Design Thinking and Innovation at Apple Apple's success is built on design thinking, simplicity, and excellence in execution. Under Steve Jobs, Apple prioritized understanding user needs and designing intuitive products. Jobs insisted on iterative customer involvement and usability testing. Apple also focused on beautiful design, platform strategy for future products, and timely launches of high-quality products. Jobs' vision drove Apple to create wonderful products through discipline, talent, and his leadership. Going forward, Apple will need to adapt and innovate more broadly to succeed without Jobs.

1. Design Thinking and Innovation at Apple
Think Different
Ishpreet Singh – 12P139 Karan Jaidka – 12P141
Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143
Manav Gupta – 12P146 Vikas Jain – 12P178
Group 1 – Strategic Management – II
PGPM 2012-14

2. Design Thinking
 Definition: Innovation powered through
understanding and the direct observation of
what people need and desire, like or dislike
 It is a form of solution-based thinking that
starts what is meant to be achieved instead
of starting with a certain problem
 Then, by focusing on the present and the
future, the parameters of the problem and
the resolutions are explored, simultaneously
The Goal
• To design a
computer that
fostered individual
work
• Customers would
have to fall in love
with computers
Simplicity in Design and Use
• Figuring out the needs of people
first
• Sensibility: Taking care of every
small detail
• Simplicity is the ultimate
sophistication!
• Apple‟s design sense was found
to be one-of-its-kind (iPod mini)
Beyond Fashion
• Going beyond superficial trends
and getting to the essence of
customer experience
• Inside-out design seemed „cool‟ to
millions
• No compromise between simplicity
of use and functionality
• Problems were treated as moving
targets

3. Product Development Strategy and Execution (1 of 2)
Troubled Times at Apple (1980s and
early 1990s)
• Apple faced massive competition from IBM clones
• Debate revolving whether to compete in the
„cloning space‟
• Business market dominated by „Wintel‟
• Many ideas failed to take off!
• Rapid proliferation of models confused customers
and increased complexities
Marketing
Requirement
Engineering
Document
User-
Experience
Document
This traditional approach was a
consultative process and it lacked
cohesion – It DID NOT work for Apple!
Excellence in
Execution
Platform Strategy
Iterative Customer
Involvement
Beautiful Products
The Right Way Forward for Apple

4. Excellence in Execution
• Jobs took immediate action upon his return
• Quest for „insanely great products‟
restarted
• Core Approach: Working intimately with
manufacturers and being accustomed to
customers
• Ensuring there was never a blip in sales
Iterative Customer Involvement
• Insistent on integrating customer
experience into design and development
• Participatory Design and usability tests
• Belief in the interface to be appropriate for
the users to create something
• More user testing implies smoother
execution
Platform Strategy
• Clear Platform Strategy: Design the initial product as a
platform, so that future enhancements/derivatives are
not developed from scratch
• Derivate products can be ramped up much quicker as
the platform allows the use of existing design elements
• Increases efficiency and re-usability
• Products require less repair and maintenance
Beautiful Products
• Importance of design as a motivation for
continued innovation
• Illustrated by the iPod being intensely
connected to the „pristine white‟ colour
• Paying close attention to new materials
and manufacturing processes
• Attempt to get „bolder‟ and not „play it safe‟
Product Development Strategy and Execution (2 of 2)

5. The CEO as the Chief Innovator
 Steve Jobs‟ „design sense‟ was
confident and refined and his
sensibility was dominant
 His temperament showed that he
had a larger vision in mind and would
go to any length to achieve it
 His vision emphasized on across-
the-board excellence, right from
aesthetics to superior operations
 Emphasis on the timely launch of
high-quality products
 The ideology was to put individuals
and their problem-solving efforts
above everything else
 Belief in simplicity being the ultimate
sophistication
 The End Result: „Beautiful elegant
solutions that work’!

6. Going Off the Beaten Track!
 Best Example: Entering the retail
segment and opening Apple stores
at a time when public wisdom (e.g.
Dell) suggested otherwise
 Customers visiting Apple Stores
found already configured products
with “geniuses at a bar”
 The bet was on curious non-Apple
customers, other fans, and the rest,
as they say is history!
 Apple did not believe in open source
and open platforms (outlier), but
always created products which
people wanted!
 Apple made progress by eliminating
things!
 They also believed in constant
learning and adaption!
An Apple Store
Apple Genius Bar

7. Innovation Model of Apple
 3 Factors
 Discipline
 Talent
 Steve Jobs
 It was Steve Jobs‟ ability to see the incredible possibilities
of technology along with his “Reality Distortion Field”
that drove Apple to create such wonderful products
 When it came to deciding which new directions for the
company to develop, Apple had a committee of one:
Steve Jobs
 Apple will need to adapt now
 To succeed going forward, they will need to develop a
new model for success and innovate more broadly

8. Looking Ahead
 Apple‟s approach has worked magnificently in the past, but, there is no
guarantee that it will succeed in the future!

9. Last Words of Wisdom
 Steve Jobs‟ last words to Tim Cook were:
 “I want to make this clear. I saw what happened when Walt Disney passed
away. People looked around, and they kept asking what Walt would have
done. The business was paralyzed, and people just sat around in meetings
and talked about what Walt would have done. I never want you to ask what I
would have done. Just do what‟s right.”