Name: Jillian Braynen

Case Study: Apple

Course: Innovation Management
Due Date: August 6, 2023
Apple Inc Case

Table of Contents
Section 1: Introduction 3
Section 2: Focus points
 Why has Apple been so successful? What is that attributed to? 4
 There are four types of innovation: Functional Innovation, Experience Innovation, Emotional
Innovation and Process Innovation. Analyze whether Apple applies these to satisfying the
three basic criteria of the Design Thinking method to innovate. Desirable (customer
focused), possible (technology and organization) and feasible (sustainability and business
profitability). Explain whether they apply by providing specific evidence, or if they are not
applied, describe how they could be applied. Can they be copied? Justify your response.
 Analyze and justify whether Apple is an exponential organization.
Section 3: Bibliography 11

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SECTION 1: INTRODUCTION
Apple Inc. is a global technological corporation with its headquarters in Cupertino,
California, in the United States. On April 1, 1976 (research gates, 2018), Steve Jobs, Steve
Wozniak, and Ronald Wayne launched the company. Apple has established itself as one of the
major innovators in the electronics sector over the years, earning praise for its ground-breaking
products, svelte designs, and dedication to innovation.
Steve Wozniak's design of the Apple I personal computer marked the beginning of Apple.
However, the introduction of the Apple II in 1977, one of the first mass-produced
microcomputers, provided the business with its first commercial success. With the release of
the Macintosh, a computer with a graphical user interface and a mouse, in 1984, Apple
completely altered the computing landscape. This innovation opened up personal computers to
a wider range of users. Apple encountered some difficulties in the 1990s, but in 1997 Steve Jobs
returned to the business he helped build and oversaw its transition with a fresh emphasis on
design, innovation, and user experience.
With the introduction of the iPod in 2001, one of Apple's biggest achievements was
achieved. The iPod transformed the music industry and paved the way for the company to
become the market leader in consumer electronics.
With the introduction of the first iPhone in 2007, Apple transformed the electronics
industry once more by fusing an iPod, a mobile phone, and a device for internet connection into
one ground-breaking product. In the years that followed, a number of popular products were
released, including the iPad (2010), which helped to popularize the tablet market, and the
Apple Watch (2015), which entered the wearable technology sector.

SECTION 2: FOCUS POINTS

Why has Apple been so successful? What is that attributed to?

These are some of the main explanations for Apple's success (Staff, 2023):
1. Innovative products: Apple has a history of creating innovative and groundbreaking
products that have redefined their respective markets. From the Macintosh and iPod to

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the iPhone and iPad, Apple's products have consistently offered unique features and
superior user experiences.
2. User-centric design: Apple places a strong emphasis on user experience and design
aesthetics. Their products are known for their intuitive interfaces, sleek design, and
attention to detail, which appeals to a wide range of consumers.
3. Ecosystem and integration: Apple has built a powerful ecosystem of devices, software,
and services that work seamlessly together. This integration allows users to have a
cohesive experience across different devices, such as iPhones, iPads, Macs, and Apple
Watch, and benefits from features like iCloud syncing.
4. Strong brand identity: Apple has created a strong brand identity and image over the
years, associating itself with innovation, luxury, and lifestyle. This has led to a dedicated
customer base and significant brand loyalty.
5. Marketing and presentation: Apple is known for its highly effective marketing
campaigns and product presentations. Steve Jobs' legendary keynotes and product
launches were masterful at creating excitement and anticipation for Apple's new
products.
6. App Store and ecosystem: The App Store has been a critical factor in Apple's success,
allowing third-party developers to create a vast array of applications and games that
add value to Apple's devices.
7. Supply chain and manufacturing expertise: Apple's proficiency in supply chain
management and manufacturing processes has helped them maintain control over the
production, ensuring high-quality products and timely delivery.
8. Focus on customer support: Apple has a reputation for excellent customer service and
support, further contributing to customer satisfaction and loyalty.
9. Long-term vision: Apple has shown a remarkable ability to anticipate future trends and
adapt its product lineup accordingly. It invests heavily in research and development to
stay ahead of the competition.
10. Financial success: Apple's strong financial position has given the company the resources
to invest in research, marketing, and acquisitions to further expand its business.

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It is important to remember that the technology sector is extremely competitive, and Apple's
success may also be credited to its constant innovation, adaptation, and attention to the wants
and needs of its customers. However, for the most recent information about Apple's success
beyond September 2021, it is crucial to consult more recent sources.

