Managing Product and Service Innovation: A Case Study of Apple

This case study explores the innovation framework used by Apple in managing product and service innovation. It discusses the key elements of the framework, the application of the framework on Apple's innovation, strengths and weaknesses of the innovation, and provides recommendations for further improvement.

Running Head: INNOVATION AND ENTERPRISE 0
MANAGING PRODUCT AND
SERVICE INNOVATION

INNOVATION AND ENTERPRISE 1
Table of Contents
Apple Background.....................................................................................................................2
Innovation Framework...............................................................................................................2
Key elements of Framework......................................................................................................4
Application of Framework on Apple innovation.......................................................................5
Strengths and weakness of the innovation.................................................................................6
Gap analysis...............................................................................................................................7
Recommendations......................................................................................................................7
References..................................................................................................................................9

INNOVATION AND ENTERPRISE 2
Apple Background
When it comes to innovation, Apple is one of the companies who is constantly doing
innovation in the field of technology and personal devices. Their products and services are
successfully serving the comfort needs of various customers. The company was founded back
in 1976 by Steve Jobs and Steve Wozniak and now it becomes one of the multinational
organisation of United States that deals in technological devices such as iPhone, iPad and
various computer software (Finkle & Mallin, 2010).
Apple has systematic approach to innovation and its innovation strategy includes
terrific new products and innovative business models. Apple does not just emphasizes on
developing advanced products however, also focuses on innovative business models (Teece,
Peteraf & Leih, 2016). The company works through traditional industry limitations to form a
effective innovation-friendly environment. In addition, the corporation pledge to innovation
is cultural rather than process driven. Moreover, the company also harness creativity in
personnel through their effective innovation system, streamlining the designing process, and
to launch profitable new innovations.
One of their major innovation can be seen with their introduction of Apple watches
where the company is offering portable and affordable computing smartwatches. It is known
to be extremely smart as it understands what the user is looking for. In 2018, Apple Watch
Series 4 was introduced by the company that was completely reformed and re-engineered to
help people to be healthy and more active and allied with the virtual world (apple.com, 2018).
The new innovation that the company brings with this new model of Apple watch is
Electrocardiogram.
Innovation Framework
Strategic innovation refers to building of new product categories, growth strategies
that help in generating significant new value for customer, consumer and corporation.
Innovation framework includes a multidisciplinary, holistic framework that helps an
organisation to take a planned approach to innovation (Nowacki & Bachnik, 2016). The

INNOVATION AND ENTERPRISE 3
framework is developed with various creative approaches to business innovation and bring
several perspectives to number of complementary disciplines that examine of enterprise
culture, structure and processes.
Nowadays many companies think that the innovation is just an idea that cannot be
achieved, however, the reality is that the innovation can be learned, practised, manage and
measured. The innovation management framework (IM) framework describes a systematic
way to think about handling and illustrating of dependent and integrated approach (Bolisani
& Bratianu, 2017).
The frameworks developed below includes a cohesive set of practices that motivate
personnel to recognise broad range of possibilities and opportunities, build a shared vision for
growth and align the enterprise around the requirement for success.
Developing innovative framework is just a part of playbook for innovation. In this,
the first step is to establish an innovation program office, then developing a framework,
communicating and sharing this framework to the organisation, managing innovation,
measuring innovation and then report innovation (Doz & Kosonen, 2010).
Innovation Framework
Business
change
management
Business
Process
Competencies
Business-It
Alignment
Technological
Competencies
Industry
Forethought

