Inovation management in Apple company

The concept of innovation management in companies is accompanied by a

number of misconceptions. Champions for entrepreneurship argue that a company
needs to be creative or have creative individuals within it before it can do innovation
and that the concept of structuring an innovation process (i.e. managing it) is an
oxymoron. This viewpoint however fundamentally confuses the approaches and tools
that facilitate the innovation process on one hand, with the process itself on the other.
Stemming from this, the trend has been for companies to spend a great deal of time and
resource on expensive creativity tools and exercises that generate hundreds of ideas
only to be swamped with too many ideas for them to know what to do with. In reality,
unless a process for managing, prioritising, maturing and selecting the best ideas is in
place, then the process of innovation can be haphazard, unpredictable and ultimately
unsatisfactory for companies.
So, whilst creativity is a crucial element at the front end of innovation, it is equally
important if not more so, to ensure that the organisational process and innovation
culture elements are in place to ensure that ideas are well managed and innovation
thrives. Finally, ensuring that innovation is actively embedded in the strategy of a
company will allow the innovation process to be driven and managed in line with the
companys vision and objectives. In today's rapidly changing business environment,
managing innovation effectively has become an essential requirement for staying
competitive. Long term sustainability for a business may be determined by a company's
ability to competently direct innovation resources to address a constantly changing
market and economic environment.

How to implement it?

In terms of implementing an innovation management approach, three core
elements need to be taken into consideration by companies. These are: strategy,
organisational process and innovation culture. Like the legs of a tripod, all three are
interrelated and require the other to work effectively and efficiently to maximise impact in
a companys innovation process.
 Beginning at the top of the triangle, it is vital for a company implementing an
innovation management approach to explicitly embed innovation in the company
strategy. Ideas are most often generated by those working at their day-to-day jobs e.g.
the salespersons conversation with a customer that throws up an idea for a new way of
approaching a problem; or, the lab technician in the R&D department who tries
something new that unlocks the door to a whole new product/process or service line.
When these ideas arise they need to be effectively managed, nurtured and allowed the
space to develop into something more tangible. Too often ideas are killed by a lack of
support (or awareness) from company managers too focused on the day-to-day process
of running a company than the future strategic position and vision. In a company with
innovation embedded in its strategy, the top management (whether thats a
management board in a large company or the managing director in an SME) sponsor for
ideas arising and encourage the capturing of ideas when they arise. The company may
identify an innovation champion to oversee and drive this process at a strategic level
within the company (this person should be of sufficient seniority to report directly to the
top level of management). Ensuring that innovation is driven and sponsored from the
top-down allows ideas that might otherwise be drowned in the daily tasks to be drawn
out and given space to flourish. Underpinning strategy, it is important for a company to
develop an organisational process that facilitates innovation. Without a process, idea
originators do not know where they can go to capture their idea and turn it from a tacit
conversation into something that will be looked at systematically. The generation and
capturing of ideas requires processes to facilitate their maturation and to turn them into
viable projects just like any other business process. In implementing an innovation
management approach, companies need have a defined process in place that will allow
ideas to be generated and captured, to be prioritised and subsequently matured on a
consistent basis. This could be through the use of proprietary software that is available
or through a simple Excel workbook. When a salesperson brings a customer need or
idea back to the office they need to know who to share it with and what the process will
be for capturing it. The innovative idea can then be prioritised and developed by the idea
originator and others to the stage where it can be launched into the companys new
product development process. Or, alternatively, it can be killed having been
investigated without too much resource being spent on it. Developing a structured,
organisational process allows the strategic management to view the innovation process
from a high level. It will allow them to monitor progress against the strategy and ensure
that the company is moving in the right direction vis--vis the overall vision for
innovation.
Finally, bringing both the strategy and organisation together, companies need to
develop an innovation culture that will sustain the innovation process and take it from
being a one-off exercise to being a way of life for the company and employees. Building
a culture of innovation is often the result of seeing the first two elements of an innovation
management approach in action. It can take a while to develop a culture, but for
example by sharing positive and real life good news stories of innovation results
employees can begin to believe that their idea could also result in a similar outcome
(Other areas to consider could be bonuses for innovative ideas, annual prizes with
financial or in-kind incentives for most innovative idea etc).
 Ensuring that each individual team member has innovation embedded in their
daily job description and is consistently thinking about how they could do things
differently, engage with the process and improve their area of the company will allow the
development of ideas in diverse areas of a business. Finally, it is important that no idea
is seen as a bad idea or simply discarded because it will not work in the opinion of one
individual in the company. It is important to engender a culture that looks at each idea on
its merit, prioritising it and maturing it to allow it to develop. Without a managed
innovation approach embracing strategy, culture and process, even the greatest inventor
in the world, with the best game-changing idea is in your company, but with nowhere to
develop it, will see the idea die. Innovation space has to be structured into a company
and actively managed for it to stand the greatest chance of success. It can then be
driven by the strategy, facilitated by the innovation process and embedded by the
companys culture to allow innovation to flow freely in the organisational life day-to-day.
1
2 Decisions critical to successful innovation
Those involved with innovating will generally tell you that
generating ideas is not the difficult part of being successful
with creation and change. Numerous decisions will be made
that impact the progression and ultimate success of good
ideas. These good ideas need to be related to solving a real
business problem or growing an opportunity. Questions that
hint at these decisions include:
Is the potential innovation aligned with the
business strategy?
How does the proposed change generate value
for the customer?
What investment is required? Will the needed
investment generate an acceptable return?
What would be the impact of the innovation on
the current business? Could it disrupt existing
profits?
How long will it take for the new concept to be
realized and impact the business?
How might the innovation change or disrupt
current markets?
Will the new concept generate new revenue or reduce costs?
How will the innovation enhance existing or create new barriers to
competition?
Is there easy access to the competencies needed to realize the new
concept?
Many of the decisions associated with innovation management are common to the
choices associated with a new venture start-up. Conflicts created by some of these
choices points to some of the dilemmas associated with disruptive innovation.
3 Requirements for managing innovation
Having an innovation framework can be a key component to
continuous effective change that increases the capability of
the business to generate customer value. A critical part of
this framework will be the decision making process that is
used to funnel the potentially long list of ideas down to the
critical few that will deserve investment. For large
organizations, this is typically accomplished as part of a
stage gate process, but multiple innovation models exist.
Often these investments are considered as part of an
overall business investment portfolio decision.
Innovation promotes the need for constant change and renewal, potentially impacting all
areas of a business. Change is often resisted, necessitating appropriate incentives and
rewards to promote needed innovation. Many of the most enduring innovations have
required long term investment and staying power. This must be addressed as part of the
organizational decision making approach if an innovative environment is to be
sustained.
The desire to create long term competitive advantage will often lead to intellectual
property and innovation being closely connected. As a result, innovation processes will
often have requirements for generation of intellectual property that can protect
advantages created by an innovation investment.
4 Benefits that come from managing innovation
Innovation management is quickly becoming a critical requirement for enabling a
sustainable business. Some of the benefits for doing it well include:
Improved timing for market introduction
Ability to maintain or improve business margins
Enabling access to new customers and markets
Increased market share
Improved and longer lasting competitive advantage
Increased employee engagement and initiative
Improved customer satisfaction
Sustainable increase in shareholder returns

