STEVE JOBS- COURAGE OF INNOVATION (2017 UPDATED)

Summary

The transcript from Apple's leadership emphasizes strategic choices in technology adoption, focusing on emerging trends during their 'Spring' phase. Apple's history of pioneering decisions, like transitioning from five-inch to three-and-a-half-inch floppy disks and being the first to adopt USB, demonstrates a commitment to innovation over maintaining the status quo. The company's willingness to eliminate outdated features, such as floppy drives and optical drives, in favor of new technologies like USB, reflects a bold approach to product design. Apple's philosophy is driven by the courage of their convictions, aiming to create the best products for customers by concentrating on technologies they believe are ascendant and beneficial.

Takeaways

• 🚀 Apple focuses on strategic innovation by choosing the right technologies to invest in, rather than spreading resources too thin.
• 🔍 The company identifies and invests in technologies that are in their 'Spring' phase, meaning they are emerging and have potential for growth.
• 📚 Apple has a history of being an early adopter of new technologies, such as transitioning from the five-inch to the three-and-a-half-inch floppy disk and being the first to adopt USB.
• 💡 They are willing to remove outdated technologies, like floppy disks, serial and parallel ports, and optical drives, even if it draws criticism initially.
• 🔧 Apple's approach involves making bold decisions to leave out certain features if they believe it contributes to creating a better product overall.
• 🛍️ The company emphasizes market responsiveness, adjusting strategies based on customer feedback and market demands.
• 🏆 Apple's goal is to create the best products for their customers, even if it means facing criticism or making unpopular decisions.
• 💼 The company's leadership is characterized by the courage of their convictions, taking calculated risks to innovate and lead in technology.
• 🌐 Apple believes in focusing energy on technologies that are in their ascendancy and will benefit customers in the long run.
• 📉 There is an understanding that not all choices will be liked by everyone, and the company is prepared to take the heat for their decisions.
• 🔮 The script suggests a forward-looking approach, where Apple aims to make products that will be relevant and valuable to customers in the future.

Q & A

What is Apple's strategy for choosing which technologies to invest in and develop?

Apple's strategy involves carefully selecting technologies that are in their 'Spring' phase, meaning they are emerging and have a promising future, rather than trying to do everything and spreading resources too thin.

How does Apple approach the lifecycle of different technologies?

Apple views technology in cycles, with 'Springs', 'Summers', 'Autumns', and eventual decline. They aim to identify and invest in technologies during their growth phases to save effort and ensure they can excel on their platform.

Why did Apple switch from the five-inch to the three-and-a-half-inch floppy disk with the Mac?

Apple chose to switch to the three-and-a-half-inch floppy disk because it was a newer, more popular technology invented by Sony, and they were the first to incorporate it into their products.

What was Apple's stance on the inclusion of serial and parallel ports in their products?

Apple was one of the first to get rid of serial and parallel ports, opting instead for USB technology, which they were also among the first to adopt after its invention by Intel.

Why did Apple decide to eliminate the floppy disk drive from the original iMac?

Apple removed the floppy disk drive in 1998 with the first iMac because they believed it was an outdated technology that no longer served the needs of their customers.

What was Apple's approach to the adoption of optical drives in their MacBook Air?

Apple was one of the first to eliminate optical drives in their MacBook Air, signaling a shift towards new technologies and away from older, less relevant ones.

How does Apple respond to criticism when they make bold decisions about technology inclusion or exclusion?

Apple listens to the market and is willing to take the heat for their decisions. They believe in the importance of making choices that will lead to the creation of the best products for their customers.

What does Apple consider when deciding what features to include or exclude from their products?

Apple considers the emphasis and package of features in their products, choosing to emphasize some while excluding others based on their convictions about what makes a great product.

How does Apple ensure that they are making the right choices for their customers?

Apple relies on customer feedback and market responses to guide their decisions. If the market indicates they are making the wrong choices, they are willing to adjust.