INNOVATION AND ENTERPRISE 4
Key elements of Framework
There are five elements to the above framework that help organisation to think outside the
box within firm perspective border. These include –
 Organisation change management – Organisation change management can be done
by partnering with the human resource department and exploit the competent and
capable human resources by offering required training and tutoring to the enterprise
that benefits the employees to come on ideas that are outside the box. It is also
required that organisation needs to be proactive so as to be ready to face both negative
and positive consequences during the course of training and considering employees
who are thinking outside the box. Digital transformation and innovation require
appropriate rate of change it can absorb. Change management helps in successful
innovation where the individuals are assessed on the basis of their capability and
competency and lead to complexity assessment for an end to end processes (Rahmani
& Mousavi, 2011).
 IT-Business alignment – Building strong partnership with corporate team is vital for
the innovation programme office achievement. To achieve it, it is important to
recognise IT ambassadors and partner relationship manager for each corporate unit
and build out a viable communication plan to allow great thoughts rolling between all
the members. Moreover, IT services serve as a supportive role in the inclusive
achievement of an enterprise as with integration of modern technology to the core
business objectives will definitely lead to measurable innovation and disruption
(Posthumus, Von Solms & King, 2010).
 Industry and external insights – It includes partnering with the corporate strategy or
organisation development team. It is necessary for an organisation to do periodic
economic and industrial analysis so as to be aware of whom they are opposing in the
marketplace, market volume, growth opportunities in the competitive landscape.
Innovation evolves from best and creative ideas and it may come from outside the
organisation or industry.
 Business process insights – It includes partnering with the corporate process
management team or organisation process operation team who manages the business
process for the entire enterprise. Technology innovation and business model

INNOVATION AND ENTERPRISE 5
innovation requires the modification of current or the growth of the new business
procedures. Considering the discipline of value-driven BPM, business process
insights becomes the facilitator of innovation initiatives (Margherita, 2014).
 Technology competencies – It is concerned with exploring technologically savvy
teams in the enterprise and involves them to explore game-changing technology
trends continuing in the perspectives. Some of today evolving technological trends
include – mobile computing, big data, cloud computing and social computing (Dinh et
al, 2013). One of the most important things is that department and members need to
be involved in this domain voluntarily and should not be nominated by the managers.
Embedding technology competencies with innovation can help the organisation to
build competitive advantage and more effective process leading to offering significant
resources (Dasgupta & Gupta, 2009).
Application of Framework on Apple innovation
There are two types of innovation unveiled by Apple – the first one is classical
sustaining innovation with the iPhone and additionaly with the integrative innovation with the
Apple watch. Apple is continuously successful and as they do everything in a broader
purpose. Considering above framework and the first element of innovation framework,
failure to innovate come in two forms: failure of imagination and failures to execute. Both are
connected to change management trying to run the performance engine of Apple more
effectively. Apple treats innovation as a unique differentiator and a subset of change.
Innovation has its own dynamics and change management can be a part of innovation
dynamics (Schot & Geels, 2008). Change management is a more integrative approach and
innovation requires a much deeper whole system and emergent approach. The Apple watch
takes a more selective approach to change management.
Taking into account of second element, IT experts from the Apple consultant network
help the company to bring out various necessary Apple programmes related to bringing out
innovative solutions that take the business to the next level. The IT business team work
together to bring out new technology that can transform the business through many creative
and innovative ideas with streamlining of work (Liao, Kickul & Ma, 2009). The great ideas

INNOVATION AND ENTERPRISE 6
of business IT team merge with the Apple watch to provide range of powerful productivity
apps and accessories that can also save time.
Industry and external insights play a great role in the success of Apple watch 4 as
every time the company is bringing something new into their models over the preceding one.
Moreover, there are number of competitors in the market offering some sort of product such
as Samsung Gear, Huawei Watch 2, Fitbit versa and Garmin watch. To be competitive in the
market, it is very important for Apple to create value to the consumers with the help of
product with the tool of innovation (Teece, 2010).
In business process insights, Apple product development process may be one of the
most positive design processes ever executed. The enterprise had already gained the record of
world 1st trillion business enterprise and Steve Jobs also stated that business market
advantage it its design approach that relates to the internal workings of the business. Every
technical and IT department of Apple is so much streamlined to one another that it is not
possible to lose any creative idea and thus this helps the company to grab opportunity at first.
Technology competencies include various technological trend prevailing in a
particular industry that can be retained by any organisation to offer first innovative product in
the market (Uyarra & Flanagan, 2010). For instance, the company brings out new innovation
in their Apple watch series 4 that includes Electrocardiogram sensor which extended the
capability of healthcare sector to better comprehend the issue of heart patients. Such trend
features entails this watch to remain at top while considering various other products.
Strengths and weakness of the innovation
Apple watch is a line of smartwatches developed, designed and promoted by Apple
Corporation. It is embedded with finest tracking and health-oriented abilities in incorporation
with ios and other services and products of Apple.
In terms of strength, this product comes up with new innovative solutions such as
ECG, 30 per cent larger display than preceding watches, next-generation processor i.e. 64-bit
dual-core processor, new watch OS 5 operating system, and many more. Apple watch 4 also
come up with fall detection technology with improved gyroscope and accelerometer sensors
that also include emergency responders in either case. With regards to this, there will be