Innovation management in Apple company

 The Birth of a Brain Child Apple, Inc. started out as an idea of one man. This man
was Steve Jobs. Jobs and his friend, Steve Wozniak, were two high school drop outs
living in the Silicon Valley with extremely innovative and intelligent minds (Santa Clara
Historical Society, 2012). The pair teamed up, while working for Hewlett Packard, to start
Apple, Inc. from the basement of Jobs home (Santa Clara Historical Society, 2012). The
pair created the first Apple computer on April 1, 1976 (Santa Clara Historical Society,
2012). The rest, as they say, is history. The creation of that first computerand
subsequently the birth of Steve Jobs brain child-- is what started Jobs and Wozniak on
the path that has now revolutionized the way that many people all over the world use a
computer, search the internet, listen to music, and even talk on the phone. Apple, Inc. is
the perfect example of how a dream became a realityone step at a time
From Brain Child to Innovative Success. Ron Wayne, Steve Wozniak, and
Steve Jobs founded what would become Apple, Inc. in 1976; however, soon after,
Wayne left the company (Santa Clara Historical Society, 2012). Steve Wozniak
introduced and designed Apples first computer, the Apple I, to Hewlett Packard .HP was
not impressed and chose not to pursue the venture. Jobs and Wozniak did not let this
deter them from continuing to develop and sell their computers. In 1978, the Apple II
was introduced and sales went from 35,000 computers in 1979 to 78,000 computers in
1980. Then, in 1980, the company (which consisted of about 1,000 employees at the
time) went public and the stock offering did well (Santa Clara Historical Society, 2012).
In the 1980s and early 1990s, Apple did well in sales due to new versions of Macintosh
and their new market, the office computers. In 1984, Apple made the Macintosh
computer; the Macintosh made sales of 70,000 units soon after it was made. Shortly
thereafter, there was a major power struggle among executives. This power struggle
would lead to the departure of Jobs and some other executives.The combination of
sales success and departure of the companys leaders found Apple at a monetary loss
in the mid 1990s which can be directly linked to unfilled orders for the Power Macintosh
line of computers.
In 1997, Steve Jobs returned to Apple as an advisor when Apple, Inc. purchased
his new company NeXT, Inc. Jobs then became CEO of Apple, Inc. and introduced the
iMac, which sold 800,000 units by 1998. From that point on, the company did very well.
Jobs and Apple began introducing new, innovative products one at a time; the iPod was
unveiled in 2001 and the iPhone in 2007. In 2008, the iTunes store sold more music
than Wal-Mart (who was the leading music provider up to that point) and then the
innovation continued with the introduction of the iPad in 2010. The growth of Apple, Incs
music sales was in direct correlation to the fact that iPods sold 275 million worldwide
between 2001 and 2010. Jobs was consistently rated the no. 1 CEO due to the value he
added to Apple by coming up with these new products and, at this time, Apple, Inc. is
considered the worlds best company by many magazines . The Innovative Success that
is Apple, Inc. 2 Apple Inc.s Executive Management Team Apple, Inc. has experienced
several changes in the executives that run the company in the last couple of years.
Unfortunately, the company experienced the death of Founder and CEO, Steve Jobs.
This left the company looking for new leadership and direction.
 The company named Tim Cook as the new CEO of Apple, Inc. According to
www.apple.com, Cook was named acting CEO and member of the Board of Directors in
August of 2011. Appointing Cook as CEO seems to be a strategic and logical decision
as Cook was previously the COO for Apple and was responsible for sales and
operations worldwide, which includes being responsible for the management of Apples
supply chain, sales activities, and service and support in all markets .All of this
experience should prove to serve him well in his new position. In addition to this
experience with Apple, Inc., he also used to head Apples Macintosh division and was a
key player in the continued development of strategic seller and supplier relationships.
Before coming to Apple, Inc., Cook gained experience working for other computer
companies (Compaq and IBM).This experience in such previous roles has proven Cook
to be a flexible, capable leader for this company. Cooks education has served him well.
He has been able to use his M.B.A. from Duke University and his Bachelor of Science in
Industrial Engineering from Auburn University to good use.
Cook has a supporting cast of Vice Presidents that should be able to help him continue
with success at Apple, Inc. Eddy Cue, the Senior Vice President of Internet Software
and Services, is a twenty-three year veteran of Apple and was a major part in creating
Apples online store and the iTunes store. Craig Federighi, the Senior Vice President of
Software Engineering, brings years of experience from working under Jobs at Apple and
NeXT. Jonathon Ive, the Senior Vice President of Industrial Design, is known as the
driving force behind the look and feel of Apples innovative products as he is the man
that has lead the design team for the company since 1996 . Bob Mansfield, the Senior
Vice President of Technologies, has been responsible for overseeing several
breakthroughs in regards to Mac products since 1999 .
Peter Oppenheimer, the Senior Vice President and Chief Financial Officer, has
been using his financial background and education to Apple as a controller then the
CFO since 1996. Dan Riccio, the Senior Vice President of Hardware Engineering has
been with Apple since 1998 and is responsible for leading the engineering teams that
develop the Mac, iPhone, iPad, and iPod products. Phillip W. Schiller, the Vice President
of Worldwide Marketing, has twenty-fives of marketing management, the majority of
which has spent with Apple over the course of his two different stints with the company.
Bruce Sewell, the Senior Vice President and General Counsel, brings his over twenty-
five years of legal experience in the technology realm to his position in which he handles
all legal matters for Apple, Inc. Jeff Williams, the Senior Vice President of Operations
brings over twenty-five years of operational and engineering experience to his position
where he is responsible for the quality control and supply chain management.
With more than two centuries worth of experience in the industry combined when it
comes to their top executives, it is now wonder that Apple, Inc. continues to be an
extremely successful company. While Apple, Inc. has lost a visionary and innovative
genius with the loss of Steve Jobs, Tim Cook is a worthy individual to be named CEO of
this company. In his first quarter alone, Cook saw Apple post revenue of $36 billion and
a quarterly net profit of $8.2 billion as compared to the previous year at the same time
when the company posted revenue of $28.3 billion and a net profit of $6.6 billion. His
education, work experience, and supporting cast empower him with the tools to keep
moving Apple, Inc. forward. The Innovative Success that is Apple, Inc. 3 Apple, Inc.s
Vision As found on the companys website, Apple, Inc.s vision is the following: Apple is
committed to bringing the best personal computing experience to students, educators,
creative professionals and consumers around the world through its innovative hardware,
software and Internet offerings.
Apple, Inc.s Mission As found on the companys website, Apple, Inc.s mission is the
following: Apple designs Macs, the best personal computers in the world, along with OS
X, iLife, iWork and professional software. Apple leads the digital music revolution with its
iPods and iTunes online store. Apple has reinvented the mobile phone with its
revolutionary iPhone and App Store, and is defining the future of mobile media and
computing devices with iPad Apple, Inc.s Values As found on the companys website,
Apple, Inc.s values are as follows: We believe that were on the face of the Earth to
make great products.
We believe in the simple, not the complex.
We believe that we need to own and control the primary technologies behind the
products we make.
We participate only in markets where we can make a significant contribution.
We believe in saying no to thousands of projects so that we can really focus on the few
