Apple Innovation Management Assessment: Theories and Strategies Report

This report provides a comprehensive assessment of Apple's innovation management, examining its strategies and application of various innovation theories. It begins with an introduction to the importance of innovation in organizations, particularly in dynamic markets. The report then delves into Peter Drucker's seven sources of innovation, applying them to Apple's practices. The 4 P's model of innovation space (product, process, position, and paradigm) is analyzed, highlighting Apple's use of each. The role of organizational culture and leadership in fostering innovation is also discussed, with recommendations for improvement. Finally, the report explores different innovation strategies, including red ocean, blue ocean, and open innovation, and their relevance to Apple's business model. The report provides recommendations for future strategies and improvements.

Innovation Management
Assessment

INTRODUCTION
Innovation is a foremost consideration of all organisations where they are continually
required to deal with the dynamic perspectives of operating the businesses. It thereby gets
impossible to activate without any invented approach by the enterprise (Chiaroni, Chiesa and
Frattini, 2011). It is where they together needs to implement it as an exceeding formulation that
precisely furnish them a competitive advantage of working in the same set of market. The below
report is based upon a similar assessment of innovation management by a renowned firm named
Apple. This study mainly comprises with four fundamental theories of innovation that vitally
interconnects with the affiliated functionalities of Apple. With a foundation year of almost 40
years Apple organisation is widely known for its recognised services of computer software and
consumer electronics products (Gassmann, Enkel and Chesbrough, 2010). These services also
includes certain hardware products of computer that has eventually rendered it a successful
recognition all over the world where it is profoundly known for its continual tactics of
innovation.
Sources of Innovation Ideas
Description of theory-
This is with reference to state about the seven pivotal sources of systematic innovation as
stated by one of the famous management consultant namely Peter Drucker. This theory is further
segregated into seven important constituents where they are further bifurcated into two leading
sets. The first part consists of four primary elements which depicts the leading organisational
factors with another portion that comprises with the remaining three factors as a general criterion
of innovation, as described below- The unexpected- It is a foremost step for organisations like Apple where they are hereby
required to ascertain any unexpected clause of success into the market (Igartua, Garrigós
and Hervas-Oliver, 2010). This is basically to make a complete analysis of their existing
services in the market where it can further serve to determine any leading innovate tactic
of servicing the users. It is by either launching a new product into the market or
modifying the existent ones. The incongruity- This is referred to yet another primitive opportunity of invention into
which the companies should hereby refer listening to their clients and customers. This
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peculiar element fundamentally refers to analyse any incompatible factor of their
prevalent products and services in the market which is not providing the expected level of
response from the users. Procedural needs- It is basically a task oriented focus rather than a defined structure of
the situation (Johnson and et.al., 2013). This is used to redesign any ineffective measures
that are being enforced by the organisation. Change in the structure of industry and market- It is referred to any deregulated adoption
of the prevalent markets into which the entities are simultaneously required to keep a
continual watch on the growing prospects of the market. Demographic- Such demographic features are vitally related to any altered status of
census that hereby refers to the changed population (Maital and Seshadri, 2012). It
subsequently relates with some related modified factors like their denatured state of
education, level of income and age structure, etc. Altered perception, meaning and mood- It is also referred to a related percept of
sociology and statistical features where nowadays people are stringently following the
modernised concepts of technology. New cognition- It is mainly regarded to the new age of information that has precisely
suggested the firms to always be alert about the changing perspectives of their markets
(Talke, Salomo and Kock, 2011). It is where they should constantly refer to gratify the
ascertained needs and demands of their users.
Applying them on Apple-
On relating the above ascertained components with the current working policies of
Apple, It has been found that the cited entity is oriented at a significant position of innovation.
With reference to which, they have constantly thrived their invented products and services into
the market that has together satisfied their users and has also given a dignified sense of
achievement to them (Van De Vrande, Vanhaverbeke and Gassmann, 2010). It is for example
when Apple have completely denatured the music business where its superior products like
iTunes and iPod were specifically introduced in the market that have simultaneously replaced the
Walkman series of Sony company. It is where the Apple enterprise hereby aimed at the primary
set of the above applied model by ceaselessly researching their prevalent market reforms. This
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has rendered a prior sense of surveying the market to define the hesitant needs of consumers
rather than entirely relying on their conferred expressions.
