Innovation Capability of Apple

Research Proposal

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Innovation Capabilities of Apple.................................................................................................1
Factors influencing innovation capabilities of Apple..................................................................3
Roadmap for innovation..............................................................................................................4
Recommendations for improving innovation capabilities...........................................................6
Findings........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation may be defined as turning idea into a practical solution which adds value to
customers perspective. Innovation is a new idea or creative thoughts or new imaginations within
the products or services which can lead to the organisational success. It simply means application
of better solutions in order to meet new requirements or adding value to existing marketing needs
(Prajogo, 2016). It is important for the organisation to set a roadmap in order to outline the
innovation success for the company's innovation strategies. In this report Apple Inc. is taken as
an organisation which is a multinational technology company of America with its headquarters at
Cupertino, California and it designs as well as sells the consumer electronic products, online
services and computer software. Apple is considered as one of the largest companies in
Technological sector across the world. This report discusses the innovation roadmap of Apple
Inc. and its innovation capabilities and factors effecting the innovational capabilities of the
organisation.
MAIN BODY
Innovation Capabilities of Apple
Apple Inc. is world's number one innovative company as its innovation strategies
involves the best quality products and has got the innovative business models. Apple is capable
of delivering and surprising the customers with new presents like new features, new software,
the best hardware quality and beautiful packaging. Apple is also capable in creating new market
niches and new business space. Apple's has always been clear with its strategy and set of goals, it
has been committed to bring the best experience for it customers across the world through its
innovation process. Company has always been making innovations with its products and Apple's
business strategy leverages its unique innovative ability to design and develop company's own
operating system, application software, hardware and also the services in order to offer its
products to new customers and provide effective solution to its customers (Souto, 2015).
Company has always believed in making continuous investments in its research and
developments. Apple spends millions of dollar in conducting market research and customers
research and make innovations within its business process. Also, company has also got the
capability in expanding its platforms for the discovery and also delivers third party digital
applications and contents through its iTunes Store. Only thing which is better than Apple's
financial data is its products which generated the huge revenue for the company. There was the
1

time when Apple was criticized for not hitting the markets with its products but with it new
product iPad in the market in mid-January was the best reply from the Apple as it generated more
than $900 billion. Also, in 2017 company introduced the wireless AirPods in the market which
was considered as the best innovations in the sector of earphones and headphone with wireless
technological embedded in it, Apple Inc. has also got the capabilities for embracing new
concepts and technologies like the developers of Apple embraced ARKit ( Apple's augmented
reality kit) which was introduced in the iPhone X with the facial recognition feature which has
increased the level of phone security.
Apple has got the best innovation history, in past Apple did not have a design capability,
but it was the innovative leader Steve Jobs who worked hard with the external designers and this
started the rise of innovation capabilities of the company. After this Apple developed the best
innovation team and were capable of designing its owns products, software, operating systems,
apps and its own stores. This gives the idea of innovation capabilities of Apple Inc. Apple has
been inspiration for other technology companies across the world and many company want to
develop Apple like capabilities for designing its products (Shams and et.al., 2018). In order to
make any innovations in the products it requires lots of patience, huge investments, technology
and talent and Apple's innovative history gives the proof of all of these factors are present in
Apple company. Making innovations in the business in not easy task but it requires effective
leadership and leaders who are willing to take risks and constantly prioritise and support the
capabilities of the organisation. Each and every time Apple has been able to innovate its product
and there always lies a difference between old and new Apple products which has been attracting
the customers across the world. The innovative strategy of Apple has been so successful that
people are waiting for launch of new products of Apple and company never failed to raise
curiosity within the customers through innovations (Saebi and Foss, 2015). Apple has been able
to understand its customers and has been able to take care of its customers in order to provide
good experience to them, whether it may be from purchasing a product to downloading a content.
Apple has made innovations not to just introduce novel products to global markets but in addition
Apple has also innovated the ways of doing business and this is how it has affected its brand
image, profits and its market capitalisation.
2

