Innovation Plan: Future Technological Innovation in Apple Inc. iGlass

This report presents an innovation plan for Apple Inc.'s iGlass, a technologically innovative wearable device. It outlines the features and functionalities of iGlass, such as email reading, call management, and location recognition, and assesses Apple's preparedness for its production and launch. The report employs the NPD model to detail the new product development and commercialization process, covering stages from idea generation to commercialization. A risk-return analysis, based on the RENT model, evaluates the project's feasibility, considering volume, rate, and length. The Innovation Diamond Model assesses the product innovation strategy, resource commitment, and execution. The report concludes that iGlass is a potentially profitable project that could positively impact Apple's sales performance and wealth position over the next 5 to 10 years. Desklib provides access to similar solved assignments and resources for students.

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Running Head: INNOVATION PLAN
Future Technological Innovation in Apple Inc: iGlass

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Executive Summary
This report was mainly designed for developing the innovation plan for an innovative product
of a company. iGlass of Apple Inc is the product that is selected in this report. There are
different features and functionalities of the iGlasses such as email reading, making calls,
attending calls, listening music etc. from the completion of this report, it is evaluated that
Apple Inc is fully prepared for producing and launching this product. For example, the
company is working on this project for many years and it is prepared for it from all aspects
like financial position, technological infrastructure etc. The risk-return analysis of this
product is conducted based on the RENT model. There are three components of RENT
model, on basis of which the feasibility of an innovative product is judged such as volume,
rate and length. On the basis of these all aspects, iGlass is a profitable project for Apple for
long run. Overall, it can be said that iGlass will create positive impact on sales performance
and wealth position of Apple in next 5 to 10 years.

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Outline of the New Project:........................................................................................................5
Net Product development and Commercialization:...................................................................6
How Prepared is the Firm for this technological Innovation?...................................................9
Return-risk Analysis of the Technological Innovation:...........................................................12
Commercialization of Technological Innovation:...................................................................14
Impact of New Project on Firm’s Overall Success in Next 5-10 Years:.................................15
Conclusion................................................................................................................................16
References................................................................................................................................17
Appendix..................................................................................................................................19
Exhibit 1: Innovation Diamond Model.................................................................................19
Exhibit 2: RENT Model and Planning response Contingency matrix.................................20

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Introduction
Main objective of this report is to design an innovation plan for a new product por technology
of an organization. Apple Inc is the company that is selected in this report for ensuring
practical relevance of the findings of this report. Main purpose of this innovation plan is to
conduct comprehensive evaluation of a new major technological innovation that is planned
by the company for development and commercialization. The impact of this innovation
project will be evaluated over the success of company in upcoming 5 to 10 years.
Apple Inc is a multinational company that deals in different products and services. The
company deals in manufacturing and selling of iPhones, iPods, Mac books, iPads, laptops and
other accessories. It also deals in iTune, iOS App Store and iCloud services. The founders of
Apple Inc are Ronald Wayne, Steve Wozniak and Steve Jobs. The future project of
technological innovation selected in this report is the project of Apple iGlasses.
This innovation plan is composed of different components. First of all, it will facilitate about
outline of the product that is planned to be developed and launched by company through
innovation project. Further, the report will facilitate information about new product
development and commercialization process that is adopted by company for the selected
technological innovation. It will use innovation diamond model for understanding that how
well the company is prepared for new project. It will also focus on risk and return analysis in
context of the selected innovation project. Apart from these, the report will focus on
evaluating possible impact of the new project on company’s overall success in upcoming five
to ten years.

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Outline of the New Project:
This project is mainly related to development and launching of a technologically innovative
product in the market. The name of this product is Apple iGlass. This is a wearable device
just like the spectacles (Kaneshige, 2018).
The apple iGlasses will be similar to the traditional spectacles that are generally used by
different people for fashion or due to poor eye vision. But in reality, the look of these glasses
will be very smart and good looking. There will be different types of features of this
product.With the use of Apple’s iGlasses, an individual will be able to check its emails. In
addition to this he or she will also be able to make calls with any intended person (Kaneshige,
2018). This device (i.e. Apple iGlasses) will have a feature of automatic recognition of the
places and streets, where the person is going. On basis of these features, it can be said that
there will be not need to carry smart phones always with us due to invention and launching of
such wearable devices.

