How did Apple do it? • Increase revenue more than 1,200% in less than 11 years… • Increase net profit more than 3,000% in less than 11 years… • Increase market cap more than thirty five times to over $300 billion and counting…
Innovations business drivers_share
Innovation as business driver“Innovation distinguishes between a leader anda follower” Steve JobsReal innovation will drive business today andtomorrowInnovation is the profitable implementation ofideas
Apple in 2000• Apple was considered ―dead alley by mostindustry observers and analysts• Apple stock was around $10• Apple market cap was less than thirtieth oftoday’s market cap
Apple Today“With quarterly revenue growth of 83%profit growth of 95 % we’re firing on allcylinders.We will continue to innovate on all frontsthroughout the remainder of theYear.” said Steve Jobs, Apple’s CEO April, 2011
Apple Milestones – Blockbuster Hits Apple M ilestones Blockbuster Hits Apple introduced iPod in 2001, iPhone in 2007 and iPad in 2010 each a gargantuan success!Apple.com Feb 2011each a gargantuan success!
How did Apple do it?Theres an old Wayne Gretzky quote that I love.‘I skate to where the puck is going to be, notwhere it has been. And weve always tried to dothat at Apple. Since the very very beginning. Andwe always will.’ Steve Jobs
The customer anticipation pyramid Pro Anticipates Active Reacts External driven Internal driven The company rules
Types of Innovations The Innovation SpectrumContinuous Dynamically Continuous DiscontinuousIncremental Breakthrough Transformational
Speeding up innovation adoption• Look for the laggards, and get them to tear the innovation apart. Their rejection will be the rules for the infrastructure that will make your innovation work• Find the late majority, and give them the ati recepi provided by your laggards. They will give you excruciatingly detailed description of what would make them adopt detailed enough to make fine blueprints• Figure out whether you can build the infrastructure to sufficient depth to attract a reasonable number of early majority as well as early adopters. If you can’t afford the investment, look around to see if anybody else can. Does anybody else have an interest in this kind of infrastructure? If not, then you’ll have to wait.
3 myths about innovation• Successful innovations are mostly accidents• Market research is effective for validation• Innovation is about being first on the market
one of the most quoted innovation credos “Build a better mousetrap, and the world will beat a path to your door.”Yet it’s also untrue.the credo focuses solely on the technology and not on the consumer.Consumers really don’t care about a better mousetrap. They care about fewer mice.