Assessment 1: Case Study Report The Success of the iPod and iPhone raises the licensing question for Apple… again. 1. Use the Cyclic Innovation Model figure to illustrate process in this case and provide a brief description? Innovation refers to the successful implementation and introduction of new products and services to the market. The Cyclic Innovation Model specifically focuses on the innovation processes, looking at the detail and providing a broad perspective. The Cyclic innovation modern does not coincide with the linear-chain concept; rather represents the circle with four ‘Nodes of Change’.
These are: * Scientific research * Technological development * Product creation * Market transition (Berkhout & Rietdijk, 2010) There are also the ‘Cycles of Change’ which inspire, correct and supplement. In order for the organisation to communicate and connect with various organisations, markets, business and appeal to other disciplines (Berkhout, Hartmann & Trott, 2010); these processes will need to be managed efficiently and effectively by a sole figure who establishes and distributes these cycles.
Apple addressed the consumer’s needs and wants by introducing a smart MP3 player that subjugated competitor products for years. The IPod is a clear example on how an organisation can correctly execute the Cyclic Innovation Model. The IPod introduction and implementation can be broken down into the various steps and nodes. Initially, the ‘Scientific Research Node’ collects information from market variations and lifestyles variations. With the introduction of my IPod, the social change was that everyone began to want one, therefore the demand increased and also corresponded with the music industry.
The ‘Product Creation Node’ allows them to establish and maintain the product to suit the needs and wants of consumer, considering the changes over time meaning it will be required to upgrade with the improving social recognition of the market. The improvements of the market leads to the ‘Technological Development Node’ which recognizes and meets required improvements in the product; and then incorporate it with the existing product to allow consumers to easily adopt and absorb.
The ‘Market Transition Node’ is the final products introduction to the market. The introduction of the product is essential; leading to value increasing as well as demand increasing. 2. With sales if iPod falling and Apple facing fierce competition from all quarters such as Sony, Dell, Samsung and other electronics firms as well as mobile phone makers who are incorporating MP3 players in their devices, can the iPod survive? Success| Failure|
Portability of music is essential in current lifestyles| Preference of an all-in-one product (Phone, internet, mp3)| Increase iTunes usage and sales| High value for just a single product| Target adolescents who are not able to spend too much on a smart phone| Synchronisation requirements| Decreasing interest on CD-Rom| iTunes compatibility| Opposing the iPod is the newly introduced iPhone. Many consumers will easily pay the added difference to purchase the mobile device that has an internal iPod.
This product has enabled Apple to fight off competitors who have looked at possible beating the organisation to creating such a product. Even so, there is still a large portion of the market who have daily needs that are suited by the iPod. Examples can include people who use it while at the gym or going for a run; retail stores, cafes and restaurants that have background music playing and do not want to occupy their phones, and parents who do not want to spend significantly on an iPhone.
The biggest challenge for Apple would be the maintaining of interest in the iPod. Correct marketing; advertisement and promotion of the product will attract consumers who believe that it would be a product to match their needs. 3. How can Apple influence future technology developments or establish strategic alliances to ensure it is a dominant force in the hand-held devices that will incorporate both the cellphone and MP3? Apple has created each and every one of their products to integrate with all of their other products to a certain degree.
This coexistence has allowed many consumers to only purchase Apple products so that they are all working together. For example, iMac computers, iTunes, iPhones, iPods and iPads all synchronize together to allow a consumer to have certain information and date on all devices. To have this working, Apple have also created a principal to make each product user friendly, thus creating such interest that the brand has become one of the most popular household products in the world. Apple is simplifying modern day technology through user-friendly interfaces.
The cooperation with the music industry must also continue to excel iTunes and have it prevailing across all of their products, as it is. Reference List 1. Berkout, G & Rietdijk J, 2010, ‘Cyclic innovation model: circular vision in open innovation’ viewed 18 March 2013 ‘apportal. dedicated. nines/Cyclic-innovation-model. pdf’ 2. Berkout G, Hartmann D & Trott P 2010, ‘Connecting technological capabilities with market needs using a cyclic innovation model’, R&D Management, vol. 40, no. 5, pp. 474-488. Turn-It-In Paper title: Assessment 1 Paper ID: 314036265