An Analysis of Innovation, Leadership, and Strategy at Apple Inc.

This report provides a comprehensive analysis of Apple Inc.'s innovation strategies, leadership approaches, and overall business strategy. It begins by defining and differentiating between innovation and invention, crucial concepts for understanding Apple's success. The report identifies and analyzes key sources of innovation within Apple, including process needs, and industry and market changes. A critical discussion explores the link between innovation and leadership within the company, highlighting the impact of leadership styles on fostering innovation. The report then explains the 4Ps of innovation (Paradigm, Product, Process, and Position) and assesses the value of the innovation funnel and frugal innovation in driving product development. The conclusion summarizes the key findings, emphasizing the importance of innovation for Apple's continued success. The report includes references to academic sources and industry publications to support its analysis.

APPLE INC.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explanation of definition and difference between innovation and invention.........................1
Identification and analysis of sources of innovation..............................................................2
Critical Discussion of link between innovation and leadership of Apple..............................3
Explanation of 4Ps of innovation...........................................................................................4
Appraisal of value of innovation funnel and frugal innovation.............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation refers to the processes, procedures and techniques which are used by an
organisation which refers to adding appropriate and effective features within the existing
offerings of an organisation to enhance their importance and usefulness within the marketplace
(Leyden and Link, 2015). In this relation, the report below is based on Apple Inc., which is one
of the most renowned technology organisations in the world. The assignment hence covers
appropriate explanations of differentiation between innovation and invention, along with
identification of several sources of innovation. Moreover, the assignment also covers critical
discussion between innovation and leadership within Apple and explanation of 4P’s of
innovation. Lastly, the report undertakes appraisal of value of innovation funnel and frugal
innovation.
MAIN BODY
Explanation of definition and difference between innovation and invention
Innovation is an activity which is related to adding specific and more technologically
advanced features which increasing the importance of existing offerings of a company within the
marketplace. For instance, Apple renewing its models of iPhones by adding new features is a
prominent example of innovation.
Invention, on the other hand, is the procedure of development of a completely unique
product to introduce within the marketplace which fulfils the market gap of demand and supply.
In context of Apple Inc, creation of iPods was a prominent invention in the technological and
musical industry (Costantini and et. al., 2015).
Both these aspects are highly essential in relation to ensuring development of new products
and improvements of the existing ones, which is prominent for the sustainability and growth of
the organisation. However, there are substantial differences between both these processes that are
required to be explained in relation to identify the scope and importance of both these functions.
Hence, in this relation, below is the difference between Innovation and Invention:
BASIS INNOVATION INVENTION
CONCEPT Innovation is the additions of
useful and necessary features
or product extensions that
This relates with development
of unique offerings that have
never been created before. The
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increases the likelihood of
their importance and
usefulness.
agenda of the same is to
appropriately fill the market
gap from introducing a
product which would be
satisfying a new demand
OCCURRENCE
It occurs when there is a
requirement to improvise the
existing offerings of the
company (Huenteler and et.
al., 2016).
It occurs when there is a
unique idea with the R&D
specialists of an organisation
to provide their customers
with.
SCOPE
The scope of innovation is
fairly wider as it could be
implemented within each and
every department of the
company.
The scope of invention is quite
narrower, as it is only
associated with R&D and
manufacturing department.
Identification and analysis of sources of innovation
Innovation is a highly crucial aspect for an organisation and hence, it is important that the
sources through which this aspect is originated is analysed. Hence, in relation to Apple Inc, the
sources of innovation for the firm are analysed below: Process Needs:
One of the most appropriate and effective sources of innovation is associated with the need
within processes. This refers to the problem in identification of weaker spots within the
processes and determining effective solutions for the problem. This could be done through
appropriately redesigning the processes. Existing capabilities transforms into the sources of
innovation for the firm. For instance, Apple Inc regularly and effectively analyse the
ineffectiveness within its manufacturing processes and has adopted technologies like Artificial
Intelligence and Automation to ensure success within the same (Gil-Garcia, Helbig and Ojo,
2014).
