Design Thinking and Innovation at Apple

Introduction Apple, founded in 1976 is a leading designer and integrator of computer hardware and software. The App store was downloaded by 1 Billion users in nine months. Apple’s desire to develop “insanely great products” drove their success. Though Apple’s iPad and iPod were of great success, their key focus is on core computer business. The experimental nature of Apple made them to focus on retail stores when their competitors were dependant on direct sales and distributions. The “Apple Way” of creating products was their key to success.

Design Thinking Apple changed the way computers were seen. Only for institutional use to personal computers with an emotional connect. For that, Apple believed in “Simplicity in design and use” so that people would love their equipment. Apple’s team has put in lot of creativity and ingenuity in designing as well as making it highly interactive. This design sense was evident in the iPod Mini, which reduced the amount of music but took advantage of providing a portfolio of iPods in different colors using a different material, aluminium. Apple gives a cool experience to the users such that its design seems to happen from the inside out. The smooth and cool interface doesn’t compromise on the features. Apple’s products had a right mix of simplicity and sophistication.

Evolution of Apple 1976 Founded by Steve Jobs and Steve Wozniak 1978 First PC radical Apple II 1984 Market share and profits began declining Jobs left to found NeXt and to co-found Pixar Studios 1985-1997 Faced massive competition from IBM clones, rapid changes in technology Debates on licensing Mac OS, eventually licensed and represented 20% of Mac unit sales Aug, 1997 Return of Steve jobs, Excellence in Execution 2011 Tim Cook took over as CEO

Product Development and Execution As soon as Jobs returned, he stopped the licensing program, closed 2 divisions, eliminated 70% of new projects, shut facilities, changed distribution system and launched a website for direct sales. His quest for “insanely great products” started afresh. In 2006, Apple transitioned its entire computer line to running on processors made by Intel. Apple followed a Platform strategy, that designs the initial product as a platform, with an architecture that will accommodate the future inventions, with high levels of sharing and reusability. It also makes the products stable and reliable. Apple insisted on participatory design based on user needs and desires. They believed that people uses a computer to create something and thus more user testing will create smoother software. They are passionate about using new materials and manufacturing techniques to create beautiful products. Example : Pristine White iPod

The CEO as the Chief Innovator Steve Job’s “Design sense” was confident and refined. Products are launched on time with high quality, maintaining utmost confidentiality until its release. He focussed on problem solving that enabled and enhanced individual efforts. He has been the face of the company right from strategy to product design and packaging.

Business Experimentation Despite the failure of the computer company Gateway and all other players moving online, Apple entered into retail stores. The stores generated foot traffic which attracted non Apple customers along with Apple fans. The inclusion of “genius bar” where techies repairs the products, reiterates the message that Apple is cool These stores generated highest revenue per square foot in the entire retail sector. Even though, Apple is an outlier in a world that celebrates transparency, open platforms and third part developers, they manage to create products that people want.

Conclusion Apple’s approach has worked very well in the past with the guidance of Steve Jobs. In 2011, Jobs resigned as CEO and died in the same year. Tim Cook, took over the business as CEO and is being successfully running the business. Share price of Apple increased by 60% since Cook took over the business. Apple should continue to stick to its core values and continue creative innovative solutions to sustain.

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