Innovation of Apple

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MBA

A Case Study on
“Innovation on Apple”

Course Code : MBA Cohort 22
Lecturer : Mr. D.L.Allen
Student Name : Wong Man Pan
Student ID
Submission Date : 18 July, 2012
No of words :3,092

1.
Executive summary
This article contains four main sections; in the first section, the characteristics of innovation Company are defined, mainly the ideas which follow Barry, John and Richard, 2011 and the overview of Apple Inc innovation would be evaluated based on the factors found. In the second section, the affecting factors in management (Amabile, 1998 ) and climate (Ekvall, 1996) based on Apple Inc would be discussed. Hence, two innovative companies such as HP and 3M performance would also be brought out . These three companies would be identified according to the three strategies suggested by Barry, John and Richard, 2011. Moreover, four actions framework from Kim and Mauborgne, 2005 would be analyzed with respect to one application from Apple --- “Siri”. Finally, recommendation would be made for future development and challenge especially since the key man [Steve Jobs] passed away in 2011.

2. Content
1.Executive summary2
2.Content2
3.Introduction3
4.Five elements of innovative company – Apple Inc5
5.Creativity7
6.Managerial practices and organization climate for creativity7 7.“Siri” Four Actions Framework11
8.Conclusion and recommendation12
9.Reference14

3. Introduction
Among the enterprises pursue innovation, Apple Inc is recognized as the most successful case. In 2011, Barry, John and Richard, 2011 conducted the survey and concluded that Apple Inc is the most innovative companies worldwide and the Exxon Mobil Corporation has been replaced by Apple as the most valuable company in the U.S by market capitalization. Always there is a misconception for most people, as heavy investment is the fundamental requirement to be the most innovative company. However it was found that Apple spend only around 2.7% of revenue annually on R&D, comparing with Microsoft whom spend 14% of revenue, there is a big gap. It implies that the findings from Barry, John and Richard, 2011- spending more on R&D does not necessary drive results, the most crucial factors are strategic alignment and cultural influences that support innovation. Therefore, this article mainly focuses on managerial practices, such as organizational and environmental support, rather than how the investment was allocated. In the article of Barry, John and Richard, 2011, the innovative organization should focus on innovative strategy, effective overall business strategy, deep customer insight, great talent and the right set of capabilities to achieve successful execution, all of these factors are critical when identify the way of Apple Inc in performing innovation. Simultaneously, creativity is the inspiration of organization and it is easily affected by management and cultures. Two more innovative companies would be analyzed based on Amabile, 1998 and Ekvall, 1996, Apple would be defined as need seekers and technology drives based on Barry, John and Richard, 2011. Innovation would be resulted as strong identification with customer experiences and passion for products; this would drive the products with superior performance and quality. After the management and culture of Apple Inc is analyzed, one product – Siri would be taken into account to show the result of innovation based on the four actions framework suggested by Kim and Mauborgne, 2005. Although Apple Inc stands for the top innovative company, it is essential to review the strategy and make change especially when top management is altered.

4. Five elements of innovative company – Apple Inc
In the article of Barry, John and Richard, 2011, it is clear that innovation is not determined by the amount on R&D spending, the most vital factors are strategic alignment and cultures which support innovation. In this section, five...
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