This assignment discusses the product and service innovation technique used by Apple Inc. while introducing e-SIM in the market recently. The concept of electronic SIM card is completely new in the information and communication technology market which is already dominated by Apple Inc.
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Running head: RADICAL INNVATION IN APPLE 1 Radical Innovation of e-SIM in Apple Ekta Katihar Royal Roads University Author Note: This paper was prepared for MGMT 569International Operations and Supply Chain Management, taught by Krupal Patel, due on April 17, 2019.
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RADICAL INNOVATION IN APPLE2 Table of Contents Introduction eSIM Controversies Critical Assessment of eSIM References
RADICAL INNOVATION IN APPLE3 Radical Innovation of e-SIM in Apple Introduction This assignment will discuss the product and service innovation technique used by Apple Inc. while introducing e-SIM in the market recently. The concept of electronic SIM card is completely new in the information and communication technology market which is already dominated by Apple Inc. The innovation which Apple has brought by introducing e-SIM belongs to the radical innovation category. The innovation of e-SIM in the iPhones required completely new architectural knowledge, which is the essence of radical innovation. Explanation of the current interest or controversial nature of the topic: The new innovative product of electronic SIM or e-SIM which Apple has launched in late 2018 has emerged as an innovation of both current interests as well as controversies. The new product e-sim would enable the consumers to buy new mobile connections without having to change the sim cards in their respective smart phones (Jaffe, 2018). This new feature could drastically reduce the high international mobile roaming charges (Cohen, 2018) as it would be easier to add a local plan to the phone. Krause (2016) mentions that this innovation has created a controversy among the established wireless service providers as consumers would be able to switch their wireless service providers frequently. e-SIM will seriously disrupt the existing players in the mobile industry as customers will no longer have to visit the wireless firm’s retail store to sign up for the service and where a salesperson then inserts a tiny SIM card into a phone (Krause, 2016). This will change the landscape for the mobile operators who strive to retain customers and would also change the way the SIM cards are fundamentally used.
RADICAL INNOVATION IN APPLE4 Critical Assessment of eSIM A critical assessment of the radical innovation of e-SIM, which Apple has introduced, reveals that leading companies are able to affect the entire industry by their own strategies. I can opine from my own experience that this power to virtually affect the entire industry by a single innovative strategy actually shows competitive advantages which Apple enjoys over its competitors. The creativity from idea generation to product design is a process, which requires immense research and development (Fig.1). eSIM is a result of creative thinking of Apple to keep its product light, which enabled designing iPhone without SIM .As the mobile design requires the data exchange over the network user’s location and bandwidth available should be considered among other issues in the design process (Ocampo,Boggio,Munch and Palladino, 2003, p. 1127). CreativityInnovationDesignProducts and Services To make deviceIntegrated SIMNo physical SIMe-SIM in iPhone Lighter and sleekchip Fig.1 The relationship between creativity, innovation and design This intense research and development requires immense investment in technology, which in turn attracts huge capital generation. However, this nascent stage of eSIM makes slow progress in performance, as it is the early stage of lifecycle on S Curve. The two reasons for slow progress are completely new technology along with certain basic but important bottlenecks which has to overcome (Sood and Tellis, 2005, p.153).I can point out from my own experience the brand value that Apple enjoys, will generate the immense capital through this innovation. Moreover, the huge revenue, which Apple Inc. generates by sale of products, enables it to give high returns on investment to equity shareholders, which help to attract more capital.
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RADICAL INNOVATION IN APPLE5 Adoption of eSIM brings advantages to various stakeholders in the industry. Apple has transformed the entire mobile industry by transforming its iPhone (Fig.2).Carlgren,Rauth and Elmquist (2016) point out that concept of design makes ideas useful (p.40). This statement can be exemplified in terms of eSIM because this factor would enable the Apple Inc. to attract new consumers, thus generating higher revenue for Apple (Slack, N. and Brandon-Jones 2018). Fig. 2The design activity process of the e-SIM in IPhone Recommendation Theoutcome of these competitive advantages is that the company is able to enter into collaboration with companies from different industries. For example, in terms of the eSIM innovation, it can be inferred that Apple collaborated with leading mobile communication services providing companies, which however is not stated clearly. It's evident in the near future that eSIM might outgrow the existing SIM cards which would help in reduction of plastic from which the SIM cards are made that will help in reducing the environmental burden to an extent. Transformed resources ï‚·iPhone ï‚·Customers ï‚·Network services ï‚·Information Transforming resources ï‚·Design and technical staff ï‚·Mobile operators Input The product/service design innovation processOutput Value added for customers ï‚·eSIM
RADICAL INNOVATION IN APPLE6 References Carlgren, L., Rauth, I., & Elmquist, M. (2016). Framing design thinking: The concept in idea and enactment.CreativityandInnovationManagement,25(1),38-57. doi:10.1111/caim.12153 Cohen, A. (2018). Will eSIM cards relieve roaming charges?Business Travel News,35(15), 35. Retrievedfromhttps://ezproxy.royalroads.ca/login?url=https://search-proquest- com.ezproxy.royalroads.ca/docview/2131573873?accountid=8056 Jaffe, J. (December 7, 2018). Dual- SIM and e-SIM on Apple’s 2018 iPhones: Everything you needtoknow.Retrievedfromhttps://www.cnet.com/how-to/dual-sim-and-esim-on- apples-2018-iphones-everything-you-need-to-know/ Krause, R. (April 8, 2016). Will Apple e-SIM Hurt Wireless Firms? Software SIM version near, easingprocessofswitchingcarriers.Investor'sBusinessDaily,Retrievedfrom http://www-lexisnexis-com.ezproxy.royalroads.ca/lnacui2api/results/docview/ docview.do? docLinkInd=true&risb=21_T28648164981&format=GNBFI&sort=RELEVANCE&start DocNo=1&resultsUrlKey=29_T28648164985&cisb=22_T28648164984&treeMax=true &treeWidth=0&csi=8204&docNo=3 Support.apple.com.(2019).Support.apple.com.[online]Availableat: https://support.apple.com/en-in/HT209044 [Accessed 16 Apr. 2019]. Peer reviewed: Li, Y., Wang, J., Li, X., & Zhao, W. (2007). Design creativity in product innovation.The international journal of advanced manufacturing technology,33(3-4), 213-222.
RADICAL INNOVATION IN APPLE7 Ocampo, A., Boggio, D., Munch, J., & Palladino, G. (2003). Toward a reference process for developing wireless internet services.Ieee Transactions on Software Engineering,29(12). doi:10.1109/TSE.2003.1265526 Slack, N., & Brandon-Jones, A. (2018).Operations and process management: principles and practice for strategic impact. Pearson UK. Sood, A., & Tellis, G. (2005). Technological evolution and radical innovation.Journal of Marketing,69(3), 152-174. doi:10.1509/jmkg.69.3.152.66361