Innovation and Business Environment

This article discusses the impact of innovation on the business environment, with a focus on Apple Inc. It explores the strategies implemented by Apple to stay competitive and the role of artificial intelligence in revolutionizing the industry. The article also provides recommendations for responding to the innovation trend and aligning the business strategically.

Running Head: MANAGEMENT 0
Innovation and business environment

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Table of Contents
Introduction................................................................................................................................2
Innovation Trend- Artificial Intelligence...................................................................................2
Organizational Environment of Apple.......................................................................................2
Concept of AI.............................................................................................................................3
Innovative strategy implemented at Apple Inc..........................................................................3
Innovative Capabilities of Apple Inc. firm................................................................................4
Innovative Value Chain..............................................................................................................4
Innovation strategy ensures strategic alignment........................................................................5
Impact of AI on Apple organisation...........................................................................................6
SWOT Analysis.........................................................................................................................7
Recommendation (Response to innovation trend).....................................................................8
Recommendation (Strategic alignment).....................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Overview
In the innovative technological environment, the most important feature that the
company Apple provides in the business is that it gives a corporate advantage to the dynamic
operational market situation present in the external environment. The company Apple is
present in information technology industry that was introduced in the year 1976 and since
then the company has become competent in achieving profitability in the external
environment. The company Apple Inc. make use of smart and innovative approach in the
environment to attract the customers and initiate sales as well. An innovation strategy is a
creative plan that is used by businesses in order to advance the business and initiate functions
for the success of the company (Teece, 2010). The innovation strategy makes use of
technology and other diverse features in the environment to grow and succeed. In the below
mentioned paper, innovation strategy of Apple Inc. has been explained
Innovation Trend- AI
At present, one of the most powerful and influential technological innovation is AI
that has been undertaken in the business environment. In common language, Artificial
intelligence refers to computer controlled robot that performs various actions in the
environment just like human beings. Humans are the only kind present in the environment
that holds the capacity of reasoning, questioning in the environment so innovation AI has
given a differential edge to the IT industry. In the current business environment, innovation
holds the power to make a company completely competent while reduce the competence of
other organization (Lee, Kao & Yang, 2014). For an organization like Apple Inc. it is
important for them strengthen their business by initiating innovative strategic framework in
business (Von Lohmann, 2017).
Organizational Environment of Apple
Organizational environment is crucial to analyse before introducing innovation in the
business as it helps the management to either accept the change or simply resist from it.

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Organizational environment of Apple helps in understanding that how the business has been
able to nurture in the dynamic environment while making effective use of innovation as well.
Organizational environment of Apple can be considered as one of most important aspect that
support the company to achieve victory in the external market. The corporate leader
effectively guided the management to move in the right direction in the external market. The
leader also made sure that good use of innovation is implied in the business (Park, et. al.,
2015).
Concept of AI
Artificial Intelligence refers to the theory and development of the computer system
that can act and works normally using human intelligence. Apple Inc. has started using AI in
the environment to increase the level of satisfaction of the customers. The company gained
the first mover advantage in the environment using this type of innovation (Bos‐Brouwers,
2010). The company named its AI as “Siri” with whom people can talk through iPhones and
other Apple products. The differential features of Siri have made Apple smartphone as a
tailored automated device. This feature also helps the users in resolving their queries and
guiding them about the Apple products (Richtnér, Brattström, Frishammar, Björk, &
Magnusson, 2017).
Innovative strategy instigated at Apple Inc.
The company Apple Inc. has always aimed to strive the best opportunities present in
the market for the company. The base of the growth of Apple is its capability to handle
innovation in the environment. Further, it should be noted that Apple Inc. has always aimed
to attain complete use of innovation present in the external environment to improvise their
products and services. Some of highly competitive and innovative products offered by the
company are iPhone, Ipad and smart watch etc. Unique innovative features are the unique
selling proposition for the company Apple Inc. Even after Steve Jobs, the company continued
the legacy of Apple by focusing on innovation and providing extensively attractive features
to the customers in the target market (Pisano, 2015).