Factors influencing innovation capabilities of Apple
There are various factors which has been influencing the innovative capabilities of Apple
and these factor has been a key to the innovation success of the organisation. The factors which
has been influencing the innovation capabilities of Apple can be explained below:
Innovative business model: Apple has not only focused on building beautiful and innovative
products but has been able to build innovative business model too. For example iPhone and iPads
would not have impacted the customers if it didn't match with iTunes and App Store respectively.
Apple's systematic Approach towards Innovation: Apple is the world's number one
innovative company and it has included innovative business model and new products within in
its innovation strategy. Company always wants to surprise its customer with its new products
which a company launches in the market and this strategy has always worked for the company.
Also, the leaders of the company has also adopted innovative leadership whether it be Steve Jobs
or Tim Cook, and they have also maintained the pace of innovation.
Apple's innovative System: Apple to make innovation is its cultural norm and is not process
driven. Most successful products which were introduced by Apple were started by only few
people which had no hierarchy or formal structure and had little corporate oversight. But they
were able to implement the innovative system within the organisation and continued to innovate
over the years which required lot of disciplines and focus (Louis, 2018). This was the major
factor which has influenced Apple in maintaining the innovative strategies over the year and will
continue to maintain in the future as well. Apple build effective innovative system in order to
harness the creativity within its people which keep on stimulating new ideas, design process,
successful launch and profitable innovations.
Apple's Design Process: Company's design process has been effective and keep on continuously
demonstrating with its innovation management which has helped the company to design the best
products in the world. Design of a product is not just how does a product looks like and feels but
design means how does a product works as said by Steve Jobs. Apple's innovative management
has got the matching top-down and bottom up strategies in which both top and bottom level
managers are involved in designing process. Also, Apple has managed to spend huge amount of
work and enormous time in design the best models but it has removed all ambiguities of the
products.
3

Innovative Partnership: Apple has leveraged its innovation process, diverse culture, networks
and partners in order to seize the new opportunities within the market and has been successful in
growing its business exponentially (Saebi and Foss, 2015). One of the major factor which has
been influencing the innovation success of Apple has been its innovative partnership as it has
been its important part of innovating strategy of Apple.
Venture Acquisitions: Acquisition strategy and venture investing strategy of Apple has not been
so strong or aggressive. In order to stay ahead in the market Apple normally make extra
investment in its supply chain. Apple does not make many acquisitions as compared to its
competitors. If a Apple buys a new company it is always a matter of concern how they will fit
within the innovative strategy and acquired technology can be useful for the company's new
projects (Evans and et.al., 2017). But Apple has been able to add important features to its
existing product line which has opened the doors for Apple in new markets of the world. By
making fewer acquisitions Apple's supply chain does not get hindered and but has been paying a
large proportion of cost of construction in exchange for exclusive rights to the company's output.
This has allowed the company not only to come up with new components before its rivals but is
very difficult to duplicate these components.
Roadmap for innovation
Innovation road is a successful tool measuring the success of innovating strategies as it
supports the process of developing an innovative strategy, effective communication of the
strategy and also the course of its implementation. In 2020 Apple is coming up with the new
innovations and is launching OLED iPhone. OLED (Organic Light Emitting Diode) which will
be used in iPhone 11. Apple can map this innovation success of this innovation with the help of
innovation roadmap which can be explained below:
1. Idea generation: It is the first step of innovation mapping, which is involves generating an
idea for innovation and should check its consistency with the strategic plan, organisational
culture and with senior management (Zhang, Zhao and Xu, 2016). Such idea generated should be
able to leverage the core competencies of the company as will as its branding, new technologies
etc. if new idea or innovation do not match the structure plan as well as culture of the
organisation it will have the limited chance of success after its implementation. So, it should have
the capability to add value to customers.
4

