Apple Harvest
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.
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These are good points. I do recall when Steve came back to Apple he went into a mode of slashing products to get a single 2x2 grid -- consumer and pro on one axis and desktop and portable on the other. The simplification of the product line allowed them to, in Steve's words, "innovate through the downturn." Just as most of the other tech kings laid people off, changed course, and spent money in product lines, Apple increased its R&D budget so they would be ready with a battery of new and innovative products on the other side.
There are lessons to be learned in that strategy for us -- our users depend on powerful and stable services from us. We may not need to be the fastest to "market" with them, but it seems critical to me that we do deliver stability. I wonder, however, as expectations in technological advances approach the levels as in the consumer space if our audiences will expect faster releases from us? IF that is the case, we need to continuously find new ways to have things "cooking in the labs" that we can release, test, and decide upon. I love the failing wisely perspective -- it makes for an innovative culture internally and provides lots of opportunities to work with our audiences.
BTW, I remember all the doom and gloom around Apple. If you remember correctly, right before Apple bought Next there were some serious rumors that Be OS would be the basis for Mac OSX. Funny how it all works out.
Don't forget that Apple stock split in early 2005....
Eric