that are truly important and meaningful to us.
We believe in deep collaboration and cross-pollination of our groups, which allow us to
innovate in a way that others cannot.
We dont settle for anything less than excellence in every group in the company, and
we have the self-honesty to admit when were wrong and courage to change.
Apple, Inc.s Business Strategy and Goals As seen in the companys vision,
mission, and values, Apple In. has a clear strategy and set of goals. Apple, Inc. defined
their strategy and goals in their last annual report as the following: The Company is
committed to bringing the best user experience to its customers through its innovative
hardware, software, peripherals, and services. The Companys business strategy
leverages its unique ability to design and develop its own operating systems, hardware,
application software, and services to provide its customers new products and solutions
with superior ease-of-use, seamless integration, and innovative design. The company
believes continual investment in research and development and marketing and
advertising is critical to the development and sale of innovative products and
technologies. As part of its strategy, the Company continues to expand its platform for
the discovery and delivery of third-party digital content and applications through the
iTunes Store.
As part of the iTunes Store, the companys App Store and iBook store allow customers
to discover and download applications and books through either a Mac or Windows-
based computer or through iOS devices, namely iPhone, iPad and iPod touch.
In January 2011, the Company opened the Mac App Store to allow customers to
easily discover, download and install applications for their Macs. The company also
supports a The Innovative Success that is Apple, Inc. 4 community for the development
of third-party software and hardware products and digital content that complement the
Companys offerings. The Companys strategy also includes expanding its distribution
network to effectively reach more customers and provide them with a high-quality sales
and post-sales support experience. Now that Apple Inc.s strategy and goals have been
shown, a look at what affects the decisions of the executive staff in regards to the
general environment is needed.
Apple, Inc.s Industry According to the Apple Inc. annual report, Apple is engaged
in designing, manufacturing and marketing mobile communication and media devices,
personal computers, and portable digital music players and sells a variety of related
software, services . The company had been previously known as Apple Computer Inc.;
however, Apple Inc. removed the word Computer in 2007 to reflect the companys
focus towards consumer electronics and digital distribution . Apple Inc. now is in the
computer hardware, computer software, consumer electronics, and digital distribution
industries. In these industries, the key factor is undoubtedly technology. The popularity
of technological innovation can help a top company by creating competitive advantages,
but also bring more competitors to the market. Most of the products in the industry are
based on technological innovation. Companies in these industries have to introduce new
products or services frequently due to there being numerous active competitors.
Besides leadership that can address the strategy which creates the competitive
advantage of a company, investing in research and development (R&D) is also very
important. The product life cycle in these industries is shorter than any products from
other industries. One product can be out-of-date in less than one year without an
improvement from technology. All that facts show that technological innovation is a key
aspect of the industries that Apple, Inc. is in. Due to the constant growth of technology,
the industries that Apple is in are some of the most unpredictable industries nowadays.
 Before 2007, there was no touch screen phone that people could use by hand
and Apple, with its technology, changed the definition of a smartphone with the
introduction of their first iPhone . Furthermore, Sony had created the first portable music
player in 1979 and then more than eleven years later, the Japanese company changed
the music industry again by introducing a Discman in 1990 (Bertolucci, 2009). A mere
eleven years after the introduction of the Discman, Apple made a big change in the
industry with the first generation of iPods (Bertolucci, 2009). It shows that through
technology, an industry can change very quickly and no one can know what will be the
next level of technology or the next great technological breakthrough. In these
industries, several different strategic groups exist. Due to the popularity of technology
and the supply chain, most of the products in the industry can be provided globally;
therefore, price is the most frequent aspect to analyze strategic group in the industry.
Besides price, technology companies can define their core value by targeting different
levels of customers, such as consumer or business customers. They also can develop
their strategy based on their core product, such as digital or physical asset.Following a
The Innovative Success that is Apple, Inc. 6 strategic group analysis, Apple targets to
consumers in the high-tech market, providing both digital and physical assets. The
company defines itself as a high class technology company by setting a premium price
to most other competitive products. This high-tech company not only sells hardware, but
also develops its own software to support its line of products. In short, Apple Inc.s
strategy in the industry is clearly well defined and this helps the company stand out from
other competitors.
The Target Market/Customers There is no point to having great products if there
is no target market for those products. Apple, Inc. focuses on marketing to people with a
few different characteristics. Middle and upper class income people are a primary focus
for Apple because these demographics are usually willing to pay slightly more for a
better user experience because $500 for a laptop is not a stretch for them. Obviously,
technological innovators like Apple are going to focus on people who like to have fun
with technology; Apples extensive line of entry level devices and tools is beginning to
appeal to people of all ages and not just the coveted 18 to 34 year old demographic that
seems to be thoroughly enthralled by the company and its products. Thanks to iPods
and iTunes (and their impressive compatibility with all other Apple products), Apple is
able to target music enthusiasts from a large age demographic. Additionally, thanks to
their cutting-edge technology, Apple is also able to target professionals that work in
media and design. While Apples prices are generally higher (a new iPhone could be
$800 or a new iPad almost $2000), they are able to appeal to people of all ages and
demographics due to their reputation of impressive technological breakthroughs, while
still managing to focus on targeting the customers that were just discussed. Apple, Inc.s
Suppliers Besides popular products, Apple Inc. has been known worldwide as being
superior when it comes to supply chain management.
In the annual Supply Chain Top 25 report in 2010, ARM research ranked Apple Inc. a top
place in a list of retail and manufacturing heavyweights. Apple Inc. scored 8.21, which
was significantly higher than the second place, Procter & Gamble(P&G), which scored a
5.91. The key factor of Apples supply chain is effectiveness. The companys
unparalleled demand-shaping capability lets its supply chain record spectacular results
without sweating costs like everyone else, according to ARM research in 2007. Also
according to AMR, Apple "dominates because it consistently brings both operational and
innovation excellence to bear in some of the most competitive markets in the world.
From a supply chain perspective, the company's ability to ramp volumes both in
hardware and software while redefining what a mobile telephone is supposed to be has
been impressive". In order to archive an effectively supply system, Apple Inc. has
contracts with many different suppliers in the world. Most of their important
manufacturers are in China for low cost purposes. Their LCD panel suppliers are from
Korea, which is explained as a quality control issue. All of this shows that the Apple, Inc.
supply chain is very active, effective, and efficient.

