How agile is Apple? | Case Study Apple | Agile Education by Scrum Academy

Summary

This video delves into Apple's journey as a beacon of innovation, tracing its history from the PC revolution to near bankruptcy, and Steve Jobs' return. It highlights Apple's strategic shift from reliance on Mac sales to diversifying with the iPod and iTunes, and ultimately the iPhone. The video underscores the importance of disrupting one's own successful products to avoid obsolescence, as seen in the decline of companies like Kodak, Blockbuster, and Nokia, and emphasizes the power of innovation in driving long-term success.

Takeaways

• 💡 Apple was pivotal in the PC revolution alongside Microsoft, providing hardware while Microsoft focused on software.
• 🔄 Steve Jobs was ousted as CEO in 1985 but returned in 1996 to lead Apple back from near bankruptcy.
• 📉 The Mac computer's revenue share dropped from 86% to 10% of Apple's total revenue due to the introduction of new products and services.
• 🎶 Apple revolutionized the music industry with the iPod and iTunes, creating a legal music download and portable listening experience.
• 📈 Despite increased sales, Apple was willing to disrupt its own successful iPod to pave the way for the iPhone.
• 📱 The iPhone, introduced in 2007, combined features of an iPod, a phone, and an internet device, making the standalone iPod obsolete.
• 📉 iPod sales initially soared but declined as the iPhone became the new standard, showing Apple's willingness to disrupt its own products.
• 💥 Many organizations fail by not disrupting their own successful products, leading to their irrelevance, as seen with Kodak, Blockbuster, and Nokia.
• 🛠️ Innovation should extend beyond traditional products to new customer segments and needs, as Apple did with the transition from Mac to iPod.
• 🔫 Don't fear killing the cash cow; instead, embrace disruption to avoid becoming obsolete like other failed companies.
• 🚀 The case study of Apple highlights the importance of continuous innovation, expanding into new markets, and self-disruption to maintain relevance and success.

Q & A

What was Apple's role in the PC revolution?

Apple was one of the most important companies in the PC revolution, providing the hardware, while Microsoft focused on the software.

Why was Steve Jobs fired as Apple's CEO in 1985?

The script does not provide specific reasons for Steve Jobs being fired, but it mentions his return to Apple in 1996 when the company was close to bankruptcy.

What was the significance of Steve Jobs' return to Apple in 1996?

Steve Jobs' return marked a turning point for Apple. He initially took over as interim CEO and led the company through a period of incredible growth and innovation.

How did the revenue share of Mac computers change from the early 2000s to the present?

In the early 2000s, Mac computers accounted for 86 percent of Apple's revenue. Over the past 20 years, this has decreased to only 10 percent due to the introduction of new products and services.

What was the business model that Apple created with the iPod and iTunes Music Store?

Apple created a business model around legally downloading music and making it accessible on the go, which not only boosted iPod sales but also increased Mac sales as the Mac became the hub for the iPod.

Why did Apple decide to introduce the iPhone in 2007?

Apple introduced the iPhone to disrupt their own successful product, the iPod. They saw more potential in the market and wanted to avoid being disrupted by competitors.

How did the introduction of the iPhone affect iPod sales?

The introduction of the iPhone, which combined an iPod, a phone, and an internet navigation device, led to a decline in iPod sales as consumers no longer needed a separate iPod.

What is the lesson from Kodak's story in the context of innovation?

Kodak invented the digital camera but failed to adapt, leading to their disruption by competitors. This illustrates the importance of not just inventing but also innovating and adapting to market changes.

What happened to Blockbuster and why is it relevant to Apple's strategy?

Blockbuster failed to adapt to the changing landscape of media consumption and was disrupted by Netflix. This serves as a cautionary tale about the dangers of not innovating and disrupting oneself.

What was Nokia's mistake in 2007 that led to their disruption by Apple?

Nokia failed to anticipate the shift towards smartphones and was disrupted by Apple's iPhone. This highlights the importance of being proactive in innovation rather than reactive.

What are the key takeaways from Apple's case study on innovation?

The key takeaways include the need to innovate beyond traditional products, address different customer segments and needs, and have the courage to disrupt one's own successful products to avoid being disrupted by competitors.