Design Thinking and Innovation at Apple

DESIGN THINKING AND INNOVATION AT APPLE

Introduction

The success of Apple was result of well-defined strategic moves and innate sense of marketing timing. They tried to understand how people used computing devices and they were committed to develop “insanely great products”. IPod was one of its greatest achievement at that time. By the time the competitors were growing but the company was not afraid to try new experiments.

Since being founded in 1976, Apple has been considered leading designer and integrator of computer hardware and software.

By 2012, it fundamentally changed the computer, music, mobile and retail industry through:

• sleek products, innovative stores, new business models
• Apple stores had the highest revenue per square foot in retail sector
• app store reached 1 billion downloads within 9 months of launch and 25 billion by 2012
• radical innovations came with consistency
• same but different  approach i.e. the basic software is same

This success can be attributed to:

1. Clever strategic moves

2. Innate sense of market timing

3. Deep commitment to understanding how people used computing devices

4. Desire to create "insanely great products"

IPod famously arose as it matched needs, abilities and dreams of millions of customers.

Company defied conventional business logic and was not afraid to experiment outside its core market.

We can divide the approach of Apple into 4 segments and name it broadly as the "Apple Way".

1. Design thinking 
2. Development strategy and execution
3. CEO as chief innovator
4. Bold business experiments

Innovation, Product Development Strategy, and Execution

Mac, was never built as a computing device, rather it was build how people would work with a computing device.  In 1993, Apple was facing tremendous competition in the world’s market mainly from IBM as well as rapid changes in the technology. Michael Spindler took over from 1993-1996 to overcome all changes in the market. New strategies were established to maintain back the position in the market.

The creative core of technology development had managed to exist during this period of Apple upheaval, but the process became more traditional. Following process were followed:

• 3 evaluations required at the inception of a product idea:

Marketing requirement document

Engineering requirement document

User experience document

• These 3 documents would be reviewed by the executive committee.
• If they approved it, the team would get a budget and a team leader to work upon it.

Excellence in Execution

Steve jobs joined back in 1997, he took various steps for the organization which include

• Stopping the licensing program
• Closing two divisions
• Eliminating 70% of new projects
• Shutting facilities (and moving manufacturing abroad)
• Changing the distribution system
• Launching a website for direct sales

The main agenda of the organization was to build “insanely great products” and Steve Jobs himself was working into the Innovation process. Tim Cook Apple’s chief operating officer made an effort that enabled inventory to drop from months to few days.

Platform Strategy

• Apple followed platform strategy, the main intension was to use the same OS in all Apple products.
• As a result one can experience a greater reliability and lower costs, benefiting company and suppliers alike.
• The employees were benefited too as the knowledge they gained in designing, producing and supporting the platform can be transferred to derivatives.
• The customers were also very satisfied as they do not have to train themselves again and again for any new device of Apple family.

Iterative Customer Involvement

Apple insisted on integrating customers experience into its design and development processes. There was a lot of trial and error in user interface design which helped them gain the insight of what is actually needed by customer e.g. scroll bar ,Macpaint.

CEO as the Chief Innovator

• Steve Jobs is synonymous to Apple.
• He believes problems are moving targets and does not believe in solving and forgetting them. He keeps improving and innovating on the design and software.
• Beyond vision, decision, total-hands on involvement in decision making from strategy to product design to packaging, Jobs has been the face of the company.
• He has been called as “Princess Diana of business leaders”.

Bold Business Experimentation

To move into retail stores in May 2001, followed on the heels of similar products

In contrast to it, customers visiting an Apple Store found products already configured at prices distinctly higher than those at Dell’s website (and elsewhere), there were no workstations and Servers, and limited software for sale.

As curious non-Apple customers, along with Apple fans, were drawn into elegant surroundings that hosted beautiful objects whose utility could be immediately accessed. Seven years later Apple Stores had become “destinations,” the retailing Holy Grail, as Apple products, so well Showcased grew in both numbers and popularity.