Investing Opinion
How Does Apple Do It?: The Innovators
Stock quotes in this article:AAPL
iMac.
iPod. iPhone. And now the iPad, the latest innovation from Apple(AAPL). CEO Steve Jobs and his team of leading edge innovators have done it again. How does Apple do it? Can anyone else do it? Can you? Think strategically, think simply, and as Apple said in its infamous advertising campaign, "think differently" with these considerations:- 1. Connect the Dots (and Dashes) -- Find the pain or frustration that customers and prospects are feeling and come up with possible solutions to explore. Apple is relentless in putting things together that seem natural, but also things that aren't. A portable phone is for convenience of talking anywhere at any time, but who would think about playing games, looking up stock quotes, or accessing computer capabilities on the same device? Some things don't make sense until you think about maximizing utilitarian value.
- 2. Ask, What If? -- Simplifying something, combining something, or eliminating something is a great place to begin brainstorming. The true test is assessing whether it's of value to someone "if ..." If you could enable someone to access his emails without being at his desk, would people find that valuable? If you could pack up your desktop computing and take it with you, would people find that useful?
- 3. Go Smaller or Bigger -- A true phenomena and paradox: while we're miniaturizing some gadgets, TV screens and computer monitors are getting ginormous. Size matters, but bigger is not always better. Consider the possibilities. Consider the alternatives. Consider how someone would use something and under what conditions. A giant display on a desk makes sense and so does a miniature one displayed in an airplane seat or on a train.
- 4. Risk Failure -- While some things will be hits, others won't. Remember Apple failed miserably to dominate the desktop in business and lost out to the inferior PC. This was due to several things, not the least of which was focusing on education rather than business markets, and being very restrictive in encouraging application software development by outsiders. Apple's board attempted a monumental leadership transformation under PepsiCo's(PEP) John Scully. It was a disaster. Yet, Apple not only kept going, but found a renewed resurgence in passion, purpose, and product innovation under its founder's return to the helm.
- 5. Go Younger or Older -- While some hip gadgets appeal to younger buyers, don't forget an aging population who wants to hang on to or reignite technology to better their lifestyle or quality of life. Think large print, one device vs. juggling many. Age isn't the only demographic. Consider others as well as psychographics and adapting to targeted buyer profiles.
- 6. Elegance is in Simplicity -- Instead of cumbersome code and unforgiving strings of hieroglyphic-like code, what if there was a way for people to point at easily recognizable pictures? And the graphical user interface was created. If there is one thing we are all craving in product and services design and process, it's simplicity. Less is more when it comes to setup, operations, and servicing anything and everything.
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
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