Managing Innovation: Future of the Industry, Organizational Requirements, Building Future Capabilities

This study report explores the future of the industry in 2020 and beyond, analyzes the innovation requirements for organizations, and provides insights on building future innovation capabilities. It discusses the consumer electronic market, Apple's innovation requirements, and the importance of integrating hardware and software. Subject: Innovation Management

Managing innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The Future of the Industry 2020 and Beyond ............................................................................1
The Organisations Innovation Requirements 2020 and Beyond.................................................2
Building the Future Innovation Capabilities for the Organisation..............................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Managing innovation is mainly linked with the combination associated with the
management of the innovation in order to attain higher operational goals and sustainability of the
business (Tidd and Bessant, 2018). This study report is useful in analysing, the various factors
and drivers associated with the innovation within a particular business. This study is considered
to be useful in evaluating how leaders and organization tend to effectively plan for the
innovation of the business. It also helps in determining the importance of organisational
knowledge in order to effectively assess innovation blockages and capabilities. This report study
is very useful in determining the future of the industry in the year 2020 and beyond. It also
critically examines the innovation requirement for the organization in the year 2020 and beyond.
This study is very useful in demonstrating the building of future innovation capabilities for the
particular organization.
Apple company is one of the leading American multinational technology company which
was founded in the year 1976 by Steve Jobs, Steve Wozniak, Ronald Wayne, etc. This company
is headquartered in 1 Apple Park Way, Cupertino, California, United States. Apple company
offers various products like iPod, iPhone, iPad, Macintosh, iOS, iWork, Apple TV, Apple
Watch, macOS, Logic pro. It also offers various services like App store, Apple arcade, Apple
music, iCloud, iTunes, Mac app store, Apple arcade, etc.
MAIN BODY
The Future of the Industry 2020 and Beyond
Managing innovation is very useful for the organization because it tends to allow the
organization in order to effectively respond to the particular internal and external responsibilities.
This is useful in introducing new ideas, products and processes which can be done with the help
of creativity (Archibald, and Archibald, 2016).
Consumer electronic market is considered to be one of the growing industry which in turn
leads to higher growth opportunities in the consumer electronic market. The leading
manufactures of the consumer electronic market mainly comprises of Apple Inc., Samsung
electronics, Nokia company, Dell Inc., Sony Corporations, Nikon Corporation, etc. The type of
the products offered by the consumer electronic market includes televisions, personal computers,
cameras, smartphones, handheld devices, etc. These products have become one of the essential
part of the daily routine which mainly focuses on effectively carrying out the operations of the
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business (Biemans, 2018). Rise in the disposable income of the customers, emerging middle
class, penetration of the smart devices, evolving lifestyle preferences, etc. in turn has contributed
towards the overall growth of the company. Integration of 5 G enabled smartphones, self driving
vehicles and advanced artificial intelligence customers application tend to result in higher
operational growth for the business. Voice assisted personnel entertainment system, dominance
of AI, transformation of the auto industry, etc. are considered to be one of the crucial factors
which in turn focuses on development of the consumer electronic industry. This helps in making
life of the individuals easier where they tend to focus on effectively carrying out several business
operations. Development of new and advanced electronics helps in future growth and
sustainability of the consumer electronic company (Criscuolo, and et.al., 2018, June). The shift
in overall micro-environment will tend to result in higher affordability of the consumer durability
goods which in turn results in higher growth and long term sustainability of the business. In the
year 2020 the market value of the consumer electronic industry is expected to raise around
15.4% by the end of the year 2020 which in turn leads to higher sustainable growth and
sustainability of the business. There are wide range of opportunities for the consumer electronic
industry is mainly linked up with home automation, digital distribution, mobility and wearables
(Alexander and Joe, 2019). The growing convergence linked up with the communication,
information and entertainment is mainly bringing new era in the consumer electronic industry.
The key place of global consumer electronics mainly comprises of UK Germany India China
exedra. These are considered to be the major players of each country which helps in increasing
the market share and sustainability of the consumer electronics industry (Prange, and
Schlegelmilch, 2018). The compound annual growth rate (CAGR) of global market for electronic
compliments is mainly approximately 5.6% from year 2019 to 2024. The key drivers of future
and consumer electronic industry includes voice recognition technology, smart phones, artificial
intelligence, replacement cycles, Exeter else in increasing the consumer demand related
consumer electronic products.