Future recommendations-
However, Apple is hereby recommended to focus upon the vital constituents of another
set that have largely emphasised upon certain extrinsic statistics. It is where the quoted entity can
hereby refer to make use of the demographic features of their active markets by clearly referring
to the new age perceptions of people (Gassmann, Enkel and Chesbrough, 2010). This will
provide them a considerable sense of building innovative products by directly acquiring user's
ideas who does the final rating of the rendered services. Clients and customers are referred to be
the greatest source of ideas and thus makes 50% contribution into it. Furthermore, Apple can
also refer to implement the STP strategy of marketing by demographically segmenting the
market and target the segmental group of users.
The use of 4 P’s model for Innovation Space
Description of theory-
Innovation space model with its 4P's is primitively framed by John Bessant and Joe Tidd
where they have specified about a strategic prospect of innovation. It is referred to be a potent
tool of analysing that renders a fine cognition to the solicitous bodies of the enterprises like
Apple and other analogous technical firms (Schiederig, Tietze and Herstatt, 2012). It is basically
to address the current needs of working with certain innovated tactics of producing goods and
services. Into which, this model is subsequently divided into 4 leading proportions which are as
delineated below: Product Innovation- It is a foremost attribute of this peculiar model of innovation where
it mainly suggests the firms to bring some potential changes into their existent products
and services. It is also considered to be an eminent strategy of gaining a competitive
advantage in the market. Process Innovation- It is yet another substantial factor of this model into which the
companies should opt for a defined format of work (Macaulay, 2012). This is mainly with
reference to enforce any improvised strategy of serving the users with a reformed state of
innovation. Position Innovation- It is with respect to postulate a pioneered positioning of goods and
services in the market. After an innovated content of product, it is referred to be yet
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another vital implication to attain a competitive benefit as compared to the existent
number of contenders. Paradigm Innovation- It is referred to a distinct concept of innovation into which this
mainly refers to apply a different pattern of working which is mainly due to any varied
sort of beliefs in users.
Applying them on Apple-
On relating the above ascertained components of 4P's model of Innovation Space, the
foremost constituent of product development is intensively used by Apple where it is mainly
defined to be one of its intensive strategy of growth. Innovation have always been a critical
factor of success for Apple where their invented products like Apple Watch, iPhone and iPad,
etc., are perpetually enhancing their profitability ratio with raised sales and revenues (Jaffe and
Lerner, 2004). On defining their process innovation strategy, the pay app of Apple has
showcased a profound illustration of an Ecosystem management of their operational procedures.
The paradigm innovation of Apple can be depicted by their radical shift. It is where they have
completely moved themselves from the primary recognition of computer manufacturers to
creator of designer products and services.
Future recommendations-
However, Apple is hereby recommended to make a pivotal use of process innovation by
significantly amending their existent procedures of distribution. It is basically to apply some fine
measures of delivering the products and services of Apple where they are presently working with
some confined means of product distribution. As a result to which, people are unable to easily
access their products and services at a global level (Gawer, 2011). Thus, Apple enterprise should
either refer to set up their own retail stores at some exigent areas where they can also opt for an
online servicing of products at some leading worldwide regions. This will together give a
competitive set of advantage to Apple where the services of its leading contenders like Samsung,
Motorola and Sony, etc., are available at almost each and every corner of the globe.
The role of Culture and Leadership in Innovation
Description of theory-
The organisational culture directly impacts upon the prospering consideration of an
organisation where it together tends to influence the applicable postulation of leadership policies.
Both are therefore referred to be some relative components that collaboratively affect the
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innovative contend of the entities like Apple. It is where the leaders are directly accountable to
handle the appointed workforce of the firm whose conferred itineraries in turn reflects the
pertinent culture of the organisation. The organisational culture is however a resultant tact of
their maintained structure where some considerable measures are always referred to bring some
productive outcomes for the establishment (Duarte, Goodson and Dougherty, 2014). With
reference to which, a resourceful guidance to the employees will enormously aid Apple to work
with an invented approach where their appointed leaders will proficiently enforce the style of
democratic leadership under an entrepreneurial organisational culture. Both these forms with
their impelling practices will hereby refer to involve their appointed set of personnels into the
decision making procedural of the firm where they can in turn get some major innovative
strategies by their participatory set of workforce.
Applying them on Apple-
The recent organisational culture of Apple depicts an autocrat style of leadership where
their managerial bodies rigorously use a top- notch method of excellence to deal with their
workers. This results into a creative sense of innovation under a moderate state of combativeness
but with a single intervention of their administrative parties to frame some pivotal decisions for
the enterprise (Ahmed and Shepherd, 2010). As a result to which, the appointed set of employees
in Apple hereby work into a strict and contending format as compared to the workforce of the
rival parties like Sony and Motorola where they are known for their profound cultural and
leadership statures.
