This document provides an overview of design thinking and innovation at Apple. It discusses how Steve Jobs focused on simplicity in design and the user experience when he returned to Apple in 1997. It also outlines Apple's excellence in product execution, platform strategy of creating integrated product families, and how Jobs drove innovation through an unconventional process of saying no to many ideas. The document notes how Jobs imprinted his visionary and experimental approach at Apple and pushed boundaries through bold experiments like the Apple retail stores. It concludes by reflecting on how Apple has maintained market leadership since Jobs' passing by continuing to develop products consistent with his culture of innovation.

2. 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

3. 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

4. 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”.

5. Think different
1997 - 2002

6. 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.

8. 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 ”.

9. 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

11. 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.

12. Video

13. 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.

15. 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

16. 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.

17. 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.

18. Innovation, Prod Development, & Exec
( Beautiful Products)
› Apple’s passion & close attention
to new materials and
manufacturing process
offers new opportunities for
product Innovations.

20. 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”.

21. 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.

22. 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.

23. 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.

25. Thank you
Questions & Comments are
Welcomed