The Organisations Innovation Requirements 2020 and Beyond
Apple has been the key market player in the tech world since the advent of the iPhone. It
also has dominance in the laptop and desktop space with the MacBook and the iMac.
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These have been the winning products for Apple and seem to be working pretty well. Apple
came to the 1 trillion dollar valuation again in 2019. The 2019 iPhones: iPhone 11, pro and the
pro max were very well received by the tech community (Mousavi,Bossink and van Vliet, 2018).
Its MacBook pro refresh also fixes the issues of previous MacBook pro. It seems as if Apple
went all in 2019 to stay competitive. The competition in the technology sector is as cruel as ever.
More companies are competing with Apple like Samsung, Microsoft and Google which are
offering similar products. These products are also well made and offer similar performance with
respect to apple's offerings.
This puts pressure directly on Apple to innovate to stay at the top of the charts. When all
competitors offer similar products, innovation is key breakthrough.
Apple's R&D department is one of richest all over the world. Their budget is not publicly
disclosed but it is estimated that the figure well over 2 billion. All this money is spent on projects
and new technologies which Apple could potentially incorporate in their product line up (Poblete
and Spulber, 2017).
There are many key technologies that Apple is betting big on. One of these is the use of
artificial intelligence. Commonly called as AI, artificial intelligence is backbone of modern day
software. It is used extensively in order to suggest and collect data to user. It is used in image
processing to make sense of photos for better suggestions and facial recognition. It is also used in
sensibly sorting data which is in the range of petabytes (Griesar, Bessant, and Bernschneider‐
Reif, 2018). This work is most conveniently sorted by AI. Also apple's face ID uses AI to map
faces for biometric authentication.
Since many competitors like google have already implemented these on their Android platform,
Apple needs to stand out. Google machine learning and AI are already the best in the world. A
good example of this is Google assistant vs Siri. The Google assistant is way better than Siri in
most scenarios. Therefore Apple's innovation requirement in 2020 and beyond requires strong
work in software engineering where artificial intelligence and machine learning are implemented
in its services.
Apple has also been trying to get into the streaming market too. It has launched Apple tv+ which
offers many originals and some great movies of Pixar. It is a direct competition to Netflix which
is also a subscription based streaming service (Murthy, 2017). As it stands Apple TV has way
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less content than Netflix and for its future Apple has planned many original content for 2020
with many stars like Oprah and Jennifer Aniston.
Apple also has started Apple arcade which is also a subscription based. It is like a hub for
games in which one does not have to buy a single game but can access all its games by a monthly
fee. It eliminates the need for users to purchase individual games. Although there not many triple
A game titles but many games are in the making.
It seems that Apple is set to subscription based future. Its major portion of income comes from
services like these, so it makes sense to capitalize its huge user base with subscriptions. It also
keeps people in the apple eco system that is beneficial to Apple in the long run (Archibald and
Archibald, 2016).
Apple can revolutionize the streaming market if it can deliver a high quality service
which can do many things at a single platform. So it can truly bring innovation in the near future.
One more area of interest to Apple is augmented reality AR for short. AR is used to create
interactive real world simulations. In the future Apple will include dedicated hardware in
iPhones and iPad which custom built for AR. This will allow users to interact with high end
games or even their own creations (Tidd and Bessant, 2018). This innovation will keep Apple
firm at the top of its game.
To sum up Apple's innovation in 2020 and beyond will be based on machine learning, AI,
streaming services and AR. Hopefully these innovations will have a positive impact on the
world.