Future recommendations-
Apple on a similar note can hereby implement an entrepreneurial culture at its workplace
with some fine measures of democratic leadership into which they will refer to involve their
appointed set of personnels to frame some vigorous decisions for their firm (Chesbrough, 2006).
This will directly aid them to cogitate some unique thoughts and contents of their employees as a
direct mean of formulating an invented strategy of work.
Different Innovation Strategies
Description of theory-
Red ocean, blue ocean and open innovation strategies are hereby referred to be some
other progressive tactics of invention for Apple organisation. It is where each strategy comprises
with some distinct forces of opportunities, as mentioned below-
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 Red ocean- It is where such strategical application renders a vital cognition of working
into a contended prospect of market with high existence of rivals into it (Meyer, 2015).
Such strategy of innovation emphasis the entity like Apple to work within the
competitive facet of market where they are hereby required to launch some differentiated
products as compared to their singeing number of challengers like Samsung and Nokia,
etc. Blue ocean- This particular strategy of innovation exists with a slight distinguished
concept into which it mainly refers to tap within the newer segments of market rather
than working with the dominating set of competitors. It is referred to provide a profitable
growth to the entities where competition is often considered to be an irrelevant matter of
rivalry. Open innovation- Such strategic concept of innovation is mainly driven by three leading
action plans of need seeker, technology driver and market reader (Jaruzelski and
Mainardi, 2011). Such format basically assists the firm to adopt a paradigm invention of
producing goods and services with some referred concepts of both intrinsic and extrinsic
innovative contents.
 Spaghetti Model- It is a multi player game or an open innovation. It defines the complex
knowledge flow along with the creation of the knowledge. It is a user led innovation
which reflects the recombinant’ innovation.
Applying them on Apple-
On referring to the implemented innovation strategies of Apple, it is actively working
with the planned actions of open innovation and red ocean where it is constantly dealing with
some of its leading contenders into their actively associated marketplaces (Almquist and et.al.
2013). The open innovation strategy of Apple is with reference to their potent R&D procedure
that largely serve them to implicate the ideas of both internally and externally accessible sources.
In the case of Apple, Spaghetti Model has used by the organization. In this context, company
allows the users to find the bug in the OS by providing the open platform. This helps in
development of the new and innovative software.
Future recommendations-
However, Apple company can hereby refer to use the strategic implementation of blue
ocean measures where its products are highly demanded over the areas of Asian market segments
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(Ahmed and Shepherd, 2010). As a result to which, they can mainly refer to the mitigating
prospect of value innovation with a diminished benchmark of competition due to its entirely
distinguished products and services. By considering the Spaghetti Model, it is recommended to
the Apple that it has to not just focus on the knowledge flow but also emphasise on knowledge
creation.
CONCLUSION
The above report is based upon four leading topics of innovation where it has also
included some significant models and theories of it. It is with a major cogitation of applying the
ascertained strategies on Apple enterprise where it can deliberatively lead the market by its
varied innovative measures.
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REFERENCES
Books and Journals
Ahmed, P. and Shepherd, C. D. 2010. Innovation management: Context, strategies, systems and
processes. Pearson Education Limited.
Chesbrough, H. W., 2006. Open Innovation: The New Imperative for Creating and Profiting
from Technology. Harvard Business Press.
Chiaroni, D., Chiesa, V. and Frattini, F. 2011. The Open Innovation Journey: How firms
dynamically implement the emerging innovation management paradigm. Technovation,
31(1). pp. 34-43.
Duarte, N. T., Goodson, J. R. and Dougherty, T. M. P., 2014. Managing innovation in hospitals
and health systems: Lessons from the Malcolm Baldrige National Quality Award
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Gassmann, O., Enkel, E. and Chesbrough, H. 2010. The future of open innovation. R&d
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Gawer, A. (Ed.). 2011. Platforms, markets and innovation. Edward Elgar Publishing.
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Jaffe, A. B. and Lerner, J., 2004. Innovation and Its Discontents: How Our Broken Patent
System is Endangering Innovation and Progress, and what to Do about it. Princeton
University Press.
Johnson, G. and et.al., 2013. Exploring strategy: text and cases. Pearson.
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Talke, K., Salomo, S. and Kock, A. 2011. Top management team diversity and strategic
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Van De Vrande, V., Vanhaverbeke, W and Gassmann, O. 2010. Broadening the scope of open
innovation: past research, current state and future directions. International Journal of
Technology Management. 52(3). 221-235.
Online
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