Design Thinking and Innovation at Apple

Think Different

Ishpreet Singh – 12P139 Karan Jaidka – 12P141

Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143
Manav Gupta – 12P146 Vikas Jain – 12P178

Group 1 – Strategic Management – II

PGPM 2012-14
Design Thinking
 Definition: Innovation powered through
understanding and the direct observation of
what people need and desire, like or dislike
 It is a form of solution-based thinking that
starts what is meant to be achieved instead
of starting with a certain problem
 Then, by focusing on the present and the
future, the parameters of the problem and
the resolutions are explored, simultaneously

The Goal Simplicity in Design and Use Beyond Fashion

• Figuring out the needs of people • Going beyond superficial trends
• To design a first and getting to the essence of
computer that customer experience
fostered individual • Sensibility: Taking care of every • Inside-out design seemed „cool‟ to
small detail millions
work
• Simplicity is the ultimate • No compromise between simplicity
• Customers would sophistication! of use and functionality
have to fall in love • Apple‟s design sense was found
with computers • Problems were treated as moving
to be one-of-its-kind (iPod mini) targets
Product Development Strategy and Execution (1 of 2)
Troubled Times at Apple (1980s and
User-
early 1990s) Marketing Engineering
Experience
Requirement Document
Document
• Apple faced massive competition from IBM clones
• Debate revolving whether to compete in the
„cloning space‟
• Business market dominated by „Wintel‟ This traditional approach was a
• Many ideas failed to take off! consultative process and it lacked
• Rapid proliferation of models confused customers cohesion – It DID NOT work for Apple!
and increased complexities

Excellence in Iterative Customer

Platform Strategy Beautiful Products
Execution Involvement

The Right Way Forward for Apple

Product Development Strategy and Execution (2 of 2)
Excellence in Execution
• Jobs took immediate action upon his return
• Quest for „insanely great products‟
restarted
• Core Approach: Working intimately with
manufacturers and being accustomed to
customers
• Ensuring there was never a blip in sales
Iterative Customer Involvement
• Insistent on integrating customer
experience into design and development
• Participatory Design and usability tests
• Belief in the interface to be appropriate for
the users to create something
• More user testing implies smoother
execution
Platform Strategy
• Clear Platform Strategy: Design the initial product as a
platform, so that future enhancements/derivatives are
not developed from scratch
• Derivate products can be ramped up much quicker as
the platform allows the use of existing design elements
• Increases efficiency and re-usability
• Products require less repair and maintenance
Beautiful Products
• Importance of design as a motivation for
continued innovation
• Illustrated by the iPod being intensely
connected to the „pristine white‟ colour
• Paying close attention to new materials
and manufacturing processes
• Attempt to get „bolder‟ and not „play it safe‟
The CEO as the Chief Innovator
 Steve Jobs‟ „design sense‟ was
confident and refined and his
sensibility was dominant
 His temperament showed that he
had a larger vision in mind and would
go to any length to achieve it
 His vision emphasized on across-
the-board excellence, right from
aesthetics to superior operations
 Emphasis on the timely launch of
high-quality products
 The ideology was to put individuals
and their problem-solving efforts
above everything else
 Belief in simplicity being the ultimate
sophistication
 The End Result: „Beautiful elegant
solutions that work’!
Going Off the Beaten Track!
 Best Example: Entering the retail
segment and opening Apple stores
at a time when public wisdom (e.g.
Dell) suggested otherwise
 Customers visiting Apple Stores
found already configured products
with “geniuses at a bar”
 The bet was on curious non-Apple
An Apple Store
customers, other fans, and the rest,
as they say is history!
 Apple did not believe in open source
and open platforms (outlier), but
always created products which
people wanted!
 Apple made progress by eliminating
things!
 They also believed in constant
learning and adaption! Apple Genius Bar
Innovation Model of Apple
 3 Factors
 Discipline
 Talent
 Steve Jobs
 It was Steve Jobs‟ ability to see the incredible possibilities
of technology along with his “Reality Distortion Field”
that drove Apple to create such wonderful products
 When it came to deciding which new directions for the
company to develop, Apple had a committee of one:
Steve Jobs
 Apple will need to adapt now
 To succeed going forward, they will need to develop a
new model for success and innovate more broadly
Looking Ahead
 Apple‟s approach has worked magnificently in the past, but, there is no
guarantee that it will succeed in the future!
Last Words of Wisdom
 Steve Jobs‟ last words to Tim Cook were:

 “I want to make this clear. I saw what happened when Walt Disney passed
away. People looked around, and they kept asking what Walt would have
done. The business was paralyzed, and people just sat around in meetings
and talked about what Walt would have done. I never want you to ask what I
would have done. Just do what‟s right.”