivability and competitive positioning. This include the evaluation of the relevant theories and the main concepts that describes the components of innovation and improvement in Apple. Innovation Management: Theoretical Analysis Innovation management is now an inherent aspect of organisations around the world. Businesses seek to find ways of improving their system of creating innovations and commercialising their innovations to attain the best results and the highest returns possible. Innovation is defined “something new which did not exist in this form up till now” (Sattler, 2011: p9). In other words, innovation is about providing new solutions that did not exist in the past to resolve problems and issues in the society. Schumpeter stated that innovation is “a new combination of production factors” (Sattler, 2011, p10). This position views innovation as an adjustment or changes in the internal structures and systems of an organisation in order to provide something different and unique to consumers in the society. Innovation Process Innovation is seen as a structured and disciplined approach to dealing with new productions and adjusting the system to accommodate new ideas and systems. Narayanan and OConnor (2010) identify three main stages of innovation: 1. Invention 2. Development and 3. Market penetration Innovation begins by the discovery of a new way or a new approach in doing things. This involves the invention of a better way and a better approach of resolving an issue in the society. When this is done, the organisation will have to find a way of getting the relevant intellectual property or brand identity registered for recognition. Once the invention is seen to be one that can be replicated, the organisation will have to take reasonable steps to develop it. Development is done by the commercialisation of a given idea or phenomenon. This will help the organisation to attain its results and targets and maximise its benefits form the given invention. Market penetration depends on the creation of a market for the new invention and the growth and development of the market. This aims at getting the best and the highest levels of returns and revenue from the process in order to attain the best returns on investments. Innovation Management “Innovation management includes all activities for the value chain including marketing activities concerning new product launch and managerial action within the financial departments such as human resources, organisational control, accounting and finance” (Dodgson et al, 2010: p402). Thus, innovation management is a process through which a firm makes conscious attempts to integrate an innovation into its ranks and file. This encompasses all the methods and approaches for the integration of innovation into the firms activities and processes. This include various processes that will bring together all the strategic business units of the organisation in order to work towards the proliferation and enhancement of the business in its operations. Santer and Riedl (2012) provide a number of steps that are essential and important in the integration of innovation into a firms operations and activities. And this include: 1. Definition of innovation goals and strategies 2. Evaluation of decisions from an economic standpoint 3. Control of the innovation process 4. Creation of innovation friendly organisational situation and culture 5. Real time communication in innovation matters. Thus, a firm will need to define its innovation goals and strategies and this will involve the setting up of a method or system of dealing with innovations and how often the firm is going to invest in innovations. This process is to be evaluated and analysed by the top level management from an economic position. There is the need to control the innovation process and integrate it into the firms culture. The process is to be monitored with real-time communication on innovation related matters and issues in order to provide quick and prompt actions where necessary. Background of the Innovation Culture in Apple Apple commenced as a manufacturer of computer products in 1976. It was founded by Steve Jobs and other parties. Jobs invited a person who became the CEO. Apple was providing computer products in an era where most computers were bespoke in nature and functioned as per the specifications of the entity that ordered them (Gaynor, 2012). Mass production of computers was quite uncommon and most organisations and entities that produced computers had to produce according to specification of consumers. In the late 1970s,. a few entities like IBM got involved in mass production of computers. Apple also entered the market and produced the Apple III which was made according to the ideal specifications set by the management of Apple in 1982. Meanwhile, Steve Jobs took a job with the Macintosh Development Group in 1979 and the idea was to develop faster, smaller and more powerful and less expensive computers than the Apple. Macintosh was a branch of Apple. This was a basic and fundamental approach taken by Steve Jobs to go into product development and enhancement. This was the first time that a structured system of innovation was introduced in Apple. At Macintosh Development Group, Steve Jobs formed a team of 25 people from different organisations. They formed a development schedule and came up with various projects that was meant to examine consumer needs and expectations and innovate their existing products (Gaynor, 2012). Eventually, Macintosh produced very successful brands and products that were of a much higher standard than the offering of competitors. On Steve Jobs return to Apple in the late 1980s, he had issues with the CEO of Apple and was eventually dismissed and founded his own company. The issues had to do with the process for the integration of innovation and product development in the affairs of Apple. However, on his dismissal, Steve Jobs built his innovation capabilities and strategies. Meanwhile, Apple continued to purse the process of making existing brands and seeking to increase market share. This involved the process of mass production and trying to use marketing to increase their sales throughout the late 1980s and the early 1990s. However, eventually, Apple went through a major phase where there was the need for survival. Three CEOs were changed throughout the years and eventually, Steve Jobs was brought back to take charge of affairs in 1996. Innovation in Apple