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AppleDESIGN THINKING AND
INNOVATION AT
Stefan ThomkeProfessor of Business AdministrationHarvard Business School
Authors:
Barbara FeinbergIndependent Researcher
Li WeiTechnology commercialization managerExploit Technologies Pte Ltd (ETPL)Agency for Science, Technology and Research (A*STAR, Singapore)
Summary and presentation by
B. Eng & Ph.d (Engineering)Nanyang Technological University Singapore
M.B.A.INSEADFontainebleau, France
A Harvard Business Case: Winner of 2013 ECCH Case Award
$600 $620Bn
Share Price
In 2012, Apple became the most valuablepublic-traded company in history
Market Capital
$100Bn
Annual Sales
STRATEGIC MOVES Apple’s success was NOTJUST the result of
MARKET TIMINGor innate sense of
It is a surprising consistency in the way the company worked
the “APPLE WAY”Simply put,
DESIGN#1 THINKING
“Those of us on the original Macintosh team were really excited about what we were doing. The result was that people saw a Mac and fell in love with it … There wasan emotional connection ... That think came from the heart and soul of the design team
Bill Atkinson Member of Apple Macintosh Development Team
In mid-1970’s,computers were
typically housed indiscrete locationsand only used by
SPECIALISTS
COMPUTER AS A TOOL FOR INDIVIDUAL WORK
To Help people “love” their equipment and the experience of usingit, level of complexity needed to be reduced dramatically
It was an unimaginable notion in 1970s
Start with Design, from People need and want, Not
limited by technology,
Start with Design, from People need and want, Not
limited by technology,
Push the engineers to use the same kind of creativity and
innovation to make it happen
Design is very well thought through
[Beyond Fashion]
Capacity and Technology to build it is not commoditized
[No Compromise]
UserDesirability
MarketViability
TechnologyPossibility
DESIGN THINKING
details are scrutinizedSmallest of
until they found the key underlying principle of a problem, then built on it
deepThe design team kept going
Design is not just what itlooks like and feels like.Design is how it works
Simplicityis the ultimate sophistication
THAT
strategy And#2execution
“You can see a lot by just observing
Yogi BerraMajor League Baseball Player and Manager
PhotographbyBernardHoffman
1976197819811985
1997
Apple Founded
First personal computer: Apple II
IBM entered with its PC that can be “cloned”
Products and projects at Apple proliferated inconsequence of various strategies – and failings
Apple market share kept declining, The board AXED Jobs
The technology development process became more traditional and resembled approaches found at other companies
“Process makes you moreefficient. But innovation comesfrom people... calling each otherat 10:30 at night with a newidea … it comes from saying noto 1,000 things to make sure wedon’t get on the wrong track ortry to do too much…
Steve Jobs
1997Steve Jobs
returned to Apple
Stoplicensingprogram
Eliminating 70% of new
projects
Shutting facilities and
moving abroad
Product line from
15 to 3
Sophisticated marketing
Website for direct sales
Kept productdevelopment
Compete Secret
Inventory frommonths to a
few days Excellencein Execution
Design the initial product as a platform: with an architecture that will accommodate the development and production of the derivative products
PlatformStrategy
Integrate customer’s experience into its design and development, a lot of it was empirically drives
Working intimately with manufacturers and being completely attuned to customers
Iterative CustomerInvolvement
The importance of design as a motivation to continued innovation rather than a static approach that assumes a single conclusion
Beautiful Product that
Evolves
CEO as Chief Innovator#3
“The really great person willkeep on going and find … thekey, underlying principle of theproblem. And come up with abeautiful elegant solution thatworks
Steve Levy, AuthorThe Perfect Thing
APPLE-JOBSinterchangeable terms
Jobs’ drive for perfection is Apple’s drive for beautiful elegant products and its superior operations
Jobs’ vision held that Apple products were to be personal tools for individual instead of ”enterprise solution”
From strategy to product and service design to packaging
Jobs’ total hands-on involvement in decision-making
Bold Business experimentation#4
“The greatest artists like Dylan, Picasso and Newton risked failure. And if we want to be great, we’ve got to risk it too.
Steve Jobs
Decision to move into retail and created with the same painstaking focus on details
-- When everyone was moving online
-- against conventional wisdom of ”open platform, collaboration, community design, transparency”
Develop and integrate its own hardware and software,and keep product launches secret
Constant learning, adaptation and evolution
Array of colors
Black and White
Closed DeveloperCommunity
Open DeveloperPlatform
Not Compatible for other OS
Windows Compatibility
To Sum …
The root of Apple’s success
Design Thinking
Strategy and Execution CEO as Chief Innovator
Bold Business Experimentation
