CASE PRESENTATION

Design Thinking and

Innovation at Apple
By Prof. Stephan Thomke & Barbara Feinberg
GROUP 5

23PGBAN001 Aastha Patel

23PGBAN011 Eshan Sharaf

23PGBAN012 Khushi Chugh

23PGBAN024 Shubham Sharma

23PGBAN028 Vyom Maheshwari

  Apple Inc. is a multinational technology company renowned for its
innovative products and services.
 As of 2024, Apple is valued at approximately, making it one of the
most valuable companies globally.
 The company reported annual revenues of $381.62 billion and net
income of $100.39 billion, showcasing its strong financial
performance​.
Apple Inc.  The Apple Store network is extensive, with over 500 retail stores in
25 countries & an estimated 500 million visitors annually, reflecting
the brand's immense popularity and customer engagement.
 Apple's retail stores generate an average of $5,546 per square foot,
making them the most profitable retail stores globally
 Developers have earned over $200 billion from the App Store since its
launch​​.
 Revenue Breakdown by Product
Category (2023):
• iPhone: $191.97 billion (50.3%)
• Services: $78.13 billion (20.5%)
Apple Inc. • Mac: $38.88 billion (10.2%)
• iPad: $28.62 billion (7.5%)
• Wearables, Home, and
Accessories: $44.02 billion
(11.5%)
  In 2012, Apple became the most valuable traded company in
History.
 Its share price reached $600 with a market capitalisation $620
Billion with annual sales over a $100 Billion
 In August 2018, Apple became the first publicly traded U.S.
company to reach a market capitalization of $1 trillion​.
 By August 2020, Apple was the first company to hit a market cap
Introduction of $2 trillion​.
 The reason behind this success is attributed to surprising
consistency in the way the company worked, simply put the
“Apple Way”
This case shares facts and anecdotes from company stakeholders in
order to shed light on how Apple has managed to become one of
the most successful company in industries where disruption is the
norm.
 A set of principles with a deep commitment to great products and
services.
At its core its about:

The Apple Way Design Thinking

Clear Development Strategy& Execution
Its CEO as Chief Innovator
The rational courage to conduct bold business experimentation
 A wide variety of design
thinking frameworks and
visualizations exist in the world
today
Traits that are common across
design thinking processes:
 Starts with empathy
Design  Reframes the problem or
Thinking challenge at hand.
 Initially employs divergent
styles of thinking
 Later employs convergent
styles of thinking
 Creates and tests prototypes
 Iterates
Design
Thinking
 Apple's design thinking is rooted in a deep understanding of user needs and a commitment
to creating "insanely great products”. The company's approach involves:
• User-Centric Design: Products are designed to support and foster individual work,
making technology accessible and enjoyable. Ex – First GUI, Ipod
• Simplicity and Elegance: A focus on reducing complexity and eliminating unnecessary
features to create intuitive and aesthetically pleasing products.
• Attention to Detail: Every aspect of the product, including packaging, is meticulously
designed to enhance the user experience.

Design Bill Atkinson Member of the original Macintosh development team at Apple, "People saw a Mac and fell in love with it.
There was an emotional connection that came from the heart and soul of the design team.”

Thinking Jonathan Ive Senior Vice President of Industrial Design (later Chief Design Officer): "Worry about the smallest details. In
the aggregate, it's really important, and it contributes to why people like the product."
 Lesson: The case emphasizes how design thinking and a deep
commitment to innovation can lead to groundbreaking products that
redefine industries.
The Power of  "Apple's success was not just the result of clever strategic moves or
Design an innate sense of market timing. It came from a deep
commitment to understanding how people used computing
Thinking and devices and a desire to develop 'insanely great products.” Steve Jobs, Co-
founder and former CEO of Apple.

Innovation  "Helping people 'love' their equipment and the experience of using
it animated—and continues to motivate—how Apple products
were and are designed today.” Jonathan Ive, Senior Vice President of Industrial Design
(later Chief Design Officer) at Apple.

Design
Thinking
 Lesson: Designing with the user in mind is critical to creating
products that people love and find useful.
• "From the beginning, Apple addressed individual users ('the rest of
User-Centered us'), believing that products that were intended to be useful to
people would in fact also be."Steve Jobs
Design  "We did the design first. We focused on what we thought people
would need and want, and how they would interact with their
computer. We made sure we got that right, and then we went and
figured out how to achieve it technically.“ Cordell Ratzlaff, Former Director of User
Experience, Apple (Key designer behind Mac OS X operating system).

