Design Thinking and

Innovation at Apple

-Manas Ranjan Tripathy

MBA International Business

Apple
During 1970s, computers were used by Governments
or Large Companies and were mostly handled by
specialists
The notion that computers can be used for individual
use was unimaginable
Apple Computer, Inc was founded in 1976 by Steve
Jobs, Steve Wozniak and Robert Wayne with a goal to
create computers that supported and fostered individual
work
Their aim was to reduce complexity to make potential
customers fall in love with the computer

Design Thinking
Design Thinking is a solution-oriented method used by
designers to solve complex problems, and find desirable
solutions for clients

Apples Aim
To create computers for individual use
Make computers simple to use
Make people fall in love with their products

Apples Approach
Simplicity in Design and Use:
Figure out the needs of people
Achieve it technically through creativity and innovation
Take care of smallest details
No compromise on functionality
Simplicity is the ultimate sophistication
E.g.- The simple iPod design had unreplicated success

Beyond Fashion:
Create product that can express itself on the outside as well
Tap into popular and fashionable trends
E.g.- G4 Cube

Apple Timeline
1976- Founded
1978- Apple II
1984- Macintosh Ad (Superbowl)
1985- Steve Jobs Axed from Operations Role
1985-1997- Varied Regimes (Dwindling Profits)
1997- Steve Jobs Returns
1998- IMac debut

Apple
II

1984 Superbowl
Ad

IMa
c

Product Development Strategy and

Execution
Early Years:
Products developed from scratch and had unique hardware with proprietary OS
Apples market share fell after IBM entered the PC Market and Steve Jobs was
axed

During 1985-1997:
Constant change in strategy due to change in regime
On account of competition from IBM-cloned devices, company was not able to
decide which products to develop and produce
Debates on licensing Mac OS and entering unknown segments like the Business
Market (dominated by Windows and Intel)
Some success like the PowerBook (1990)
Many failures like the Newton PDA
Approaches resembling other companies were seen
Complexity and confusion increased for Apple and its Customers (Too many
products developed)

Product Development Strategy and Execution

(After Jobs Return)
Excellence in Execution

Platform Strategy

Immediately after return

Licensing Program was
stopped, 70% of New Projects
were scrapped, manufacturing
was moved abroad and a
website was launched for direct
sales
Quest for Insanely Great
Products resumes
Tim Cook assigned to clean up
manufacturing and distribution

Create a Platform or
Architecture that can
accommodate development
and production of derivative
products (Both H/W and S/W)
Shared or Reuse of Assemblies
High Efficiency, Lower Costs,
Simplicity
Benefits to Apple, its Suppliers
and its Customers

Customer Involvement

Beautiful Products

Design based on Users needs and

Desires

Participatory Design

More User Testing creates

smoother software
Cut-Paste and editable Dialog Box
were innovations which cropped

Passion and close attention to new

materials and manufacturing
techniques to continuously create
beautiful products
After making the successful
pristine white iPod, they went on
to create colorful iPods using

CEO as Chief Innovator

Jobs Design Sense was Confident and Refined
He was committed to finding a beautiful elegant solution that
worked
Because of him Apple focused on problem solving for individuals
when the trend in 1980s was creating enterprise solutions
Jobs had hands on involvement in decision making, from strategy
to product and service design to packaging
Jobs was the Front Man to dramatically introduce products to the
customers in extravagant events

Bold Experimentations
Play it safe, thats the most dangerous thing we
can do. We have to get bolder
Entered Retail business at a time when everyone
was moving online
Stores opened at prime locations with Tech Repair
Guys called geniuses who serviced phones at
the bar
The concept took off as foot traffic (Apple and NonApple customers) were drawn to these elegant
surroundings that hosted beautiful products
Apple Stores generated highest revenue per
square foot in entire retail sector

The Path Less Trodden

Even as the rest of the world moved towards open
source systems, Apple still makes softwares and chips
in-house
They keep product launches secret
Very few apps have been developed by Apple for its App
Store
Apple has eliminated features in the name of progress
Still Apple is able to create and sell products people
want by constantly learning and adapting

The Way Ahead for Apple

In order to sustain itself, Apple will have to continue to
come out with innovative products
It should try to expand to newer segments as it has
done before
It should continue to stick to the ideologies of Steve
Jobs and create elegant solutions

What to take away from the case?

Be solution oriented and innovative
Adapt to changes
Take Risks