Understanding Apple's Unique Practices through Innovation Framework

The assignment content describes a research study on innovation framework, where the author applied each stage of the framework to Apple and analyzed its unique practices. The study aimed to enhance knowledge and skills in understanding the concept of innovation. The author faced challenges such as lack of knowledge about the innovation framework and ineffective planning, but was able to overcome them. The benefits included a rise in knowledge level, development of various skills, and enhanced efficiency and productivity.

INNOVATION AND
RISK
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
SEVEN DIMENSIONS OF INNOVATION FRAMEWORK.......................................................1
CONCLUSION................................................................................................................................8
REFLECTIVE.................................................................................................................................1
Reflection upon coursework task.................................................................................................1
Research process undertaken.......................................................................................................1
Benefits and challenges experienced...........................................................................................1
REFERENCES................................................................................................................................3

INTRODUCTION
Innovation is regarded as the process of inventing new idea with the motive to enhance
market performance of business in the market. Further, in the modern era due to presence of
perfect competition in the market every company has started to indulge into innovative practices
and this directly supports in accomplishment of desired aims and objectives (Wong, 2011). Apart
from this, to deal with the overall challenges present in the market business has to focus on
product development and some unique attributes are required in order to attract customers in the
market. For conducting the present study one innovative organization chosen is Apple which is a
American multinational technology firm headquartered in California that designs and sells
consumer electronics along with software. Business is well known in the market for range of
innovative products and it has allowed becoming leader in the market.
SEVEN DIMENSIONS OF INNOVATION FRAMEWORK
Innovation plays most crucial role in the organization as it is required to satisfy need of
the target market in efficient manner. The model of strategic innovation relies on seven
dimensions which every business has to consider in order to grab growth opportunities present in
the market (Borghesi and Gaudenzi, 2012). Apart from this, it drives growth and builds brand
image of business in the market. Moreover, company like Apple is well known in the market due
to presence of unique attributes in the product and this is one of the main reasons behind
popularity of its product portfolio in the market. In short, innovation has allowed Apple to
accomplish its desired aims and objectives which is beneficial for the business. As per view of
Bennett (2012) the range of seven dimensions present in strategic innovation are effective as
through this it is possible for businesses to meet with the changing needs of the target market.
Apart from this, an expectation of customers in the market is rising at faster pace due to which
companies have to introduce innovative ideas for its growth and development in the market
(Bennett, 2012). Following are the seven dimensions of strategic innovation framework:
 Managed innovation process: It is considered as one of the major dimension which is the
creative core of strategic innovation. According to Tucker and Danzig (2012) combining
traditional along with the non traditional approaches in the business strategy supports
business in attaining favorable outcomes. Further, it is necessary for company to manage
innovation as through this it is possible for organization to explore large number of
pathways (Tucker and Danzig, 2012). In case of Apple the entire range of operations
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carried out by business are innovative and through this company has managed to deliver
unique products to its target market as per their expectations. In short, managed
innovative process leads to rise in satisfaction level of the target market and large number
of customers can be attracted easily (Galbraith, 2014). It is associated with the internal
capability of the business as in case of Apple by using advanced tools and techniques it
has become possible to offer different type of innovative products such as Iphone, Ipad
etc. Through effective management of innovation it is possible to gain competitive
advantage.
 Strategic Alignment: As per view of Pantano (2016) this stage is linked with the
enthusiasm and support between all the parties associated with business in order to
stimulate company. Further, it is well known fact that stakeholders play most crucial role
in the organization and they provide support to business in each and every stage.
Therefore, with the help of stakeholders business can ensure where all its activities are as
per vision and mission (Pantano, 2016). Apple strongly relies on its stakeholders
especially customers, suppliers, employees, government etc and all these parties provide
support to business in accomplishing desired goals. However Andersen (2009) argued
that providing direction to the business is necessary and in such case stakeholders provide
direct support to the organization. Apple has indulged into innovative practices with the
help of its customers, suppliers etc as business take feedback from its target market and
on the basis of same product modification is done (Andersen, 2009). In short, this shows
business efficiency to survive in the market and has assisted to grab the growth
opportunities being present in the business environment. Therefore, in this way strategic
alignment is also one of the major dimension on which success of business depends.
 Industry foresight: This dimension is associated with the factors which drives change
within the business. Further, through this it becomes easy for employees within company
to understand market trends and same can be followed easily. As per view of Bowers and
Khorakian (2014) identifying market trends provides support to every business in serving
its target market efficiently. Moreover, Apple has been successfully operating in the
market as business well satisfies expectations of its customers and due to this reason sale
of its innovative product is quite high in the market (Bowers and Khorakian, 2014).
However Darroch (2005) argued that industry foresight also helps in determining new
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technology on the basis of which business can be benefitted. Apple has employed
advanced tools for development of entire product range such as Iphone and the outcomes
are in form of higher profitability level, strong customer base etc (Darroch, 2005).
Through adoption of latest tools Apple has become leader in the market and it is not
possible for other companies to compete with business in the market. Therefore, in this
way industry foresight is also one of the major tool where company can easily generate
new ideas which are quite unique and it allows to meet with the expectations of
customers in efficient manner.
