Managing Innovations - Research Paper Example

INNOVATION MANAGEMENT Name Institution Professor Course Date Abstract The purpose of this research is to examine the concept of innovation management with reference to the case of Apple Inc. This is through assessment of an example of an innovation developed by the corporation while selecting three critical topics from the class discussions. Similarly, the study will justify the concepts or topics can undergo application to the particular innovation and company. Apple comes out as a globally recognized entity for the effective and efficient practices in relation to the industry and market structure, changes in the perception of the company, and identification of the process needs. Apple has focused on incorporating new products such as iWatch, Apple TV, iPhone 5S, low cost iPhone, iPhone 6, iOS 7, and new streaming music service. Introduction The purpose of this research is to examine the concept of innovation management with reference to the case of Apple Inc. This is through assessment of an example of an innovation developed by the corporation while selecting three critical topics from the class discussions. Similarly, the study will justify the concepts or topics can undergo application to the particular innovation and company. Moreover, the research will concentrate on discussing, illustrating, and critically evaluating how the company (Apple) formulates and implements its innovation strategies under the influence of in-depth analysis of issues, supportive evidence, relevant theoretical arguments, and proper references. The study seeks to achieve the following objectives: i. To examine the innovation strategies by Apple Inc. in pursuit of competitive advantage in the market and industry of transaction ii. To define the organization’s strategic direction iii. To examine how the organization or corporation protects innovation in pursuit of competitive advantage while exploiting differentiation strategy iv. To evaluate how the organization manages new product development teams v. To identify sources of innovation at Apple Inc Methodology In the course of developing this research, the focus was on the utilization of the existing literature and secondary information. This is through incorporation of academic business articles, news articles, books, research articles, and information from the organization’s website with the intention of understanding incorporation of appropriate strategies by the institution. The study focused on the utilization of major business databases and Google Scholar to locate appropriate literature concerning the innovation strategies and approaches by Apple Inc. in pursuit of competitive advantage within the market and industry of operation. The research did not focus on the integration of the primary data while seeking to address diverse aims and objectives. Assessment Topics Apple Inc. is one of the most valuable business entities or companies in the world in relation to the market capitalization. For instance, Apple focused on leading the global technology market through development of innovative products such as the Mac, the iPod, the iPhone, and the iPad, which were essential in redefining their respective markets. Successful growth entities tend to have deep understanding of the customers’ issues or problems. Different organizations tend to focus on the adoption and implementation of diverse or various innovation strategies to increase the level of profits and revenues at the end of the fiscal period. Moreover, such entities concentrate on the usage of such techniques or mechanisms to enhance the image and reputation of the firm while developing quality relationship with the consumers. In this section of the report, the focus is on the four aspects. In the first instance, the research will seek to evaluate the sources of innovation at Apple Inc. Secondly; the research will focus on defining the organization’s strategic direction. Thirdly, the study will focus on the protection of innovation prior to assessment of how the organization manages new product development teams in pursuit of competitive advantage within the market and industry of operation. Sources of Innovation Apple focused on leading the global technology market through development of innovative products such as the Mac, the iPod, the iPhone, and the iPad, which were essential in redefining their respective markets. With the world expanding more globally, it is becoming increasingly difficult to dominate a particular or specific field, as well as break into a new market. Whenever one decides to illustrate examples of successful innovation, Apple is undeniably a significant aspect of the discussion or conversation. Apple is the largest technology company in the world through revenues and profits. Apple Inc. continues to achieve success because of the three essential sources of innovation with reference to industry and market structure, process needs, and changes or transformation in perception (Trott, 2008). These attributes enable Apple Inc. to compete effectively and efficiently against major competitors in the market such as Samsung and Nokia. In the past three decades, Apple Inc. has been able to develop and grow as the leader in relation to the consumer electronics through revolutionizing of the industry, as well as the market structure. It is essential to note the simple and specific strategies have substantial or significant change of succeeding in diverse or various industries of operation. In 1977, Apple Inc. focused on adoption and implementation of a simple vision. The vision of the company was to develop computers affordable to all consumers rather than focusing on the computer professionals in business, as well as higher education. Apple Inc. focused on the making its own business market in 1977 through the introduction or integration of the Apple II, which had the opportunity to incorporate VisiCalc spreadsheet program. The program was compatible with the office, thus enabling home users to enjoy the extra incentive in the course of procuring or purchasing the product. In 2010, Apple Inc. focused on repeating the trend or strategy through incorporation of