The Innovation by X1OoHG9



                                 Case Study (Apple)

     How is apple an innovative company?

       Think about Apple computers, and one cannot but be baffled by its riches to rags
to riches story. This company epitomizes what innovation and re-invention is all about.
At a quick glance, Apple seems to have adapted and learnt to fly with the winds of
change. But there is more to this success than just adapting to change.

The Setting

      In the early 2000's, the company was ignored by mainstream. For a long time,
the doomsday predictors seemed right. The company stock had hit the pits and any
hope was found only in the devout, cult following they had for their computer products,
many of whom frequented the annual MacWorld show. A cult following is a great thing
to have but not enough to have the wide appeal to have sustained growth.

        This was right about the time that digital media was gaining ground in the
"underground". Everything from digital pictures, to music to video could now be stored
on the computer. Digital still and video cameras were gradually starting to pick up in
sales and get a following - especially among the younger section of the population. Even
the film manufacturers were skeptical about the new digital technology - they continued
to reel out the film, with some sideways glance of apprehension at the small company
around the corner that was busy producing storage cards for the new camera's.

       Digital music was just taking off. This was a world of chaos in the start.
Programmers who owned out in front of their computers would crank out a nifty
looking MP3 player literally overnight, or other pieces of software that would allow you
to play your songs on your computer, or programs that could "RIP" (or convert) your CD
collection into digital format. But what if you needed more music, stuff that was not
already in your collection of CD's ? Well you could "borrow" that CD from your friend
and convert it to digital format for your enjoyment.
The Innovation

     Then came Apple with the IPOD. Hence came the amazing ability to store and play
back digital music, in a compact, portable device. So what's special about this compared
to other portable music players - Gone were the Play, Pause, Stop buttons that you
would see on a typical portable music device (like a portable CD player ). These buttons
were replaced by a single wheel on which you could slide your fingers over to perform
the play, stop pause actions. Simple and Clean ! Thus was born a new "user interface"
(geek term). In common man terms, this was a new way of humans to interact with a
device. This was just as radical as using that ubiquitous little mouse to point to things on
your computer screen. So here we now have a portable music player, which not only
allowed you to listen to your music, but also "wear" your music ! A concept that quickly
permeated into the pop culture and spawning a whole set of terms from "Podcast" to

       The good old portable CD player could now be replaced with a more compact
device that could hold several thousand songs as opposed to the 10-12 that an average
CD could hold. But this portable device in itself was not the pinnacle of achievement.
Add to this remarkable device, the ability of customers to pay less than a dollar to
download their favorite song, instead of buying a whole album as they used to. Most
people who used to plunk down $10 to $15 for a CD would now spend $3-4 dollars to
download and listen only to the favorite tracks on the CD.

      This is radical. Even the average Scheme who borrowed his friends CD only to
make his own copy, could now buy his own songs on the cheap, without really feeling
pinched by big media. Add to that, the ability to download radio programs or lectures or
even video on a portable device. An entirely new term was added to the dictionary - a
"PODCAST" (squishing IPOD & broadcast).

      Digital music and video has been around long before Apple came along. But what
the company did was to integrate their device, the producers of the content, and the
consumers of the content in one nifty package!. The device was just a vehicle to transfer
music from the producer to the consumer. That is a simple but radical change to the
way business was done.
       But it did not stop there. What people don't realize is that the success of Apple,
ITunes and digital media in general, also resuscitated another industry which was on the
brink of innuendo continuum - At the same time that Apple was in the pits, the hard-
disk manufacturers were in the pit too. PC sales were flat, almost everyone had a PC,
people were not eager to upgrade their computers - since there was nothing more than
using your computer for editing your favorite recipe or doing your homework.

      With the iPod, iPad & iPhone and digital media in general, the hard-disk
manufacturers found new energy. Each of the high capacity devices needed a compact
storage disk. With the demand for digital music, video, and pictures growing
dramatically, the disk manufacturers quickly adapted, re-configured their assembly lines
and began rolling out micro-drives. Really tiny hard-disks that would fit into a portable
media player. In addition, with all the digital media that an average family produces, the
need for storage can reach up to the terra-bytes. A tera-byte is 1000 Giga Bytes or
250,000 songs. Heck even storage space these days is expressed in "songs" than

       All this did come with a passion for innovation. In challenging, and pushing the
envelope on even the most sacrosanct and widely accepted concepts. On recognizing
the fact opportunity lies even in the space of established systems and processes and

       Having an Apple product is considered as having a good friend. The company has
created a really humanistic, beyond-business relationship with users and cult-like
relationship with their brand. It is as becoming part of a big family. Which make
customers increase their trust and loyalty towards the brand.