 Consumer insight: As per view of Leavy (2004) this dimension totally focuses on
understand the actual requirement of customers in the market and initiatives are taken for
satisfying need of the target market. Further, it is well known fact that entire range of
product is developed by Apple for its customers (Leavy, 2004). Business strongly focuses
on identifying what its target market wants such as advanced mobile phones with unique
attributes. Moreover, large numbers of techniques are adopted to meet with the
requirement of customers. In short, customer insight is one of the most crucial
dimensions on which success and growth of company depends in the market. Core technologies and competencies: According to Crumpton (2012) this dimension is
associated with the capability of business which can be identified and used for obtaining
large number of benefits. Such type of capabilities can assist in enhancing satisfaction
level of the target market and in turn brand equity can be developed easily. Internal
capabilities of Apple are financial strength, use of advanced technology, innovative
processes, skilled workforce etc (Crumpton, 2012). Therefore, all these capabilities
allows business to deliver better products to its customers are compared with its
competitors in the market. Apart from this, main focus of Apple is on effective utilization
of resources. In short, it has supported company to strengthen its customer base. However
Wong (2011) argued that competencies of the business allow management to develop
product which are quite unique and not sold by other organizations in the market. Brand
equity of Apple in the market is quite high where its brand name is well known by every
individual in the market. In case if any individual is interested in purchasing mobile
phone then Apple as a brand is the first preference rather than other companies (Wong,
2011).
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 Organizational readiness: This dimension supports business to act upon new ideas
where new strategies can be easily implemented for growth of company. On continuous
basis new ideas are being implemented by Apple and same are applied in the
modification of product. So, this has supported company to become one of the leading
company in the market and in turn all the opportunities present in the business
environment can be grabbed easily (Bowers and Khorakian, 2014). Apart from this,
when business is highly organized then it supports in effective management of financial
and operational demand. All the operations of Apple are flexible enough to change as per
needs of the customers and due to this reason business is being able to adopt innovative
practices. So, in this way this dimension is also crucial for the business and assist in
accomplishment of the desired aims. Disciplined implementation: As per view of Galbraith (2014) this dimension states that
during implementation of the new idea its effectiveness depends on how disciplined
specific business is. The entire range of practices of Apple are disciplined which are
carried out in proper sequence. Further, business ensures that they are in accordance with
the customers’ needs which build trust and confidence in the target market. In short, it
has lead to growth of business in the market (Galbraith, 2014). Therefore, in this way
disciplined implementation is regarded as one of the main dimension which needs to be
considered with the motive to enhance market performance of business.
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Figure 1: Strategic innovation framework
So, these are the main dimensions of strategic innovation framework which has assisted
Apple in performing better and in turn all the objectives of the business can be accomplished
easily. Further, the product range of Apple contains unique attributes which are highly
innovative and it has become one of the main reasons behind success of company in the market.
Innovative attributes present in the product portfolio has made organization worldwide famous.
On the basis of strategic innovative framework it has been identified that the possible outcomes
of innovation involves strong customer base, higher profitability and market share, improved
brand image, worldwide awareness etc (Leavy, 2004). This directly drives growth in the business
and in turn all the desired goals can be accomplished efficiently which is fruitful for the
organization. In short, innovation practices directly leads to growth and business can become
successful in the market in specific period of time. In past Apple was not very successful in the
market but when business started to indulge more into innovative practices then its market share
enhanced.
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ManagedinnovationprocessstrategicalignmentIndustryforesightConsumerinsightCoretechnoligiesandcompetenciesorganisationalreadinessDisciplinedimplementation

Figure 2: Market share of Smartphone companies
(Source: Vasdudev, 2014)
Above figure represents the market share of Apple in US due to presence of innovative
practices. Market share of company is 41.60% and it is quite high where other companies are
having very less market share. Due to core competencies of business along with internal strength
business is able to operate efficiently in the market. Apart from this, company has become
worldwide famous where majority of the customers prefer to purchase products of Apple rather
than other companies in the market (Vasdudev, 2014). At international level revenue of the
business has enhanced due to presence of strong customer base. Innovation can be directly seen
in the product range of business such as Iphone series 4, 4S, 5, 5S, 6 and 6S whose attributes are
quite unique as compared with other models offered by different Smartphone companies. Apple
strongly relies on strategic innovation framework through which all its innovative practices are
monitored and supports business to well meet with the expectations of its target market in
efficient manner.
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Figure 3: How Apple makes its money
(Source: T h o m p s o n , 2 0 1 3 )
Above chart represents revenue of Apple by product which represents that its Iphone is
most popular in the market. The real outcome of innovation is popularity of Iphone in the market
where they are preferred by each and every type of customers (T h o m p s o n , 2 0 1 3 ). Apart
from this, new models are launched on continuous basis which are beyond expectations of the
target market and through this Apple is able to retain its customers for longer period of time.
Moreover, customers are well satisfied with the features and hardware of product. In short, other
companies are not able to sell this type of product in the market which Apple is doing. So, with
the help of this it can be clearly stated that innovation leads to success and supports business in
gaining competitive advantage.
