Apple Innovation Strategy - Case Study Example

Apple’s Innovation

Apple is one of the most known innovative and outstanding companies within the globe dealing with the invention of customer electronics. The company is located in Cupertino, California. Some of the most sold products over the recent years from Apple include iPhone Smartphones, iPod, iPad and tablet computers. Just to say some of the unique features from Apple as a company, it is the second-largest producer of mobile phones and computers across the globe (Carew, 2008).

Apple compared to other big brands in the market has had a magnificent story. Unlike other companies that are created by family members with mutual energetic purpose, Apple was invented by two legends Job and Wozniak who met in 1971. At the time of their meeting, Jobs was 16 years and Wozniak was only 21 years of age. Steve Wozniak designed a processor to run on 6502 chip from metal oxide semiconductor (MOS) technology, Jobs being good in marketing, he formulated a marketing plan on how the processor would be sold. To set professional standards and for identity purposes, the two partners had to come up with a logo which was designed by Ronald Wayne.

Product and service

Looking at Apple as a company and the types of products manufactured, it is the most marketable business enterprise across the globe. Over the years, iPhone has been the most sold Smartphone based on its unique features that easily fascinates customers. The company, therefore, offers the best services/products regarding customer satisfaction.

Overview of the Apple’s Innovation Strategy

To have a competitive advantage in the market today a company has to pay attention to the details necessitated by innovation. Apple Inc. has been at the top of its game when it comes to innovation. Consumers have known Apple Inc. to be predominantly accountable for many of technological advancement in today’s cyber world. Apple has had possible to earn new business spaces and creating of new markets shares. It is perceived by Apple’s management that they should think regarding platforms and restlessly pursue the pace of innovation. Below are techniques used by Apple’ to push their innovations (Salem, 2012).

Innovative Business Models

To differentiate itself from the rest of other tech company’s Apple has invented various products and services that suit various personalities regard to their economic backgrounds. With the kind of reports they accumulate from their research departments, they are able to invent services that suit the needs of their customers. Their level of customer care has allowed them to retain customers for ages. While it is true that other companies lack business succession, plans Apple has a clear plan for its future (Salem, 2012).

Apple’s innovation system

Apple regards innovation as part of their culture and not a process driven. Apple has set up an office in charge of innovational functions. The system comes up with insights and leads that the company should adopt while designing new products. The systems foresee future needs of the market and try as possible to come up with ideas that will meet people’s needs and scare away competitors.

Apple Designs Process

Apple top management always keeps in their minds that customers are the core drivers of the organization’s success. Apple never leaves anything for chance. They tend to invent products that are user-friendly and services that elevate the experience of the customers.

Apple’s organizational culture and how innovation and creativity are communicated to the members of the organization

The way the culture of the Apple has been set has allowed the company achieve great returns. An organization's culture regulates capabilities in supporting change, policies, and emerging strategies. One of Apple’s crucial strength is its mode of culture contained by the organization. It is evident that the strength contained by the firm has seen the firm achieve diverse limits and challenges in the technology sect. When subjected to challenges the company tunes its culture to merge with the existing dynamics offered by the market. They believe that if they are able to embrace top-notch service delivery, then doors will open for them. The company never gets enough of what they dream of until they receive reviews from their customers that their products are excellent. Apple tends to think that they are made of creativity and as such, they will do away with any kind of product that does not seem to be innovative. They believe that customers love it when their needs are being meet in an extraordinary approach. Innovation is the reason why the company exists.

The company trains its employs to embrace innovations and coming up with new ideas that will elevate the output of the company. Steve Jobs invented Apple to be a company full of secrecy. Secrecy allows the company to safeguard its products against theft of information. Before Apple hires an employee, he/she must be willing to comply with the company’s terms of secrecy. Apple’s organization culture is characterized by moderate combativeness. Steve Jobs used to challenge workers of the firm by vetting them regard to what the company needs from employees.

Apple Innovation Process

Below are innovative procedures undertaken by Apple to allow them to produce great products for its market share.

Ideas

At this point, senior officials express their desires in designing of a new product and basic features about the new product are addressed. This step entails discussing the impact the product will have on the market and making decisions on paths to be undertaken.

Product Start- Up created

Upon definition of the new product, internal teams of experts are identified to work separately from the other team to center their efforts on the new product development. The teams are separated from the rest of the organization so that they can concentrate on their workflow.

Prototyping

The stage entails the creation of new product model. The stage helps in projecting how the product will appear. The innovation process helps the management to decide if they will continue processing the product or not.

Weekly executive team review

This process allows the top management to monitor and review the ongoing innovation. The step will allow the management gauge if goals are attained and if things are done appropriately, as it was planned before.

Peer design meeting

The design team and engineers come together to talk about the kind of focus to be instilled on the production process. The purpose of the meeting is to fuel innovation of ideas.

The Production Management

The purpose of this stage is to ensure that a number of products to be produced will be accommodated by the supply team.

Testing the product

When the production team achieves a better product, the product is offered to a team of experts for evaluation of its performance and request for modification if necessary.

Packaging

At this stage of innovation, the company settles in the best innovative technique that would foster the experience of its users. Apple has a clear plan on how the execute their functions. Their innovation allows them to meet the expectation of the market.

Different annual events or programs that Apple incorporated into its strategic plan to generate and collect ideas

Annual technology congress

The Congress allows the company to stretches its efforts and overshadows other companies’ to earn superiority among other tech companies. Congresses allow the organization to come up with new ideas that would trigger innovation among company employees.

Open Innovation Forum

This will allow Apple paint the kind of ideas they contain to experts. This will allow experts to recommend for possible alternatives and thoughts on how to make the product look better.

Annual technology exhibitions

Exhibitions will allow the marketing team of Apple to network with the right people thus making their cliental database grow. Apple engineers will be able to learn a lot from exhibitions and be able to incorporate the kind of ideas exhibited with their efforts at workshops. Engineers will be able to pouch new ideas and make them better.

Customer Response research to support the first three stages of the company’s innovation

Ideas

There is a need for product advancement to foster customers experience while using certain products. Ideas to be implemented by a company have to be of intelligent thoughts that will lock out competitors. Customers intentions are to purchase new products that have not been in existence before to be different themselves among their peers. As such, therefore, top management should resolve to any kind of idea that will meet the needs of its clients (Parnell, 2006).

Product Start- Up created

This allows the company to meet excellence in the way their products perform. The process leads to the production of a product that does not have any technical hitches. Competition is steered by bad reviews from customers. The stage allows additional ideas to be incorporated into the specification of the new product. With a great product outcome, customers will be motivated to come up with positive reviews that will trigger the kind of profits earned by the company.

Prototyping

The innovation process allows the production team to adjust the prototype if it does not meet the customers need. The process allows the production team to gauge whether the product bares similar traits with the kind of traits represented by competitor products. Prototyping helps in reflecting on the kind of mistakes made while in production and allows for appropriate measures to be enacted which its result will be products of a great product. With the creation of great productions, customers can be sure that the product of the company will meet their needs (Parnell, 2006).

The components of a business case that should be used by the organization to evaluate new product ideas

The problem

Apple for ages has been centering its efforts to offer solutions to the customer. Basing their solutions on real life occurrence is a great deal for any business. To identify the problems subjected to various customers, Apple should conduct systematic audience analysis by doing various researches. To achieve this Apple should use the information of target market and concentrate on the biggest challenge they encounter. Apple should be able to document to kind of frustration customers earn when they are not satisfied with certain service. Apple should incorporate their marketing objectives with the problems of their customers.

Solution options

For Apple to achieve an excellent success, it should design permanent solution to the needs of its customers. Apple should come up with solutions that competitor companies do not offer. Providing lasting solutions to problems will allow customers advertise the kind of services they get from Apple.

Economic Risks

Apple should be able to undertake risk analysis regard to the invention of a certain product. A product should not compromise on the kind of profits made by a certain company. Considering economic risk will allow Apple to gauge whether it is going to pursue the kind investment or not (Allen & Helms, 2006).

Alignment with the Company’s Goals

A new business idea should incorporate with the goals and aims of the company so that it does temper the focus the business has for success.

Types of metrics Apple should use to monitor and evaluate financials, processes, and success

Payback Period

Apple should consider using the payback period while accounting for their investment. Apple should account for the span of time they have been in business with a number of investments they injected into their company. This will allow them to determine if they are on the right track or not.

Internal rate of return

The internal rate of return will play a crucial role in Apple budgeting. Measuring of the company’s profitability will be attained by the metric. The internal rate of return will help Apple when making a huge financial decision.

Net Present Value

Net Present Value will help Apple INC to project whether any investment will increase the firm’s value. The metric will detect when operations are not smooth and efficient. The metric has the capability of telling at which time the investment will generate much income.

The tools that Apple uses to implement its innovation plan

Thinking different

This tool allowed Apple come up with exceptional adheres that have locked out competitors in the technology industry. With different product customer will have it easy differentiating the products of Apple from that of Competitor Companies.

Basing products manufactured on future problems

This technique has allowed Apple manufacture products that make customers be assured that their future problems have been taken care off by Apple.

Conclusion

It is impartially common for a business to dominate the market then disappear; it is almost rare for a business to dominate various industries for ages at once while continuing to pioneering in many others Apples has sustained all kinds of economic trials. The needs of the market are changing dynamically, every time you think you have invented an adorable product another product better than yours pops out of nowhere. Criticism is there to stay, to achieve noble goals in life someone should forge ahead and offer a deaf ear to criticism. Organizational structure plays a major role in a company’s success; every department should be considered when seeking for opinions to better a company. It doesn’t matter where one emerges from, so long as one is attached to what his/her loves success will come in all shapes and sizes, it is a matter of time and patience, the fact that Apple had a humbling beginning should foster and motivate us to be go-getters. We should pursue our dreams; no one is limited to success. We got the power, Apple did it before, and so everyone can do it