 Industry and Market Changes:
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Another source of information is associated with changes within the industry and market. The
technological industry has become very dynamic, with regular changes and modifications in
technologies due to high end research by R&D departments of the companies. Moreover, this
increases the market competition. For example, Apple has several competitors in the
telecommunications sector, such as Samsung, OnePlus, Nokia and so forth. All these companies
regularly introduce new and innovative products, which is another source of innovation within
Apple. This is because with such changes in market and industry, the firm is required to
introduce new and innovative offerings which provide assistance to the companies in relation to
overcoming these changes (Audretsch, Lehmann and Wright, 2014).
 Changes in Demographics:
Demographics refer to appropriate and effective area of study and practice, which undertakes
analysis of populations and several groups within the same. There are several changes which are
considerably noticeable within the characteristics of demographics. For example, one change is
related to the income level of individuals as well as the age range of people buying a new
technological gadget. Hence, innovation in this context is required to map these changes and
make innovative offerings that satisfy such interests.
Critical Discussion of link between innovation and leadership of Apple
Leadership within an organisation refers to appropriate and effective processes and
techniques used by the senior members of the company to successfully lead the company
towards achieving the objectives of the company. This aspect within an organisation is very
important in relation to fostering or hindering innovation. Hence, leadership and innovation has a
direct link within the companies.
Apple adopts Democratic Leadership in the functioning and structuring of company. This
type of leadership is related to ensuring inclusion of subordinates within the organisation’s
crucial decisions and strategies. In this type, the firm enhances the role of subordinates within the
functioning of company. Along with this, the creativity of employees is highly fostered as their
opinions are very much considered within the firm and its decisions.
Earlier however, the firm had more of an Autocratic approach towards leading the
company and this led to hindering of innovation. This could be reflected by several failed
designs in terms of innovation in context of its computers.
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On the positive side, currently the company is adopting strategic leadership to enhance the
innovativeness in the company. One such example within the company is associated with the fact
that compensation packages are provided to employees who showcase better performance when
it comes to innovation and providing creative output to the organisation (The Secret to Apple's
Innovation Leadership, 2019). Hence, such leadership motivates the employees within the
company to perform in a better manner where innovation is concerned. This identifies that there
is positive link between leadership of the company as well as its innovativeness.
Explanation of 4Ps of innovation
These elements within the organisation are related to appropriate and effective manner in which
innovation process within the organisation could be either improvised or be implemented within
the organisation. Quite recently, there has been a massive decline within the organisational sales
last November. The reason for the same, as analysed within the case study is that the new CEO,
Tim Cook has been leading the company without any firm direction and motivation towards
innovation (Has Apple lost its perspective to lead through innovation and design?, 2019).
Hence, to ensure implementation and embedment of innovation in its new product developments
in the future, there are several elements which must be followed by the organisation as
mentioned below:
 Paradigm: Innovation must be implemented by Apple to ensure improvisation in
processes of the business. However radical, the changes might not necessarily be positive
with respect to the company. Hence, to leverage the profit through different changes, the
firm must ensure changes in its business processes. For instance, Apple could ensure
effective market research to analyse the demand of the market and necessary
modifications related to the same.
 Product: This element is associated with improvisation in existing products and services.
The company focuses on differentiation in order to stay ahead in the market. New
technologies must then be acquired by the organisation that would give the company a
firm edge in the market, such as new technologies like Hologram.
 Process: It is inclusive of the overall processes of the firm in relation to develop the new
product. Hence, the firm must adopt effective workflow within the market research and
development processes of the product. Moreover, it could also assure training its
employees by using methods like simulations.
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 Position: The last element within the mix relates with how best the new products could
be framed within the market. Hence, benefits must be communicated by the firm to
customers to ensure effective communication of products and services of the company.