Why Apple Win

The iPhone, iPad, and all the other I-products will keep leading the world's media
product wants. Apple is the No.1 wealthiest company in the world now(at least in
regards to the fact that they get the most cash on hand show in their balance sheet).
These products have helped to create an Apple empire in the history of business. Apple,
Inc. grows faster than any other company. The rate of their revenue increase is over
50% in the most recent three to four years; sometimes the revenue increases even
double this number. Apple's previous CEO, Steve Jobs, nor Apples current CEO, Tim
Cook, has not done anything wrong to slow down this amazing growth. Apple just keeps
hitting new records. The third quarter of 2010 saw the company hit 15.7 billion in
revenue; a mere year later, that revenue almost doubled when it reached 28.57 for the
same quarter. This is exceptionally impressive in regards to a revenue increase during a
non-holiday season. Meanwhile, Apple Inc.s cash reserves managed to total more than
the entire net worth of many small countries, as well as the U.S. Treasurys. All the Apple
products did well in sales in regards to their own markets.
 Horizontal Approach (hardware) PC: Apple Mac VS HP In the personal
computer market, Apple did not perform as well as its other products. As seen in the first
quarter of 2012, "the research company Canalys reported HP shipped 40,000 more
client PCs than Apple in the first three months of the year. Apple had passed up HP in
regards to sales of products in the fourth quarter of 2011, but 15.43 million were Apple
iPads and only 5.2 million were Macs. If tablets do not count as PCs, HP will be the
sales champion in PC market. Computer Pricing is the main problem when it comes to
the Apple Macs difficult quest to beat HP. For just $350, you could get a laptop with a
DVD/CD-RW drive, 4GB DDR3 SDRAM a 17.3-inch widescreen display, 500GB hard
drive and built-in webcam from HP (Kan, 2012). These are all the basic features for
people that just want to surf online and check e-mail; it is difficult to get a person to
spend $1,000 to purchase a Mac that does the same thing as this significantly cheaper
HP. Despite the significantly higher price, Apples desktop computers were rated at a
better-than-average score in seven of nine different categories and readers were very
satisfied with the overall reliability of Macs themselves; Apple received high scores on
two different measures regarding customer service and Mac Book notebook computers
received high marks as well, with a better-than-average score in six different
categories. The high cost leads many customers to choose other, more cost-effective
computers. It has been said that the "IPAD changes everything" as it becomes a new
area of the computer industry; Apple CEO, Tim Cook, said he believed "that there will
come a day that the tablet market and units sold is larger than the PC market".
Tablet: iPad VS Amazon Kindle Fire Apple tablets are top in customer satisfaction,
followed by Amazons Kindle Fire, but Samsung tablets are related below the industry
average, as found in a J.D. Power survey (refer to exhibit 6) (TWICE, October 2012).
Arguably, "Amazon Prime, the $79-a-year subscription service that gives customers free
two-day shipping and access to movies and TV shows, creates Amazon addicts: In the
year before a customer joins, he spends $400 a year, on average; in the year after,
$900. Prime growth exceeds 50% annually (TWICE, October 2012). While the PC
market may be gasping for air, the market for new tablet hardware is growing more
intense. In the latest challenge to Apple's dominance in the fast-growing market for
tablet computers, the New York Times reported in early November of 2012 that Amazon
is preparing a larger version of its pint-size Kindle Fire tablet computer (the Kindle Fire
now has a 7-inch screen and a starting price of $199). Apple, meanwhile, is preparing a
version of its iPad tablet computer with a 7.85-inch screen and a cut-rate price tag, Nick
Winfield and Nick Bilton reported for the Times. Apple already faces fresh challenges
from Google, which began shipping the Nexus 7 tablet this month, and Microsoft, which
unveiled a pair of tablet computers they named Surfaced last month .So far, at least,
Apple has managed to vanquish all challengers. Research in Motion's Playbook,
Hewlett-Packard's Touchpad, and Dell's Streak line of tablets have all struggled as sales
of Apple's iPad continue to surge . Apple has created a differentiated core is an effective
combination of products and services.
 This differentiated combination mode has been a miracle for Apple, Inc. in recent
years, as it is typically reflected in the combination of two: IPod + ITunes or IPhone +
App Store. These two models also help Apple iPad when it comes to the decision of
purchasing it or the Kindle fire. IPOD + ITUNES Combination Apples iPod and iTunes
are two different products that came out in January and October 2001 respectively. The
iPod experienced a series of innovative upgrades since its inception, as many as
dozens of different versions of the development have been unveiled from then until the
2008 3 Series. Its unique fashion design in appearance is completely different from
other types of MP3 players. Price differentiation is reflected in the global uniform pricing
and never for sale; advertising investment for enterprises to create a good market image
and brand of long-term high-cost attractive, and so on, these innovation, differentiation,
global sales of the iPod player slightly increased from 50 million per year on the basis of
2006 cumulative sales of over 160 million U.S. dollars. The iTunes online music store is
a powerful music manager of software, the key additional feature that consumers value.
The iTunes online store sells digital music for $ 0.99 a song to make it, from the
outset, distinguished from other music CD sales based retailers. Just in two years since
the beginning of 2006 to the end of 2008, a record five billion songs were sold The
Innovative Success that is Apple, Inc. 10. Not long after that, it was decided that iTunes
was to enter the fields of film, television, games. In statistics found by the market
research firm NPD Group, iTunes ranked first in the first half of 2008. The iTunes
leading both strong, driven from the player market iPod also comes from the nation's
first network of the iTunes music retailer status. Approximately 2900 people went
