Managing Innovation Report: Apple and Samsung Analysis (2019)

This report provides a comprehensive analysis of innovation management within Apple and Samsung. It begins with an introduction to both companies, highlighting their key innovative achievements. The report then maps and critiques the innovation spaces of each organization, examining their existing practices and outputs. A critical discussion of their innovation strategies and management processes follows, utilizing Tidd and Bessant's four-step model (search, select, implement, and capture). The analysis includes a deep dive into product innovation, process innovation, position innovation, and paradigm shifts within both companies. The report offers recommendations for improving innovation management in both organizations, based on the comparative analysis and the application of the Tidd and Bessant model. Finally, a conclusion summarizes the key findings and insights from the analysis, providing a comparative view of innovation practices in the technology sector. The report is supported by a detailed bibliography of sources.

Running Head: MANAGING INNOVATION
MANAGING INNOVATION

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Table of Contents
Introduction.................................................................................................................................................2
Innovation space of the Apple and Samsung...............................................................................................3
Innovation strategy......................................................................................................................................6
Recommendations.....................................................................................................................................11
Conclusion.................................................................................................................................................13
Bibliography..............................................................................................................................................15

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Introduction
In April 1976, Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple. Apple is
known as the American multinational technology organization. The headquarter of the
organization is in the Cupertino, California, which designs, sells, and develop the customers
electronics, software of the computer, and provide the online services. This organization is
recognized as the top technology organization (Terrell, 2008). This organization has grown and
lead by the series of inversely opinionated chief executives. Apple's innovative practices include
the innovative original iPhone model, create the highly distinguished mobile at the time which
no other organization offers. This helps the business to charge in the excess of more than £400
for iPhone due to the inflexible demand and make the high margins of profit (Rawlinson, 2017).
There is a combination of the high margins and buying of the many patents in recent years to
help to ensure the durability of success. The high profits help to generate more profit which leads
to developing a high budget on research and development. The effective budget on the research
and development improves the innovation opportunity that is secured by the utilization of
patents. The organization regularly innovate products without the fear of dropping a monopoly
within the market (Society, 2018).
In 1938, Samsung was established by Lee Byung-Chul. It is the South Korean
multinational conglomerates which have headquarter in the Samsung Town, Seoul. The
organization serves within the many areas of information and communication technology,
construction, advertising and entertainment (Bondarenko, 2020). Some of the organization's
products are telecommunication and components of the electronics. Revenue of Samsung was
equivalent to 17% of South Korea's $1082 billion GDP (Samsung, 2020). Business culture is
very effective for the organization as it creates the behavior patterns within the organization. The
organization has a strong culture to become an innovative organization, global leader as
employees are required to have a similar understanding of the business and business directions
(Kovach, 2013). The organization has developed the process of New Concept development in
which all business units implemented by renewing and innovating the new services and products.
Samsung team innovation process has emerged out the requirement to have the incubator team to
study and work according to the business unit to deliver more market insight (Burris, 2020). The

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culture of the organization is very important regarding the innovation driver which helps to shape
up a productive community in the organization. The following discussion will cover the
innovation, strategies, and recommendations for Apple and Samsung.
Innovation space of the Apple and Samsung
Apple can be described as a synonym to the invention. Steve Jobs has led Apple as the
pioneer of creativity and innovation for many years (Synan, 2018). The organization fosters
innovation within the products, satisfaction of the customer, leadership, business models, and
processes. The organization has the innovation plant in which it produces the creativity, ideas,
and talent from the people which help to lead to profitable ventures. Culture, eminent employees,
and partners drive the innovation and help the organization to grow through grabbing the
available opportunities. The organization believes that it should lead customers in place of lead
by them (Fizal, 2019). The organization likes to come up with revolutionary products about
which customers do not know. Apple offers only the limited products within the different lines
which help to focus on the target market and likes to effectively penetrate chosen marketplaces
and increase sales. It creates products which are difficult to duplicate, and help it to fight against
competitors. The organization has the motto to think differently that separates the organization
from the competitors and comes with the forefront products. It efficiently reorganized inefficient
sectors of the business through the markets and networks by proving innovation. Invention
carried out within the products, processes, services, and systems. The 4P's of the innovation is
known as the process, paradigm, product, and position.
 Products
The organization follows the process of product innovation which helps the business to make the
existing product better (Denti & Hemlin, 2012). The innovation of the product and services is
known as the idea which features the new methods that are original and advanced. The company
innovation includes the improvement of the products and processes which newly and
differentially invented. There can be a slightly smaller change within the product since the
advancement of the technology which has been improved and called the innovation as well. 4P’s
of the product known as the changes, redesigns, updates, and re-engineering which has been
done to the existing products and services.

