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Design thinking and innovation at apple

A Harvard business case: Winner of a 2013 ecch Case Award. It describes Apple's approach to innovation, management, and design thinking

Design thinking and innovation at apple

  1. 1. Apple DESIGNTHINKING AND INNOVATION AT
  2. 2. StefanThomke Professorof BusinessAdministration HarvardBusinessSchool Authors: BarbaraFeinberg IndependentResearcher
  3. 3. Li Wei Technology commercialization manager Exploit Technologies PteLtd (ETPL) Agency for Science,Technology and Research (A*STAR, Singapore) Summary andpresentationby B. Eng&Ph.d (Engineering) Nanyang Technological University Singapore M.B.A. INSEAD Fontainebleau, France
  4. 4. A HarvardBusinessCase: Winnerof2013 ECCH Case Award
  5. 5. $600 $620Bn Share Price In 2012,Apple became the most valuable public-traded company in history Market Capital $100Bn Annual Sales
  6. 6. STRATEGICMOVES Apple’s success was NOT JUST the result of
  7. 7. MARKETTIMING or innate sense of
  8. 8. It is a surprising consistency in the waythe company worked the “APPLE WAY”Simplyput,
  9. 9. DESIGN #1THINKING
  10. 10. “ Those of us on the original Macintosh team were really excited about what we were doing. The result was that people saw a Mac and fell in love with it … There was an emotional connection ... That think came from the heart and soul of the design team BillAtkinson Memberof Apple MacintoshDevelopment Team
  11. 11. In mid-1970’s, computers were typically housed in discrete locations and only used by SPECIALISTS
  12. 12. COMPUTER AS A TOOL FOR INDIVIDUAL WORK To Helppeople “love” theirequipmentandthe experienceofusing it,levelofcomplexityneededto be reduced dramatically It was an unimaginable notion in 1970s
  13. 13. Start withDesign, from People need and want,Not limitedby technology,
  14. 14. Start withDesign, from People need and want,Not limitedby technology, Push theengineersto usethe same kindof creativityand innovation tomake it happen
  15. 15. Design isverywell thoughtthrough [BeyondFashion] Capacity andTechnologyto buildit isnotcommoditized [No Compromise]
  16. 16. User Desirability Market Viability Technology Possibility DESIGNTHINKING
  17. 17. details are scrutinizedSmallestof
  18. 18. until they found the key underlying principleof a problem, then built on it deepThe design team kept going
  19. 19. Design is not just what it looks likeand feels like. Design is how it works
  20. 20. Simplicityis theultimate sophistication THAT
  21. 21. strategy And #2execution
  22. 22. “You can see a lot by just observing Yogi Berra MajorLeagueBaseball Playerand Manager Photograph by Bernard Hoffman
  23. 23. 1976 1978 1981 1985 1997 Apple Founded Firstpersonalcomputer:Apple II IBM entered with itsPC thatcan be “cloned” Productsand projectsat Apple proliferated in consequenceof variousstrategies– and failings Apple marketshare keptdeclining,Theboard AXED Jobs
  24. 24. The technology development process became more traditional and resembled approaches found at other companies
  25. 25. “ Process makes you more efficient. But innovation comes from people... calling each other at 10:30 at night with a new idea … it comes from saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much… Steve Jobs
  26. 26. 1997 Steve Jobs returnedtoApple
  27. 27. Stop licensing program Eliminating 70%of new projects Shutting facilitiesand movingabroad Product line from 15 to 3 Sophisticated marketing Websitefor directsales Kept product development CompeteSecret Inventoryfrom monthsto a fewdays Excellence in Execution
  28. 28. Design the initialproduct as a platform: withanarchitecturethat will accommodate the development and production of the derivativeproducts Platform Strategy
  29. 29. Integrate customer’sexperience intoits designand development,a lotof it was empiricallydrives Working intimatelywith manufacturersand being completelyattunedto customers Iterative Customer Involvement
  30. 30. The importanceof designas a motivationto continuedinnovation ratherthan a static approach thatassumesa single conclusion Beautiful Product that Evolves
  31. 31. CEO as Chief Innovator#3
  32. 32. “The really great person will keep on going and find … the key, underlying principle of the problem. And come up with a beautiful elegant solution that works Steve Levy,Author The Perfect Thing
  33. 33. APPLE-JOBSinterchangeable terms
  34. 34. Jobs’ drivefor perfection is Apple’s drivefor beautiful elegant products and its superior operations
  35. 35. Jobs’ visionheld that Apple products weretobe personal tools for individual instead of ”enterprise solution”
  36. 36. Fromstrategyto productand servicedesignto packaging Jobs’ total hands-on involvement indecision-making
  37. 37. Bold Business experimentation#4
  38. 38. “The greatest artists like Dylan, Picasso and Newton risked failure. And if we want to be great, we’ve got to risk it too. Steve Jobs
  39. 39. Decision to move into retail and created with the same painstaking focus on details --When everyone wasmoving online
  40. 40. --against conventional wisdom of ”open platform,collaboration, community design, transparency” Develop and integrate itsown hardwareand software, and keep product launches secret
  41. 41. Constant learning, adaptation and evolution Array ofcolors Blackand White ClosedDeveloper Community OpenDeveloper Platform NotCompatibleforotherOS WindowsCompatibility
  42. 42. To Sum…
  43. 43. Theroot of Apple’s success
  44. 44. Design Thinking Strategyand Execution CEOas Chief Innovator Bold Business Experimentation
  45. 45. More presentations at www.innodiary.org

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