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Innovative Capabilities of Apple Inc. firm
Innovative capability of Apple includes its operational competencies, technology
abilities, management abilities, and its transaction competencies (York & Venkataraman,
2010). The company is succesfully develop its innovative capabilites over the years that help
the company to make its business model more strong as per the business environment. With
this, Apple creates value based on its unique and distinct offerings based totally on
technology elements.
In stenrghtening the innovative capabilities of the firm, the role of Setev Jobs is vital.
With the core innovtive skills, it also includes the manpower expertise, innovtive model of
leadership and stringent development and research division.
Innovative Value Chain
Considering innovation elements of Apple, there are certain primary and secondary
activities help the firm to capture and create value in respect with attaining organisation goals
(Lee, Olson & Trimi, 2012). It is founded that Apple has a robust supply chain and the
company attain its resources from various different places around the world. The company
undertake their business operations in various different nations however, China has reinforce
the functioning acitvity of the business. The company uses creative and innovative promotion
strategies that help the brand to achiece competitive edge in various industries considering
their business scale and operations (Naranjo-Valencia et al, 2011). The company also
provides various extend services after sale of their product to help the customers from all way
and encourage more interactions with the brand.
Other than primary activites, the brand is also reinforcing its technogical model with
focus on supporting activities. This model embraces upon unique offerings, and high quality
aspects (Chiaroni, Chiesa & Frattini, 2011). For creatting value for both firm and customers,
the company utilize its human resoruce in the best possible way. In relation with procurement
funciton, Apple also develop strong relationships with the suppliers. Moreove, the company
is contantly evolving year by year and benefit the company to adapt innovative and dynamic
business environment.

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Innovation strategy ensures strategic alignment
Innovation startegy of any business develops an intergral aspects of a strategic model
in respect with firm business environemnt. In this globalised and new era, no firm business
model can be successful without having innovative elements (Spohrer & Maglio, 2008) and
Apple is entirely depend on innovation to develop unique offerings in context of competitive
business environment.
Considering Apple strategic model, building innovtive strategy helps the business to
startegically align its all innovative elements in various different aspects of business
including organisational culture and leadership and other outlooks. As per Birkinshaw,
Hamel & Mol (2008), Apple can build its innovtive model more strong with interconnection
of these elements as this will also help the company to grow their business operations in the
international market.

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Impact of AI on Apple organisation
In technology based business, AI is one of the significant innovative approach
revolutinize the way the business is creating the value to the customer. Though, Apple is
known for its creative and innovative strategy but it is limited to certain boundary. As stated
above its innovation strategy in relation with “Siri” bringing all new AI concepts, the
business is representing its AI driven technology with designing and offerings AI solutions in
the market bringing new user experience in repesect with communication and interaction.
Apple also has developed certain building blocks to cater with dynamic based
technological environemnt as it helps the brand in its development of technology
infarstructure considering dynbamic business ennvironment. Chesbrough (2010) stated that
AI can able to effectively reduce work processes comprising human activity and this would
may raise the automated process in relation with organisation context.

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SWOT Analysis
With the help of SWOT analysis, the strength, weakness, opportunities and threats
can be identified with their innovative trend in respect with business concern.
Strengths
Exploting AI by apple can be done in an
effective way due to some core strength of
brand such as its technological
infrastructure, research and development
department, marketers unique ability, loyal
customers segment and high brand value.
Weakness
Apple has strong brand value and capital
considering research and development
department, however, they have lower
degree of experience in relation with this
new trend and this will reduce its capability
to exploit this dynamic business
environment trend.
Opportunities
AI can prove to be unique opporuntity for
the brand and may also create extended
value considering the taget audience. For
instance, it may reduce the involvement of
human element and may strenght the new
business model of the company.
Threats
AI setting in the dynamic business
enevironemt can be proved to be a biggest
APPLE threat as there is high uncertainity
in relation to its application and customer
expectations.

