Managing Innovation in Business: Apple Inc. Executive Summary Report

This report, an executive summary of a business innovation project, examines Apple Inc.'s innovation strategy and its role in facilitating the company's growth within the consumer electronics industry. The report highlights the importance of rapid innovation to maintain customer loyalty and mar...Read More

Managing Innovation
in Business CW2

Executive Summary
This report is the continuation of part one which was presented in last semester
demonstrating knowledge about innovation and its importance in maintaining the sustainability
of Apple Inc. The previous project comprised of company's innovation history as well as its
future capabilities through the analysis of consumer electronic industry. Now, in the second part
of project, it talks about the role of innovation in facilitating the growth and expansion of Apple
Inc. in a span of few years. It gains an insight into the innovation requirements of company.
This report explores the innovation that would be brought in by entities operating in
consumer electronic industry. Such innovative products and processes will bring a major
transformation and change the face of industry by 2020 and beyond. It has been evaluated that
organisations now realise the importance of bringing rapid innovations so as to gain acceptance
from public and ensure customer loyalty for a long duration of time. This has encouraged Apple
Inc. to bring innovative products and features which are not yet explored by anyone. This is done
with the motive of staying ahead of competitors and gaining a large share in market. Thus, Apple
Inc. is likely to bring innovations like iKeyboard, iCar, AR smart glass, Foldable iPhone etc. in
upcoming years. It has been recommended that out of these, Apple should launch iKeyboard in
market as this product has not yet been introduced by any company. Also, it has been observed
that by utilising a road map, Apple Inc. can successfully execute the innovation plan to launch
Virtual iKeyboard.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Future of Industry 2020 and beyond......................................................................................1
Organisation's innovation requirements 2020 and Beyond....................................................3
Building the future innovation capabilities for the organisation............................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is a process involving addition of value to existing products or processes to
make them compatible with the needs of customers as well as market. In business world, it has
been analysed that innovation plays a crucial role because, in present time customer's demands
gets changes on a regular basis. This report is based upon Apple Inc. which is a multinational
organisation operating globally and offering customers a wide range of technological products
(electronic gadgets).
Away with this, it is being found that Apple basically offers both hardware and the
software as well to its consumers in all over the globe. Along with this, Apple has mainly kept its
focus on both invention and innovation as well in order to improve its sustainability at
marketplace. On the other hand, overall investigation is going to keep its focus on future
innovative based opportunities which will stay available for Apple within the electronic industry
so that it could grab a good position in market than its existing one. The purpose of this report is
to gain an insight into Apple's innovation based necessities in 2020 or beyond. Lastly,
assessment is also going to be enclosed with future of the consumer electronic industry along
with the building of future innovation capabilities of Apple so that it could directly grab a good
position in specified time frame.
Future of Industry 2020 and beyond
Consumer electronic industry comprises of companies engaged in production of audio
and video devices like television, video games, stereo systems, digital cameras, VCD, mobile
phones, computers, DVD, laptops, jukeboxes etc. All of these are essential components of
lifestyle of individuals in modern world. These products have the potential to be developed in
variety of ways, each time by bringing one or more new innovative features in them. This takes
consumer electronic sector on to a whole new level where it has gained significant growth and
profitability across the globe.
This industry consists of a large number of firms that are competing with each other on a
daily basis to stay ahead of rival companies. For facilitation of this, companies in this sector are
introducing new products and services at regular intervals by bringing innovation in existing
processes and commodities. Over years, it has been observed that the key players of consumer
electronic industry are HP Inc., Panasonic, LG, Samsung Electronics etc. The major emphasis of
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these organisations is on carrying out research and development activities to know about the
current trends and demands of consumers in market. This information is then used by firms to
bring out innovation by way of introducing new products and/or services or adding value to
existing products.
Consumer electronic market is continuously coming up with new products and features.
Some of the major innovations that have been brought up by companies in this sector are self-
driven cars, voice controlled equipments, drones etc. Recently, Samsung became the first
company to launch a phone, Galaxy A7 containing 3 cameras, all the three made up of varying
types of lenses (The consumer electronics industry is where the future is happening!, 2019). The
upcoming face of consumer electronic industry over next some years will be virtual and
augmented reality, 4K and 5K televisions, autonomous vehicles, robots etc. These innovations in
terms of products and services will rule the world in next some years. Also, it is evaluated that
companies may also come use Artificial Intelligence (AI) and Internet of Things (IOT) to gain an
edge in this rapidly evolving world (Akinyoade and Eluwole, 2019). Bringing such innovations
will foster competition within the industry compelling other organisations to come up with a
better product or technology. This will change the status of consumer electronic industry in next
2-3 years. Such products are largely aimed at putting the customers at ease and enhancing their
overall experience at marketplace.
