Profile of an Innovative Company: Apple Inc.

For a while now, I have been in the market for a smartphone, something that will not only simply manage my life, but also be a cool toy . Unfortunately, these days trying to buy a smartphone is like searching for a new PC: they all look, feel and smell the same. To be fair, I did notice the MotoMing, most notably different than others. Unfortunately many of its features are targeted for the Asian community, as it was designed with Hong Kong executives in mind. But, that all changed today, with Apple‘s announcement of iPhone!

Apple has grown tremendously in the last 5 years, mainly thanks to its iPod and iTunes. Today, iPod dominates the mp3 player market owning about 62% of the market as of Dec 2006. However, the introduction of rival music players, as well as music cell phones, have been slowly eating away iPod’s market share.

Their focus on product innovation as an end-to-end integrator has enabled Apple to control the complete user experience, resulting in a product line that works well together and looks great! The challenge with product innovations is that it is possible for fast followers to catch up and leave the innovator in the dust. Looks like Apple has learned from its history, and is staying at the top of its innovation game.

As I was looking at the innovation ingredients that make Apple a great innovator, I found this 2004 BusinessWeek interview with Steve Jobs. I believe it succinctly highlights the attributes that contribute to Apple’s success in Steve’s words. However, it is also important to note Steve Jobs’ contribution to Apple’s success. Innovation alone does not generate growth — strong leadership is required. Apple is certainly flourishing under Steve Jobs.

• Stay centered
  

  “You need a very product-oriented culture, even in a technology company. Lots of companies have tons of great engineers and smart people. But ultimately, there needs to be some gravitational force that pulls it all together. Otherwise, you can get great pieces of technology all floating around the universe.”

• Know yourself
  

  “When I got back here, Apple had forgotten who we were. Remember that “Think Different” ad campaign we ran [featuring great innovators from Einstein to Muhammad Ali to Gandhi]. It was certainly for customers to some degree, but it was even more for Apple itself.”

• Know your business, your customer and your market
  

  “And 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. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.”

• Know your purpose
  

  “… And our primary goal here is to make the world’s best PCs — not to be the biggest or the richest. We have a second goal, which is to always make a profit — both to make some money but also so we can keep making those great products.”

• Stay committed
  

  “We hire people who want to make the best things in the world. You’d be surprised how hard people work around here. They work nights and weekends, sometimes not seeing their families for a while. Sometimes people work through Christmas to make sure the tooling is just right at some factory in some corner of the world so our product comes out the best it can be. People care so much, and it shows.”

  Fortune also announced Apple as the most admired company for innovation in 2006, with Google coming in second. Looking through their timeline, it is obvious that Apple has had periods of intense technical and stylistic innovation, as it is embedded in their culture. However, in times without focused leadership, products, such as the Newton, haven’t always thrived. I for one, will be adding iPhone to my Christmas wish list.

  Technorati Tags: Apple, innovation