“There are four types of innovation: Functional Innovation, Experience Innovation, Emotional
Innovation and Process Innovation. Analyze whether Apple applies these to satisfying the
three basic criteria of the Design Thinking method to innovate. Desirable (customer focused),
possible (technology and organization) and feasible (sustainability and business profitability).
Explain whether they apply by providing specific evidence, or if they are not applied, describe
how they could be applied. Can they be copied? Justify your response.”

Let us examine how Apple satisfies the three fundamental requirements of the Design Thinking
technique (SAP, 2013) (Desirability, Feasibility, and Viability for innovation) by utilizing the four
categories of innovation (Functional, Experience, Emotional, and Process):

Figure 1: Diagram depicting the three fundamental requirements of Design Thinking Techniques.

Functional Innovation:
Desirability: Apple emphasizes the importance of designing products with the demands and
preferences of its target market in mind. For instance, the launch of Face ID on iPhones and the
use of the M1 processor in Macs both demonstrated practical advances that drew in customers
looking for more performance and security.

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Feasibility: Apple frequently uses cutting-edge technology that is both practical and pertinent
to its product selection in its functional innovations. To guarantee the viability of these
technologies, they make significant investments in research and development.
Viability: Apple has continued to be successful and profitable because its functional
improvements have shown to be marketable.

Experience Innovation:
Desirability: A flawless and delightful user experience is one thing that Apple values highly.
Their products' user-friendly interfaces, seamless interactions, and attention to detail enhance
customers' experiences.
Feasibility: Apple's convergence of hardware, software, and services supports its focus on user
experience. They have complete control over the ecosystem, which enables them to guarantee
a reliable and well-executed experience.
Viability: Strong customer loyalty, repeat business, and positive word-of-mouth are all results
of the focus on experience innovation, all of which support the long-term success of the
business.

Emotional Innovation:
Desirability: Apple's success has been largely attributed to their focus on beautiful design and
making goods that arouse strong feelings. Their svelte and fashionable designs evoke strong
feelings in customers.
Feasibility: Apple's dedication to brand identity and design quality means that emotional
innovation is still a key component of their product development process.
Viability: Emotional innovation has aided Apple in creating a committed following of customers
and a strong brand, enhancing their long-term survival.

Process Innovation:
Desirability: Apple focuses on enhancing its internal procedures to maximize efficiency and
more successfully provide goods that satisfy client requests.

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Feasibility: The established supply chain management and manufacturing capabilities of Apple
are examples of successful process innovations that have made it possible for them to
successfully launch goods on the market.
Viability: Apple can maintain a competitive advantage and keep manufacturing costs in check
by continuously improving their processes, which boosts their overall profitability.
It is important to note that while other businesses can strive to mimic Apple's success with
regard to whether these advancements can be directly reproduced or not, doing so is difficult.
Apple's success is largely due to its distinctive strategy, solid brand identification, ecosystem,
and devoted client base. Companies may copy particular design aspects or functionalities, but
without creating an ecosystem and brand trust on par with Apple's, it will be difficult to fully
mimic Apple's success.

In conclusion, Apple's application of functional, experience, emotional, and process

innovation aligns with the three basic criteria of Design Thinking. Their customer-focused
approach, combined with cutting-edge technology, strong organization, and sustainable
business practices, has been a significant driver of their ongoing success. While certain aspects
can be copied, replicating the entirety of Apple's success requires a comprehensive
understanding of their unique strategy and an ability to build a comparable level of customer
loyalty and brand trust.

“Analyze and justify whether Apple is an exponential organization.”

Although Apple shows some signs of becoming an exponential company, it could not
entirely meet the conventional definition. An organization that uses exponential technologies
and organizational strategies to achieve rapid development and scalability is known as an
exponential organization (ExO), a word Salim Ismail created.
Here's a breakdown and defense of whether Apple qualifies as an exponential organization:
1. Exponential Technologies (Right people, 2018): When it comes to using exponential
technologies in its goods and services, Apple has been in the forefront. The iPhone and
other Apple products, for instance, feature cutting-edge hardware including powerful