Within consumer electronic sector, advancements in technology are also leading to
companies bringing up such products that are innovative and ease the experience of customers.
Companies like Cisco and HPE are planning to make use of edge computing and are largely
developing hardware, software and creating such service bets that can assist in making it
successful. Also, mobile providers like Samsung and Sony are making use of Qualcomm
Snapdragon technology to bring Gigabit LTE and 5G devices (Top 10 Trends For Digital
Transformation, 2019).
It can largely be seen that future of this industry is very bright as entities operating in this
sector are coming up with remarkable innovations to serve customers well. The most effective
and efficient way of satisfying customer's needs and requirements is ascertained by business
organisations. This strategy is then worked upon to turn it into reality and enhance the position
and reputation of entity in marketplace. Innovation in this industry fosters companies like Apple
Inc. to use this as a strategical tool for increasing its sustainability in market.
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Organisation's innovation requirements 2020 and Beyond
Apple Inc, is famous because it does continuous and unique innovations that are accepted
positively by customers all the time. Apple's efforts of c-oming up with fast innovations has
created expectations to do same in future and therefore, develops need for many Apple's
innovations in future run. Apart from this, another reason that influenced organisation to brought
up with more innovations in rapid increase of competition within a market place. Demand for
innovation of Apple company has be developed by both mentioned reasons. There are some
innovations which will brought by Apple in future, that are being mentioned below.
Foldable iPhone: As company has continuously been launching new products or
innovative features at regular intervals, it has raised customer expectations. To meet these
expectations, another new innovation will be brought by company is Foldable iPhone, that is
going to be brought in 2020. This iPhone will be helpful for consumers because along with this it
will carry some additional features that will allow to carry phones during that time when there
will be insufficient space (Apple Could Be Working on a Foldable iPhone for 2020, 2018). This
Foldable iPhone will develop a new platform for their rivals and encourage them so that they can
manufacture more innovative products in order to maintain their sustainability in same industry
for a longer duration. This led to creating an environment which is innovative in the industry
which also assist in increasing turnover as well as productivity of same company.
Apple AR smart glass: Apple Inc., is planning to launch AR smart glasses for
consumers that will help users to take data and details through clouds with the use of laser light
that is being connected to eyeball (Apple Is Clearly Working on AR Glasses, 2018). This glass
will be beneficial in getting connected with different devices so that user can get information.
AR smart glass will assist users since they are convenient to carry and can be managed easily.
Thus this can be stated that this innovative glass will give a competitive advantage to other rivals
within same industry sector and encourages other companies to also do the same so that they can
resist in this competitive market place. This will also result in progressing of consumer electronic
industry.
Apple iCar: This is another innovative device of Apple. It looks like a mouse and is an
electric car. This do not utilise conventional designs of battery but develops batteries
independently. Apple iCar is being launched in order to eliminate drivers in order to shuttle its
workforce from and to work and this will be launched in 2020 (Apple iCar to be launched in
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2020, could potentially rewrite the mobility game, 2019). iCar will also reduce consumption of
petrol and will create a pollution free environment. This will create a new platform for other
competitors within an auto-mobile industry and they will also be motivated to bring more
innovations in their cars.
iKeyboard: iKeyboard is a creative innovation by Apple. In this they have decided to
make a keyboard which is virtual in nature and there will be no physical presence for that
keyboard. For this they are using AI and software concepts, where a keyboard will appear which
is formed by lights. For this, Apple will give a light sensors in the system for emitting the light
from the device.
Building the future innovation capabilities for the organisation
Innovation is an optimum way used by large scale companies to attract the attention of
customers towards the unique features launched by company by way of its products and services.
It is an effective tool that influences the behavioural characteristics of individuals in a way that
they like to stay connected with company for a long duration of time. Apple Inc. is a company
well renowned in marketplace for its innovative and creative approach towards the products.
This helps the company in developing such products that meet the increasing needs and
requirements of consumers in an innovative way. A useful way of doing so is by launching a new
product in marketplace (Bettencourt, 2019). To ensure its sustainability in industry for a long
run, Apple Inc. is emphasizing upon building its future innovation capabilities so that it can meet
the needs of consumers and stay ahead of its competitors. This is being done with the help of a
road map which provides the structural guidance to implement the required innovation in Apple
Inc. This road map assists the company in building such capabilities that will help them to
become a leader in industry. With reference to Apple Inc., the road map used to execute the
introduction of a unique and innovative product is given below:-
Suggestion and reason: After the analysis of needs and requirements of customers with
reference to products of Apple Inc., it has been assessed that Virtual iKeyboard is the innovation
that is most preferable and feasible to be launched in market. Out of the available innovation
alternatives, this product has been chosen because this innovation has not been introduced by any
company till now.
