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Managing Innovation in Business

Question :

Managing innovation is a practice to introduce change in the company so that large customers are attracted.  The company chosen is Apple, a software technology-based organization in the USA. This project asserts the importance of innovation in business.

  • Evaluate the approaches of business data and the sources of information in order to identify the drivers of innovation.
  • How leaders and organisation can plan successfully for innovation.
  • Importance of organisational knowledge and c4ross functional cooperation so that innovation blockage and capability can be analysed.
  • Identification of product or service and key activities for its development.
  • Organisational or innovative development audit for new product or service.
Answer :
Organization Selected : Apple

INTRODUCTION

Managing innovation is analysed as systematic promotions of change in organisation and includes tasks of planning, organising, management and control. It usually deals with all measures in order to promote innovation in organisation and to generate benefits such as new products and service to conquer new market (Biemans, 2018). This purpose of report is to determine history of innovation in business operations of Apple Inc., which is an American multinational technology company that designs, develops and sells consumer electronics, computer software and online services. An innovation audit is being carried out to determine the past, present and future performance of organization. Further, different theories are used to determine Apple's existing innovation performance and capabilities. At last, forecast of industry performance in 2019 is also

Organisation & industry overview

Organisation and its innovation history

Apple computer Inc. is an American company which was founded on 1 April 1976 by Steve Jobs and Steve Wozniak for commercialization of a computer which was developed by them. In 1998, company's first computer with a graphical user interface was introduced for small business and home users. It introduced a visual design lead ethos with the desktop and Icons (Tidd and Bessant, 2014). Further, Another innovation of Apple was its expansion in to several product sectors such as digital cameras, CD players, and Handheld computer the Apple Newton. Through this, organisation had obtained major recognition of people in last several years with its new and innovative technology. After some years, the new product innovation of company has enabled them to attain growth in market. In 2007, the company looked at other digital music players in the market and came out with its own revolutionary, well designed take, intended to seamlessly with I Tune music player software. The first I Pod featured a scrolling wheel and considered the brand appropriate the colour white to stand out from the crowd. Introduction of I Pod in place of music players was considered as tremendous innovative idea of Apple which has provided them opportunity to maximize high profitability and growth in technology industry.

In addition, Apple has also developed its own application store in the year 2010 which was only available in their mobile phone. This step has again differentiated them from other mobile companies in market which are using Google App store (Drucker, 2014). The software counterpart allowed the apple to further control a user's experience and shaking up the publishing experience and game industries. There have been over 100 billion downloads from App store since its launch. However, it is still a major part of its innovation history that tablets are not going to take over technical world but when iPad came on the scene in 2015, it was rapturously received by apple's followers, with millions shelling out to add new device to their products portfolios.

Apple had introduced its new I Pod in the year 2015 in place of old music players. Unique features of this device was its storage capacity which was not provided other music players at that time. Storage capacity, portability, small size and expandable memory was considered as latest technology which was introduced by Apple in its I Pod. These technological features had created major difference between products of Apple and other brands in market. Other rivals have provide more emphasis on selling their existing rather than making changes in products.

With introduction and implementation of new technology, Apple has still created its influence on people across countries. Company emphasize upon managing continuous innovation in its business process, products and service and promotion in order to sustain its position as market leader in mobile technology and computer software (Winterhalter, Zeschky, and Gassmann, 2016). For many individuals the jury is out on Apple watch, with the company is guarding sales figures a year after the units shipped. Developing effective strategies and idea have enabled Apple to increase its users and adopt growth opportunities to increase its presence in market.

New technology is considered as introduction new features in existing features which makes it more effective and increase its capabilities. Accessibility, security features, improvement in software, more storage capabilities and reduction of issues is considered as technological innovation which makes Apple products different from other in market. It is different from past as it provides new services , wide range of options , application and data security features which was not available in previous products.

In present scenario, Apple is still based on product development strategy to attain a competitive advantage in market on rivals such as Samsung. It has maximized high sales revenue by making technological changes in its existing products and service such as I phone, I pad and Apple computer (Trevino and Nelson, 2016). This innovation management has increased the worth, performance and capabilities of organisation to conquer market and achieve major recognition of customers.

Apple

Samsung

Introduction of I Phone with IOS software was a great innovation which has provide unique features and security systems to its users.

Samsung has also applied continuous innovation in products but its technology is based on Android which make its different from Apple brand.

Products of Samsung are more affordable for customers as they are available at low prices in market in comparison with other products.

IOS Software is the most important features which is only available in Apple's products.

Samsung's products design and accessibility is considered as most important feature but Android software is also available in products of other brands in market.

Organisation existing innovation performance and capabilities .