through the network to purchase legitimate digital music products in 2007; that same
year, 48% of young people no longer bought CDs and with this change in trend, the
rapid rise of digital music has weakened the status of the traditional music retailers.
Although the competitors who have established online music stores exhibit low prices in
an attempt to attract users, the continuous improvement of the software features a huge
music library of more than 800 million songs, give up copyright protection technology,
and other measures in a timely manner, which still makes iTunes to keep the most
popular the online music store position.
Smartphones Apple iPhone VS Google phone Google powered 12.5 billion of
19.5 billion total searches in the U.S. in August 2011, according to comScore. Google's
dominant position in search is the platform that lets it aggressively target mobile, social,
local, and other new frontiers. An analyst from financial research firm Global Equities
Research has some bad news for Microsoft (MSFT) and Research (RIMM). In an
interview with e-Week, Trip Chowdhry predicted that Apple (AAPL) and Google(GOOG)
will control 98% of the mobile market by the end of 2012.Chowdhry went on to say that
there will not be any third spot leftNokia, Microsoft and RIM will struggle in the
remaining 2 percent of the market. Research firm IDC in August of 2012 found that
Google and Apple controlled 85% of the global market, however Chowdhry defended his
bold prediction. The global telecommunications industry has become a core industry in
regards to the world economy since the mid-1980s; the mobile phone industry has
unquestionably become the most important sector of the telecommunications industry.
As two of the leading companies in the mobile industry, Apple and Google each want to
win the final game, and which mobile platform (iOS or android) will attract more
customers' eyes will be the key to success. January 9, 2007, Apple introduced the
smartphone known as the iPhone. Since that time, Apple has introduced, in the design
of the iPhone, a multi-touch touch screen, gravity sensor, electronic compass with GPS,
and a camera, as well as a unique interface design. These phone features put the
iPhone far ahead of other brands of phones on the operator interface at the time. The
fiscal year of 2007 saw the first quarter to third quarter of sales leap from 270,000 to
1,120,000; this leap was a sales growth rate of an extremely high 314.44%. The launch
of the iPhone helped Apple achieve success in personal phone innovation. The success
of the iPod plus iTunes, lead Apple to see the enormous potential of the terminal content
services market. In order to innovate strategically, Apple began the transition from a
manufacturer of just consumer electronics to a provider of terminal-based
content.Google, Inc. is an American multinational technology company that is committed
to the field of Internet search, cloud computing, and advertising technology. Google has
developed a large number of Internet-based products and service, but the companys
main profits are from Adwords and other advertising services. After the acquisition of
Motorola, Google designed and released a phone that has since been a challenger to
Apples iPhone The Innovative Success that is Apple, Inc. 11 series. In an unexpected
move, Google announced that they had signed an acquisition agreement with Motorola.
According to this agreement, Google was to pay $40 per share of Motorola Mobility
stocka total of $12.5 billion in cash. What is the effect of this acquisition? This
acquisition allowed Google to launch the Android phone rather early on, but the
company is yet to set foot into the hardware industry. Instead, Google provides the
software for companies like HTC and Samsung. At this point, Google is not a hardware
vendor. Unfortunately, Google did get itself into a legal battle (which it lost) with Apple,
Inc. due to the Android operating system that it created to be used in the HTC and
Samsung phones due to this systems similarity to the iPhones system itself .
Google's acquisition of Motorola Mobility should eventually lead to the logical
production of mobile phones. Google's latest version of the Android software will be
used in the first Motorola phone that is released since the acquisition; this "super phone"
will not be done overnight because it will be a combination of hardware and software
that the company wants to be sure is paired perfectly.
 Vertical approach (software): Operating system VS Microsoft Apple has had
some great success when it comes to its computer operating system. The main rival for
Apple, Inc. in the computer software world is Microsoft. However, when Apples
computer, tablet, and smartphone operating systems are combined in usage, Apple, Inc.
really is far above the competition. This complex domination can be explained as
follows: According to the latest monthly totals from web metrics firm Net Applications,
global usage of Apples (AAPL) Mac OS X platform overtook that of Microsofts (MSFT)
Windows Vista in the month of August. The Cupertino-based companys operating
system accounted for 7.13% of worldwide usage while Vista fell to 6.15%. The latest
version of OS X, known as Mountain Lion, has seen extremely fast adoption and already
has a worldwide usage share of 1.34%. In the same month, Windows 7 finally
surpassed Windows XP to become the most popular operating system in the world. The
firm also found that Apples iPad and iPhone accounted for 3.37% and 2.42% of Web
traffic respectively, while the Android operating system made up only 1.71% of traffic.
Apples MAC OS X system also has a really good performance in mobile technology
area. WINDOWS MOBILE (WM), the SYMBIAN and the PALM smartphone operating
systems are designs that feature low phone CPU and various memory issues due to
unresolved defects such as the WM system is too complex, the SYMBIAN system is
slow, and the PALM system is not stable. Apples iPhone directly uses the interface
optimized desktop computer operating system MAC OS X, which enables the
smartphone to exhibit all of the advantages of the MAC OS X operating system: running
quickly, beautiful interface, and easy to operate. Unlike other smart phone systems to
streamline the office, the iPhones fully functional e-mail software and SAFARI Web
browser accounted for more than 70% of the mobile Internet browser market.