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processors, sharp displays, biometric authentication, and augmented reality features. To

enhance services like Siri and the user experience, Apple has embraced AI and machine
learning.
2. Massive Transformative Purpose (MTP): The aim of exponential enterprises is
frequently audacious and revolutionary, inspiring both customers and staff. Although
Apple's "Think Different" marketing and its commitment to offering user-friendly
technology have been bold declarations, they might not be as tightly aligned with a
conventional MTP as those of some other businesses.
3. Engagement of the Community: Crowdsourcing, open-source software development,
and cooperative communities are frequently used by exponential organizations. On the
other side, Apple has a more controlled environment and has typically had tight control
over its hardware, software, and app store. They do, however, work with outside app
developers and have development programs.
4. Leveraging of Assets: Apple successfully uses its resources, including its brand,
ecosystem, and supply chain, to promote growth and preserve a competitive advantage.
Apple can create a seamless user experience by integrating its products and services,
which promotes consumer loyalty and repeat business.
5. Autonomy and Empowerment: Employee empowerment and the development of an
innovative culture are frequent features of exponential organizations. Because of its
top-down decision-making and secretive culture, Apple may not fully embody the
autonomy of an ExO.
6. Experimentation and Adaptability: Exponential businesses are adaptable, open to try
new things, and fast to change with the times. Apple does routinely release new goods
and features, but because of their development process's high level of secrecy and long-
term orientation, there may be less room for quick experimentation.
7. External Partnerships: To gain access to new markets or technology, exponential
organizations frequently collaborate with other firms. While Apple does occasionally
cooperate with other companies, it generally controls its ecosystem and prefers to build
most of its own technology.

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In conclusion, even though Apple has embraced exponential technology and shown
significant growth, the company still lacks some key traits of an exponential organization.
Instead of just depending on the concepts of exponential companies, Apple's success is fueled
by a special combination of superior design, a strong ecosystem, brand devotion, and robust
financial resources. However, Apple's inventive strategy and its capacity to make use of its
organizational resources and technological resources have considerably aided in the company's
exponential rise in the tech sector.

The 6D Method(Ramirez, 2017), a methodology created by Salim Ismail to determine if an

organization displays traits of an exponential organization (ExO), should also be taken into
consideration. Let us use the 6D Method to analyze Apple Inc. to see if it fits the criteria for an
ExO:

Digitized: Apple has done a great job of digitizing its goods and services. Within its ecosystem,
all of its hardware, software, and services are digital and networked. Examples of digital
platforms that improve user experience and produce network effects include the App Store,
iTunes, and iCloud.
Deceptive: Apple is renowned for its secrecy and unexpected product debuts. This element of
surprise builds excitement and buzz around its items, which adds to a deceptive factor. Apple's
opacity, though, might potentially prevent outside collaboration and openness.
Disruptive: Apple has a history of disrupting various industries, from personal computing to
music and smartphones. The introduction of the iPod, iPhone, and iPad revolutionized their
respective markets and changed the way people interact with technology.
Dematerialized: Different devices have become less tangible as a result of Apple's goods. For
instance, the iPhone replaces the need for several physical things by combining the
functionalities of phones, cameras, music players, and more into a single device.
Democratized: Over time, Apple's goods and services have become more widely available.
Although first marketed as premium goods, Apple has since broadened its product line and
added more reasonably priced options, enabling its technology to be used by a larger audience.

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Decentralized: Apple might not agree with the ExO idea as strongly in this area. Decisions at
Apple are frequently made top-down by a select set of executives. Because of the company's
well-known centralized management of its ecosystem, the degree of decentralization
associated with actual ExOs may be constrained.
According to the 6D Method, Apple demonstrates a number of traits of an exponential
organization. It has displayed disruptive innovation, digitized its goods and services, and opened
up access to technology. Various devices have also been dematerialized, and it has fooled
consumers during product debuts. Apple's degree of decentralization might not, however,
perfectly match the decentralized characteristics of a conventional ExO. Despite this, Apple's
distinct combination of these qualities has aided in the company's phenomenal success and
expansion in the technology sector.

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SECTION 4: BIBLIOGRAPHY
1. Research Guides: This Month in Business History: The Founding of Apple Computer, Inc.
(2018, September 4). The Founding of Apple Computer, Inc. - This Month in Business
History - Research Guides at Library of Congress. https://guides.loc.gov/this-month-in-
business-history/april/apple-computer-founded
2. Staff, G. (2023, March 14). Top 11 Reasons Why Apple Is So Successful - GeeksModo.
GeeksModo. https://geeksmodo.com/reasons-why-apple-is-so-successful/
3. Design Thinking – so what? | SAP Blogs. (2013, August 14). Design Thinking – so What? |
SAP Blogs. https://blogs.sap.com/2013/05/09/design-thinking-so-what/
4. Exponential organizations - be better and faster than your competitors. (2018, October
17). Right People. https://rightpeoplegroup.com/exponential-organizations/
5. Ramirez, V. B. (2017, December 29). Digitized to Democratized: These Are the 6 Ds of
Exponential Technologies. Singularity Hub.
https://singularityhub.com/2017/12/29/what-are-the-6-ds-of-exponential-
organizations/

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