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Apple has launched the mobile phone known as the iPhone in 2007. It has made the cellphone in
a completely different manner as customers used to perceive what was the mean with the
cellphone by adding the touch display and very easy to use the operating system. Products of the
organization are not only accepted regarding the ingenuity and used also like the fashion
accessory (Keller, 2012).
Samsung has started to expand its products range by reuse some of the materials and provide the
customers with more innovative products. The innovation of the Samsung product includes the
products and services offered by the business (Murat, 2020).
(Jayaram, Oke, & Prajogo, 2014)
 Process

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The process is known as the procedure which allows the organization to create effective values.
This is very effective as it defines how a product is created and how the change regarding a
product is pushed by within the business (Krause, Gebert, & Kearney, 2007).
Apple represents the way of doing the things which are done within the organization. This also
presents the options to innovate within the processes. Organization figures out the new way to
provide a better quality product and make the processes effective, faster, efficient, cheaper, and
creative which have better quality. The company to create innovative internal procedures does
innovation and gain than higher profitability.
Samsung has started to decrease its range of products to serve the customers and added the new
lines of the products through innovation in the process of distribution and manufacturing. It
focuses on customers as the most important part of a business. It tries to offer something new
more than the competition (Shung & Jing 2013). The organization offers a longer warranty
period which is available for more than 24 hours which includes the weekends.
 Position
The position represents the market segment in which products and services are targeted.
Innovation in position leads to the new segment of the market with the product which has not
been thought before in the market. This is an effective way to find out whom and where
customers can be interested in the products and services which have not been used before (Funk,
2014).
Economic situations within the developing nations are getting better as customers have
additional money to expend and the network is built as people can by the Apple products.
Innovation in the product is useful as it helps to purchase the products and transfer the money.
Position of the Apple within the customer’s minds has changed from being the just other
computer manufacturing organization to being the innovation and creativity organization.
Samsung has started to target the particular age and gender groups with different products. The
position innovation of Samsung focuses to frame the communicated with the services and
products. This position innovation is based and related to the changes that how particular
products and processes are perceived.

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 Paradigm
It is known for the variations to how, why, and where a product is utilized or how to complete
the things. This includes the principles, theories, doctrines, and important beliefs. It is referred to
the mental models. These are the theoretical models such as newton’s theory on the
gravitation/Albert Einsteins E=MC^2 (Huang, & Kim, 2013).
Apple considered the paradigm as business models. It is very effective to understand the process
of the market or make a good process of development. This is deploying the new paradigms by
innovation. A paradigm of Apple has been changed from being manufacturers of the computer to
the creator of the designer products.
Samsung is known as the manufacturer of electronics products. The organization focuses on the
many aggressive campaigns of marketing and many breakthroughs to dominate the market for
cheap and reliable electronic products. After looking at the organization from different angles as
decision-makers realized that organization can shift their paradigm according to the market
which helps it to take them to a further level. The management of Samsung sees new aspects of
the business.
Innovation strategy
Organizations do the innovation and observe the earnest requirements of the innovation
within the market (Rupp, 2014). The generic innovation process model has been endorsed by the
Tidd and Bessant which represent the four stages. Organizations by the use of the innovation
process model pursuit and welcome the creative ideas within the evaluation process and choose
potential ideas after the transformation of the innovative ideas within the reality in the
implementation stage. The innovative organization produces a financial advantage by focusing
on strategic planning and execution. In-subtle components and separate research ought to
complete the research and investigate the relationship between the process stage of innovation
and organization capacity for execution and plan.
The core approach of the model is to explore the organization contributed to manage the
process of innovation and reorganizing the approaches regarding the change and use the viable
initiative (Gressgård, et al., 2014). This model has the four stages and every stage has an

