Apple, Innovation and the iPod

IN THIS ARTICLE:

• Lessons from Apple on innovation.
• The flip side: do Apple’s actions actually discourage innovation?

Since 2006, Fortune surveys have ranked Apple number one in innovation and, in 2008 and 2009, also named Apple as the most admired company in the United States.

In March 2008, Forbes ranked Apple number one of the top ten companies admired for innovation.  Apple’s innovations have revolutionized the way we use computer, phones, music and movies.  And it has shaken up those industries that normally might have the market on these product lines.

One innovation in particular, the iPod music player has been a hit.  By combining technical knowledge with a new online music concept, the iPod has become the most influential new gadget in years.[i]

Originally released in 2001 in conjunction with iTunes music software, Apple has offered many new iPod models since then, some with video screens and including the smaller iPod Nano, Shuffle and Touch.

As of April 2008, 100 million iPods had been sold.  More than 70 percent of the 2007-model American cars offer iPod connectivity.

Innovation lessons from Apple

So what contributes to Apple’s success?  Apple CEO Steve Jobs spoke to Business Week back in 2004 and shared some amazing insights.  Based on his comments and other articles about Apple, we’ve created this list for you.

What could you bring to your organization to make innovation the norm rather than the exception?

Spend money on research and development and look toward the future. Investing in innovation is not an optional budget item even when times are tough.[ii]

Lead innovation from the top and make it a way of life for the whole organization. The CEO must be the Chief innovator.[iii] 

Be bold and experiment. Sometimes it will take risk and trying multiple avenues before finding what works.[iv]

Set out to make the best products or offer the best services possible. Pay attention to details.  And don’t let profit be your top driver.[v]

Evolve products and services. Don’t think the next big thing has to be completely new.  Incremental improvements that make an existing product that is good, even better, is innovation too.[vi]

One thing at a time. Distinguish what’s important to your business and concentrate on developing new ideas that really support your business rather than spending time on thousands of ideas.[vii]

If the creation of a good product results in a monopoly, don’t rest. Think about ways to make your product better.  It’s not just about marketing and sales at this point, because things can change quickly.  Product people must still drive the company.[viii]

Hire the right staff. Personnel who are dedicated, excited about what they do and strive to make the best products, working out all the kinks before it comes to the consumer, or provide the best services.[ix]  Perhaps it goes without saying, but we thought we’d add it.

Develop products and services that appeal to the masses. Success at Apple is due in part to products that transcend gender, age, race, and geography.  Apple doesn’t even conduct focus groups.[x]

Brainstorm for ideas, drawing upon your own experiences. Apple’s conversations include what products their employees don’t like, what can be made given the existing technology and what they would like to own.  They are driven by personal experiences and hopes for future products.[xi] You, and those around you represent the market.

The flip side: Apple Curbing Innovation?

While Apple and its products have been hailed by many as a shining example of innovation, there are some that take a different view.  Some argue that Apple is stifling innovation in other areas.  Let’s dig into this a bit more.

Some propose that Apple is curbing innovation in its competitors by monopolizing the supply of parts.  Imagine you are a component manufacturer of touchscreens and you learn that Apple has a new product in the works.

You might increase the price of touchscreens, anticipating a move by Apple.  As a result though, an unfavorable environment for other companies is created.  The price is too high, or possibly, Apple eventually buys all touchscreens or makes deals to corner the market on this part.  Other companies choose not to compete and don’t even attempt product development.[xii]

Some consumers have criticized Apple for not allowing certain software applications to be loaded onto their devices, like the iPhone, saying it stifles innovation and tries to control what users can think and do on Apple products.[xiii]

Admittedly, the applications in question were classified as sexy and silly, but also include file sharing and other technologies.  Understandably, some of the “sexy” software might be seen as objectionable by many outside Apple’s corporate walls.

Would Apple’s reputation be hurt by allowing these applications on their products?  Or should it be all about personal choice once the device is purchased?

One other critique offered was about the iPad tablet.  Some fear this product leads Apple to control both its market rivals and partners.  They say the iPad is more like an improved version of the iPhone rather than a laptop computer.  It only runs one program at a time and must use software approved by Apple.[xiv]

Could this lead to a decrease in innovative software development?  If it leads to Apple creating more specific elements for use only on the iPad, could it stifle the next computing revolution?

Still a great example

Well, the future will reveal how the market responds to this latest Apple product and what impact it will have.

Without a doubt, Apple has produced some amazingly innovative products.  And the results they’ve yielded demand we learn what’s helped produce their innovative success.

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[i] October 12, 2004. The Seed of Apple’s Innovation.  Business Week.  http://www.businessweek.com/bwdaily/dnflash/oct2004/nf20041012_4018_db083.htm

[ii] Carlson, Ronald O. April 14, 2009.  Apple’s ‘culture of innovation’ will help it to outperform.

[iii] Thomke, Stefan and Feinberg, Barbara January 9, 2009, Design Thinking and Innovation at Apple.

[iv] Thomke 2009, ibid.

[v] The Seed… 2004, ibid.

[vi] Fisher, Anne. March 3, 2008.  Innovation rules.  http://money.cnn.com/2008/02/29/news/companies/fisher_amac.fortune/index.htm

[vii] The Seed… 2004, ibid.

[viii] The Seed… 2004, ibid.

[ix] The Seed… 2004, ibid.

[x] Morris, Betsy. March 3, 2008. What makes Apple golden. http://money.cnn.com/2008/02/29/news/companies/amac_apple.fortune/index.htm

[xi] Morris 2008, ibid.

[xii] Biggs, John. February 1, 2010. How Apple kills hardware innovation.  http://www.crunchgear.com/2010/02/01/how-apple-kills-hardware-innovation/

[xiii] D’Andrade, Hugh. May 12, 2009. Apple vs Blasphemy (and Innovation).  http://www.eff.org/deeplinks/2009/05/apple-vs-blasphemy

[xiv] Johnson, Bobbie. February 1, 2010. Apple iPad will choke innovation, say open internet advocates.  http://www.guardian.co.uk/technology/2010/feb/01/apple-ipad-choke-innovation