       Apple is the archetypal emotional brand that’s all about imagination, design and
innovation. People make their product “their own” because of the customized features
each product has. Apple’s ability to involve the customer to its products show’s that it
goes beyond commerce. It gives each customer a road of experience and not only a
satisfaction of a need.

       Nonetheless Apple has become aware of what the customer needs. It‘s product
reflect their most technological advances, and that with the combination of people’s
needs, attract them to buy its products. People are drawn to these brands because they
are selling their own ideas back to them, they are selling the most powerful ideas that
we have in our culture such as transcendence and community -- even democracy itself,
these are all brand meanings now," an investigator told the Guardian newspaper.

      The combination of Apple’s marketing and innovative technology has made the
company become bigger and bigger, that people actually feel the need to be part of it.
And being part of the Apple family is a way of letting the whole world access the power
of computing and communication.

      There is no magic to innovation, it requires and enlightened and inspired
leadership. To recognize the fact that opportunity lies even in the most sacrosanct, and
widely accepted concepts, norms and cultures. The willingness to listen even to the
most inane and even insane ideas that come up through the chain. By the brief
explanation that is given above on apple industries I think it is worth enough to be called
as a master of Innovation especially in electronic goods.

                   Analysis of the organization in OB methodology

      Emotions & Moods:

“Team, I am sure all of you saw my letter last week sharing something very personal
with the Apple community.

Unfortunately, the curiosity over my personal health continues to be a distraction not
only for me and my family, but everyone else at Apple as well. In addition, during the
past week I have learned that my health-related issues are more complex than I
originally thought.

In order to take myself out of the limelight and focus on my health, and to allow
everyone at Apple to focus on delivering extraordinary products, I have decided to take
a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple's day to day operations, and I know
he and the rest of the executive management team will do a great job. As CEO, I plan to
remain involved in major strategic decisions while I am out. Our board of directors fully
supports this plan.

I look forward to seeing all of you this summer.

Steve” (SOURCE Apple)
This is the email that Apple CEO Steve Jobs today sent to all his Apple employees. The
following things are addressed to be more worth noting in his email.

    After the launch of iPhone 4 Jobs is not well right with his health. It is noted that
     the employees focus has been moved from delivering products to that of his
     health-related issues in resulting low job performance.
    In order to overcome the Emotional attachment which is negative in this case
     Steve jobs decided to take medical leave.
    It is also implied that he cares much more for his company and products rather
     than attention being paid to his own health-related issues.
    This case well explained using Affective events theory as follows:

         Here there can be three types of employees:
             Employees who like Jobs to be the CEO
             Employees who don’t like Jobs to be the CEO
             Employees who neither like nor dislike him to be the CEO


       In the first case since jobs has gone ill most of the employees will be ‘upset’ in
resulting High negative effect on Job performance.

        In the second case since jobs is on leave most of the employees will be Relaxed
(or) calm (or) in worse cases might be happy or elated which will result in Low negative
effect or High Positive effect on Job performance.


       In the third case since the employees neither like or dislike their CEO and worried
by nothing most of them will be serene or calm which in turn result in Low negative
affect on Job performance.

        So on an average of all the three cases there is still negative affect on Job
performance. So Steve Jobs is right in clearing the complexity involved in his health
related matters keeping in view of his employees and his company’s growth even
though there is no need for him to do that. By a single email Steve Jobs tried well
enough to emotionally attach to his employees and make them emotionally stable and
he is successful in doing it.

       Employees’ Job Satisfaction:


        That is really the place where doors open, but Apple also pushes it's employees
to take the steps through those doors by applying for higher-ranking positions within
the company. The people who work at Apple Retail is enough to want to work there
regardless of what exact job one might have. The employees are friendly, diverse (on
many different levels) and intelligent. Retail is usually never is exciting, but at Apple
Retail, it is. Apple knows its people and the people (both customers and employees)
know Apple. One who works at Apple Retail feels local, not national.

         For an epitome I will give the following example as a case study.

“On one fine day, I have ordered for a MacBook pro since I badly needed it for my
schooling. After a week or so a courier had come to my school by name written Mr.
Tony carl. I went to collect it from the office and had noticed that apple had shipped a
couple of MacBooks while I have ordered for only one. I was a taken a back and checked
the bill for the amount I was charged. To my surprise I was charged only for one
MacBook and the company had unknowingly shipped two laptops. The other I had a call
from the customer care regarding the laptop. I was ready to send it back to the
company but I will never forget what the executive had spoken that day. These are
words that she spoke that day, “Sir, our company had unknowingly sent u two
MacBooks and you need not return them back to us.” I was taken a back and repeated
the statement, “Are you asking me that not to return it back?” I was told, ”yes! It is our
mistake and please take that laptop you have nothing to do with any sort of trouble.”

