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Apple innovation; a case study

Ahmad Al-Rubaie

Agenda • • • • • • Apple as a leading innovator Apple financial performance Apple history & innovation background Apple’s innovation strategy Apple’s innovation takeaways Steve Job’s innovation secrets .

To gauge opinions. Apple has held the op spot in our survey since 2005. The two names mentioned most often. Source: Innovation 2010. were Google and Microsoft. BCG © Apple Inc . we asked respondents to name the company they consider most likely to topple Apple within the next five years. with Apple once again the hands-down winner. respondent ranked Apple and Google the two most innovative companies. But it is worth noting that the third most frequent response was "no one" suggesting that many believe Apple will not fade anytime soon.One cannot talk about innovation without mentioning Apple Inc. perhaps not surprisingly. For the fourth straight year.

And $25 billion of cash safely in the bank with zero debt.Since the year 2000 Apple has shown strong results In 2000 Apple revenues were about $8 billion. 2008 Earnings . Apple posted net profit close to $800 million In 2008 Apple revenues were about $37. CEO of Apple. October.5 billion Apple posted profit of over $6 billion Increase revenue more than 450% in 8 years… Increase net profit more than 1700% in 10 years… “We’re armed with the strongest product line in our history. the most talented employees and the best customers in our industry.” Steve Jobs.

The trend continues In 2010 Apple revenues were over $65 billion Apple posted profit of over $14 billion Increase in revenues more than 800% in 10 years Increase in revenues more than 170% in 2 years Increase net profit more than 1700% in 10 years Increase in net profit more than 230 % in 2 years .

It has not always been great successes 1984 1976 2001 1998 .

Apple’s culture is embedded in its roots .

The apple product line evolution tells a story .

• Customer driven. highly structured and process oriented.Apple leverages a combination of TopDown and Bottom-Up innovation strategy to create new innovations • Management & organisation driven. spontaneous and with deep understanding of customer need .

g.Apple Innovation Takeaways  Build Products that are cool. adults.  Provide multiple products / touch points to buyers so they can buy and subscribe to more products all glued through iTunes  Creativity begins with asking questions…  Innovation happens when you find answers…  No questions. teenagers. iPod. no answer  More questions.. better answer Source: Apple innovation Strategy www. young adults. E.g.. E. intuitive. iTunes Capture the changing landscape and ecosystem of the markets and buyers  Grow the market share with buyers as they grow and their needs grow  kids. iPhone Change the playing field by creating new business models. simple to use and provide the most amazing experience  Take calculated risks and boldly enter new markets. ..InnovationMain.

Apple’s innovation culture is closely coupled with that of its leadership        Do what you love Put a dent in the universe Kick-start your brain Sell dreams. not products.000 things. Say no to 1. Create insanely different experiences. Master the message .

and zoologists.” Steve Jobs . and historians who also happened to be the best computer scientists in the world.” “Innovation comes from saying no to 1. Our belief was that if we kept putting great products in front of customers.” “A lot of companies have chosen to downsize.000 things to make sure we don’t get on the wrong track or try to do too much. and maybe that was the right thing for them.A leadership that understands innovation “We’re gambling on our vision. and we’d rather do that than make ‘me-too’ products. they would continue to open their wallets. and poets. and artists. We chose a different path.” “Part of what made the Macintosh great was that the people working on it were musicians.” “Creativity is just connecting things.

A leadership that understands innovation “We are absolutely consumed by trying to develop a solution that is very simple. because as physical beings we understand clarity.” Jonathan Ive .