2. Development of concept and initial testing: If idea meets the above criteria, it is important
for the organisation to define its uniqueness and identify that if the innovation could lead to
competitive advantage. The worth, usefulness or importance of the innovation to customers
should be made clear in its early process.
3. Conduct 7-step opportunity evaluation: Once the concept is developed, then developers
should make quick assessment of the potential opportunities which can be done by 7-step
opportunity evaluation (Phil and Riaan, 2019). It will help Apple to solve the problems, identify
the potential markets, funding required, potential revenue, protection, intellectual property
creation and stage of development. It will also help Apple to identify the potential competitors,
potential customer and also the commercialisation visibility.
4. Model opportunity: When concept has been evaluated by using 7-step opportunity
evaluation, then Apple should identify the strengths and weaknesses of innovation. Strengths
identified should be optimised and weaknesses should be improved which is essential for
innovation success.
5. Innovation opportunity assessment: It involves the in-depth reviewing of the opportunity
which may include the market research, issues related to the innovation strategy, barriers at
industry level, application of opportunities, market position, financial projections, etc. It will help
Apple in making 360 degree assessment of innovation.
6. Market Validation: Once Apple has completed its business assessment, then company should
focus on market validation process by obtaining feedback related to how the opportunity will
address the specific market needs and taking competition in concern (Street, 2016). It will help
the company to make an innovation a success as Apple will be able to differentiate the competing
opportunities from opportunity based on the customer needs.
7. Revise business opportunity assessment: Apple can revise the market opportunities
assessment and build a commercialisation strategy which should be based on market validation
results.
8. Finalise the commercialisation plan: Up to this step Apple would have got an idea whether
an innovation is viable or not. Company need to prioritise as well as decide which resources have
the best odds for the success of the innovation for this purpose Apple should carefully make
adjustment in its business model (Brunswicker, Bertino and Matei, 2015). Apple need to
innovation plan which should describe the story of proposed innovation.
5

9. Complete the innovation plan: Here company need to complete a business plan by using
appropriate filtering systems. Which helps a company in rejecting unvalidated assumptions
which may increase the success of the innovation.
10. Feedback and revision of business plan: When innovation plan has been written then
feedback should be achieved from the advisors or top management which will provide the
realistic options related to commercialising the new opportunity (Hirsch and et.al., 2016). Their
suggestions and opinions should be implemented into final plan.
11. Presentation of plan: Here innovation is presented and get approval from the top
management and resources for launching a new product in the markets.
12. Launching of new product: It is the final stage of innovation plan where the product is
launched in the markets which results in the success of the innovation made by Apple.
Recommendations for improving innovation capabilities
Apple has got various opportunities in order to improve its innovation capabilities and
which is required for the company in order to gain the competitive objectives in the market. In
recent years Apple have lost a competitive edge due to lack of innovations capabilities due to
which its competitors have gained grounds within the industry like Samsung. So, it is important
for Apple gain the lost ground by increasing innovating capabilities for this, Apple should try to
develop deep understanding of the customers which will help the company to develop proper and
attractive designs. For this purpose Apple need to increase their investments in market research
in order to gain in-depth knowledge and preferences of the customers. This will surely increase
the innovation capabilities of Apple when a company will actually know what customers desire.
Also, company should try to improve its company's culture of innovations, this will boost the
employees who making innovations within the products. Apple already has a culture of
innovations but it is recommended to make further improvements in it which will help in
increasing innovation capabilities of the organisation. Sometime there may arise a situation
where company may be unable to generate idea for innovation, Apple can use outside sources for
idea generation which can also help the organisation to increase its innovation capabilities. Also,
Apple can establish collaborative partnership with its business partners as working
collaboratively can increase the efficiency of the organisation and company can improve its
innovation process. Also, Apple should provide proper training and development programs to its
employees in order to improve their innovating abilities. It is also recommended that company
6

