Innovation

OUMM2103

ENTREPRENEURSHIP

Innovation
1.0 INTRODUCTION

Nowadays, innovation is no longer a new thing. At the age of modern technology, each company must have their own innovations. Innovation is “a change in a product offering, service, business model or operations which meaningfully improves the experience of a large number of stakeholders” (Hutch Carpenter, 2010). In this task, I will discuss 4 types of innovation stated above based on Apple Company.

1.1 Organization Background

Apple was founded in April 1976 by Steve Wozniak, 26 years old, and Steve Jobs, 21, both are college dropouts. Their main business is based on a personal computer with the Apple computer as their first product.
The company designs, manufactures, and markets personal computers, software, and peripherals, concentrating on lower-cost, uniquely designed computers such as iMAC and Power Macintosh models. Most of the products produced are easily accessible user interface. The company, which was started using just only US1300, now produces many types of computers and portable electronics devices such as iPhone, iPod and iPad. Among its many innovations, the company introduced the graphics-based user interface to computers, the single disc for controlling iPod menus and functions, and touch-screen control of applications on the iPhone. Something interesting about their desktop and laptop computers is that it has its own operating system. They also makes iPod multimedia players and iPhone mobile phones.

There are many ways to slice innovation. Generally, there are four types of innovation ;

a. Invention : This is totally new idea. It as a pioneer in a new idea to be introduced.
b. Extension : It is like expansion from the current products or services they provide. In this context, innovation is made in different areas of the existing business.
c. Duplication : Adding new features to the product. “A process of replication of existing product, service or process” (Entrepreneurship, 2011).
d. Synthesis : This is a combination of two or more elements or ideas to create new products or services.

2.0 Invention Aspect

As is generally known, Apple has its own operating system. starting from a personal computer and laptop, they explore and construct a special operating system for their other products like iPods and iPhones. Latest operating system for computers they coached be named OS X Lion. While the latest iPhone operating system they built was iOS5 that can be uploaded for free by the owner of the iPhone handset. IOS5 operating system provides an opportunity for users to make multi-touch when using their iPhone. They indict, this operating system is the most advanced operating system for smart phones. With its easy-to-use interface, amazing features, and rock-solid stability, iOS is the foundation of iPhone. And even as others try to catch up, the technologies and features built into iOS keep iPhone years ahead.
Their operating system built specifically used only for their own products. It is not owned by other companies or other individuals.

2.1 Impact from Invention

Result of its own operating system construction, the company Apple was able to rake in huge profits in a short time. History has proved, one thing that is interesting when Apple makes invention is that they became the first personal computer company to reach annual sales of $ 1 billion in 1982. A major impact on companies is that they can make big profits in a short time. For example, they can make a profit from the new operating system is built. This is because other companies cannot copy or sell the Apple operating system in a short time. Results from the invention of the operating system, Apple has managed to secure a large profit. “Apple® today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The Company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. These results compare to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent compared to 36.9 percent in the year-ago quarter”.(Steve Dowling, 2011). On August 9, 2011, Apple briefly surpassed oil and gas company Exxon to become the United States' largest company.

3.0 Extension Aspect

There are no major or specific extension in Apple industry. However, the Apple company made some expansion in the field of advertising to expand their business. In addition to pioneering the field of operating system and Internet, Apple has expanded its business in the area of the tablet-based advertising. This idea is a reflection of Apple products like the iPad tablet.
Apple has built a social advertising network specially for tablet PC users. It's called iAd. The iAd Gallery is a celebration of advertising, featuring iAd campaigns from some of the world's best brands and their advertising partner. The iAd Gallery gives you easy access to a selection of the fun and informative ads that have run in some of your favorite apps. IAD is very useful for travelers who want a first class service. They can choose luxurious hotels and rental cars through advertising that is displayed in the IAD. With this technology, we can browse, search, read about, and interact with ads from leading brands from around the world.

3.1 Impact from Extension

In the near future, the field of advertising is expected to be more advanced. If we see today, online advertising was mainly focused on personal computers, mobile phones and TV and radio. Do not be surprised if in 2 or 3 years to come, there appeared the special advertising for all the tablets on the market. This is because Apple is a giant tablet manufacturers have started earlier this clever idea and it is possible to be followed by another manufacturer. It will be a new trend in the advertising world in the future.

4.0 Duplication Aspect

As we know, use a phone only for making calls and sending short messaging service. in modern technology, mobile phone functions have been enhanced to feature a more sophisticated, such as Internet browsing, watching videos on-line and so on. In this context, Apple is also not left behind in upgrading their products. For example, iPhone Apple now has features that can surf the Internet and high definition television called AirPlay. With AirPlay, you can wirelessly stream what’s on your iPhone, to your HDTV and speakers via Apple TV. This is a new function introduced by Apple. Functions of the iPhone has been enhanced as a medium of entertainment other than to communicate. This advantage is only available for Apple products only. Other smartphone manufacturers are still focused on communications and the Internet only.

