A Harvard business case: Winner of a 2013 ecch Case Award. It describes Apple's approach to innovation, management, and design thinking

1. Apple
DESIGNTHINKING AND
INNOVATION AT

2. StefanThomke
Professorof BusinessAdministration
HarvardBusinessSchool
Authors:
BarbaraFeinberg
IndependentResearcher

3. Li Wei
Technology commercialization manager
Exploit Technologies PteLtd (ETPL)
Agency for Science,Technology and Research (A*STAR, Singapore)
Summary andpresentationby
B. Eng&Ph.d (Engineering)
Nanyang Technological University
Singapore
M.B.A.
INSEAD
Fontainebleau, France

4. A HarvardBusinessCase: Winnerof2013 ECCH Case Award

5. $600 $620Bn
Share Price
In 2012,Apple became the most valuable
public-traded company in history
Market Capital
$100Bn
Annual Sales

6. STRATEGICMOVES
Apple’s success was NOT
JUST the result of

7. MARKETTIMING
or innate sense of

8. It is a surprising consistency in
the waythe company worked
the “APPLE WAY”Simplyput,

9. DESIGN
#1THINKING

10. “
Those of us on the original
Macintosh team were really excited
about what we were doing. The
result was that people saw a Mac
and fell in love with it … There was
an emotional connection ... That
think came from the heart and soul
of the design team
BillAtkinson
Memberof Apple MacintoshDevelopment Team

11. In mid-1970’s,
computers were
typically housed in
discrete locations
and only used by
SPECIALISTS

12. COMPUTER AS A TOOL FOR INDIVIDUAL WORK
To Helppeople “love” theirequipmentandthe experienceofusing
it,levelofcomplexityneededto be reduced dramatically
It was an unimaginable notion in 1970s

13. Start withDesign, from
People need and want,Not
limitedby technology,

14. Start withDesign, from
People need and want,Not
limitedby technology,
Push theengineersto usethe
same kindof creativityand
innovation tomake it happen

15. Design isverywell
thoughtthrough
[BeyondFashion]
Capacity andTechnologyto
buildit isnotcommoditized
[No Compromise]

16. User
Desirability
Market
Viability
Technology
Possibility
DESIGNTHINKING

17. details are scrutinizedSmallestof

18. until they found the key
underlying principleof a
problem, then built on it
deepThe design team
kept going

19. Design is not just what it
looks likeand feels like.
Design is how it works

20. Simplicityis theultimate sophistication
THAT

21. strategy And
#2execution

22. “You can see a lot by
just observing
Yogi Berra
MajorLeagueBaseball Playerand Manager
Photograph by
Bernard Hoffman

23. 1976
1978
1981
1985
1997
Apple Founded
Firstpersonalcomputer:Apple II
IBM entered with itsPC thatcan be “cloned”
Productsand projectsat Apple proliferated in
consequenceof variousstrategies– and failings
Apple marketshare keptdeclining,Theboard AXED Jobs

24. The technology development
process became more traditional
and resembled approaches found
at other companies

25. “
Process makes you more
efficient. But innovation comes
from people... calling each other
at 10:30 at night with a new
idea … it comes from saying no
to 1,000 things to make sure we
don’t get on the wrong track or
try to do too much…
Steve Jobs

26. 1997
Steve Jobs
returnedtoApple

27. Stop
licensing
program
Eliminating
70%of new
projects
Shutting
facilitiesand
movingabroad
Product
line from
15 to 3
Sophisticated
marketing
Websitefor
directsales
Kept product
development
CompeteSecret
Inventoryfrom
monthsto a
fewdays
Excellence
in Execution

28. Design the initialproduct as a platform:
withanarchitecturethat will
accommodate the development and
production of the derivativeproducts
Platform
Strategy

29. Integrate customer’sexperience intoits
designand development,a lotof it was
empiricallydrives
Working intimatelywith
manufacturersand being
completelyattunedto customers
Iterative
Customer
Involvement

30. The importanceof designas a motivationto
continuedinnovation ratherthan a static
approach thatassumesa single conclusion
Beautiful
Product that
Evolves

31. CEO as Chief
Innovator#3

32. “The really great person will
keep on going and find … the
key, underlying principle of the
problem. And come up with a
beautiful elegant solution that
works
Steve Levy,Author
The Perfect Thing

33. APPLE-JOBSinterchangeable terms

34. Jobs’ drivefor perfection
is Apple’s drivefor
beautiful elegant
products and its
superior operations

35. Jobs’ visionheld that Apple
products weretobe
personal tools for individual
instead of ”enterprise
solution”

36. Fromstrategyto productand
servicedesignto packaging
Jobs’ total hands-on
involvement indecision-making

37. Bold Business
experimentation#4

38. “The greatest artists like
Dylan, Picasso and
Newton risked failure.
And if we want to be
great, we’ve got to risk
it too.
Steve Jobs

39. Decision to move into retail and created with
the same painstaking focus on details
--When everyone wasmoving online

40. --against conventional wisdom of
”open platform,collaboration,
community design, transparency”
Develop and integrate
itsown hardwareand software,
and keep product launches secret

41. Constant learning, adaptation and evolution
Array ofcolors
Blackand White
ClosedDeveloper
Community
OpenDeveloper
Platform
NotCompatibleforotherOS
WindowsCompatibility

42. To Sum…

43. Theroot of Apple’s success

44. Design Thinking
Strategyand Execution CEOas Chief Innovator
Bold Business
Experimentation

45. More presentations at
www.innodiary.org