the iPad (Afuah, 2003). This approach enabled Apple Inc. to create substantial demand for the product where there was no demand in the previous transactions. Steve Jobs had the tendency of constantly ‘pushing the envelope’, thus enabling the organization to modernize the market towards realization of the continued innovation success within the electronic industry. In addition, Jobs focused on integration of transformational leadership with the objective of motivating employees to work towards the achievement of the organizational goals and targets at the end of the strategic period. It is also essential to note that Apple has been able to offer innovative products on a constant basis because of the ability and potentiality to identify and assess process needs. Necessity is the source of all aspects of innovation. An organization has significant chance to perform and succeed within the industry through identification of the consumer demands within the market and industry of operation. Apple Inc. has focused on the exploitation of this notion to maximize the operations of the entire business model in the course of handling the demands and expectations, as well as preferences of the business entity. Steve Jobs admitted to do no aspect of market research while serving at Apple Inc. Nevertheless, he was at the forefront in pushing the organization to anticipate or predict where the market will be in future. The approach was essential in ensuring that the organization would not react to the current position in the society, but in relation to the anticipated market conditions. This is one of the most effective and efficient approach in the achievement of a sustainable competitive advantage. In the current context, the organization operates on the premises that consumers will express their needs through what they already know they require, thus the integration of the bigger, faster, and cheaper product. The ability of the organization to gravitate towards innovation rather than emulation has been essential in enabling the corporation to delineate its success prior to any attempts to its evaluation. Finally, Apple’s products operate as the sources of innovation because of the changes and transformation in relation to the company’s perception. Researchers have focused on documenting Steve Job’s original firing at Apple. Nevertheless, various researchers seek to overlook the determination, as well as the new focus Steve Jobs brought back to the organization in 1996. Steve Jobs was essential into the growth and development of Apple Inc. For instance, Steve Jobs was able to lead the organization towards realization of the dramatic increase in the sales through introduction of iMac and other products with appealing designs in accordance with the demands and expectations, as well as preferences of the consumers(Civi, 2013). Apple Inc. was able to adopt and incorporate quality products such as iPod, iTunes store, and iPhone. From this perspective, Apple Inc. has been able to branch out and improve its digital products and appliances, thus becoming one of the most effective multinational corporations in the modern context. It is essential to note that most entities or companies lead with the messages in relation to what they sell to the consumers in different markets across the globe. In addition, such organizations need to take the extra step to communicate the reasons or rationale behind their actions to develop such products and services in accordance with the demands and expectations of the consumers in the market and industry of operation. Diversification strategy facilitates maximization of the profits while reducing the costs of transaction and distribution of products and services aiming at addressing preferences and expectations of the consumers. Apple Inc. has focused on the creation of a market where consumers buy Apple products because of their great features. In this context, such consumers tend to buy into Apple’s vision of why they are great. Moreover, Steve Jobs’ innovative and transformational leadership have been ideal in the revamping of the image and reputation of Apple Inc., thus the opportunity to create a powerful brand with the potentiality of addressing the demands and expectations of the consumers in different markets across the globe. Conclusively, it is essential to note that Apple comes out as a globally recognized entity for the effective and efficient practices in relation to the industry and market structure, changes in the perception of the company, and identification of the process needs (Fisher &Oberholzer-Gee, 2013). These sources of innovation have been critical in enabling the organization to achieve the goals and targets at the end of the fiscal period within the market and industry of operation. Defining the Organization’s Strategic Direction In the last three years, Apple has been in a king of innovation purdah. Apple Inc. focuses on turning competitors such as Samsung over while also seeking to overshadow Google as the most innovative organization in the global context. According to the business practitioners, Apple has never been so innovative, which contributes to raised eyebrows on what the organization has in store for the consumers in pursuit of competitive advantage in the market and industry of operation. Apple has focused on incorporating new products such as iWatch, Apple TV, iPhone 5S, low cost iPhone, iPhone 6, iOS 7, and new streaming music service. The background to these aspects is the slowdown in relation to the smartphone market. According to the organization, innovation takes place at the intersection of hardware, software, and services, as well as content. It is essential to note that Apple Inc. seems to have new game changing products with the potentiality of creating new markets (Gawer, Cusumano, & Strategy, 2012). This is vital in the achievement of competitive advantage, thus the perfect platform to limit competition from the smaller and agile competitors within the market and industry of operation. Nevertheless, Apple Inc. is changing the rules of innovation. It is critical to note that ideas around disruptive, as well as sustaining innovation, which put the