Understanding how Apple values its customers really sheds some light on how Apple
treats its own employees. Customers to Apple are transactions. Other than a few who
have personal relationships with Steve, most customers are valued only as long as they
also make no waves and keeping buying products without question and regularly. The
above example clearly implies how the employees are diverse and friendly.


        “The job can be quite rewarding, but I do find that many employees are having
difficult balancing work time and other time. I myself have been in a few situations
where the calendar for my work-schedule overrides my life schedule and that shouldn't
happen. Some employees often look towards others to share shifts, but everything
usually works out in the end.” -- Apple Concierge in Corte Madera, CA

Long ago in the late eighties, Apple was one of the top places to work. Things have
changed a lot and though Apple is still an exciting company, at least in field sales, it is
one of the most challenging and difficult companies to endure in an industry known for
tough jobs. An Apple field sales person is often caught between a very hard rock, Apple
the company, and a customer who really would like to buy Apple products, but only if
those products meet their needs. Resolving those needs and delivering those
capabilities to customers are really how Apple employees grow, develop, and eventually
end up leaving the company.

When you are part of something for so long, sometimes it is hard to see the changes
which take place. There was a time at Apple when employee development was
important at Apple. There were even courses for people who wanted to become
managers. In those days it was no uncommon to think of Apple as a career. There was
something of a development path for field employees. Those courses and many others
disappeared in the nineties.
Internal Problems

Disappointing market performance was attributed to internal problems. Jobs and his
director of engineering were missing schedules for crucial parts of the system. They
were “months behind with a large disk drive that would help Mac run sophisticated
software programs for business and make it easier for users to share information.”33 In
addition, Apple had no sales force with direct access to corporations. Unlike IBM, which
had 6,000 to 7,000 direct salespeople, Apple relied on 300 manufacturers’
representatives over whom they had no direct control. These representatives also sold
the products of other manufacturers. In the early 1980s, Apple established a 60-person
direct sales staff. However, soon after, the staff began to experience conflict with the
independent dealers who still provided most of Apple’s revenue. The direct salespeople
were accused of selling Macintoshes at lower prices than dealers, “elbowing” them out
of markets.

There were also marketing problems. The company failed to communicate a business
image for the Macintosh to the market. A former Macintosh employee stated, “Mac was
being perceived as a cutesy, avocado machine for yuppies and their kids, not as an office
machine or as the technology leader that it is.”35 This image problem was compounded
by the fact that Jobs and Sculley disagreed over marketing strategy. Jobs believed that
Apple should focus on technology, which would be the motivating force behind
purchases of computers. Sculley thought the focus should be on customer needs.
Customer needs should determine the product. Therefore, getting close to the market
was of fundamental importance. Jobs complained that Sculley didn’t understand the
nuts and bolts of the business or how products were developed and questioned
Sculley’s competence.

      These problems were heightened by conflicts between the Apple II and
      Macintosh Divisions. The members of the Apple product group, led by Del Yocam,
      were frustrated by Job’s favoring the Macintosh product group. According to
      several insiders, Jobs, a devout believer that new technology should supersede
      the old, couldn’t abide the success of the venerable Apple II. Nor did he hide his
      feelings. He once addressed the Apple II marketing staff as members of the “dull
      and boring product division.”

Jobs’ intense involvement with the Macintosh project had a demoralizing effect on
Apple’s other divisions. The Apple group considered this intolerable favoritism,
especially since their division was producing more than twice the revenues as the
Macintosh division.38 Apple had become “two different warring companies,” and the
internal competition was self-defeating. Sculley described his own perspective of the

       Initially, I saw Apple in PepsiCo terms. Frito-Lay and Pepsi-Cola could comfortably
       and successfully exist as separate entities under Pepsi-Co. The Apple II group
       could have its own factories and sales organization for the K-12 [kindergarten
       through 12th grade] education and consumer markets. Macintosh, with its own
       independent operations, targeted the university and business markets. What I
       didn’t realize was that it wasn’t working. The two groups became too competitive
       with each other. People were getting burned out.

In February 1985, Stephen Wozniak, designer of the Apple I and an engineer in Yocam’s
group, resigned.

