Apple: Taking innovation to the next level

The recent news of Steve Jobs’ resignation seemed like the end of an era for Apple and its employees. Going through these news clippings and videos, I wonder, what is it about this company that strikes a chord with people so effectively and easily? Is it the charisma of the man whose name has come to be linked inseparably to the company, or is it the culture of innovation and thinking that the company has developed over the years. Or is just because the products that the company has been coming up with are world class??

Though their products have been classy and the best in the market, the quality of products alone wouldn’t have ensured apple reaches where it is currently. For example, the the iPod was a phenomenon not just because of its features, but also because Apple introduced iTunes along with it. Similar is the case with iPhone and AppStore. Apple is present across Industries, thus facilitating and supporting the business model. Apple’s value proposition is that the product is an experience, and hence, Apple ensures that this experience is savoured fully by the customer.

Having these products also makes complete business to Apple because, depending only on luxury consumer products as a source of income would make the revenues extremely unpredictable and dependent on the macroeconomic scenario. Hence, having a product like the iTunes gives Apple the assurance of some flow of income, while at the same time gives the users a complete Apple experience.

Another reason for Apple’s success is the growing adoption of Apple products for business and commercial use. Saving time and minimizing frustration is Apple’s brand promise, and it sticks to this promise by maintaining uncomplicated product designs that goes down well with the users. Apple is also particular about having great in-store service. This ensures that the experience the customer has when he purchases an Apple product extends beyond purchase and usage, right upto solving issues that he might have with the product over time.

Apple has grown far ahead of its competitors not just because of product innovation, but because it coupled product innovation with business model innovation. Product innovation alone would have made it competent, but not as big a phenomenon as now.