Apple Marketing- Brand Name and Image Apple is very successful with their
marketing techniques. According to Technology news, it is believed that Apples
strongest competitive advantage is its marketing strategy: The Company simply seems
to understand what will get people excited about its products, and then it executes on
that vision. Instead of talking about product features or technology, Apple is showing
that they care about their consumers lifestyles. They advertise their products to offer the
better life to customers and make the trend of aesthetics and lifestyle appeal important.
All of Apples products were launched with these attributes and outstanding functionality.
Apple is a unique electronic manufacturer because they have an approach of product
launches that is more similar to fast moving consumer goods companies with new
products every six months or at least once a year. When a new product is launched, that
product is supported by an advertising campaign, and the end result is to generate a
large amount of sales. This approach makes people excited about Apples products and
keeps Apple as a leader in the technology industry.
Technology innovation is not only an opportunity, but also a threat for Apple,
Inc. Although Apple gained competitive advantages through technological innovation,
the company also has been faced with more innovative competitors. Samsung has used
that advantage and become one of the strongest competitors of Apple,Inc at this time
(Simonsen, 2012). The growing of technology provides more chances to companies to
join the high-tech market and shorten the life-cycle of a technological product.
The Real Innovation
While we most often talk about Apple products as the innovation, the real
innovation in this case is the one to which most retailers and consumer facing
companies pay little attention, the experience. And it's where Apple has always played to
its strengths by creating an experience of community, relationships, human-centered
design, and the projection of a higher purpose that includes much more than just
technology. The fact is that experience is always the greatest and easiest source of
potential innovation--it's the one place where you can deliver near infinite variety; and
it's also where you have the opportunity to build the strongest bonds with your
customers.To quote the Late Maya Angelou, "I've learned that people will forget what
you said, people will forget what you did, but people will never forget how you made
them feel."
Think about that quote as it applies to your retail experiences. If you're like me I'll
bet that what comes to mind most often is how you felt after sub-par experiences. The
frustration of not being able to find an associate in store to help you, or, when you do,
having them tell you they have no idea how to answer your question. Or perhaps waiting
in a long checkout line when half a dozen registers are standing idle and unmanned. We
all have vivid memories of our most horrible customer experiences. It's much harder to
recall the wonderful, even delightful, experiences you've had, because there are
typically so few of them. What Apple is doing is nothing less than revolutionizing the
retail experience and the way you feel about shopping, not by adding products, but
instead, by creating a place that immerses you in Apple's mission to build its products
around its customers' experiences. With outdoor gardens, fountains, panoramic views, a
6K monitor so large that it could double as the screen for an old time Drive-In theater, no
barriers to stand between Apple employees and customers, and live entertainment, you
are part of something that is part theater, part showcase, part community, and all Apple.
I have no doubt that many companies will look at this and say, "What a waste!"
Yes, that's exactly what people said when Howard Schultz founded Il Giornale in 1985,
which then acquired and was renamed Starbucks. Starbucks certainly had some
innovative products, but let's face it, it's coffee! What Schultz really innovated was the
coffee drinking experience, creating a brand that you could personalize to your hearts
content--Grande, half almond, half soy, triple shot, latte, no whipped cream, a shot of
caramel and sprinkle of cinnamon. And all this in a welcoming environment that for
many of us became our second home or office! JetBlue and Virgin did it with air travel.
Uber has done it with transportation. Amazon has done it with books and online
shopping. Experience is the king of innovation because it puts the customer at the
center of the relationship.
 That's Apple's mission with its retail makeover and why Ahrendts was brought
over from Burberry, where she was a transformational CEO, for a compensation
package that ranges between $50M and $100M a year. Her objective is to alter not just
retail but the fundamental relationship with each customer. It's also worth noting that
Apple most needs to up its game when it comes to customer relationship. In no small
part because product innovation is getting so much harder. Scaling a behemoth like
Apple at it's current size is going to be Apple's greatest challenge so far. Doing that in
the absence of a blockbuster innovation or a multi-billion dollar acquisition, means
doubling down on the customer relationship. Not coincidentally Apple's services
business including Apple Music and Apple Care are among the fastest growing parts of
Apple's business. At the same time retail is changing dramatically. What's clear is that
the old model of retail where a store was the fastest and most convenient way to buy
isn't going to hold up against online. There has to be much more value for the customer
as part of the in-store experience.
So, if you've ever wondered why Apple puts so much emphasis on in store technical
support when they could probably do most support over the phone or online, consider
the impact and value of an in-person experience. If you meet with a Genius you will
leave suitably impressed with his or her interest in your problem while sharing a mutual
love of Apple. You're more likely to want to add on an extended service contract with
your next purchase, and your loyalty is rewarded. What began a problem ends as a fond
memory.
I for one, look forward to my Apple encounters in the same way some people look
forward to going to the spa or a spiritual retreat. I'm not shopping, I'm communing with
my inner geek. For those few moments I'm cool, young, and so totally with it. (Okay,
maybe that says more about me than Apple, but I doubt I'm alone on this.)