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Recommendation (Response to innovation trend)
It is essential for the company to organise its advanced model in a more rational way
in order to effectviely build AI exemplary. Here, the role of innovators and leaders is very
signigifcant to exploit unique offerings in the business environment as they can play their role
to instil model of AI in various aspects of the firm in extent with the human resource.
Moreover, in promotion with AI initiatives, the company can can focus on solidification of
machine learning mode as it will help in supporting the computer based robotic model.
The company also need to consider various vital aspects in relation with cloud
computing so that to align AI business concept and their innovative initiatives. The brand can
help to capture and create significance with the innovative tactics in considerations with
advancement in technology and modifications taking place in uncertain industrial
environment. This will help Apple to make stronger its future digital edge in extent with AI.

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Recommendation (Strategic alignment)
At present time, one of the most innovative trend is AI that have transform the
business of Apple with various revolutions in the technology in respect with the strategic
alignment. However, Apple is required to address various innovative trends in respect with
all the functioning of Apple firm to the extent of its strategic objectives and business goals.
In Apple, the company use innovation at core elements in all the levels and so they
can embrace upon real-time erudition in the enterprise on invention and the AI notion of
technology. The company can mature in the digital sense by using the approach of Artificial
Intelligence.
Apple needs to strength its technological assest so as to make it digital model more
mature and thys sync its business strategy with the trend if artifical intelligence in extent with
the usage of innovative elements considering business functions and effective development of
hr resources and other expertise. Considering AI model, the company is required to formulate
value chain with more investment in the research and development division so as to improves
its sales and promotional elements and improve user experience. In addition, Apple can also
adopt holistic approch to ensure its technology concerned with corporate undertaking can
effectively align with the AI trends and develop its name for itself.

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Conclusion
Considering all, it can be said that Apple is exploiting its innovative trend in the best
possible mananer in relation with artifical intelligence and develop importance for itself and
the consumers in the changing business environment. This report states on Apple innovarive
business model and the way it align with the AI trends in the industry.

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References
Birkinshaw, J., Hamel, G., & Mol, M. J. (2008). Management innovation. Academy of
management Review, 33(4), 825-845.
Bos‐Brouwers, H. E. J. (2010). Corporate sustainability and innovation in SMEs: evidence of
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435.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-363.
Chiaroni, D., Chiesa, V., & Frattini, F. (2011). The Open Innovation Journey: How firms
dynamically implement the emerging innovation management
paradigm. Technovation, 31(1), 34-43.
Lee, J., Kao, H. A., & Yang, S. (2014). Service innovation and smart analytics for industry
4.0 and big data environment. Procedia Cirp, 16, 3-8.
Lee, S. M., Olson, D. L., & Trimi, S. (2012). Co-innovation: convergenomics, collaboration,
and co-creation for organizational values. Management decision, 50(5), 817-831.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation or
imitation? The role of organizational culture. Management Decision, 49(1), 55-72.
Park, N. M., Williams, T. A., Walker, J. T. S., Butcher, M. R., Turner, J. A., Botha, N., ... &
Taylor, N. M. (2015). Enhancing innovation and technology transfer in the New
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Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-
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Richtner, A., Brattstrom, A., Frishammar, J., Björk, J., & Magnusson, M. (2017). Creating
better innovation measurement practices. MIT Sloan Management Review, 59(1), 45.
Spohrer, J., & Maglio, P. P. (2008). The emergence of service science: Toward systematic
service innovations to accelerate co‐creation of value. Production and operations
management, 17(3), 238-246.

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Teece, D. J. (2010). Business models, business strategy and innovation. Long range
planning, 43(2-3), 172-194.
Von Lohmann, F. (2017). Fair use as innovation policy. In Copyright Law (pp. 169-205).
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