Design Thinking and Innovation at AppleThink Different

Ishpreet Singh – 12P139 Karan Jaidka – 12P141Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143Manav Gupta – 12P146 Vikas Jain – 12P178

Group 1 – Strategic Management – IIPGPM 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

• To design a computer that fostered individual work

• Customers would have to fall in love with computers

Simplicity in Design and Use

• Figuring out the needs of people first

• Sensibility: Taking care of every small detail

• Simplicity is the ultimate sophistication!

• Apple’s design sense was found to be one-of-its-kind (iPod mini)

Beyond Fashion

• Going beyond superficial trends and getting to the essence of customer experience

• Inside-out design seemed ‘cool’ to millions

• No compromise between simplicity of use and functionality

• Problems were treated as moving targets

Product Development Strategy and Execution (1 of 2)

Troubled Times at Apple (1980s and early 1990s)

• Apple faced massive competition from IBM clones

• Debate revolving whether to compete in the ‘cloning space’

• Business market dominated by ‘Wintel’• Many ideas failed to take off!• Rapid proliferation of models confused

customers and increased complexities

Marketing Requireme

nt

Engineering

Document

User-Experience Document

This traditional approach was a consultative process and it lacked cohesion – It DID NOT work for Apple!

Excellence in Execution

Platform Strategy

Iterative Customer

Involvement

Beautiful Products

The Right Way Forward for Apple

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’

Product Development Strategy and Execution (2 of 2)

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 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!

An Apple Store

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.”