Impact of change: To create a Virtual iKeyboard, it is important for Apple Inc., to do
some important modifications in their current process to make their output efficient. This
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modification will not affect a single function only but will straight away impact the entire
functions which are present in Apple. These are human resource department, research and
development department, finance department, marketing department and many other
departments (Subramanian and et. al., 2019).
 Research and Development: Research and development department within an
organisation plays a vital role in the launching a new product or technology within a
market place. In context to innovation of Virtual iKeyboard, Apple needs to create a new
team in research and development department which will effectively work in
manufacturing a virtual iKeyboard. Under this team there should be skilled and expert
people that have desired information related to technology which needs to be
implemented in Virtual iKeyboard so that a good product can be made. Some classes
must be conducted by Research and development department so that information can be
gathered related to programming language as well as technical skills that will help in
manufacturing a Virtual iKeyboard (Song, Jin and Zhao, 2019). This will lead to
successful launch of the product and deliver its best product to consumers.
 Necessary resources: In order to implement Virtual iKeyboard, Apple must determine its
current resources so that they can analyse alterations or substitutes which are present for
the selected innovation. Road map of innovation also involves data which is regarding
resources that are being needed by an organisation so that they can make their innovation
concept strong. It is being determined that major resources which are needed for Virtual
iKeyboard is financial resources, skilled employees, advance technology, tools and
machines and many more in order to execute product effectively within a market place.
 Needed Technical skills: If it is talked about Apple's Virtual i-Keyboard which could be
considered as one of essential innovation that is going to be made by Apple. It is required
for the Apple Inc. to hire skilled employees who possess knowledge and competence
related to light sensors. This is essential for company to effectively build and develop
Virtual i-Keyboard which could be used anywhere while travelling or any other place.
Apart from this, it can be said that hire advance programmer who will conduct some
programming session for employees (Sousa and Rocha, 2019). Apart from this, training
can also be given to existing employees based Artificial Intelligence so that maximum
benefits could be gained by them in specific time frame.
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 Legal aspect: It is necessary for Apple to go through various legal aspects for bringing
innovative product that is Virtual iKeyboard within market. It is mandatory for
organization to manage design of product, intellectual property rights must be ensured
and other legal terms are kept in mind so that their product become essential in future. All
standards are maintained and ensured by Apple which are given by government under
their intellectual property rights (Bei, 2019). So that they may save their product and
themselves to get into any kind of conflicts which can have adverse impact on their brand
image in future.
 Cost of change: This stage is largely concerned with bringing necessary changes in
existing methods and processes of company so that it can significantly introduce the new
product in marketplace. The cost structure associated with implementation of innovation
within Apple Inc. in terms of Virtual i-Keyboard is as follows:-
Apple Inc. has to spend a huge sum of money to feasibly bring the innovative technology
by way of Virtual i-Keyboard in market. On the basis of above table describing the cost structure
of innovation, it has been evaluated that Apple Inc. will have to incur $40000 upon Research and
Development. Also, it is evaluated that company is going to spend $21000 on Marketing and
$207000 upon acquisition of required resources. Besides this, Apple Inc. has to spend $14000
upon advertising the new product, iKeyboard. In addition, $22000 will be spent by enterprise for
hiring skilled and competent employees to make the new product.
Feasibility: As per the analysis of impact of changes that implementation of Virtual
iKeyboard will have upon company, it is necessary that feasibility of new product is checked
before being launched into marketplace. Feasibility is mainly concerned with evaluation of
success of plan to execute Virtual iKeyboard. It is essential that company ascertains whether the
implementation plan needs changes to effectively launch the innovative product. It is determined
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that while the company already possess required software and machinery for making the new
product, yet it needs to acquire certain new equipments and technology to create Virtual
iKeyboard. The product that is being brought by Apple Inc. is Virtual iKeyboard which is
feasible in terms of innovations coming regularly in marketplace as this product allow users to
carry it even during travelling. Thus, it ease the experience derived by customer to gain their
satisfaction and loyalty for a longer duration of time.
Approval process: It is essential that company executives take approval from Board of
Directors in meeting. This approval will be regarding introduction of new and innovative
product. For this, Apple Inc. will be required to bring certain necessary changes in the existing
system to be able to develop the Virtual iKeyboard. Thus, all this can be brought only with prior
approval from senior executives of Apple. This is to make them aware of the plan to execute
launch of new product amongst people.