executives on the edge of their seats in fear of the smaller of the rising stars, are losing their relevance within the globalized economies. In the current state, it is highly likely that organizations decide to diversify their innovation portfolios. For instance, Google has Google Glass, Driverless Cars, Project Loon, hardware projects inclusive of a Samsung device, and Google Shopping Direct. Under the current management, Apple Inc. focuses on going in the same direction through launching multiple or various new projects. The approach concentrates in enhancing the company’s platform with the intention of enabling more people to build business around Apple Inc. such as the integration of iBeacons. Protecting Innovation It is the obligation of the firms to decide whether and how to protect their technological innovations. Protection of innovation is vital in helping the firm to retain control over it and appropriate the rents from the source of innovation in pursuit of competitive advantage at the end of the fiscal period. Nevertheless, sometimes not protecting a technology or innovation is to the firm’s advantage (Schoemaker, 2012). It focuses on encouraging others to support the innovation while increasing the likelihood of becoming dominant within the market and industry of operation. There are diverse benefits of the protection of innovation in the market and industry of operation. For instance, protection of innovation is essential in enabling business entities to generate greater rent during the strategic period. Similarly, it is possible to use the rents to invest in further development, promotion, and distribution (Prahalad&Ramaswamy, 2012). The approach is also essential in the provision of the control to the firm over the evolution of the technology and innovation compliments in pursuit of competitive advantage within the market and industry of operation while providing quality products in accordance with the demands and expectations of the consumers. Apple Inc. has focused on the protection of its sources of innovation through the usage of patents. For instance, the organization focused protecting its innovation in relation with the development of the Android system against exploitation or utilisation by Samsung, as well as other technology providing entities in the market and industry of operation (Hitt et al., 2012). According to the perception of the organization, the essence of innovation is vital in the creation of user experience hence the need for Apple Inc. to concentrate on the protection of the innovation to achieve competitive advantage against major competitors in the market. The approach to file the lawsuit against Samsung will broaden the landscape of competition. From this perspective, the approach will open the landscape a little bit more. For instance, Nokia and Microsoft have their own operating systems for the smartphone hardware. These entities might be waiting on the edges. Nevertheless, it is clear that the dominant competition, at least for now, is the Android versus the Apple operating system. This makes the case to be billed as the ‘patent trial of the century’, thus the perfect chance to enable two large manufacturers to go head-to-head in the battle with the intention of protecting innovation. In most cases, the influence of patents should be evident in the encouragement of innovation. In this context, Apple Inc. is trying the claim proprietary, which might limit the design and functionality options for all of the players within the market and industry of operation. Apple Inc. spent numerous years coming up with the perfect design, which might appeal to the users, thus the need to protect the innovation. From this perspective, Apple Inc. is focusing on illustrating its intention to the entire industry in relation to protection of the efforts and innovation, which have been critical in the transformation of the image and reputation within the industry and market of transaction. On the other hand, management of the products and services, as well as innovation tends to enhance the profitability levels while reducing the costs of operation. This is through assessment of the appropriate innovation while protecting the core competencies in relation to designing of products with the intention of enabling the organization to achieve competitive advantage against major competitors such as Samsung. It is the obligation of the organization to focus on the protection of their innovations with the intention of improving their chances of achieving success at the end of the fiscal period. Managing New Product Development Teams New product development teams are critical aspects in relation to the achievement of success with reference to the case of Apple Inc. in pursuit of competitive advantage in the market and industry of operation. This is because of the influence of the teams to generate the sources of innovation to offer the perfect platform for the organization to achieve its goals and targets while handling the demands expectations of the consumers with innovative approaches and designs. Similarly, such teams are critical in coming up with new ideas with the intention of addressing the demands and expectations of the organizations while focusing on exploitation of the resources for effectiveness and efficiency (Heracleous, 2013). Apple Inc. focuses on adoption and implementation of appropriate mechanisms and techniques in the course of managing new product development teams in pursuit of competitive advantage. In the modern context, HRM tends to be critical in the achievement of the goals and targets of the organization. Various product-development managers have the tendency of struggling to bring in projects on time and on budget. In this context, such managers might not have enough resources to execute the job. Managers have to push their teams to be more parsimonious with the intention of writing more-detailed plans while seeking to minimize schedule variations and wastes. In spite of these aspects, the work, which might prove effective in turning around underperforming factories, can actually hinder the efforts in relation to development of new products and services in accordance