Design
Thinking
 Lesson: Simplicity in design and use is a key factor in creating
successful products. This involves reducing complexity and focusing
on essential features.
Simplicity as a  "Simplicity is the ultimate sophistication.“Steve Jobs
Core Principle  "Apple products are often noteworthy for what they do not
contain. Years ago, the slot for inserting diskettes was eliminated
from Mac computers; reviewers criticized Apple for its arrogance
and omission of must-have features."Jonathan Ive

Design
Thinking
 When Jobs rejoined apple, he fired all the GMs who were
responsible for different P&Ls and combined the different business
units under one P&L.
He combined the different functional departments into one
functional organisation.
Org. Structure Each functional department is led by a Senior VP which leads to
Optimised for domain experts being in charge of decision making.
Innovation & Currently only CEO position is the one that works as a General
Manager position with different functional departments reporting
Design to him.
Thinking Apple’s commitment to create exceptional products cannot be
achieved if Cost & Price targets were the fixed parameters to
make design & engineering choices.
Design Instead R&D leaders are expected to weigh the benefits to users
Thinking against cost considerations. Ex: Portrait Mode Effort for iPhone 7+
by Paul Hubel.
 Apple’s strategic management integrates design thinking with innovative
business practices:
• Platform Strategy: Apple designs products with a long-term vision,
allowing for extensive reuse and adaptation within product families.
The strategy allowed for streamlined product portfolios and efficient
development processes, enhancing reliability and reducing costs.

Strategic • CEO as Chief Innovator: Steve Jobs played a pivotal role in driving
Apple's vision, from product development to market strategy.
Management Key Innovations:
and Innovation • Apple Stores: Created as destinations with a focus on customer
experience, these stores generate high revenue per square foot.
• iTunes and App Store: Revolutionized the music and mobile app
industries, setting new standards for digital content distribution.
• Mac OS X : an advance OS built on NeXTSTEP with a focus on user
friendly design and powerful functionality. Famously Sir Timothy
Berners – Lee advocated the OS.
  The company consistently adapted and leveraged new
technologies and materials, as seen in the evolution of the iPod
Iterative from the original to the Mini, Nano, and Shuffle.
 "What I realized [is] the best way to design software (at Apple) is
Development with the customer, which is now called participatory design. Larry
and User Tesler, VP – Advance Technology, Apple

 "The process of software design really is one where you start with
Feedback a vague notion of what you're trying to make, and that slowly gets
better defined.“ Bill Atkinson, Member of the original Macintosh team at Apple

Strategic
Management
and Innovation
 Lesson: Creating differentiated products that foster strong brand
loyalty can lead to long-term success and market leadership.
 "The iPod managed the amazing feat of being deemed individually
Differentiation cool while also being deemed cool for millions upon millions of
users.“Steve Levy, Technology Journalist and Author
and Brand  "The thing that all of our competitors are missing [is that] they
Loyalty think it’s about fashion, they think it’s about surface appearance.
And they couldn’t be farther from the truth.“ Jonathan Ive, Senior Vice President
of Industrial Design at Apple.

Jonathan Ive's statement underscores Apple's focus on substance over style, prioritizing user experience and functionality in
their design process.

Strategic
Management
and Innovation
 Lesson: Controlling both hardware and software development
enables a seamless user experience and product reliability.

Integration • "Apple insists on developing, and integrating, its own hardware

and software.“ case
and Control • "Apple’s platform strategy offers big advantages and benefits to a
Over Product company, its suppliers, and its customers: For companies like
Apple, who put a premium on design, resources and time invested
Development into the initial product is leveraged across derivative products.“ One
prominent advocate for this strategy was Tim Cook, Apple's CEO, who has often highlighted the efficiencies and
advantages of leveraging a platform approach in product development.

Strategic
Management
and Innovation
 • Steve Jobs' return in 1997 marked a revival of Apple's innovative
culture.
Impact of Steve Jobs :
 Jobs’s focus on design, user experience, and innovation influenced
Apple's culture and product development.

Excellence in  Jobs' ability to inspire and demand excellence from his team
resulted in products that set industry standards.
Execution • Tim Cook, as COO, streamlined manufacturing and distribution,
enabling seamless product launches.
• Apple's product introductions were meticulously orchestrated,
maintaining high quality and market anticipation.