Building the Future Innovation Capabilities for the Organisation
Apple Inc. is considered to be an innovative company because it mainly focuses on
integration of hardware and software. Apple Inc. is mainly considered to be one of the world’s
leading consumer electronics company which tends to provide customers with innovative
products which the world wants. Apple Inc. innovative approach towards software and hardware
engineering. This in turn helps in creating never ending experience (Archibald, and Archibald,
2016). Apple tends to focus on designing its own set of chips for tablets and phones which in
turn helps in creating a competitive position. The company tends to improve their chip design
which helps in creating higher competitive advantage for the future. This in turn leads to higher
operational growth and sustainability for the business. Apple tends to focus on privacy based
artificial intelligence where they tend to carry out the operations in a systematic manner. Apple
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Inc. tends to beat top leading companies like Amazon, Nintendo, and Sony. Apple Inc. company
mainly focuses on providing effective customer services which in turn helps company in
carrying out business operations in a systematic and efficient manner (Criscuolo, and et.al., 2018,
June). Apple Inc. has invested in various innovative capabilities which mainly includes
innovation and design, retailing, marketing, product development and supply chain. This in turn
helps in carrying out the functions which leads Apple Inc. to attain greater heights and
operational efficiency. The key reason associated with the success and greater heights of Apple
company is that it tends to integrate with the capability ecosystem which in turn helps in
constantly innovating each capabilities of the company. The interlocking strength of the
company tends to determine and evaluate that, Apple company is at a competitive position to
attain greater heights in the market greater than its competitors. Apple tends to strengthen their
capability ecosystem is considered to be one of the long lasting innovation capabilities of Steve
Jobs. Innovative business model launched by the Apple company helps in creating terrific range
of new products and also helps in delivering effective services which leads to higher sustainable
growth and efficiency (Mousavi,Bossink and van Vliet, 2018). In order to build future innovation
capabilities for the Apple Company they should focus on managing the innovation which in turn
leads to higher operational growth. They tend to focus on determining the opportunities which
helps in grasping higher growth for the business. They focus on effectively optimising the use of
resources which helps in effectively launching several range of innovative products. The
credibility of the Apple Company is very high which enables company to carry out operations
with higher innovation and creativity. This helps in creating higher market share and helps in
attracting large if customers from across the globe. This leads to higher profitability and
productivity for the Apple Company. Engaging in various campaigns helps company to position
itself in the market (Griesar, Bessant, and Bernschneider‐Reif, 2018).
Apple company is considered to be the epitome of high degree of innovation capabilities which
in turn tends to focus on effectively carrying out the business operations. Augmented reality os
considered to be one of the effective approach which in turn helps in carrying out the business
operations in systematic and appropriate manner. Apple company intend to focus on carrying out
the business operations with the help of augmented reality platforms. Getting engaged in virtual
reality in turn helps in effectively carrying out business operations. Apple have great opportunity
to develop an effective hardware and software which is mainly linked up with virtual reality
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headsets, virtual reality content and creation of 3 D in a consumer electronics product related
with Apple company. Apple company key focus is on HomePod’s music capabilities which in
turn is considered to be the long term play associated with the concept of ambient computing.
This in turn helps in connecting everyone with the help of artificial intelligence
(Mousavi,Bossink and van Vliet, 2018). New gizmos helps in building various innovative
capabilities for the Apple consumer electronics company which in turn helps in increasing the
market share and growth capabilities for the company.
Apple worldwide developers conference is considered to be one of the effective
techniques which in turn helps in using the specific event in order to showcase the particular
software, gadgets or any other innovative technology. The future innovation capabilities of the
Apple company tends to effectively rely on several platforms. In order to build the future
innovation capabilities of the Apple company must effectively focus on using threshold
capabilities. This in turn helps in creating future inn ovation capabilities for the smartphones
product. The current advancement in technology has led to high competitive pressure in the
world. Apple company tends to focus on combining technological knowledge with a new set of
ideas. This helps in continuous designing and innovation of the particular range of consumer
electronics products and services which mainly includes computer software, hardware, iPad,
iPhones. This helps in maintaining customers by effectively satisfying needs and want of the
customers. Apple company tends to focus on delivering high possible customer services which in
turn results in higher customer satisfaction. This helps in boosting up the line of growth and
tends to focus on relatively reducing the cost which in turn leads to higher operational efficiency
and productivity (Griesar, Bessant, and Bernschneider‐Reif, 2018). Apple company also tend to
focus on creating a differential capability which in turn helps in aligning the innovation
capabilities which in turn results in long term sustainability of the business. The key motto of
Apple company is “think different”. This helps in effectively promoting all the employees in the
organization to be innovative. This in turn results in higher operational growth and also helps in
attaining long term organizational goals and objectives. Apple company tends to focus on
delivering those products which are user friendly. The Apple company mainly focuses on
improving the engineering work which helps in delivering high quality products and services.