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Net Product development and Commercialization:
There are different types of models of the innovation commercialization. In these models, the
NPD model is most appropriate for this project. This model is selected for the current project,
because this model is helpful in understanding that how the birth of a new product takes place
in an organization. This model will also help to understand the selected new innovation
project has emerged in Apple Inc (Griffin et al., 2014). NDP model stands for new product
development model.
(Source: Griffin et al., 2014)

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On the basis of above diagram of new product development of NPD model, it can be
analysed that there are eight steps in the model of new product development. Detailed
analysis of these steps is as below:
Idea Generation: This is first step of new product development model. The birth of idea about
new product development takes place at this step. The idea of an innovative product may
come from any of the information source like external markets or internal employees of the
organization. Apple Inc believes in promoting creativity and innovative thoughts among its
employees (Annacchino, 2011). The ideas regarding creative ideas in Apple comes from
employees of company as well as external market research, competitors, suppliers and
distributors. Apart from these, the company also invests in research and development
segment for consistently working on finding out productive innovative business ideas for
achieving the competitive business growth.
Idea Screening: This is an important step, which comes just after the generation of idea. From
the step of idea generation, thousands of business ideas come to the management. It is not
possible for organization to invest in every idea. For this reason, screening of ideas becomes
important for the company (Griffin et al., 2014). At this stage, the company drops poor ideas
and picks good and profitable product ideas. Apple has picked the idea of iGlasses only after
dropping lots of poor ideas.
Concept Development and Testing: Concept development is also an important step of the
new product development model. In general, product concept can be defined as detailed
version of the selected innovative product idea in a more meaningful consumer aspect. It is
evaluated that whether the selected idea is really a possible product or not. In context of the
Apple iGlasses, the planned idea is possible for company to be conceptualized into a real-life
product. It is so because the company has already experienced in case of smart watches. For
example, the smart watches can be used for making phone calls, making a new call, taking

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photos and listening songs (Annacchino, 2011). This fact motivates the company to work on
selected new innovation. Concept testing is the next action that should be performed by
company at this stage. Under this step, the concept can be presented before group of target
customers. Main purpose of this step in to view, whether planned product is creating a strong
appeal before consumers or not. Apple Inc has also performed concept testing before its
target consumers through social media platforms and through market surveys. Positive results
were gained for the planned product.
Marketing Strategy Development: This is a major step, in which the management of company
plans different marketing strategies for ensuring success of the planned product. Marketing
mix strategy is also decided for the planned product. Apple Inc has decided that premium
price strategy will be followed for this product. This product would be sold through exclusive
apple stores, ecommerce websites like Amazon and the own e-commerce website of company
in different countries (Golder and Mitra, 2018). There is high possibility that there will be
high demand for the Apple iGlasses. So, flash sale will be planned and conducted for selling
products according to principle of first come first serve. Advertising of this product will be
done through mass media marketing strategy that consist of outdoor media marketing,
electronic media and print media of advertising.
Business Analysis: Under this stage, the projection of sales, costs and profits will be
developed for upcoming 5-10 years for the selected product. On basis of these projections,
feasibility of product will be evaluated in context of strategic business objectives of company
(Karniel and Reich, 2011). Projections of sales is generally carried out after analysis of
historical sales of similar products of other companies.
Product Development: At this stage, the idea is converted into actual physical product.At
initial time, the focus of company is on producing sample or prototype of product. Marketing
team helps the company to conduct product testing of consumers through use of this

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prototype (Golder and Mitra, 2018). If the prototype of product proves to be successful, the
production of product is increased.
Test Marketing: It is an important stage of the new product development model. In this
situation, the product is tested in realistic marketing settings. But at this stage, the launching
of product is carried out in limited market or markets. If the product seems to be successful at
this stage, then company moves to commercialization stage.
Commercialization: Commercialization is the last stage of new product development model.
At this stage, the company launches its products at large scale. At this stage, production of
product is carried out in bulk quantities. At the same time, product is also launched at large
scale. There are certain things that should be evaluated before launching new products at
large level such as timing and the place of launching (Karniel and Reich, 2011). For example,
a product should not be launched by company at the time, when economy is facing slow
down. The launching of a new product should be done in appropriate market.
How Prepared is the Firm for this technological Innovation?
Apple Inc is fully prepared for the selected innovation. It is a major attribute of Apple Inc that
it has a sound technological infrastructure. In addition to this, the Apple Inc has skilled and
talented manpower. Due to these positive things, Apple Inc is prepared for this technological
innovation. It is also a true fact that every new innovation project requires huge funds. The
financial position of Apple Inc is very sound. So, the Apple company is also financially
prepared for meeting the funding needs for the selected new project (Apple Inc, 2018). Apart
from this, Apple Inc is working on the selected project for a long time. Due to long time of
research and gained knowledge about different aspects of product, it would be easy and
effective for Apple to design and launch the planned iGlass product.
Innovation Diamond Model:

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Main purpose of innovation diamond model is to help an organization to create value in
business through innovation.
(Source: Popp, 2014)
The innovation diamond model is helpful to understand different drivers of achieving success
of the new product or service. There are four key areas of best practices of the innovation
diamond model. Detailed analysis of these four areas is as below:
Product Innovation Strategy: It is highly important that the company should have a sound
product innovation strategy. It is also important that the innovation strategy of company
should be supportive towards business strategy of the company (Popp, 2014). Apple Inc has a
sound product innovation strategy. It invests huge amount in research and development
activities. Main purpose of this investment is to explore inventions in different products and
to overcome problems or faults existing in current range of products.
Resource Commitment and Portfolio Management: According to this component, the
resource allocation should be done by organization in a way that supports innovative
practices and product innovation strategy in organization. There are some challenges that
may be encountered at this stage or component. Example of these challenges involves

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problem in selecting right project, problem in conducting the risk return analysis etc. But
their challenges can be resolved through taking into account the knowledge of senior
employees and technology experts (Asheim and Parrilli, 2011). Management of Apple Inc is
highly dedicated towards innovation by providing financial and non-financial support for the
employees.
Idea-to-Launch Process: This step plays the role of a road map towards launching of product.
Idea-to-launch an be defined as set of tasks and activities that will be required for proper
launching of a new product. The launching of a new product should be done in very
systematic way. The launching of Apple iGlasses can be carried in major trade shows and
special event. There are different activities that should be carried out before actual launching
of the newly designed product (Popp, 2014). Example of these activities includes aggressive
marketing of the product with its launching date so that people stay aware about different
aspects of the product. This will create possibility of extra ordinary market demand for the
product at the time of launching of product. The launching of different products in Apple Inc
is done by organizing special events and media broadcasts. This type of launching of Apple
iGlasses would help to achieve the success of products in terms of sales generation.
Climate and Culture: The management of organization should provide proper support to the
employees involved in designing, manufacturing and launching of newly planned product.
The organizational culture should be designed in a way that support innovation across the
company at every level. The support can be facilitated in terms of resource allocation and
permissions required for different tasks and activities (Asheim and Parrilli, 2011). The
workplace culture and climate of Apple Inc is highly supportive towards creativity and
innovation among employees.

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Return-risk Analysis of the Technological Innovation:
Risk and return analysis play an important role in evaluating feasibility of a new product. The
model of RENT is highly beneficial to conduct the risk and return analysis of selection
innovative product (i.e. Apple iGlass). Following equation is provided by model of RENT:
RENT = VOLUME x RATE x LENGTH
According to this model, the potential return of a product depends on volume of sales that
will be generated by the planned new innovative product. At the same time, profitability of
such product depends on the relationship between price of product and actual cost incurred by
company in production of product. In contrast to this, the length stands for potential lifecycle
of new technological product (Markowitz and Blay, 2013). The length of life or lifecycle of a
product can also be measured in terms of legal or technical protection like intellectual
property rights.
On the basis of RENT model, it can be analysed that the planned Apple iGlass is a feasible
product for investment for the company. For example, the sale volume of this product is
expected to remain very high. It is so because, the iGlass product of Apple has potential to
replace smart phones for people for different purposes like making calls, attending calls,
sending and viewing emails and listening songs (Reilly and Brown, 2011). The expected
price of this product is $1,000. The cost of this product will be faced by company as
approximately $400 (Reilly and Brown, 2011). In addition to this, the life tenure of this
product is expected to be 10 years. Apple will procure legal protection for this product in
terms of intellectual property in the form of patent. So, on basis of RENT model, it can be
said that iGlass is a feasible product for the company.
Planning of Response Contingency Matrix: