June 2007 Archives

The iPhone launches in about a week. Whether it's the next iPod or next Newton will be known within a few months, but what's not talked about as often is how Apple has rebounded as a company. In the mid 90's it looked to be in deep trouble with market share dropping, stock value dropping and even talk of Sun buying Apple. From a low below $20 per share a decade ago, this week it closed over $123.

What are the lessons that can be learned from this climb back to success? The Economist (June9, 2007) says there are 4 primary ones:
- Mash-ups in the sense that Apple that is willing to use outside ideas and innovation to add to its own. Some call this "network innovation", orchestrating the mixing of the best in-house strenghts with external products or ideas.
- Insisting that design is based on user needs, not technology. Ease of use using new technology trumps engineering that is technically superior but shunned. Place a strong emphasis on design that is appealing in looks but more importantly in producing a positive and pleasant user experience.
- Know when to ignore the conventional wisdom including customer feedback. Accumulating feedback and using it is essential but there are times when a new approach is the right one. If you're sure you introducing the right service or product, stick to your plan. The iPod is proably the best example of this.
- "Fail wisely." Remember the Newton, the Lisa, NEXT? Failure, done correctly, is acceptable as long as you learn from it.