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extraordinary understanding and importantly expands the organization innovative procedures.
Organizations use the generic pipe model which helps to seek opportunities by applying the tools
and techniques. The innovation process includes the four phases such as search, select,
implement, and capture which helps the organization leaders to focus, develop and produce the
innovation (Sveiby, Gripenberg, & Segercrantz, 2012).
It is very critical to understand and clarify innovation process model phases in detail by
identifying the explicit linkage to organization contribution. The innovation process model has
been considered as the pill to seek innovation within the business as guide the business to use it.
Leadership integrates the strategy of the innovation within the corporate strategy by involving
the senior management in the innovation projects and help to monitor the competitors within the
term innovation initiator.
Innovation strategy is defined as the degree and way in which an organization attempts to
utilize the innovation to execute the organization strategy and improve the performance. The
proactive innovation strategy of Apple is consistent as have the tolerance for failure along with
the strong focus as the main innovation that changes the business competitive structure. Apple
identifies its innovation priorities as the first within the market and base on the research and
development getting the direct and proactive input from potential customers. The organization
selects the customer base through the innovation and evaluates to find a return on the innovation
investment. It designs the products through effective development and responds to the
customers’ requirements and priorities. It helps the organization to successfully launch and
positioned the products within the market.
Market readers of Apple observe the market very carefully and conserve the more
guarded approach to focus mainly on the creation of values by incremental change. The
organization brings incremental products through effective innovation within the market as a
mover and prefers the low-risk approach regarding the introduction of the product. The company
conducts market research and gathers competitive intelligence. It helps the business to maintain
the strong discipline of the process and bring the product within the market very fast by
increasing the modularity and simplicity (Fu, Diez, & Schiller, 2012).

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Reactive innovation strategy emphasizes on the adoption of the inventions of the other
organizations. Samsung stays within the present by focusing on the introduction of the inventions
as how received and imitate the product. Samsung chooses this strategy as a fit for the sources
and future goals. It consistently focuses on innovation strategies to make more profits from
innovation and avoid mistakes.
Technology drivers within the Samsung generate the product ideas from the technical
capabilities; leverage the investment within the research and development to drive the
breakthrough by radical change and innovation by solving the customer’s unarticulated
requirements (Gao, Hsu, & Li, 2018). It helps to follow the market by focusing on the
unarticulated customers’ requirements that imply high-risk innovation. Organization scouts the
new technology and maps the emerging techniques which help to analyze the trends. The
organization tested the products rigorously regarding the quality and ease before capturing the
customer's market by successful products. It chooses the approach which suits it and aligned by
the business strategy and competitive environment in which the organization operates.
 Search
It is known as the core element of the innovation process model. It tends to search, scan, and
monitor the internal and external environment by responding to the particular signals regarding
the opportunities and threats for the innovation. A big organization like Apple and Samsung
identified and sensed the requirements of the research and development as the main element to
progress in businesses and established the centers of the research and development as the
powerhouse of an idea. Apple is more focused on the research and development of new features
within the products through the proactive innovation strategy. Management of Apple is visionary
and transformed the industry of mobile phones, personal computers, and music products from the
limited niche marketplace to the main market through offering the affordable values that were
achieved through the innovation within the manufacturing management.
The management of Samsung contributes through the technical skills by designing the
appropriate electronic products and also contributes to the management skills through the
application of the reactive innovation strategy. The organization has launched the first Q-Led TV
that gives the experience of the theater at home and proliferates and excites the desire of the

