RMIT University: Apple's Innovation - Enablers, Barriers, and Analysis

This report provides an in-depth analysis of Apple's business innovation, examining both the enablers and barriers that influence its success. The report begins with a literature review, exploring relevant theories on business model innovation and the factors that contribute to or hinder innovative effectiveness. The methodology employed is qualitative research, utilizing an inductive approach to analyze Apple's operations. Key enablers identified include strong leadership, a culture of diversity, and technological prowess, as well as external factors such as customer feedback, competition, and strategic business partnerships. Internal barriers discussed are a centralized management system and deadline pressure, while external barriers include taxation policies, the Android platform, and investor demands. The report concludes with specific recommendations, including refining the innovation process and implementing a decentralized management system. The report also suggests areas for further research, such as market analysis and direct engagement with the organization.

Running head: ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
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1ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Executive Summary
The objective of this research is to identify the key barriers and enablers to business
innovations of the chosen organization, Apple. The paper begins with a literature study that
incorporates theories from recognized journals for better understanding of the concepts used
in the study. The methodology, approaches and limitations encountered in this report are
stated next. This is followed by the main discussion that includes the description of the key
barriers and enablers in Apple Inc and how these can be managed to enhance the productivity
of the company. The recommendations for further development of the company are suggested
and the report is concluded with recommendations for further research on this topic.

2ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Table of Contents
Introduction................................................................................................................................3
Literature study..........................................................................................................................3
Barriers to Business Model Innovation..................................................................................3
Overcoming the barriers to effective innovation...................................................................4
Methodology..............................................................................................................................4
Approach....................................................................................................................................4
Limitations.................................................................................................................................5
Discussion..................................................................................................................................5
Key Enablers..........................................................................................................................5
Internal...............................................................................................................................5
External..............................................................................................................................6
Key Barriers...........................................................................................................................6
Internal...............................................................................................................................6
External..............................................................................................................................7
Findings......................................................................................................................................8
Recommendation 1 (Priority 1)..................................................................................................8
Recommendation 2 (Priority 2)..................................................................................................9
Conclusion................................................................................................................................10
Recommendations for Further Research..................................................................................10
References................................................................................................................................11

3ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Appendix 1...............................................................................................................................13
Appendix 2...............................................................................................................................14

4ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Introduction
Innovation in any organization is a necessity in today’s world, considering the wide
range of competition in the global market. Apple is one such organization that always
remains one-step ahead of its competitors with yearly upgradation of its devices and
introducing innovations in recent products. With a major global expanse, the company is one
of the most successfully recognized firms in the world, selling products that are considered to
be status symbols (Apple.com 2019). The company’s reputation adheres to the fact that it
procures new products for its wide customer base at a faster pace than other similar
organizations. In order to retain this reputation and the production level of the company,
innovation is the prime key for the growth of the firm (Waller and Sag 2014). However, there
are certain enablers and barriers in the path of business innovations. The aim of this report is
to analyze the barriers and enablers in the way of innovations in Apple, and state how these
facets can contribute to the progress of the company.
Literature study
Barriers to Business Model Innovation.
The purpose of this research is to identify and describe varied enablers and barriers to
business model innovation taking instances from the telecommunication and paper industries
of Finland. From this paper, the method of analyzing the various enablers and barriers helps
in improved understanding of the concepts and thereby the areas of their application. The
study also incorporates two instances of different industries that enriches the knowledge of
the readers in this regard. The author of the paper, Emma Storbacka, has adhered to varied
literature theories that further widens the scope of realizing the ways in which enablers and
barriers influence business innovations in industries (Storbacka 2019).

5ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Overcoming the barriers to effective innovation.
According to Pierre Loewe and Jennifer Dominiquini, the prime aspects of innovative
effectiveness within an organizational structure are leadership, culture and values, processes
and tools, skills of the people involved (Loewe and Dominiquini 2019). These enablers
enhance the innovative processes of varied industries and thereby increases the net yield and
contributes to the growth and development of the industries. The paper also states the major
obstacles that can be encountered by any company for business innovations and thereby
improves the scope of understanding these barriers and managing them in accordance to the
organizational structure. It also includes a case study of the innovation at the Whirlpool
Company to enhance the knowledge of the readers regarding the application of the stated
attributes.
Methodology
The report is prepared based on a qualitative research by investigating the varied
operations of the Apple organization and the relations between individuals, groups and the
environment involved.
Approach
The report is conducted with the collection of data, analyzing the patterns of the
organization and applying those patterns to established theory to assess the enablers and
barriers. Therefore, an inductive approach has been utilized.
Limitations
Since the report is concerned with a single firm, further investigation is required on
such other organizations for critically analyzing insights and other evidence based on theories
related to business innovations.

6ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
Discussion
Key Enablers
Internal
 Leadership: The innovation culture of Apple is developed right from the apex of the
management system. The leadership provided by Steve Jobs has constructed the
backbone of the company’s visions and standard, which still empowers the employees
to generate out of the box ideas (Yu 2013). The present CEO, Tim Cook, as well
provides effective guidance; hence, one of the key enablers for Apple is the
Leadership culture in the management structure.
 Cultural diversity: Apple incorporates people from diverse cultures and backgrounds
as it drives manifold creative thinking and thereby procures a wide range of ideas for
innovations (Apple.com, 2019). With the empowering motto, “Think Different”,
Apple recognizes, encourages and safeguards the innovators of the organization (refer
to appendix 1)
 Technology: Being a company majorly dependent on technology, Apple drives its
innovation culture based on the refinement of the existing technology and procuring
new ones. The rate of upgradation of the software is perhaps the fastest in Apple
products.
External
 Customer feedback: Apple produces premium quality products that are considered as
status symbol by its purchasers. Since the company is largely based on the customers,
the views and feedbacks of the customers are valuable as it influences the innovation
structure of the company (Merlo, Eisingerich and Auh 2014).
 Competitors: In the global market, Apple holds a steady position as one of the most
proficient and recognized companies of the world. However, it has some strong

7ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
contenders, such as, Samsung, Dell, Lenovo, Microsoft and so on, which drives Apple
to strive harder and innovate faster and better than its competitors to maintain its own
reputation and wide customer base (Heracleous 2013).
 Business Partners: Having a number of highly qualified business partners, such as,
Accenture, GE, Cisco, Deloitte, and such others, prepares a strong base for the
company and its efficacy is maximized (Apple.com 2019). This too contributes for
heightened innovative process in the organizational structure.
Key Barriers
Internal
 Centralized Management System: Apple faces a lot of setback due to the centralized
management structure wherein the heads of the company make the final decisions
(refer to appendix 2). Since, the control is within a few leaders or rather the CEO, the
process of generating feedbacks, strategizing them and then implementing decision
takes up a lot of time and can be avoided by introducing a decentralized management
structure (Pisano 2015).
 Deadline Pressure: Apple is known for a very fast production rate that creates a lot
of pressure on the employees to meet the deadlines. While doing so, the purpose of
meeting the target becomes pivotal and innovation often is considered secondary then.
Therefore, this facet slightly hinders the innovation process of the organization.
 Own reputation: One of the key challenges for Apple is retaining its own reputation
as an innovator. The organization has developed a remarkable history of innovative
ideas and the ability to execute the same (Minakov et al. 2015). Therefore, it can be
stated that in order to cross its own set limits, Apple needs to be more prompt and
efficient.

8ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
External
 Taxation policies: Since Apple has a global supply chain, the taxation policies of
varied governments influences the cost of production of the company. With a
fluctuation in the taxation policies, the funding for individual departments can be
affected and hence can also have impacts on the funds for innovations (Sanchirico
2014).
 Android: One of the biggest threats to Apple in the technological industry is the
Android platform (Khan, Alam and Alam 2015). Since Android is more user friendly,
allows third party applications and is a cheaper option, the customers tend to prefer
android products to Apple products. It must also be stated that the innovations in the
android phones are therefore available to the customers more easily than the premium
products of Apple.
 Investors: The growing demands of the investors for dividends in the market shares
of the company influences the financial structure of the company, thereby also
creating impacts on the funds for innovation process (Washingtonpost.com 2019).
Innovations of the company are also often hindered by the demands of the investors.
Findings
The key findings from this report encompasses the various enablers and barriers to
innovative process within the organizational structure of Apple. While the enablers can be
enhanced and upgraded to gain more outcome from the company’s various facets, the barriers
although few in quantity must be measured so as to prevent the company from encountering
any hindrances in raising the efficacy levels of the company.
Recommendation 1 (Priority 1)
Specific Apple follows an aggressive innovative process, which must be

9ENABLERS AND BARRIERS TO BUSINESS INNOVATION: APPLE
refined and followed further for enhancing its market position.
Measurable The success of this process shall be measured on whether the
company is acclaimed as one of the most innovative companies
in major business journals.
Attainable Since the company has already attained a huge market presence,
the new strategies for innovation that the company makes shall
be attainable for the company.
Relevant In order to meet up to the expectations of the customers and
retain its brand image, an aggressive innovation policy is relevant
considering the current performance levels of Apple.
Timely The strategies implemented must be attained within a span of one
year to gain proficient outcomes.
Recommendation 2 (Priority 2)
Specific Due to the centralized system of management in Apple, the
process of generating feedbacks, strategizing them and then
implementing decision takes up a lot of time and hence can be
avoided by implementing a decentralized system of management.
Measurable The change in the management system can be measured in terms
of the increase in productivity and the faster rate of resolving the
issues.
Attainable The scope of implementing a new management system for the
company can be difficult, as it requires a complete change in the
organizational structure. However, it is not an impossible option

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considering the efficacy and caliber of the organization.
Relevant The delays in the decision making process of the company is due
to the burden put on a specific group of leaders . The sooner this
burden is divided, the sooner shall the company revive its yield.
Hence, the relevance of the recommendation is high.
Timely The time taken to implement a decentralized system of
management might vary considering the bulk of effort that has to
be enforced. However, a period of 3-5 years can be set for the
completion of the change.
Conclusion
Therefore, it can be inferred from the above discussion that the leadership,
organizational structure, people management are some of the key enablers in the Apple
Company, while the company’s nature to attain faster upgradation of its products that makes
innovation a secondary concern, can prove to be a barrier to the company’s innovative
process. The report aids the company to identify the enablers and barriers so that they can be
managed to improve the creativity levels of the company and pave way for its development
and progress.
Recommendations for Further Research
The scope of this research could be furthered by enhanced scrutinization of the
market, by conducting surveys and the evaluation of the outcome from such analyses.
Primary researches such as direct contact with the organization could also be employed for
augmenting the insights regarding the organization.

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