with the demands and expectations of the consumers within the market and industry of operation. Apple Inc. focuses on incorporation of unique tasks and policies in the course of managing product development teams. This is because of the need to address the influence of the constantly changing project or product requirement in accordance with the needs and preferences of the consumers. Failure to appreciate the critical differences has given rise to several facilities with the potentiality of undermining the influence planning, execution, and evaluation of product development projects (Oakey, 2013). Most of the facets or aspects of the product development teams are unpredictable. For instance, it is difficult to predict when the product will arrive, what individual tasks they will require, and how long it will take the teams to tackle the tasks in accordance with the relevant expectations. Organizations have the tendency of being familiar with the repetitive processes such as manufacturing and transaction processing where the work does not change much when handling the demands of the consumers. Management of the new product development teams tends to incorporate substantial element of freedom by the management. This is because of the need to enhance innovative aspects of the employees through delegation of decision-making, as well as exploitation of the available resources while addressing and satisfying the needs of the consumers. It is the obligation of the management teams to adopt and implement appropriate HRM practices to aid the achievement of the goals and targets of the organization through increased innovations. The company has been on the forefront in the integration of increased financial resources and investment in R&D with the intention of providing the teams with appropriate and accurate information in relation to the expectations and needs of the consumers. These elements are essential in the achievement of the goals and targets at the end of the fiscal period while focusing on the maximization of competitive advantage against major competitors such as Samsung and Nokia. Effectiveness and efficiency in the management of such teams has been the platform for the innovative nature of the organization while seeking to maintain the market leadership position within the highly competitive industry in the globalized economy. Data and Findings In the course of planning and executing this research exercise, the focus was on the usage of diverse research articles. This is through increased assessment of the information from academic, business, books, and websites concerning the innovation management with reference to the case of Apple Inc. while seeking to handle the demands and expectations of the organization. It is also critical to note that the organization has focused on availing substantial information on ideal internet platforms. From the sources of innovation perspective, the research notes the influence of changes in perceptions of the organization, products, market and industry structure, and increased protection of the innovation, as the main aspects of competitive advantage in the case of Apple. Similarly, the organization focuses on the diversification of its production and distribution in the globalized economy to handle the demands and expectations of the business entity in the market and industry of operation. Moreover, the organization concentrates on the implementation of critical elements in relation to the achievement of effective and efficient management of the new product development teams. These attributes have been essential in ensuring that the organization is on the perfect platform for the achievement of the goals and targets within the strategic period. Conclusions Conclusively, it is essential to note that Apple has been able to offer innovative products on a constant basis because of the ability and potentiality to identify and assess process needs. Apple comes out as a globally recognized entity for the effective and efficient practices in relation to the industry and market structure, changes in the perception of the company, and identification of the process needs. Apple has focused on incorporating new products such as iWatch, Apple TV, iPhone 5S, low cost iPhone, iPhone 6, iOS 7, and new streaming music service. Protection of innovation is vital in helping the firm to retain control over it and appropriate the rents from the source of innovation in pursuit of competitive advantage at the end of the fiscal period. Apple Inc. focuses on the usage of patents in the course of protecting innovation with the intention of achieving competitive advantage. Similarly, Apple Inc. concentrates on the management of the new product development teams with the objective of enhancing effectiveness and efficiency in the market and industry of operation. Categorically, it is ideal to note that innovation management is one of the core competencies aiding Apple Inc. in attempts to maximize profits in the globalized economy. List of References Afuah, A. 2003.Innovation management: strategies, implementation and profits. Trott, P. 2008. Innovation management and new product development.Pearson education. Prahalad, C. K., &Ramaswamy, V. 2012.The new frontier of experience innovation.Ima Hitt, M., Ireland, R. D., &Hoskisson, R. 2012.Strategic management cases: competitiveness and globalization.Cengage Learning. Fisher III, W. W., &Oberholzer-Gee, F. 2013.Strategic Management of Intellectual Property: An Integrated Approach.California Management Review, 55(4), 157-183. Heracleous, L. 2013. Quantum Strategy at Apple Inc. Organizational Dynamics, 42(2), 92- 99. Schoemaker, P. J. 2012. How to link strategic vision to core capabilities.Sloan Management. Civi, E. 2013.Marketing strategies to survive in a recession.International Journal of Business and Emerging Markets, 5(3), 254-267. Oakey, R. P. 2013. Open innovation and its relevance to industrial research and development: The case of high-technology small firms. International Small Business Journal, 31(3), 319-336. Gawer, A., Cusumano, M. A., & Strategy, D. S. 2012. How companies become platform leaders. MIT/Sloan Management Review, 49. Read More