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customers. The management of Samsung regularly searches for new products and have enough
capabilities to identify the future requirements of the customers. Management and leadership
within the organization employ skills regarding the innovation process and effectively relevant
for future growth. The organization is stick with the plan and adopts the relevant approach which
is based on the different stages and situations. The organization used to search the innovation
within the house like closed innovation, research, and development. In the 21st century, an
organization has changed tremendously and known as the emergent innovator and buys the
innovation from outside and engaged within the open innovation activities. Samsung has adopted
the open search approach and thrives within the innovation.
 Select
This kind of element represents the core innovation of the process model (Russo Spena, & De
Chiara, 2012). This includes the decision-making process which helps to identify the signals and
respond to the ideas which required more sensible attention and which of them required less
attention. The Decision-making process of Apple includes the extensive time which is necessary
to spend within the board meeting under the appropriate management that includes the creation
of the innovation plan, approaches, tools and techniques, sources, and expertise that can be
utilized to bring the innovation through the proactive innovation strategy. In this element, the
organization meets the challenges as the innovation demand and includes uncertainty and tricky
solving tasks.
Samsung regularly focuses on systematic management practices with regular improvement. This
is the incremental innovation which becomes an important part as a large portion of the
employees engaged within the regular innovation regularly focuses on the instructions of total
quality management. A huge number of employees within the organization are focused on the
regular innovation proposals as Samsung receives a large number of ideas at a global level
through the online suggestion scheme. The organization has developed a systematic innovation
approach known as connect and develop. Samsung focuses on the reactive innovation strategy as
management within the organization appropriately contribute to the innovation by designing and
executing a strategic platform.
 Implement

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The phase implementation is known as the stage to deal with the realities. Apple management
through the innovation strategies focuses on translating the potential ideas within the realities.
This phase of innovation strategies of the apple includes the many innovation projects, managed,
organized, explore the structures, systematic mechanism and tools within the place to certify and
enable the successful innovation. Apple's proactive innovation strategy focuses on the
development of new products with the appropriate services. The implementation process of the
new products and services is piecemeal as minimized the uncertainty through the series of skills
and techniques. Apple regularly focuses and uses the technologies to develop new services
within the organization through the business process reengineering.
The reactive innovation strategy of Samsung includes the implementation of the appropriate
practices. Samsung regularly responds to the suggestions and evaluate the organizational external
and internal sources to achieve the appropriate outcome with the innovation. The organization
appropriately manages the stage, not as a single event. It focuses on the regular attention to
acquiring the knowledge and sources which enable the innovation and execute the process more
appropriately with effective problem-solving approaches. The management of Samsung plays a
very important role to implement the innovation which helps the business to shake the
organization's environment. Innovation strategies within the organization are applied through
innovation projects. The management of the organization implements innovation projects and
effectively deals with organization approaches.
 Capture
It includes the deal with the many types of innovation, knowledge, intellectual property, and
performance (Maniak, & Midler, 2014). This is known as the learning format. Apple innovation
management evaluates the capabilities to manage and organize the process of innovation
effectively for the next time. The innovation strategy of Apple includes the creation of the
knowledge base and improves the techniques in which the organization process of innovation
can be managed more effectively through the proactive innovation strategy. Capturing primarily
presents the innovation strategy in which organizational leaders of Apple invest in research and
development.

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Samsung with the appropriate technologies build the corporate venture regarding the innovation
strategies. The organization regularly study the market and apply the reactive innovation strategy
to enhance the abilities and capability of the management through the know-hoe and
transmission of the knowledge. Strategic decisions with innovation strategies allow the business
to outperform competitors. The companies regularly invest and focus on new technologies to
gain a competitive advantage within the market.
Recommendations
Innovation management is a term and source of much debate. It refers to the handling of
the activities required for introducing something new within the practices through new ideas. It
helps to come up with new ideas, prioritizing, developing, and implementing them by putting
them within the practices for launching the new products and introducing the new internal
processes.
(Klingebiel, & Joseph, 2016)
 Appropriate assessment
Innovation management is a very challenging and massive area within Apple. Management
within Apple should assess the current state and identify the apparent bottlenecks within the
organization's innovation work. Different aspects like particular processes should be fixed
compared to the other aspects such as a culture that takes more time. This is very important for
the innovation management within Apple to fix the bottlenecks and focus on the creation of the
capabilities with the key aspects. Innovation management within the organization should fix the
bottlenecks by focusing on the improvement and get better innovation through the inevitably
follow. It is very necessary to do effective work according to the innovation strategies with the
appropriate execution. The innovation management should create the ultimate toolkit which
includes the favorite templates, tools, and guides to manage the innovation. It will remain