Tuesday, March 09, 2010

Tutorial—Innovation Radar on Apple

We first talked about the Innovation Radar back in November of 2006 as a systematic way to develop complete business systems.


As always, the goal is to create sustainable competitive separation by excelling in one or more of the radar elements—the more the better but be careful not to dilute your effort. The Sloan article explains the nuisances of each of the components.

On February 1 of this year, I highlighted some of the underpinnings of Steve Job’s approach to innovation and promised this tutorial.

Competitors must compete against the business system, NOT just a given offering!

Here is my brief summary of Apple's Innovation Radar business system. If you have additional thoughts, please share them

Offering: Apple’s principle thrust is designing products that make existing functions –computing, phoning, listening, reading, etc.—easier and more fun in a world class way.

“Apple products are known for being stylish, powerful and pleasing to use. They
are edited products that cut through complexity, by consciously leaving things
out — not cramming every feature that came into an engineer’s head, an
affliction known as “featuritis” that burdens so many technology products”

Platforms: This is where they have excelled by creating multiple, reinforcing platforms:
Operating system for iPod, iPhone, and now iPad

iTunes will have to be renamed. This is where they connect to their consumers to purchase anything from music, to e books, TV shows, applications (this is revolutionizing many aspects of our lives with over 100,000 and counting), etc.

Apple stores is where you can meet an Apple expert to buy and/or help with all their products

Most importantly, they reached a point where they can be considered the standard as evidenced by the number of third parties developing products to be used on their platforms.

Customer experience: Anyone who has used any of their products knows this IS their strength and the major source of value creation

Value capture: like Amazon’s one touch purchase system, Apple established a safe and VERY easy way to purchase items on their iTunes platform. Once your established in their system, it is effortless.

Networking: They established networks with suppliers in all major categories from music and book publishers to TV networks. Their strength from all the above puts them in a very strong position.

Brand: i____ is becoming as strong if not stronger than Apple®

1 comment:

billwood said...

Published a post some time ago that adds a bit more depth to the "Apple Innovation" engine. You can see it here:

Business Strategy and IT Strategy to Reproduce Apple Innovation

Recently started working on a new innovation model, it is in its infancy:

From Collaboration to Innovation to Market – Toward a Working Model