What is the ultimate goal of Apple's product development strategy?

The ultimate goal of Apple's strategy is to create the best products possible for their customers, focusing their energy on technologies they believe are in their ascendancy and will meet customer needs.

How does Apple justify their decisions to include or exclude certain technologies in their products?

Apple justifies their decisions based on a belief in the potential of the technologies they choose and the conviction that these choices will result in superior products. They are willing to face criticism and make tough choices for the sake of innovation.

Outlines

00:00

🚀 Strategic Technological Selection at Apple

This paragraph discusses Apple's approach to technological innovation by strategically choosing which technologies to adopt and develop. It emphasizes the company's history of identifying and focusing on emerging technologies during their growth phase, such as transitioning from five-inch to three-and-a-half-inch floppy disks and being the first to adopt USB. The speaker also mentions Apple's bold moves to eliminate certain technologies like floppy disks, serial and parallel ports, and optical drives in their products, which were considered revolutionary at the time. The rationale behind these decisions is to concentrate resources on creating superior products rather than spreading efforts too thin. The company's willingness to make such choices, even if they are initially met with skepticism, is highlighted as a key factor in their success.

Keywords

💡Resources

In the context of the video, 'resources' refers to the assets, capabilities, and financial means that a company has at its disposal. Apple is described as not having the most resources in the world, which implies that they succeed through strategic choices rather than sheer resource abundance. This is illustrated by the company's history of making bold decisions, such as moving from five-inch to three-and-a-half-inch floppy disks, which shows their focus on innovation over resource quantity.

💡Technical Vectors

The term 'technical vectors' in the video denotes specific technological trends or developments that have potential for future growth. Apple's strategy involves identifying these vectors and focusing their efforts on them, rather than trying to cover all possible technologies. This approach is highlighted by their decision to adopt USB early on, showing their foresight in choosing technologies that are in their 'Spring' phase of development.

💡Cycles

'Cycles' in the video refers to the natural progression and eventual decline of different technologies. Apple aims to identify technologies that are in their early stages of growth (Spring) and avoid those that are nearing obsolescence (graveyard of technology). This concept is crucial to their strategy of choosing the right 'horses' to ride, as it helps them invest in technologies that will be relevant and successful in the future.

💡Floppy Disk

The 'floppy disk' is mentioned in the video as an example of a technology that Apple chose to move away from, first transitioning from five-inch to three-and-a-half-inch disks and eventually eliminating them altogether in the iMac in 1998. This decision illustrates Apple's willingness to abandon outdated technologies in favor of more modern solutions, aligning with their strategy of focusing on emerging technologies.

💡Serial and Parallel Ports

In the video, 'serial and parallel ports' are mentioned as older forms of data transfer interfaces that Apple decided to remove in favor of USB. This decision was part of their strategy to streamline their products and adopt newer, more efficient technologies. It demonstrates their commitment to innovation and their ability to anticipate and adapt to technological shifts.

💡USB

The 'USB' (Universal Serial Bus) is highlighted in the video as a technology that Apple was one of the first to adopt, despite it being invented by Intel. This adoption showcases Apple's strategy of embracing new technologies that are in their growth phase and have the potential to become industry standards, which aligns with their focus on future-oriented innovations.

💡Optical Drives

The 'optical drives' are mentioned as another technology that Apple chose to eliminate, starting with the MacBook Air. This decision reflects their strategy of removing outdated components to create sleeker, more modern devices. It also shows their willingness to make bold choices that may initially be met with skepticism but ultimately drive industry trends.

💡Market Feedback

The video discusses the importance of 'market feedback' in guiding Apple's decisions. If the market indicates that their choices are not aligned with consumer preferences, Apple is willing to listen and adjust. This approach demonstrates their customer-centric philosophy and their ability to adapt based on external input, ensuring they continue to produce relevant products.