Apply the changes: It is one of the most essential step of route map for bringing up the
innovative product in market. Under this, the changes are implemented within Apple Inc. to
successfully come up with innovation in terms of Virtual iKeyboard. Here, necessary resources
like human resources, technology, software are acquired from various sources to be able to
develop the new product effectively. For this, Apple will organise training sessions for existing
and new software engineers as well as programmers to make them capable of developing Virtual
iKeybard. These sessions will help the technical workforce in gaining skills in relation to usage
of high-end technology.
Reviewing the impact of changes: This stage is basically concerned with assessment of
success of plan. This is in relation to ascertainment of the extent to which Virtual iKeyboard is
successful at marketplace. This step can be conducted by performing a test through prototype
model. This is carried out prior to the launch of new product in market to check the feasibility of
product in terms of its acceptability and profitability in market (Nishimura, 2019).
CONCLUSION
From the above report, it has been concluded that innovation is one of the best ways to
stay competitive in marketplace. It serves as a strategic tool for gaining an edge over rivals and
getting an opportunity to enhance the current market share. This serves as a bridge between
people and company and helps in enhancing the loyalty of customers towards the brand. Also, it
has been assessed that consumer electronic industry is a wide sector. This corporate sector
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largely requires bringing about new and innovative features in products. This is essential to gain
a strong hold upon that sector and ensure sustainability in market for a long duration of time. By
bringing innovation in terms of new products and services at regular intervals, business
enterprises strive to gain acceptance from public towards their quality quotient. This leads to
generation of more number of opportunities for company in future context.
It has been evaluated that consumer electronic sector has a large scope of introducing
new technologies that are in coordination with requirements of existing market scenario. By
emphasizing upon gaining knowledge about the needs and requirements of people in market,
company strives at increasing its stake in industry. Some impactful innovations that are going to
take place within this sector are iKeyboard, iCar, AR smart glass, Foldable iPhone etc. By
understanding the need of bringing rapid innovations within and outside organisation, companies
can gain the trust of customers. This can take place in a way that demands of consumers are
addressed and innovation requirements of organisation are met. Besides this, it has been
observed that companies make use of a road map to successfully execute any change and bring
innovation within marketplace. This contains a series of steps that assists the company in
successfully introducing an innovative product or service in industry.
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REFERENCES
Books and Journals
Akinyoade, A. J. and Eluwole, O. T., 2019. The Internet of Things: Definition, Tactile-Oriented
Vision, Challenges and Future Research Directions. In Third International Congress on
Information and Communication Technology (pp. 639-653). Springer, Singapore.
Bei, X., 2019. Trademarks, specialized complementary assets, and the external sourcing of
innovation. Research Policy.
Song, B., Jin, P. and Zhao, L., 2019. Incentive Mechanism of R&D Firms’ Collaborative
Innovation Based on Organisational Ambidexterity. Discrete Dynamics in Nature and
Society, 2019.
Subramanian, N. and et. al., 2019. Out-in, in-out buyer quality innovation pathways for new
product outcome: empirical evidence from the Chinese consumer goods
industry. International Journal of Production Economics. 207. pp.183-194.
Bettencourt, L. A., 2019. Service Innovation—A Jobs-to-Be-Done Guide. In Marketing
Wisdom (pp. 157-171). Springer, Singapore.
Sousa, M. J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research. 94. pp.257-263.
Nishimura, A., 2019. Profit Opportunity, Strategic Innovation, and Management Accounting.
In Management, Uncertainty, and Accounting (pp. 97-127). Palgrave Macmillan,
Singapore.
Online
The consumer electronics industry is where the future is happening!. 2019. [Online]. Available
Through:<https://www.concentrix.com/blog/consumer-electronics-industry-future-
happening/>.
Apple Is Clearly Working on AR Glasses. 2018. [Online]. Available Through:
<https://www.tomsguide.com/us/apple-ar-glasses-akonia-holographics,news-
27927.html>.
Apple Could Be Working on a Foldable iPhone for 2020. 2018. [Online]. Available Through:
<http://fortune.com/2018/03/23/apple-foldable-iphone/>.
Apple iCar to be launched in 2020, could potentially rewrite the mobility game. 2019. [Online].
Available Through: <http://fortune.com/2018/03/23/apple-foldable-iphone/>.
Top 10 Trends For Digital Transformation in 2018. 2019. [Online]. Available Through:
<https://www.forbes.com/sites/danielnewman/2017/09/26/top-10-trends-for-digital-
transformation-in-2018/#3adc6d99293a>.
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