The company tends to focus on building empathy and empowering employees to be innovative
which helps Apple company in building innovation capabilities. Apple company tends to focus
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on streamlining the various distinct product portfolio which requires less repair and maintenance
(Design Thinking Case Study: Innovation at Apple, 2016). The design of the particular products
by effectively integrating into development stages and designing results in higher customer
experience. Continuous innovation and development of various effective hardware and software
helps in effectively achieving a competitive market position in the market. It does not focus on
copying its competitors which in turn results in business failure for the company. Featuring
larger batteries, 5 G iPhone in 2020, OLED, etc. helps in reaching greater heights which leads to
higher sustainable of the growth and efficiency. iCloud, Biometrics, Siri, Business users, IOS
robots, Desktops, etc. are effective capabilities for the Apple company which helps in reaching
higher goals and sustainability (Prange, and Schlegelmilch, 2018). 5 G wireless chips which
helps in much faster cellular speed helps in building innovation capabilities. Apple company
tends to add laser power time of flight 3D rear camera helps in improving augmented reality
experience. OLED lined up in the year 2020 with LCD iPhones helps in effectively carrying out
the business operations. Use of Qualcomm's chips and working on modem chips helps in
building future innovation capabilities for the Apple company. Use of various effective
innovation technology helps Apple company in reaching higher market and gain effective
competitive position (Mousavi,Bossink and van Vliet, 2018). The company tends to focus on
building their innovation capabilities for the year 2020 and beyond for long term sustainability
growth.
CONCLUSION
From the above conducted study it has been concluded that, Managing innovation is useful
in introducing new ideas, products and processes which can be done with the help of creativity.
This study evaluates that, Consumer electronic market is considered to be one of the leading and
growing industry which in turn helps in carrying out all the operations within higher
sustainability for the long period of time. In the year 2020 the market value of the consumer
electronic industry is expected to raise around 15.4% by the end of the year 2020. The CAGR of
global market for electronic compliments is mainly approximately 5.6% from year 2019 to 2024.
This study also concludes that, Apple has also been trying to get into the streaming market.
Apple's innovation requirement in 2020 and beyond requires strong work in software
engineering where artificial intelligence and machine learning are implemented in its services.
Apple can revolutionize the streaming market if it can deliver a high quality service which can
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do many things at a single platform. Apple's innovation in 2020 and beyond will be based on
machine learning, AI, streaming services and AR. It has been summarized that, The key reason
associated with the success and greater heights of Apple company is that it tends to integrate
with the capability ecosystem which in turn helps in constantly innovating each capabilities of
the company.
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REFERENCES
Books and Journals
Alexander, B. and Joe, T. eds., 2019. Managing innovation: internationalization of
innovation (Vol. 34). World Scientific.
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Criscuolo, P and et.al., 2018, June. MANAGING INNOVATION IN A MULTI-DIVISIONAL
FIRM: WHEN DOES MOBILITY ACROSS DIVISIONS IMPROVE R&D
MANAGERS’PERFORMANCE?. In DRUID Society Conference 2018.
Griesar, K., Bessant, J. and Bernschneider‐Reif, S., 2018. The Recipe for Corporate Longevity:
From the Perspective of “Managing Innovation”. Angewandte Chemie International
Edition.57(16). pp.4130-4142.
Mousavi, S., Bossink, B. and van Vliet, M., 2018. Dynamic capabilities and organizational
routines for managing innovation towards sustainability. Journal of cleaner
production. 203.pp.224-239.
Murthy, J.J., 2017. Managing Innovation and Developing Intellectual Property Strategies for
Firms. SIES Journal of Management. 13(1).
Park, N.M and et.al., 2015. Enhancing innovation and technology transfer in the New Zealand
apple industry learnings from Apple Futures. New Zealand Plant Protection.68. pp.291-
298.
Poblete, J. and Spulber, D., 2017. Managing innovation: Optimal incentive contracts for
delegated R&D with double moral hazard. European Economic Review. 95.pp.38-61.
Prange, C. and Schlegelmilch, B.B., 2018. Managing innovation dilemmas: The cube
solution. Business Horizons.61(2).pp.309-322.
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Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Online
Design Thinking Case Study: Innovation at Apple. 2016. [ONLINE]. Available
through:<https://www.designorate.com/design-thinking-case-study-innovation-at-apple/>
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