How agile is Apple? | Case Study Apple | Agile Education by Scrum Academy
Summary
TLDRThis 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.
Outlines
🍏 Apple's Journey from PC Revolution to Innovation
This paragraph traces the history of Apple, highlighting its pivotal role in the personal computer revolution alongside Microsoft. It discusses the initial success and failures of the company, leading to Steve Jobs' dismissal in 1985 and his return in 1996, which was crucial to Apple's survival. The narrative then shifts to the transformation of Apple's revenue structure, where the Mac computer's contribution to revenue significantly decreased from 86% to 10% over two decades. This change was not due to a decline in Mac sales but rather the introduction of new products and services, starting with the iPod and iTunes Music Store, which revolutionized the music industry by enabling legal downloads and portable access.
Mindmap
Keywords
💡Innovation
💡Organization's Long-Term Success
💡PC Revolution
💡Steve Jobs
💡Bankruptcy
💡iPod
💡Revenue
💡Business Model
💡Disruption
💡Cash Cow
💡Irrelevance
Highlights
Apple was a key player in the PC revolution alongside Microsoft, focusing on hardware while Microsoft focused on software.
Steve Jobs was fired as Apple's CEO in 1985, but returned in 1996 to revive the company from near bankruptcy.
Apple's revenue from Mac computers dropped from 86% to 10% over 20 years due to diversification into new products and services.
The introduction of the iPod and iTunes Music Store created a new business model for legal music downloads and portable access.
The Mac became the hub for the iPod, increasing Mac sales as well as iPod sales.
Apple was bold enough to disrupt its own successful iPod by introducing the iPhone, which combined an iPod, phone, and internet navigation device.
The iPhone's introduction led to a decline in iPod sales as it rendered the standalone music player obsolete.
Many organizations fail to disrupt their own successful products, leading to disruption by competitors and eventual irrelevance.
Examples of companies disrupted by competitors include Kodak, Blockbuster, and Nokia.
Kodak invented the digital camera but failed to capitalize on it, leading to their downfall.
Blockbuster had the opportunity to acquire Netflix but missed the chance to adapt to the digital streaming market.
Nokia was the leading mobile phone company in 2007 but was disrupted by Apple's iPhone and lost its dominance.
Innovation is crucial for an organization's long-term success, as demonstrated by Apple's transition from Mac to iPod.
Innovation should go beyond traditional products and address different customer segments and needs.
Organizations should not be afraid to disrupt their own cash cows to avoid being disrupted by competitors.
The case study of Apple shows the power of innovation and the importance of being willing to disrupt one's own successful products.
Transcripts
[Music]
hey and welcome back
in this video we will explore apple as a
case study for innovation and how that
drives an organization's long-term
success but let's start with going back
a few steps actually a few decades
apple was maybe one of the most
important companies when it came to the
pc revolution together with microsoft
apple was providing the hardware
microsoft was very much focused on the
software piece
after a few successes and failures steve
jobs was fired as apple's ceo in 1985 in
1996 90 days close to being bankrupt
apple brought steve jobs back
he took over initially as interim ceo
after apple had bought his company next
what happened then from 1996 till steve
jobs passed away is just incredible
in the early 2000s the mac computer was
86 percent of apple's revenue
over the past 20 years this went down to
only 10 percent of apple's overall
revenue and this is not because apple
sells less mac computers
actually the number of mac computers
that they sell
skyrocketed in this period
so moving from 86 to around 10 of the
revenue is due to all the new products
and services that apple has created in
the past two decades it all started out
with an extension to the mac being the
ipod in the itunes music store
apple managed to create a business model
around legally downloading music and
making that music accessible to them
anywhere they went
this not only resulted in a lot of ipod
sales it also resulted in more max sales
as the mac became the hub for the ipod
but apple was bold enough to sacrifice
that holy cow that ipod
because they saw there was more
potential in this space so instead of
being disrupted by one of their
competitors or a startup
they disrupted their most successful
product themselves
the iphone that was introduced in 2007
was basically an ipod a phone and an
internet navigation device so anybody
who owned an iphone now did not need an
ipod in the future
and if you look at the ipod sales over
the years they went up fairly quickly
but they also dropped down
because apple was bold enough to disrupt
their own cash cow many organizations
fail to do that
and guess what
it's not that their cash cow remains a
cash cow
it's that some other organization some
startup comes around and disrupts them
and then they become irrelevant we saw
this happen to kodak who happened to
invent the digital camera we saw that
happen to blockbuster who was able to
acquire netflix
we also saw that happen to nokia who in
2007
was disrupted by apple and the iphone so
a few things to take away from this
brief case study about apple
number one
innovate and innovate beyond your
traditional products
so moving from mac to ipod is not the
regular innovation that organizations
make it addresses a completely different
customer segment and especially it
addresses a completely different
customer need
second
don't be afraid of killing your own cash
cow because if you don't do it some
other organization will
and then you become as irrelevant as
nokia blockbuster and
kodak
i hope this briefcase study about apple
showed you the power of innovation
moving beyond customer needs and
segments and also the willingness to
killing your own cash cows
you
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