On the return of Steve Jobs to Apple, there were major changes and modifications in the companys affairs in order to integrate innovation into the firms operations and product offerings. The steps that Steve Jobs took sought to create a method of improving Apples offerings and making Apple a better brand of choice for consumers. Differentiation from Windows In the late 1980s, Microsoft introduced a Windows operation system that was universal and was running on all computers around the world (Ireland et al, 2009). Microsofts operation system system was much more common and appeared to make Windows the market leader and the dictator of the pace of the improvement of the computing system and markets. However, Steve Jobs made a bold initiative by stating that Apple was going to introduce a unique and distinct operation system that was not going to be compatible with Windows. The graphic user interface (GUI) was so different. But Microsoft paid an unspecified amount of money to Apple in order to create a compatible system that will operate alongside the Windows operation system. The ability to stand up against Windows showed that Apple was of a status that enabled them to deal with various challenges and competition from major giants and major entities in the industry. This provided a strong reputation that was much more ahead of the other players in the industry. Sales Strategy Apple stopped selling through the old systems and channels. Apple commenced with a system of selling their products directly to consumers through online sales and by phone (Ireland et al, 2009). This involved the use of sales systems that enabled Apple to reach out to their consumers directly and also take submissions. Emergent Strategy As sales was done by directly contacting the consumers, Apple was able to get an understanding of what consumers want and also integrate it into their operations. Through the emergent strategy, Apple was able to identify consumer needs and integrate it into their product development systems. This enabled them to get a method and a system of continuously improving their affairs and their products to meet consumers needs and expectations. Innovation Management in Apple Apple after 1997 set up a system for improved and better innovation and study of the customers needs and provided them. Radjou et al, 2010) state that the quality of customer experiences were delivered to the product development unit. And this was evaluated and analysed through the system of innovation analytics (Anderson, 2013). This was meant to provide innovative and better system of improving a given product that Apple was offering on the market. The process is primarily given to the product development unit which until 2012 was headed by Steve Jobs and his team. Their obligation was to set up and define the main things that need to be changed and modified in the product. Thus, the product innovation proposition was presented to the various units who found ways and means of improving it. After a proper analysis and formulation of a concept and an idea on how to improve the products or services, the production or innovation department would send information out to the strategic unit. This strategic unit will mobilize the different units that are relevant and important to the innovation. Each unit will bring their submissions and their opinions about how the new activity must be changed or modified. Through this, the product will be improved. The innovation system of Apple is structured and well planned. It involves a method and a system of analysing changes and modifications and also dealing with them in order to improve Apples products (Radjou et al, 2010). And this involves all the units and all the components of Apple in order to get a strong move towards coordination. Leadership in Innovation Management Steve Jobs set the foundation for the improvement of innovation in Apple. He sought to use various approaches and methods to get to understand and evaluate the changes and also provide able leadership and control of innovation and improvement of Apples products and brands. Radjou et al (2010) provided three main qualities about the innovation systems and structures of Apple and this include: 1. Intuition: Steve Jobs uses his judgement to analyse and internalise different propositions for change and improvement. This include the use of various elements and approaches for the analysis of the elements of the external environment and what consumers desires and expect. This provide him with an ability and the mindset to understand what consumers want before the company makes changes and improves its products. Thus, Jobs and his successors use ways and means of trying to analyse consumers needs and also trying to improve them. 2. Empathy: Steve Jobs and his successors always use various approaches and methods to put himself in the position of the consumer in order to find ways of making changes. This allows the leaders of Apple to make changes and modify approaches as a means of trying to satisfy a client like him. 3. Passion: The leaders of Apple always try to carry out product development and innovation as a part of the firms operations. This is done as a specialised activity and process. Through this, there is a specialised approach and system of dealing with consumers needs and processes. This tradition has survived throughout Apple to this time. This is because the managers were taught to apply these elements of innovation and it has gained root in the culture of the Apple corporate entity and procedures. Innovation Model of Apple 2006 to Present The first years of Steve Jobs return to Apple provided the basis for the formulation of a culture for the innovation and improvement of Apples products. Apples innovation strategy involves the identification of a system of providing an improved method and process of dealing with consumers needs and expectations. Cogliandro (2010) identifies that there are some pointers and processes that Apple utilises to carry out its activities and processes: 1. Identification of popular products that consumers will resonate with; 2. Identification of important niches that consumers will prefer; 3. Growing the niches and expanding markets in order to get consumers interested in the products; 4. Improving of services by examining consumer psychology in order to provide better services to consumers. Another model put forward by Sarkar to describe Apples production system involve