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CONCLUSION
The entire study carried out has supported in knowing about strategic innovative
framework which are employed by business for delivering innovative product. Further, Apple
has been directly affected due to innovative practices where market share along with profitability
level of business has enhanced. Innovative products such as Iphone, Ipad etc are popular in the
market and their features acts as source of attraction for customers. Moreover, due to flexible
operations product range is modified timely so that large number of customers can be retained in
every market. So, in this way innovative practices have supported Apple in every possible
manner and it has assisted in growth.
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REFLECTIVE
Reflection upon coursework task
The entire study being carried out has supported me to enhance my knowledge level
along with skills. Further, it has become possible for me to focus on various areas where my
performance lacks and improvement is needed. For the present research Apple was chosen as
one of the innovative company where through research I found that entire range of its products
are unique and this is providing support to business in enhancing market performance. Apart
from this, I analyzed the process undertaken by Apple with the motive to enhance the level of
customer satisfaction and this is building overall strength of company in the market. Moreover,
the present study was based on selection of innovative business and due to this reason I selected
Apple as a brand. In short I gained knowledge in relation with the innovative practices of Apple
due to which business is successfully operating in the market. Through selection of innovative
business I was able to focus on the key tasks associated with the study and in turn it was possible
for me to gain expected findings.
Research process undertaken
For the present study the research process undertaken by me was effective through which
it became possible for me to identify the innovative practices of Apple in the market. Further, I
undertook the innovation framework where its each and every stage was applied on Apple so as
to know about its unique practices. I assessed the entire innovation framework being considered
by the organization and this has supported business in grabbing large number of market
opportunities. So, this also proved to be effective where it was possible for me to enhance my
knowledge level along with skills. I realized that research process undertaken has enhanced
efficiency of the entire research where I have understood about the concept of innovation in
better manner.
Benefits and challenges experienced
Large numbers of benefits were obtained by undertaking this research where major one
was rise in knowledge level. This research has supported me to understand about concept of
innovation in better manner. Further, I have analyzed information in relation with the innovation
framework which has enhanced efficiency of the business along with productivity. Another
benefit obtained was development of various skills such as critical thinking, time management,
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decision making etc. The entire study provided me platform to develop all the range of skills and
this lead to my personal development.
On the other hand large number of challenges was faced while carrying out the present
study. One of the major issues was lack of knowledge in relation with the innovation framework
due to which this acted as hurdle in carrying out the research. Apart from this, I have to consider
various sources with the motive to gain knowledge in relation with the framework of innovation
on which entire research was based. Another challenge faced was ineffective planning where the
plans prepared by me were not effective to carry out the study and this also acted as hurdle in
accomplishing the key aims and objectives of the research.
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REFERENCES
Books and Journals
Bennett, S., 2012. Innovative Thinking in Risk, Crisis, and Disaster Management. Gower
Publishing, Ltd.
Borghesi, A. and Gaudenzi, B., 2012. Risk Management: How to Assess, Transfer and
Communicate Critical Risks. Springer Science & Business Media.
Bowers , J. and Khorakian, A., 2014. Integrating risk management in the innovation project.
European Journal of Innovation Management. 17(1) .pp.25 – 40.
Crumpton, A. M., 2012. Innovation and entrepreneurship. The Bottom Line. 25(3) .pp.98 – 101.
Darroch, J., 2005. Knowledge management, innovation and firm performance. Journal of
Knowledge Management. 9(3) .pp.101 – 115.
Leavy, B., 2004. Outsourcing strategies: opportunities and risks. Strategy & Leadership.
32(6) .pp.20 – 25.
Galbraith, B., 2014. Proceedings of the 9th European Conference on Innovation and
Entrepreneurship. Academic Conferences Limited.
Pantano, E., 2016. Benefits and risks associated with time choice of innovating in retail settings.
International Journal of Retail & Distribution Management. 44(1) .pp.58 – 70.
Andersen, J. T., 2009. Effective risk management outcomes: exploring effects of innovation and
capital structure. Journal of Strategy and Management. 2(4) .pp.352 – 379.
Tucker, B. J and Danzig, R., 2012. Innovation, Dual Use, and Security: Managing the Risks of
Emerging Biological and Chemical Technologies. MIT Press.
Wong, S. C., 2011. The Risk of Investment Products: From Product Innovation to Risk
Compliance. World Scientific.
Online
T h o m p s o n , D . , 2 0 1 3 . These Charts Tell You Exactly How and Where Apple Makes Money
Right Now. [Image]. Accessed through <
http://www.theatlantic.com/business/archive/2013/01/these-charts-tell-you-exactly-how-and-
where-apple-makes-money-right-now/272463/>. [Accessed on 14th April 2016].
Vasdudev, L., 2014. Apple Inc. (AAPL) Remains In A Paramount Position With 41.6%
Smartphone Market Share In The U.S. [Image]. Accessed through <
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http://dazeinfo.com/2014/03/12/apple-inc-aapl-smartphone-market-us-2014/>. [Accessed on
14th April 2016].
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