should allocate the appropriate resources for training and development programs which are
organised by Apple.
Apple can also foster open and creative and open work environment, fostering creative
environment which develop the innovative capabilities of employees of Apple. Also, company
should welcome innovative ideas from the employees of the organisation. Company should also
encourage diversity within the organisation, due to cultural diversity company can develop better
innovation strategies which can increase the innovation capabilities of the organisation. Also,
Apply keep on developing an innovative team within the organisation, whose job should be to
foster innovation within the products of the company. Also, Apple should try to overcome the
issues which are faced by the company during the innovation process and should provide a
solution which will act as a permanent solution to problems faced. Apple should develop
effective communication process within the organisation. As, Apple is a multinational brand it
has to set proper collaboration across the different stores of the world which can be done by
effective communication process. Also, Apple should be able to communicate the challenges and
innovation issue through out the organisation, which can act as vehicle for promoting
collaboration and seeking of creative ideas of innovation within the organisation. Also, proper
communication system should be set between the different levels of management, there should
be two-way communication process within the organisation and this can surely increase the
innovation capabilities of Apple.
Findings
It has been found from the report that innovation plays an important role in the business
of any organisation and its is important for organisation to keep on innovating its business and its
products. It has been evaluated the Apple has the capabilities of making innovations within its
products it has got the best innovation history in the world due to which it is ranked world's
number one innovative company. There are various factors which has kept on influencing Apple
for making innovations within the business. It has got adopt different approaches, business
models, design process, etc which has made the innovation strategies and process success for the
organisation. It is also found that in order to outline the innovation success of the organisation,
innovation road is a successful tool for measuring the success. There are various steps involved
in the innovation road map which can help the organisation to make a successful innovation right
from the idea generation till the launch of new product within the markets. It also brings huge
7

benefits for the organisation like it minimise the defects within the innovation strategies, make
proper evaluation of the strategies, validation of strategies. Also, there are various
recommendations which can increase the innovation capabilities of the organisation like effective
communication systems, open and creative environment, in-depth customer research, etc which
can increase the organisation capabilities of Apple.
CONCLUSION
It can be concluded from the report that it innovations in business means success in
business in present world. It can help the organisation to gain the competitive advantages and
stand the global competition. Present report also concludes that a company should have the
innovation capabilities in order make successful innovations in the businesses. In order to
achieve success within the innovation strategies, it is important for the companies to set a
roadmap for innovation. Present report also concludes that company should try to improve its
innovative capabilities which can help the company to meet the future needs of the customer and
withstand the competition within the market.
8

REFERENCES
Books and Journals
Brunswicker, S., Bertino, E. and Matei, S., 2015. Big data for open digital innovation–a research
roadmap. big Data research. 2(2). pp.53-58.
Evans, S and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Hirsch, J. A and et.al., 2016. The Burwell roadmap. Journal of neurointerventional surgery. 8(5).
pp.544-546.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Saebi, T. and Foss, N. J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal. 33(3). pp.201-213.
Saebi, T. and Foss, N. J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal. 33(3). pp.201-213.
Shams, S. R and et.al., 2018. An integrated cross-functional model of strategic innovation
management in business: The implications of ten cross-functional business areas.
In Business Models for Strategic Innovation. (pp. 176-187). Routledge.
Souto, J. E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
Street, R. B., 2016. Towards a leading role on climate services in Europe: a research and
innovation roadmap. Climate Services. 1 pp.2-5.
Zhang, Y., Zhao, S. and Xu, X., 2016. Business model innovation: an integrated approach based
on elements and functions. Information Technology and Management. 17(3). pp.303-
310.
Online
9

Louis, C., 2018. Apple Leads BCG's 2018 List Of The Most Innovative Companies. [Online].
Available Through: <https://www.forbes.com/sites/louiscolumbus/2018/01/20/apple-
leads-bcgs-2018-list-of-the-most-innovative-companies/#ae052105a94d>.
Phil, S and Riaan, B., 2019. Elements of a Successful Innovation Roadmap. [Online]. Available
Through: <https://www.leanmethods.com/resources/articles/elements-successful-
innovation-roadmap/>.
10