Innovation audit is considered as a way to analyse who effective an is at managing its innovation. It also involves analysis existing performance of organisation and its strategic capabilities to continue its operations. In this context, Apple is still increasing its market share by generating new idea through continuous research and development. Existing innovation performance of organisation can be analysed by some internal and external factors which are mentioned below:

Internal factors

  • Culture: Apple's organisation and innovation culture is analysed as key factor in the continuous success of organisation. It clearly determines the capabilities in supporting changes, development new policies and new strategies. In Apple's case, employees are effectively developed and integrated in to an organisational culture which facilitates rapid innovation (.Van Lancker, Wauters, and Van Huylenbroeck, 2016). Such innovation is considerable in terms of products Like iPhone, iPad and Apple watch. While Apple's culture mainly contributed towards increasing business strengths and also imposed some challenges and limits to the firm.
  • Strategy statements: Apple' s vision and mission statements are considered as strategic basis for its success as one of the most valuable brand in the world. Continuous new product development is mission of organisation which has increased its strategic capabilities to attain high customers and market share. The vision statement of company is that they believe that are face on earth to make great products and that's not changing.
  • Processes: In order to develop capability and increasing existing performance, Apple has changed its business processes through application of innovation ideas and technologies which has improved its business operations (Antikainen and Valkokari, 2016). Designing new technologies with the help employees has developed competencies of organisation to introduce its existing products with new features with short time duration.
  • Products and services: Designing new software and products features has increased the capabilities of Apple's products an service to meet the requirements of customers. Demand of Apple's in market has been increased continuous in all countries. Quality of products and service has improved current performance of Apple in market.
  • Research and development: It is essential part of innovation which implies to carrying out market analysis to identify the requirements of customers towards products and services. In this context, Apple has also develop its capabilities of innovating existing products by analysing requirements of customers. Company has improved its capabilities of generating new technologies through analysis of competitors and market requirements.

External factors

  • Market share: Continuous increase market share of Apple in industry also determines its efforts towards application of new and innovative idea towards management of business. Products development strategy has provided major competitive advantage to organisation in market. However, company has also improved its services to sustain in competitive market and gaining high profitability.
  • First Mover activity: It is considered as advantage which is gained by organisation that first introduces a products and services to the market. In present context, Apple is the best example of first Mover brand which has achieved strong brand recognition and products loyalty before other entrants (Dodgson, 2018). For example: Innovation of iPod by Apple was also considered as first mover advantage which has increased its brand recognition and high product's loyalty.
  • Competition following: Apple's Generic and intensive strategies directly relates to the company's pricing strategies, promotion, marketing and other area of business. These growth strategies has increased firms ability to maintain its strong position in market. With a continuous and high innovation rate as well as emphasize on excellence in product design, Apple succeeds even with its relatively high selling prices. Analysis of competitors strategies has improved strategic capabilities of Apple to innovate its products and service capabilities in order to sustain in market.
  • Investment in merger and acquisition: It is a corporate strategy of organization to attain growth in industry by Acquiring various products and services. For improving market performance, Apple has also adopt this strategy by Acquiring some innovative companies and brand in market. By increasing investments in taking operations of other companies have increased capabilities of Apple to influence large number of customers.
  • Annual report: It is also an important document that clearly determine growth in sales and profitability of organisation within a specific year (.Murthy, 2017). Performance can be considered only after analysing growth in performance of organisation. High growth and recognition have enabled organisation to sustain its growth in market.

Customer centred Mapping of innovation.

  • Define: This stage involves determination customer's requirements towards improvement in products and services. It helps in analysis client needs and current trends to design new technologies.
  • Locate: In this, company tends to analyse its target customers in market and develop strategies to sustain its product position among customers.
  • Prepare: Apple at this stage should develop and increase its capability for innovative products and service.
  • Confirm: It involves analysis of effective and benefits of customer centred strategy of innovation for business to attain its competitors in market.
  • Execute: By using appropriate technologies company tends to implement its strategy of developing new products to meet requirements of customers.
  • Monitor: For achievement of success, it is essential for Apple to monitor its customer centred approach for innovation of products and services. Improvement in products have raised customers recognition and capabilities of firm to sustain in market.
  • Modify: After successful, company can also make changes in products and service to resolve issues and making more appropriate for customers. For example; Apple has also made some modification in Mobile Phone before introduction to reduce some issues which affect image of brand in market.
  • Conclude: At this stage, final products are introduced in market for customers in market after modifications. Demand and customers response towards products are analysed for further innovation. For example: Innovation its products like iPhone was the outcome of market research and application of innovation model to adopt current changes. For innovation, company has provide emphasis on completion of process which involves four stages such as Market research, Selection appropriate idea, implementation of idea and Introduction of new product to capture the market. Apple got innovation its products through its major emphasis on market research for finding idea to gain competition. Differentiation strategy of Apple has provided direction to adopt changes for being an innovative brand or company in IT Sector.

The industry in 2017.

Managing and measuring the innovation capability of digital enterprise is central to IT as it provide basis for judgement whether organisation are ready to initiate digital technologies. Innovation capabilities refers to the ability to continuous transform knowledge and idea in to new products, process, services and system for benefits of organisation and its stakeholders. These processes serve as a key mechanism for stimulating, measuring and reinforcing innovation. Tidd Bassant innovation model is used for determining the concept of innovation process such as:

Search Phase: This stage involved monitoring the operating environment for transformational changes that involves shift in market requirements and customers demands , changes in rules and regulations, increasing rivalry and new technological opportunities. At this stage, Apple have carried out market research through various sources identified that company needs to make changes in its software to add more value and features in products.