four main steps (2010). This include the following: 1. Identification 2. Project Selection 3. Product Developments 4. Commercialisation This means that the management and product development processes of the company provides a method and system of dealing with issues. This provides a new and distinctive solution that the management of Apple see to be promising. Based on that, they set up a system and a niche for the production of new methods and new solutions to problems. This leads to solutions and methods for dealing with matters for consumers. BusinessNews Publishing stated that “creativity is usually nothing more than taking what is already working in one field and applying it somewhere else” (2012, p5). This means that Apple tries to combine different inventions and provide a solution that consumers need through their innovation model. Apples innovation has spanned across the production of personal computers, mp3 players and tablets (BusinessNews Publishing, 2012).This include finding revolutionary approaches and methods to deal with problems and issues in organisations. Case Analysis of Apples IPoD The main business model of integrating and expanding innovation is seen in the development of the Ipod which had about six fundamental elements and processes (Skarzynski and Gibson, 2012). They include the following: 1. The proposition of a product that had a small and portable size; 2. Identification of a flexible method of getting people to get information across and transmit songs they wanted; 3. The iPod also had a revolutionary look that was different from all materials and all products that were on the market; 4. The legal and software process and processes provided a major avenue through which iPod provided a better approach and a better system of creating an innovative product. This include the digital rights management process which provided a different method and approach for the provision of a unique and distinct service; 5. Downloads were made available and done in a very simple way and manner. This enabled more young people to become interested in this product; 6. The iPod also came with a very competitive price that was done in a way and manner that a large number of consumers could work with. General Process of Apples Product Development Apple therefore focuses on niches by finding proprietary designs and products including software that are unique and distinct (Morries et al, 2012). Niches are unique and distinct and this means that it provides a new and a unique process and procedure for providing services and solving consumer needs. These new niches are developed and people are made to develop an awareness and an interest in these innovations. Through this, Apple is able to get a differentiated image and provide unique and distinct processes and systems for dealing with issues and matters. Elliot also identifies that employee authorisation and employee involvement in the development of new products in Apple helps the firm to carry out their activities and processes (2013). This include the provision of some degree of autonomy and independence for the people who are involved in the development and contribution to the process. This involve innovation and contribution at the different levels that will enable the firm to deal with its innovation needs and expectations. Conclusion Innovation was induced in the affairs of Apple. This is because the companys attempt to provide services and products to consumers based on Apples internal recommendations in the 1980s failed. As a result, Apple needed to get innovative in order to survive. This led to the invitation of Steve Jobs as the leader and the manager of the company. Jobs put in place a corporate strategy that sought to help the firm to find new niches based on consumer expectations. This involved the identification of methods and processes through which they could provide better solutions and processes for consumers and people who might want certain services and processes. Once a niche is found, the different units and components of Apple are organised and their inputs are taken. These submissions are used to help consumers to attain solutions to their products. Through this, a combined effort is mobilized and it is used to deal with issues and problems that may arise. This leads to a path of continuous improvement which sees the firm improve and enhance its products from time to time and enables Apple to deal with products and services. The innovation process of Apple is done through various stages and various phases that involve the leadership and the top levels of the company. This is done through the process and framework of dealing with the passion and the procedures of innovating and enhancing products and services for consumers around the world. Innovation processes that were instituted by Steve Jobs have a very interpersonal undertone. This process and system has been enhanced and promoted and it is now integrated into the culture of Apple and all the units and departments of the company operates according to those principles. References Anderson, E. G. (2013) The Growth Butterfly Copenhage: Nitron Joglekar. BusinessNews Publishing. (2012) Summary: The Innovation Secret of Steve Jobs New York: Primento Cogliandro, J. A. (2010) Intelligent Innovation: Four Steps to Achieving a Competitive Advantage New York: J Ross Publishing. Dodgson, M., Gann, D. M. and Phillips, N. (2010) The Oxford Handbook of Innovation Management Oxford: Oxford University Press. Elliot, J. (2013) Leading Apple with Steve Jobs London: Wiley Ireland, R. D., Hoskisson, R. and Hitt, M. (2009) Understanding Business Strategy Mason, OH: Cengage Morris, M, Kuratko, D. and Covin, J. (2012) Corporate Entrepreneurship and Innovation Mason, OH: Cengage Narayanan, V. K. & OConnor, G. C. (2010) Encyclopedia of Technology and Innovation Management London: Wiley. Radjon, N., Prabhu, J. and Khuja, S. (2010) Jugaad Innovation: Think Frugal, Be Honest, Generate Breakthrough Growth Hoboken, NJ: John Wiley and Sons Publishing. Santer, M. and Riedl, B. (2012) The Management of Innovation and its Role Berlin: Diplomica Sarkar, S. (2010) Innovation, Market Archetypes and Outcomes London: Springer Sattler, M. (2011) Excellence in Innovation Management London: Springer Skarzynski, P. and Gibson, R. (2012) Innovation to the Core: A Blueprint for Transferring a Company Boston: Harvard Business Press. 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