Investing In Experience
It's no surprise then that Apple picked Dubai to showcase its new Apple experience.
Dubai itself is an experience. If you haven't been the best way I can describe it is to
imagine Disney World on the scale of NYC. It's a city that is less than 40 year's old.
Everything is brand new and glistening, every plant and shrub is perfectly trimmed,
roadways and infrastructure are state of the art. Technology is at the center of
everything here, from the the Burj Khalifa, the world's tallest and smartest building, to
the NORAD like command and control rooms used to manage the city, to the touch
panels that run your hotel room.
Why invest so much money in experience? Because experience is what we most
remember. Nobel laureate Daniel Kahneman founder of behavioral economics, talks
extensively about how our experiences are shaped by our memories. In his widely
viewed TED talk he describes how it's possible to have a lousy experience but
remember it as much better than it was if the last memory of the experience is a good
one.
So, why invest in a real store when you could do everything online? Because that gives
Apple the chance to make sure that whatever your experience with the product, over
which they have less than total control, you will still be left with a memory of a great
experience in the store with a living, caring Apple employee. It's also critical to note that
Apple is doing its best to make sure that its retail experience reflects the core values of
the company. This is a showcase not just for products but for a culture. One of the most
inspiring proofs of that is their recently revised store Credo.
Enriching lives

We are here to enrich lives. To help dreamers become doers, to help

passion expand human potential, to do the best work of our lives.

At our best

We give more than we take. From the planet, to the person beside us. We
become a place to belong where everyone is welcome.
Everyone. We draw strength from our differences. From background and
perspective to collaboration and debate. We are open.
We redefine expectations. First for ourselves, then for the world. Because
we're a little crazy.Because "good enough" isn't. Because what we do says
who we are.
We find courage. To try and to fail, to learn and to grow, to figure out what's
next, to imagine the unimaginable, to do it all over again tomorrow.
At our core

We believe our soul is our people. People who recognize themselves in each
other. People who shine a spotlight only to stand outside it. People who work
to leave this world better than they found it. People who live to enrich lives.

The bottom line is that experience is often the most overlooked yet most
impactful area of innovation. It sounds pretty simple, right? It is. So what are you doing
about it? You may not have the resources to even build a storefront, but every single
customer touchpoint you have should be looked at as an opportunity to create an
experience that delights your customers and brings them back for more. Whether it's
face to face or not, all communications, whatever the medium, are chances to create an
experience, to reinforce who you are as an organization, to illustrate how much you
value your customers, and to tap into the single greatest source of innovation.