Strategic
Management
and Innovation
 Lesson: Strong leadership and a clear vision are crucial for steering
a company towards innovation and maintaining a competitive edge.
 “Steve Jobs and Apple seem like interchangeable terms: a
Leadership discussion of the company in any forum immediately segues into
the man and his influence.” Analysis from the case study by Stefan Thomke and Barbara Feinberg.
and Vision  "His well-known temperament, often characterized as dictatorial,
may in fact reflect demands that arise from a distinct vision of the
morning of the company, its products and how that can be
achieved.“ Insight from the case study, highlighting Jobs' management style and vision.
 Lesson: Taking bold risks and experimenting with new business
models can lead to significant competitive advantages.
• "A towering example of boldness was the decision to move into
retail.“ his quote reflects the strategic decision made by Apple to enter the retail market, a move overseen
Bold Business
and implemented by Steve Jobs and Ron Johnson, then Senior Vice President of Retail at Apple.

• "Jobs took immediate action upon his return to the company in

Experimentati August 1997: stopping the licensing program, closing two
divisions, eliminating 70% of new projects, shutting facilities (and
on moving manufacturing abroad), changing the distribution system,
and launching a website for direct sales.“ case
The company also pioneered digital stores like the iTunes Music
Store and App Store, transforming the music and software
industries.
Examples
 GE Healthcare's MRI Redesign for Children
Human-Centered Design (HCD)
GE's team, led by Doug Dietz, observed and interviewed children undergoing MRI
scans to understand their fears and anxieties.They identified the need for a child-
friendly MRI experience that reduced anxiety and improved cooperation. The team
brainstormed ideas to transform the MRI experience into an adventure, considering
themes like space and pirates.They created immersive environments around the
DESIGN MRI machines, including themed decorations and audio-visual effects.

THINKING @
IDEO
 Umpqua Bank, a small Oregon-based bank, transformed itself into one of the best banks
globally by applying design thinking principles. CEO Ray Davis reimagined the bank as a retail
experience, focusing on making it a place people enjoy visiting. This approach, which
combined elements from successful retail environments, helped Umpqua create a unique,
customer-centered banking experience.
Result:
 Market Leadership: Umpqua Bank became number one in its community bank market.

DESIGN
 Expansion: Grew from six branches to over 263 stores across five states.
 Community Engagement: Created unique community-centric activities, enhancing customer

THINKING @ loyalty.

Umpqua Bank
 PillPack, an IDEO startup-in-residence, aimed to revolutionize
the pharmacy industry by redefining and simplifying how
customers engage with their pharmacy. With a mission to
make managing medications easier, PillPack leveraged design
thinking to create an innovative prescription home-delivery
system. Traditional pharmacy experiences were cumbersome,
involving long lines, tracking expiration dates, and managing
complex medication schedules.PillPack aimed to alleviate
these pain points by providing a seamless, user-friendly home
DESIGN delivery service for prescriptions.
 Product Design: Redesigned the website, created a private
THINKING dashboard for customers, and developed a suite of physical
products, including personalized medication packets and

@IDEO – Pill
durable dispensers.
 User Interaction: Focused on making customer interactions

Pack
straightforward and reassuring, from signing up online to
daily use of the product.
 Product Offering: PillPack’s system organizes medications
into presorted, personalized packets labeled by date and
time, delivered directly to customers’ doorsteps.
 Design Features: Included a durable dispenser for home use
and a travel pouch for on-the-go convenience, both
designed by IDEO.
 Customer Support: Provided access to pharmacists via
phone or email for personalized support.
THANK YOU!
DESIGN
THINKING  The IDEO design thinking framework consists of five key phases:
FRAMEWORK Understand, Observe, Visualize, Evaluate & Implement.

