1. MOT 612 Innovation Management Spring 2010 Apple Innovation AnalysisBy:Name: Al-Motaz Bellah Alaa ElDin Al-AgamawiID: 102027
2. Since apple establishment in 1975apple is changing the world as wenormally know. In 1977 the AppleII kicked off the PC era, and anitroduced the first ever PC as we know today. The graphical user interfacelaunched by Macintosh in 1984 has been aped by every other computer since. The"desktop publishing," gave the world the laser printer, and pioneered personalcomputer networks. In 1997 and then again in 2001, Apple changed the dynamicsof consumer electronics with the iPod, and persuaded the music industry, thetelevision networks, and Hollywood to distribute their wares with the iTunesMusic Store. In 2007 Apples entry into the cellular telephone business with theiPhone with a new emazing user experience, distrupting the cell phones industryand making original cell phone market leaders trying to follow. This year in 2010Apple again through the Ipad is expected to change books and ebooks industry. Itis clear for any one that Apple allover its history is leading the innovation worldwide through diffusing to consumers a new, reliable, innovative and special userexperience solutions.On the other side Apple is one of the few companies who have passed through twocompeltely different management styles in it life time. In 1975 and until 19851,Apple was managed by the most innovative and powerful businessman2, SteveJobs. Steve Jobs management style is a combination of innovators andentrepreneurial management. In 1985 Friction began between the entrepreneur andthe manager and the board sided Scully3 and Jobs was removed from his1 In 1985, Apple was facing problems! Market share was going down everyday. Apple - relied on high profitmargins to maintain their massive R&D budget2 Bassed on CNN money rank: money.cnn.com3 Scully is Jobs successor as Apple CEO from 1985 to 1993
3. managerial duties. Both Jobs & Wozniak4 left Apple taking with them theentrepreneurship spirit and its soul. Scully a very traditional stewardshipmanagement style CEO, as he was coming from Pepsi, Scully started to change thevision and have more focus over operation, polices and procedures. In 1993, Scullywas resigned and Spindler took over the management as the second stewardshipand tradition CEO for Apple. Things goes worest and Apple is loosingmarketshare, profits and shares, In 1996, another traditional CEO, Apple Salesdropped and market share became 10% instead of 14%. During his era, there were2,500 more layoffs, and he freezed executive salaries, canned some projects, andcut R&D budgets by more than $100 Mil a year. In 1997 Apple board ofdirectores approached Jobs to return and managed Apple and another inflectionpoint had started. As a conslusion a company like Apple managed by two differentapporaches for a while of its life time having the culture of both innovative,entrepreneural and stewardship management. A mix of both is a good result foundin Apple culture through the different decades. Today Apple innovation ranks and consumer admiration rank is amazing. Based on CNN most admired company in America and most innovative company. Apple Innovation rank is number one, iPod, iPhone, iMac. Apple is the "i" word in action. Led by Steve Jobs, in the last ten years only the company hasdisrupted three different industries computers (the Mac), music (the iPod) andmovies (Pixar). In 2008, CNN most admired company rank, Apple hold the firstposition with an over all score of 7.42. First rank in innovation, people4 Stephen Wozniak is Apple co-founder and could be consider as the inventor or the technical Guro.
4. management and quality of product and services. Rank number three for usage ofcorporate assets, financial soundness, quality of management and longterminvestment. Finally rank number five for social responsibility.On the other side there are some main techniques and concpets allied in Applemanagement steel, in addition to a unique culture which helps the boast of suchcontinues achievement under the management of Jobs. The following are just someexamples of Apple culture and management techniques:Apple focuses on a select group of products, to think that a multi-billion dollarcompany only has 30 major products is astounding, because their neighbors at thatlevel of revenues have thousands of products in hundreds of different SKUs.Apple owns their entire system, they own the OS, they own the software, and theyown the hardware. No other consumer electronics organization can easily do whatApple does.Apple does not do market research, because everything Apple designs is based onJobs’ and his team’s perceptions of what they think is cool.Apple has a maniacal focus on perfection, they are willing to spend the money tomake sure everything is perfect, because that is their mission.Pixel-perfect mockups, pixel perfect means the designers of a piece of Applesoftware create an exact image—down to the very pixel for every single interfacescreen and feature.10 to 3 to 1, Take the pixel-perfect approach , Apple designers expect to design 10different mockups of any new feature under consideration. Then, by usingspecified criteria, they narrow these 10 ideas down to three options, until they
5. finally narrow down to the one final concept that truly represents their best workfor production.Apple thinks good design is a present, No other mass-consumer products companyputs as much attention to detail into the fit and finish of the box, let alone the out-of-box experience. Apple “wraps great ideas inside great ideas,” Apple’s OS Xoperating system is the present waiting inside its sleek, beautiful hardware; itshardware is the present, artfully unveiled from inside the box.Paired design meetings, Every week, the teams of engineers and designers gettogether for two complementary meetings.Brainstorm meeting, leave your hang-ups at the door and go crazy in developingvarious approaches to solving particular problems or enhancing existing designs.This meeting involves free thinking with absolutely no rules.Production meeting, the absolute opposite of the brainstorm meeting, where theaim is to put structure around the crazy ideas and define the how to, why, andwhen.