Sculley was losing confidence in Jobs’ ability to manage the Mac division.40 When Jobs
failed to order necessary parts for the Macintosh XL, and Apple had to discontinue the
product after having introduced it only three months earlier, Sculley became concerned.

The organizational structure contributed to these management problems. As Sculley

       The organization created two power bases and removed me from day-to-day
       operating decisions. I became more remote from the business. As chairman,
       Steve was over me. And as head of a product division, he was under me. He really
       had more knowledge about what was going on in the business than I did because
       all the information was coming up through the product divisions. They had all the
       power. The corporate staff basically became an impotent group, largely a
       financial organization.

Sculley felt that he was losing control:

       It was nearly impossible to get the right information quickly when I needed it
       most. I was constantly surprised by new and disturbing findings, including the
       failure to order parts for the Macintosh XL. The management inexperience of
       many of Apple’s key players as well as my own lack of experience in the personal
       computer industry should have been early warning signs that a decentralized
      organization wasn’t suited for our volatile marketplace. It set up a system under
      which people would fight for what was best for their groups, not what was best
      for the company as a whole.

According to middle managers at Apple, Sculley was in Jobs’ shadow. He was not taking
the action he needed to run the company. Jobs was making all the decisions and was
being favored over all the other vice presidents. The board was also unhappy with the
way Jobs was running the Macintosh division. They encouraged Sculley to exercise his
authority as CEO and hire a new general manager to improve the Macintosh’s sales.


How is Steve Jobs a successful Leader?

The following five leadership lessons he taught made him a successful leader and CEO:

    Watch what's working in one product line, and adapt it to your other product
     lines ...

Companies with multiple product lines often run them as separate fiefdoms, rarely
interacting, other than occasional hobnobbing among their executives. Few share their
lessons well. Apple showed yesterday that it's one of them. "We invented some new
things [for the iPhone and iPad operating system, iOS], and we've perfected it over the
last several years," Jobs said. "We're inspired by some of those innovations in the iPad
and the iPhone [and] we'd like to bring them back to the Mac."

Smart companies make a habit of harvesting business lines for practices and features
that work well, and then spreading those insights to other business lines, to improve
products and processes there.

    ... but don't copy indiscriminately

Apple could have said, "Multitouch is working so well in mobile devices, let's start
making the screens of our laptops and desktop monitors as well." The company soon
realized, however, that it was the principle of multi-touch that worked, but the
implementation didn't have to be the same for both sets of devices.

"We've tons of user testing on this, and it turns out ... touch surfaces don't want to be
vertical," Jobs said yesterday. "After a short period of time, you start to fatigue ... .
Touch surfaces want to be horizontal." So Apple simply implemented new multitouch
capability on the trackpad for OS X Lion.

    Know where to hold your ground

Apple made many changes to the MacBook Air to make it smaller and more lightweight.
It pulled out optical drives and replaced them with a solid-state drive. The laptop now
has a unibody. It reengineered internal components so they fit together more
compactly. But there were two features that didn't shrink: the keyboard and the
trackpad. Customers wanted smaller, lighter-weight devices. But Apple also knew--as
anyone who's spent time using one of the new mini-netbook computers knows--that
you can't use a smaller keyboard for the kind of extended use MacBook users need
before your hands start cramping up.

The folks at Apple didn't make decisions based on a single criterion. They understood all
the variables their customers valued, and made their design decisions based on those.

    Know what you're really selling--and sell that

Sure, the new features in iLife '11 were impressive. The ability to make more exciting
trailers for your home movies, for example, or to learn the piano by following along with
a professional chamber orchestra. But what was Apple really selling?

In the era of reality TV, we all secretly hanker for the glamour of instant fame. As Randy
Ubillious, Apple's chief architect for video applications, demonstrated the new features
in iMovie '11, he wasn't just offering us the ability to make home movies faster and
more easily. He was selling us stardom.

    Toss in a little bling

Apple hired the London Symphony Orchestra to score a soundtrack you can use on your
iMovie-made movie trailers. Who can say that's not exciting? The trailer to your home
movie about rafting down the Grand Canyon, or traipsing about Paris, or seeing the
Penguins in Patagonia, set to music performed by the same people that did the score to
Star Wars? It's the kind of retro cool that Apple's hipster fans go crazy for. Know what
your customers value, and toss a little bling in your products that speaks to those values.
{ more…

    1. Personality traits + Steve jobs (about steve jobs interview done to steve) will be
    2. Case study3 + Jobs leaving apple in 1985(questions god like : CEO Problem )
    3. Motivational theories + used by Steve jobs + your own ideas to put up from ob !


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