BY IDEO
 Understanding the User
Apple's success heavily relies on a deep understanding of its users
and their needs. The company emphasizes emotional connection
and user experience, which is evident in their design process.
Application
• Apple’s success was not just the result of clever strategic moves or
an innate sense of market timing. It came from a deep
Empathize commitment to understanding how people used computing
devices and a desire to develop “insanely great products.”
• Apple designers observed how people interacted with technology
and identified their frustrations and desires. For example, the
original Macintosh team focused on creating a computer that
people would "fall in love with."
 "Helping people 'love' their equipment and the experience of using
it animated—and continues to motivate—how Apple products
were and are designed today."
 Framing the Problem: Apple’s design process involves clearly
defining the problem they aim to solve, often rethinking what a
product could be and how it should function.
Application:
• "From the beginning, Apple addressed individual users ('the rest of
us'), believing that products that were intended to be useful to
Define people would in fact also be."
• Apple framed the problem as making technology accessible,
enjoyable, and useful for everyday people, not just specialists.
• "We make progress by eliminating things. It's a much more
courageous approach, much harder than living with all this
cheaper stuff.
 Generating Ideas: Apple’s approach to brainstorming and
generating ideas involves pushing boundaries and envisioning new
possibilities, often without knowing how they would achieve them
initially.
Application:
• "We did the design first. We focused on what we thought people
would need and want, and how they would interact with their
Ideate computer. We made sure we got that right, and then we went and
figured out how to achieve it technically."
• The development of the iPod, iPhone, and iPad showcases Apple’s
ability to generate innovative ideas that redefine entire industries.
• "We were applying a lot of creativity and ingenuity on the design
side and then pushing the engineers to use the same kind of
creativity and innovation to make that happen."
 Building Prototypes: Apple is known for creating detailed
prototypes, iterating designs, and refining products based on these
models. This involves extensive testing and tweaking to ensure the
final product is both functional and appealing.
Application:
• "The process of software design really is one where you start with
Prototype a vague notion of what you're trying to make, and that slowly gets
better defined."
• Prototyping played a crucial role in developing products like the
iPhone and iPad, where multiple iterations were created and
tested before arriving at the final design.
• "We kept on going until we found the key underlying principle of a
problem—which, in turn, could then be built upon."
 Testing with Users: Apple rigorously tests its products with real
users to gather feedback and make necessary adjustments. This
user feedback loop is critical to refining the product before its
market release.
Application:
• "What I realized [is] the best way to design software (at Apple) is
Test with the customer, which is now called participatory design."
• Apple's user testing process includes usability tests and observing
how users interact with prototypes to identify any issues or areas
for improvement.
• "In the user interface design, it was a lot of trial and error. We tried
different things and found out what did and didn't work. A lot of it
was empirically driven."
 In 2012, Apple became the most valuable traded company in
History
 Its share price reached $600 with a market capitalisation
 $620 Billion with annual sales over a $100 Billion
 The reason behind this success is attributed to surprising
consistency in the way the company worked, simply put the
“Apple Way”
 The Apple Way consists of:
Design Thinking- bill Atkinson quoteStrategy & Execution -
Apple Inc. Market
Capitalization
Milestones
Product Launch Sales
App Store
Milestones

•In August 2018, •The first iPhone, •The App Store,

Apple Inc. is a multinational technology Apple became the launched in 2007, launched in 2008,
company renowned for its innovative products first publicly traded sold 6.1 million units reached 100,000
and services. U.S. company to in its first year​​. apps by 2009 and
As of 2024, Apple is valued at approximately reach a market •The iPhone 6 and 6 has since surpassed
$1.02 trillion, making it one of the most capitalization of $1 Plus, released in 2 million apps​​.
trillion​. 2014, sold over 10 •Developers have
valuable companies globally.
•By August 2020, million units in the earned over $200
The company reported annual revenues of Apple was the first first weekend​​. billion from the App
$381.62 billion and net income of $100.39 company to hit a •In 2020, Apple sold Store since its launch​​
billion, showcasing its strong financial market cap of $2 217 million iPhones, .
performance​ trillion​. marking one of its •Apple enjoys a
•Apple's retail stores highest annual sales customer loyalty
generate an average figures. rate of over 90%
of $5,546 per square •The Apple Watch, among iPhone users​
• Operates in over 100 countries. foot, making them introduced in 2015,
the most profitable quickly became the
• The Apple Store network is extensive, with
retail stores globally. best-selling
over 500 retail stores in 25 countries & an
smartwatch, with
estimated 500 million visitors annually, over 100 million
reflecting the brand's immense popularity units sold by 2020
and customer engagement.
• The WWDC 2023 had over 22 million
viewers, showcasing the brand's broad and
enthusiastic audience.
 Lesson: Continual learning and adaptation to new materials,
technologies, and market demands are essential for sustained
8. Constant innovation.
 "We make progress by eliminating things.“ Steve Jobs, Co-founder and former
Learning and CEO of Apple Inc. Insight: This quote reflects Steve Jobs' commitment to simplicity and focus in
product design, a principle that has driven Apple's innovation strategy and product success.

Adaptation  "Apple continuously evolved its products, embracing new

opportunities while maintaining a core design philosophy.“ Analysis
from the case study by Stefan Thomke and Barbara Feinberg.