4.1 Impact from Duplication

Apple has created great changes in the world of entertainment. With high-definition television called AirPlay is connected to the internet via iPhone, Apple has changed the way we live. The past, we can only watch TV at home, restaurant or at the shop only. But it is different now when we can watch TV anywhere with the iPhone. According to the pattern of modern life and fast, gadgets like the iPhone is very popular and is a must for everyone. So, no surprise that today's young people live a life different from 20 years ago. Communication between us is becoming more easily and quickly with Apple technologies. For example, we can communicate online via facebook using iPhone or iPad only.

5.0 Synthesis Aspect

Apple Inc has a great variety of products in terms of internet and computer technology. Combination of Apple's iPhone and personal computers has resulted in a medium sized iPad and easily carried anywhere. Functions in iPad is a combination of the two functions of personal computers owned by Apple and the iPhone. For example, every iPad is built with advanced 802.11n wireless technology. It automatically finds Wi-Fi networks, which you can join with a few taps. iPad is also available with 3G connectivity. So if you’re somewhere without Wi-Fi, such as outdoors on a camping trip or on the road, you can still surf the web, check email, or get directions. iPad now comes with IOS. IOS is the operating system for iPad. It lets you see and do everything just by touching the screen. It includes all the powerful, innovative, and fun built-in apps you use every day.

5.1 Impact from Synthesis

Extensive use of IPAD in the organization has brought positive changes to the organization. For example, Hyatt hotels and resorts. They have been using the iPad in business administration, hotel bookings up to the payment. With iPad, Hyatt managers have an immediate, full-size view of their email, contacts, calendars, financial data, and other business resources wherever they are. Hyatt is also developing iPad-accessible apps that allow guests to order room service, view hotel amenities, review charges, and check out. The portability, large screen, and long battery life of iPad make it uniquely suited to the round-the-clock, perpetual-motion world of hospitality. Imagine a large convention center hotel where there are 1000 people wanting to check out at the same time. “Now we’re able to empower hotel staff with iPads and allow them to quickly and easily check out guests.” (Prusnick, 2011). With a combination of Internet technology and the iPad, Hyatt Hotel staff work much easier and faster. It also can save customers valuable time. Indirectly to enhance the image and then continued making great profits.

6.0 Impact from Innovation

Competition between manufacturers of tablets and smart phones also have a negative impact to Apple company. For example, recently, Apple claimed that the look, feel and design of Samsung's products as their products. This is a challenge and a reminder of the Apple company to be more careful in building design and operational systems in the near future. For fans of Apple products who are looking for uniqueness and difference, this is something serious and they will feel cheated. This has somewhat affected sales of Apple's own products as suspected of being copied by other competitors.
Other negative effects are considered serious at present is the distribution of pornography on the internet. 10 years ago, we're controlling the circulation of substances on the internet. This is because at that time, only those who have computers and internet only able to upload or download information. moreover, the price of computers at that time cannot be bought by everyone. Unlike in the present, almost all teenagers and young people have mobile phones that can connect to the internet. Distribution of pornographic images or videos is happening so fast and cannot be blocked easily.
No doubt innovation has brought tremendous benefits to us. For example, as a result of product innovation such as the iPhone Apple has given space for us to communicate via the internet no matter where we are. Unlike the old days, we need a long time to send the news by telegram.

7.0 CONCLUSION

In general, innovation in an organization is a must for them to achieve excellent performance. In our country, various competitions and awards held by the government to encourage government and non government bodies implement innovation in their organizations.
While the founders of Apple once said “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.” (Steve Jobs, 1998). From the passage above clearly shows the innovation is not something that requires money. It stemmed from the new ideas from individuals or groups who want a unique thing in the creation of new ideas.
Sophistication of technology has provided many benefits in our daily lives.. However, despite all this, there are things harmful to our generation today and future. For example, today's generation is less interaction because of being too preoccupied with the Internet smart phones. As we have seen in the clinics, the LRT stations, bus stations and public places, people today with their case with their smartphone.They sometimes forget the situation in front of or next to them. This makes our generation is not aware of what is happening around them. They are not sensitive to their surroundings. This opens opportunities for criminals, especially foreigners commit crimes such as theft, robbery, indecent, etc.
Has been recognized innovation has brought tremendous benefits in our lives. many new products in the market is derived from the innovations made by the staff of the company. If there is no innovation is done, then our technology will not thrive as it is now. We may only use existing products without making any changes to the product.


REFERENCES
http://www.cloudave.com/202/definition-of-innovation
http://www.apple.com
http://9to5mac.com/2011/10/17/apples-investments-outside-rd-spur-in