Selection phase: Concern towards narrowing down the previously identified opportunities and making sure they align with the business strategy and environment of enterprise. Apple has identified its innovation and selected differentiation strategy for innovating products.

Implementation Phase: Includes enactment of innovation established and scalable tools of project management, approaches of product life cycle and relevant marketing capabilities. After selection of appropriate idea, Apple had successfully implemented its scalable innovation and fast prototyping.

Capture phase: Entails evaluation of benefits realised from the innovation initiative through performance management and measurements. Apple also introduced its products iPhone with new IOS software in market to meet customers requirements. In 2017, company has achieved the highest sales revenue in comparison to rivals by launching a new product such as iPhone 7 and iPhone X with new productive and technological features.

For managing innovation, it is also essential for company to analyse future situation and performance of industry. Analysis of future performance helps in developing strategies to sustain and increase business position. In this context, implementation of new technologies by organisation has clearly determined growth industry in the future. In the future, organisation will tend to innovate their products and service ( Murthy, J.J., 2017). Porter Generic strategy Model is used to determine strategies which can be adopted by brand to sustain its position in market. These strategies are discussed below:

  • Cost Leadership: In this strategy, firms sets out to become low cost leader in the industry. The sources of cost advantage are varied and based on structure of industry. By adopting strategy, Apple can also find and exploits all source of cost advantage. It will increase its sales of products and service and create competitive advantage.
  • Differentiation: In this strategy, organisation seeks to be unique in its industry along with some dimensions which are valued by buyers. Apple is considered as best example differentiation strategy because it has continuously achieved growth and profits by innovating its products to be unique in market. For example: Face reading product feature is also part of differentiation strategy of Apple which increased demand of its iPhone in market.
  • Focus strategy: The generic strategy of focus implies the choice of narrow competitive scope with an industry. In this, company tends to gain its competitive advantage in market either by focusing on low cost or differentiating its products in market.

However, Apple can used differentiation strategy to sustain its competitive advantage because company has high performance and capabilities to design and develop new products with new technologies. Growth of industry also supports organisation to raise its recognition in market among customers (Stamp, 2017).

In addition to this, innovation audit tool is also discussed for determining the process which Apple can apply to increase its future performance and capabilities of innovating products and services.

  • Strategy: It implies to strategies which are implemented by organisation for innovation of products and services in market. Differentiation can be adopted by Apple to adopt implement new products and service in market.
  • Linkages: With effective research and development, company has increased its recognition in market and also utilized new technologies to sustain its position in market.
  • Process: This implies to analyse of process used by company for innovation of products and service in market to meet customers requirements. In the future, growth of IT industry also provide positive influence on business process of organisation and enable them to sustain in market.
  • Innovative organisation: After innovating process and products with new technologies, company will be recognised as innovative business enterprise in market. However, continuous introduction of new product with innovation has also developed image of Apple as innovative organisation in market. This aids organization to maximize high profitability,

CONCLUSION

From this report, it is concluded that there managing innovation in business is essential for organisation to attain growth and development in industry. Apple should consider that they need to own and control the primary technologies behinds the products where they can make significant contribution. By increasing investments in taking operations of other companies have increased capabilities of Apple to influence a large number of customers. Apple had introduced its new I Pod in the year 2015 in place of old music players. Unique features of this device was its storage capacity which was not provided by other music players at that time. Storage capacity, portability, small size and expandable memory was considered as latest technology which was introduced by Apple in its I Pod. Further, Apple can used a differentiation strategy to sustain its competitive advantage because company has high performance and capabilities to design and develop new products with new technologies.

REFERENCES

  • Antikainen, M. and Valkokari, K., 2016. A framework for sustainable circular business model innovation.Technology Innovation Management Review,6(7).
  • Biemans, W., 2018.Managing innovation within networks. Routledge.
  • Dodgson, M., 2018.Technological collaboration in industry: strategy, policy and internationalization in innovation. Routledge.
  • Drucker, P., 2014.Innovation and entrepreneurship. Routledge.
  • Murthy, J.J., 2017. Managing Innovation and Developing Intellectual Property Strategies for Firms.SIES Journal of Management,13(1).
  • Stamp, D., 2017. Managing Innovation: Product Development at Hasbro.
  • Tidd, J. and Bessant, J., 2014.Strategic innovation management. John Wiley & Sons.
  • Trevino, L.K. and Nelson, K.A., 2016.Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
  • Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the bioeconomy: An open innovation perspective.Biomass and Bioenergy,90, pp.60-69.
  • Winterhalter, S., Zeschky, M.B. and Gassmann, O., 2016. Managing dual business models in emerging markets: an ambidexterity perspective.R&D Management,46(3), pp.464-479.
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