Appraisal of value of innovation funnel and frugal innovation
Hence, the above discussion is related to the fact that the firm must implement innovation in
its new product in order to ensure effectiveness in the market and overcome its existing
condition. For this purpose, there are two effective aspects which must be implemented by the
company and the same is discussed below: Innovation Funnel:
It refers to the mechanism which appropriate enables the firm to analyse a stream of different
and screen the same in order to ensure their viability. The notion upon which it works is that
there are several ideas within the marketplace which the firm could implement. However, the
organisation must choose the one which is viable for the firm’s objectives. The three stages of
this funnel are discussed below:
o Mouth of the funnel: Within this phase, the firm is to acquire as ideas for the
company as possible. This could be done by Apple through market research.
Hence, in this relation, the ideas upon which the organisation could develop its
new products are technological advancements, such as AI, automation, Hologram
technology and so forth.
o Narrowing the Funnel: Screening of idea takes place in this task, where the firm
screens different ideas against the objectives of the company. Hence, out of all the
ideas acquired by the company, Apple must go ahead with hologram technology
as it is economically and functionally feasible for the firm and could add more
value to its existing products (Trott and Simms, 2017).
o Narrowed Part of the Funnel: This relates with review of idea and market testing
in relation to evaluate the effectiveness of the new offering and ensure appropriate
launch of the offering. Thus, the firm could use sample target market to ensure
product testing and must also implement surveys to acquire viewpoints.
 Frugal Innovation:
This concept refers to process to innovate the product in such a way that it reduces
complexities as well as cost of the product. Apple is currently working on a patent to add a layer
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of holographic display over quantum dots within its future devices (A new Apple Patent reveals
work being done to integrate a Holographic Layer into a Quantum Dot Display, 2019). Hence,
in this relation, the new products would be having a 3D effect on their displays which would be a
prominent example of frugal innovation. Hence, the innovation of Hologram technology within
the company would be assisting the firm in lowering down cost related to the display as well as
costlier supply materials. Moreover, the complexities would also reduce in relation to providing
an added benefit to the customer of 3D display without extensions or glasses.
CONCLUSION
Thus, it is concluded form the report above that innovation is highly important within an
organisation to ensure high importance of its products and services. It is necessary that
differences between innovation and invention are explained. Furthermore, sources of innovation
and its linkage with leadership is essential in order to analyse the origin and support of
innovation. Lastly, 4Ps of innovation and innovation funnel and frugal innovation allows in
enhancing the scope of innovation within new products in the company.
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REFERENCES
Books and Journals
Audretsch, D.B., Lehmann, E.E. and Wright, M., 2014. Technology transfer in a global
economy. The Journal of Technology Transfer. 39(3). pp.301-312.
Costantini, V., and et. al., 2015. Demand-pull and technology-push public support for eco-
innovation: The case of the biofuels sector. Research Policy. 44(3). pp.577-595.
Gil-Garcia, J.R., Helbig, N. and Ojo, A., 2014. Being smart: Emerging technologies and
innovation in the public sector. Government Information Quarterly. 31. pp.I1-I8.
Huenteler, J., and et. al., 2016. Technology life-cycles in the energy sector—Technological
characteristics and the role of deployment for innovation. Technological Forecasting and
Social Change. 104. pp.102-121.
Leyden, D.P. and Link, A.N., 2015. Public sector entrepreneurship: US technology and
innovation policy. OUP Us.
Trott, P. and Simms, C., 2017. An examination of product innovation in low-and medium-
technology industries: Cases from the UK packaged food sector. Research Policy. 46(3).
pp.605-623.
Online
A new Apple Patent reveals work being done to integrate a Holographic Layer into a Quantum
Dot Display. 2019. [Online] Available Through:
<https://www.patentlyapple.com/patently-apple/2018/10/a-new-apple-patent-reveals-
work-being-done-to-integrate-a-holographic-layer-into-a-quantum-dot-display.html>
Has Apple lost its perspective to lead through innovation and design?. 2019. [Online] Available
Through: <https://economictimes.indiatimes.com/tech/hardware/has-apple-lost-its-
perspective-to-lead-through-innovation-and-design/articleshow/69223831.cms?
from=mdr>
The Secret to Apple's Innovation Leadership. 2019. [Online] Available Through:
<https://www.forbes.com/sites/philmckinney/2012/04/04/the-secret-to-apples-innovation-
leadership/#67f8ffc354f1>
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