Design Thinking and Innovation at Apple - Case Study

1. Design Thinking and
Innovation at Apple
-Manas Ranjan Tripathy
MBA International Business

2. Apple
• During 1970’s, computers were used by Governments or Large
Companies and were mostly handled by specialists
• The notion that computers can be used for individual use was
unimaginable
• Apple Computer, Inc was founded in 1976 by Steve Jobs, Steve
Wozniak and Robert Wayne with a goal to create computers that
supported and fostered individual work
• Their aim was to reduce complexity to make potential customers fall
in love with the computer

3. Design Thinking
• Design Thinking is a solution-oriented method used by designers to
solve complex problems, and find desirable solutions for clients

4. Apple’s Aim
To create computers for individual use
Make computers simple to use
Make people fall in love with their products

5. Apple’s Approach
• Simplicity in Design and Use:
Figure out the needs of people
Achieve it technically through creativity and innovation
Take care of smallest details
No compromise on functionality
“Simplicity is the ultimate sophistication”
E.g.- The simple iPod design had unreplicated success
• Beyond Fashion:
Create product that can express itself on the outside as well
Tap into popular and fashionable trends
E.g.- G4 Cube

6. Apple Timeline
• 1976- Founded
• 1978- Apple II
• 1984- Macintosh Ad (Superbowl)
• 1985- Steve Jobs Axed from Operations Role
• 1985-1997- Varied Regimes (Dwindling Profits)
• 1997- Steve Jobs Returns
• 1998- IMac debut
Apple II
1984 Superbowl Ad
IMac

7. Product Development Strategy and Execution
• Early Years:
Products developed from scratch and had unique hardware with proprietary OS
Apple’s market share fell after IBM entered the PC Market and Steve Jobs was axed
• During 1985-1997:
Constant change in strategy due to change in regime
On account of competition from IBM-cloned devices, company was not able to decide
which products to develop and produce
Debates on licensing Mac OS and entering unknown segments like the Business Market
(dominated by Windows and Intel)
Some success like the PowerBook (1990)
Many failures like the Newton PDA
Approaches resembling other companies were seen
Complexity and confusion increased for Apple and its Customers (Too many products
developed)

8. Product Development Strategy and Execution
(After Jobs Return)
Excellence in Execution
 Immediately after return Licensing Program
was stopped, 70% of New Projects were
scrapped, manufacturing was moved
abroad and a website was launched for
direct sales
 Quest for “Insanely Great Products”
resumes
 Tim Cook assigned to clean up
manufacturing and distribution
Platform Strategy
 Create a Platform or Architecture that can
accommodate development and
production of derivative products (Both
H/W and S/W)
 Shared or Reuse of Assemblies
 High Efficiency, Lower Costs, Simplicity
 Benefits to Apple, its Suppliers and its
Customers
Customer Involvement
 Design based on Users needs and Desires
 Participatory Design
 More User Testing creates smoother
software
 Cut-Paste and editable Dialog Box were
innovations which cropped up due to
Customer involvement
Beautiful Products
 Passion and close attention to new
materials and manufacturing techniques to
continuously create beautiful products
 After making the successful ‘pristine white
iPod’, they went on to create colorful iPods
using different materials and a new
production technique

9. CEO as Chief Innovator
• Jobs ‘Design Sense’ was Confident and Refined
• He was committed to finding “a beautiful elegant solution that worked”
• Because of him Apple focused on problem solving for individuals when
the trend in 1980s was creating enterprise solutions
• Jobs had hands on involvement in decision making, from strategy to
product and service design to packaging
• Jobs was the Front Man to dramatically introduce products to the
customers in extravagant events

10. Bold Experimentations
• “Play it safe, that’s the most dangerous thing we can
do. We have to get bolder…”
• Entered Retail business at a time when everyone was
moving online
• Stores opened at prime locations with Tech Repair Guys
called “geniuses” who serviced phones at the “bar”
• The concept took off as foot traffic (Apple and Non-
Apple customers) were drawn to these elegant
surroundings that hosted beautiful products
• Apple Stores generated highest revenue per square
foot in entire retail sector

11. The Path Less Trodden
• Even as the rest of the world moved towards open source systems,
Apple still makes softwares and chips in-house
• They keep product launches secret
• Very few apps have been developed by Apple for its App Store
• Apple has eliminated features in the name of progress
• Still Apple is able to create and sell products people want by
constantly learning and adapting

12. The Way Ahead for Apple
• In order to sustain itself, Apple will have to continue to come out with
innovative products
• It should try to expand to newer segments as it has done before
• It should continue to stick to the ideologies of Steve Jobs and create
elegant solutions

13. What to take away from the case?
• Be solution oriented and innovative
• Adapt to changes
• Take Risks