INNOVATION AND ENTERPRISE 7
more sports tracking than other smartwatches and their preceding models such as Yoga and
hiking. Moreover, Apple watch also gains similar loyalty due to the company various other
products such as iPhone and iPads.
Apple watch features gorgeous specs, however, there are some other side things also
in the form of loopholes which cannot be seen due to the watch appeal. For instance, it is
somewhat slow in collecting data from the iPhone through Wi-Fi and Bluetooth. Moreover,
some times, there are various notification stuck in the watch that also not able to move
seemly. In addition, on extensive use, the batter of Apple watch 4 is also not run on a
complete day. Considering less expensive watches, the battery life of Apple also creates an
issue.
Gap analysis
This competitive era not only demands innovation rather it required enterprise to
come up with innovation that is disruptive. Based on this theory of Clayton Christensen, to be
disrupting, there is also needs to focus on a product cost and performance and to grab of more
sophisticated segments of market. This theory does not considered by the company and
moreover, one cannot called iPhone disruptive. On the other hand, Apple watch could be
described as coming into integrative innovation category as it syndicates various jobs to be
done into one and makes other products that previously only did not job.
Recommendations
It is very important to explore various building blocks of innovation, however, it is
challenging due to large extent of information and people available both outside and inside
the corporate. Innovation can be done isolate as it is based on diverse group of people,
departments, process, environment and necessities.
By putting and emphasising various innovative frameworks into practices, a company
can encourage a culture to drives innovation. To come up with more innovation relating to
Apple watch, the company needs to focus on its appeal by pushing the style envelope further.

INNOVATION AND ENTERPRISE 8
The watch can be disruptive if it's introduced at low cost and this can be possible when the
company partner with more inexpensive brands to increase the customizability with
decreasing of watch price.
Hence, Innovation signifies as a procedure that changes creative and unique ideas into
new realities in form of products, processes, or services.

INNOVATION AND ENTERPRISE 9
References
apple.com. (2018). Apple Watch Series 4: Beautifully redesigned with breakthrough
communication, fitness and health capabilities. Retrieved from
https://www.apple.com/in/newsroom/2018/09/redesigned-apple-watch-series-4-
revolutionizes-communication-fitness-and-health/
Bolisani, E., & Bratianu, C. (2017). Knowledge strategy planning: an integrated approach to
manage uncertainty, turbulence, and dynamics. Journal of Knowledge
Management, 21(2), 233-253.
Dasgupta, M., & Gupta, R. K. (2009). Innovation in organizations: A review of the role of
organizational learning and knowledge management. Global Business Review, 10(2),
203-224.
Dinh, H. T., Lee, C., Niyato, D., & Wang, P. (2013). A survey of mobile cloud computing:
architecture, applications, and approaches. Wireless communications and mobile
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Doz, Y. L., & Kosonen, M. (2010). Embedding strategic agility: A leadership agenda for
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Finkle, T. A., & Mallin, M. L. (2010). Steve Jobs and Apple, Inc. Journal of the
International Academy for Case Studies, 16(7), 31.
Liao, J., Kickul, J. R., & Ma, H. (2009). Organizational dynamic capability and innovation:
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Margherita, A. (2014). Business process management system and activities: Two integrative
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Nowacki, R., & Bachnik, K. (2016). Innovations within knowledge management. Journal of
Business Research, 69(5), 1577-1581.
Posthumus, S., Von Solms, R., & King, M. (2010). The board and IT governance: The what,
who and how. South African Journal of Business Management, 41(3), 23-32.

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Rahmani, Z., & Mousavi, S. A. (2011). Enhancing the Innovation Outcomes of Absorptive
Capacity in the Organization: A Conceptual Framework. International Journal of
Innovation, Management and Technology, 2(5), 430.
Schot, J., & Geels, F. W. (2008). Strategic niche management and sustainable innovation
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Teece, D. J. (2010). Business models, business strategy and innovation. Long range
planning, 43(2-3), 172-194.
Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility:
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Uyarra, E., & Flanagan, K. (2010). Understanding the innovation impacts of public
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