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Design thinking & innovation at apple

Apple's innovative culture based on Steve Jobs' entrepreneurial character

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Design thinking & innovation at apple

  1. 1. Design thinking & Innovation at Apple May2012 H A R V A R D | B U S I N E S S | S C H O O L A case study by BARBARA FEINBERG STEFAN THOMKE Presentation by Ahmed Soliman
  2. 2. Contents › Intro › Design Thinking › Simplicity in Design & use › Beyond Fashion › Innovation, Product Development strategy, and Execution › Excellence in Execution › Platform Strategy › Beautiful Products › The CEO as Chief Innovator › Bold Business Experimentation › Against Conventional Wisdom › Apple’s Future
  3. 3. Intro › In 1997 Steve Jobs returned after 12 years of being fired with a share worth of $ 5. › Future was uncertain. › In 2012 Apple’s share price $ 600. › Market capital of $ 550 billion. › Annual Sales exceeding $ 100 billion. › Most valuable Publicly-traded company in history. “They do what they do best and leave other things to others”.
  4. 4. Think different 1997 - 2002
  5. 5. Design Thinking › In mid-1970’s, computers were typically housed in discrete locations and only used by specialists. › Jobs’ goal was to design a computer that both supports and foster individual work instead of enterprise use. › Level of complexity needed to be reduced dramatically.
  6. 6. Design Thinking ( Simplicity in Design & Use ) › Focus on what people need and want. › Help people love their equipment & the experience. › First do the design, then push engineers make it happen. › Jobs’ design-sensibility: “ Simplicity is the Ultimate sophistication ”.
  7. 7. Design Thinking ( Beyond Fashion ) › It is an essence of customer experience by which design seems to happen from the inside out. › iMac wasn’t about candy-colored PCs, but a computer that’s really: Quiet Doesn’t need a Fan Wakes-up in 15 sec Best sound system Super-fine Display
  8. 8. Design Thinking ( Apple’s vision of Simplicity ) › The integration of Sophisticated features and Functionality with no contradiction or trade-offs. › No compromise between Simplicity of use & Functionality. › At Apple, Problems are moving targets not issues to be solved for once.
  9. 9. Video
  10. 10. Innovation, Prod Development, & Exec › Firm’s history and co-founder Steve Jobs had pivotal influence on the corporate performance. › It had nearly 50% of education market & artistic enterprises. › It had almost Zero penetration to Business market. › Product idea inception should be non-typical to avoid confusion and complexity.
  11. 11. Innovation, Prod Development, & Exec ( Excellence in Execution ) “The system is that there is no system, that doesn’t mean we don’t have a process. Process makes you more efficient, but innovation comes from people calling each other at 10:30 at night with a new idea” , “Its only by saying No that you can concentrate on the things that are really important” , “It comes from saying No to 1,000 things to make sure we don’t get on the wrong track”. -Steve Jobs
  12. 12. Innovation, Prod Development, & Exec ( Excellence in Execution ) › After 12 years Jobs returned and took immediate actions: › Closed 2 divisions › Eliminated 70% of new projects › Launched a website for Direct sales › Product lines reduced (from 15 to 3) › Shut facilities (moved manufacturing abroad) › Apple takes interest in material selection and how things are manufactured plus being completely attuned to customers.
  13. 13. Innovation, Prod Development, & Exec ( Platform Strategy) › Apple’s Innovation approach to streamline product portfolio. › A Platform strategy envisions a family of products at the early stages of Product Concept and planning. › Design with an architecture that will accommodate development & production of derivative products.
  14. 14. Innovation, Prod Development, & Exec ( Beautiful Products) › Apple’s passion & close attention to new materials and manufacturing process offers new opportunities for product Innovations.
  15. 15. The CEO as Chief Innovator › Research reveals that founders imprint their own personalities characteristics. › Jobs’ Design-sensibility reinforced hiring like-minded people. › Jobs’ had no formal Design training just as engineering (or business). › Jobs envisioned the importance to put individuals (problem-solving works rather than routine) before Organizations, which was radical in early 80’s when companies were looking for “Enterprise solutions”.
  16. 16. Bold Business Experimentations › Controversial idea to move into retail. › Similar attempts had spectacularly failed. › Internet-based business models “App Store”. › Entire industries were forced to accommodate Jobs’ vision. › Generated highest revenue per square foot in the entire retail sector.
  17. 17. Bold Business Experimentations ( Against Conventional wisdom ) › The Open source movement has been ignored by Apple. › While opened up to outside developer communities “App Store”. › Apple suppliers learned a slip of the tongue can forfeit business.
  18. 18. Apple’s Future › Most of 2011 Steve Jobs was on medical leave. › He passed away on October 5th 2011. › Apple sold 172 million devices rather than PCs. › It had 362 retail stores with <1million Daily visits. Since 2011 till 2015, Apple kept its market leadership by development while being consistent with Jobs’-inspired culture of unconventional way for innovation.
  19. 19. Thank you Questions & Comments are Welcomed