Apples greatest innovation is its ecosystem

 Apple cant innovate anymore, say the critics. A chorus of complaints so common
that it received a remarkable "Can't innovate anymore, my ass response from Apples
Phil Schiller. But that was three years ago, before the launch of quasi-controversial
products like the Apple Watch, the single-USB-port MacBook, that chubby iPhone
battery case, and some awkwardly charging peripherals. The complaints have grown
louder and more insistent ever since. The trouble I have with the innovation argument is
that its often limited to critiquing individual pieces of hardware. I hear it more frequently
now that Samsung has matched and even surpassed Apple in terms of smartphone
industrial design (exploding batteries notwithstanding). The unspoken subtext is that
Apple, post-Steve Jobs, is incapable of producing another Mac, iPod, iPhone, or iPad
moment. Heres a comment posted yesterday on The Verge that perfectly encapsulates
the criticism:
"Forget the iPhones disappearing headphone jack and digitized home button.
What about Apple no longer standing as an innovator of exciting new products and
designs, having morphed into another consumer electronics behemoth? Somebody, if
not Tim Cook, needs to put the focus back on delivering the best products, not this
tiresome cycle of incremental upgrades."
Yes, iteration is boring. But its also how Apple does business, quite successfully I
might add. It enters a new market and then refines and refines and continues refining
until it yields a success like the iPod nano, the MacBook Air, the glass and aluminum
iMac, the iPhone 6 Plus, and even the iPad Pro thats become a stealth hit with
businesses. I agree that the iPhone 6 and 6S (and the iPhone coming later today,
judging by the leaks) are visual turds next to Samsungs latest designs. But a single
device judged in a vacuum isnt meaningful to most people anymore. We may long for
the excitement of revolution, but what we really want is the comfort that comes with
harmony. Thats true for me, anyway.
A device is only the starting point of the experience
In 2016 a device is only the starting point of an experience that will ultimately be
ruled by the ecosystem in which it was spawned. The Walkman was a great product, for
example. What it lacked, though, was an ecosystem that kept users from walking away
when somebody finally built a better mousetrap. Apples been building and nurturing its
ecosystem for years through a process of curation and licensing. To understand the
ecosystems power, just look at how Apples hardware partners helped fix the iPad Pros
keyboard. And Apples steady evolution of services like iCloud and Apple Music, and
cross-platform software features like AirDrop, Handoff, Find Friends, Universal
Clipboard, and Auto Unlock mean iPhones are at their best when used with other Apple
gear like MacBooks. Id argue that Apples ecosystem is the companys greatest
innovation yet and one that many cant easily walk away from, even if they wanted to.
 My household is an Apple household, not so much by choice but by a slow 16-
year evolution. Im from the halo generation, where my first iPod caused me to buy my
first MacBook, which led to an iPhone and then an iMac and then more iPhones, iPads,
and finally, an Apple TV. And all this Apple hardware begat dozens of compatible
accessories including speaker docks, cradles, cables, and Kickstarter doodads, not to
mention hundreds of apps and other content purchased in Apples stores. Its true, Im
now a victim of vendor lock-in as are my kids whove inherited older devices. So maybe
what Im describing is akin to Stockholm syndrome. But I dont think so, not yet, anyway.
Nevertheless, Im at the point where I judge the best device to be the device that works
best in the ecosystem where I live.
Im not looking for excitement from my phone
My family thrives in the Apple ecosystem. So, clearly Im not looking for an
iPhone revolution. Im certainly not looking for disruption. What I want is rather simpler:
a choice of more capable iPhones that I can slot right into my current setup as
seamlessly as possible. Am I envious of the Galaxy Note 7 hardware? Yes, yes I am I
think its a stunning example of industrial design that Id love to carry in my pocket. Will
Apple announce the best of all smartphones later on today? Probably not if the rumors
and leaks prove correct. But itll still be the best phone available for me.
Why is Apple one of the most innovative companies in 2017?
Apple isnt, at its core, a chip company, yet its silicon engineering group shipped
four microprocessors in 2016, each paired to a new product, including the iPhone 7 and
AirPods. Apples commitment to designing the very foundations of its hardware, rather
than merely buying them off the shelf, gives it a sustaining advantage in creating the
most compelling consumer-electronics experiences.
We pick the projects where we feel like we can make a differencethe big customer-
impacting features, says Anand Shimpi, who works on hardware technologies at Apple.
So the stunning depth-of-field effect from the iPhone 7 camera? Thats directly enabled
by the new A10 chip. The actual production of the stored portrait image is because of
things that we put into the As Apple has expanded into new product lines, its silicon
team has had to figure out how to realize the vision of the companys systems and
design teams. And it cant just shove the A10 where it doesnt belong. The S2 chip, for
example, was developed to give the second-generation Apple Watch its lauded
performance improvements without sacrificing battery life, and the magic trick of how
AirPods simultaneously deliver music to two separate wireless devices is a direct result
of programming embedded within their W1 chip.
We want to improve without compromise, says Shimpi. Its this mindset that helped
Apples rebuilding year of fiscal 2016 generate more than $215 billion in revenue and
almost $46 billion in profit.

CONCLUSION
 The main conclusion that can be drawn is what we found to be the most
interesting about Apple is how they are very innovative and early adopters. Apple is
usually the first company to come out with a new product line before anyone else. This
is very risky but it seems to be working to Apple's advantage. This shows that taking
risks can sometimes make or break you and Apple has great potential and has a lot to
improve. Currently, Apple is demonstrating negative aspects of TNCs, contributing to
international debt crisis through exploitation of workers. In a way, Apple is promoting
debt crisis in LDCs by accessing their labour and raw materials on the cheapest
possible terms. If it is willing to play the role of a beneficial TNC, the global economy can
certainly benefit. Furthermore, people in the least developed countries, and the
environment, will benefit as well. This requires a change from all stakeholders: the
company itself, the consumers, the shareholders, and the workers. It is important for a
TNC to progress towards beneficial behaviour because this can determine people's view
on progressing towards further globalization, as influenced by neo-liberalism.
Apple applies the four principles of network security by offering a valid source of
confidentiality with their terms and agreement statement. Apple has their terms and
agreement which explains their integrity and availability. Whether looking up online or
calling the store via telephone any answer to any question is answered honestly. Their
security and access controls explain Mac OS X Server is built on an advanced
architecture to deliver the features you want with the security you need. What we found
to be the most interesting about Apple is how they are very innovative and early
adopters. Apple is usually the first company to come out with a new product line before
anyone else. This is very risky but it seems to be working to Apple's advantage. This
shows that taking risks can sometimes make or break you.