💡Convictions

'Convictions' in the video refers to the strong beliefs and principles that guide Apple's decisions. They are willing to make choices that they believe will lead to the creation of great products, even if it means facing criticism or being called 'crazy'. This term underscores their commitment to their vision and their courage to take risks in pursuit of innovation.

💡Product Differentiation

The concept of 'product differentiation' is implied in the video when discussing how Apple chooses which features to include or exclude in their products. By making strategic decisions about what to emphasize, they create unique products that stand out in the market. This strategy is evident in their decision to remove certain features like floppy drives and optical drives, which they believe are not essential for a great product.

💡Customer Choice

The video emphasizes the role of 'customer choice' in determining the success of Apple's products. They believe that customers pay them to make choices that will result in the best products possible. By focusing on technologies they believe are ascendant and aligning with customer needs, Apple aims to create products that will be chosen by consumers, demonstrating a deep understanding of their market.

Highlights

Apple has succeeded by carefully choosing which emerging technologies to focus on, rather than trying to do everything.

Apple looks for technologies in their 'Spring' phase, avoiding those nearing the 'graveyard of technology'.

Apple was the first to adopt the 3.5-inch floppy disk, which became popular, after Sony's invention.

In 1998, Apple removed the floppy disk drive from the first iMac, a bold move at the time.

Apple was also the first to eliminate serial and parallel ports, being the first to adopt USB.

Apple was one of the first to remove optical drives with the introduction of the MacBook Air.

Sometimes Apple's decisions to remove certain technologies are met with criticism, but they stand by their choices.

Apple believes in the importance of making tough choices to create the best products, even if it means facing backlash.

The company focuses its energy on technologies they believe are in their ascendancy and will benefit customers.

Apple emphasizes different aspects in their products, choosing to leave out certain features if they don't align with their vision of a great product.

Apple listens to the market and is willing to make changes if their choices are not well-received.

The company's goal is to create products that customers want to buy, and they rely on their convictions to guide these decisions.

Apple's strategy involves making choices that may seem crazy to some, but are driven by a desire to innovate and lead the market.

The company's approach is to focus on technologies that are emerging and have the potential to shape the future.

Apple's history of innovation includes making bold moves that redefine product categories, such as with the iMac and MacBook Air.

The company's success is attributed to its ability to identify and invest in the right technologies at the right time.

Apple's philosophy is to make choices that may not always be popular but are driven by a commitment to creating the best products.

Transcripts

Apple is a company that has doesn't have

the most resources of everybody in the

world

and the way we've succeeded is by

choosing what horses to ride really

carefully technically we try to look for

these technical vectors that that have a

future and that are headed up and you

know technology different pieces of

technology kind of go in cycles they

have their their Springs and summers and

autumns and then they you know go to the

graveyard of technology and so we try to

pick things that are in their Springs

and if you choose wisely you can save

yourself an enormous amount of work

versus trying to do everything and you

can really put energy into making those

new emerging technologies be great on

your platform rather than just okay

because you're spreading yourself too

thin so we have a history of doing that

as an example we went from the five inch

floppy disk to the three-and-a-half inch

floppy disk with the Mac before before

other people right we were the first to

do that we made the three and a half

inch floppy that's popular

Sony invented it and we we put in in the

first products and there were some good

reasons we did that we got rid of the

floppy disk altogether in nine - 1998

with the first iMac we also got rid of

these things called serial and parallel

ports and we were the first to adopt USB

even though Intel had invented it you

first saw it in Mass on IMAX and so we

have gotten rid of things we were one of

the first to get rid of optical drives

with the MacBook Air and I think things

are moving in that direction as well and

sometimes when we get rid of things like

the floppy disk drive on the original

iMac people call us crazy or at least

premature maybe no they call us crazy oh

okay and but sometimes you just have to

pick the things that look like they're

going to be the right horses to

going forward what if people say you

know the iPad is crippled in this

respect well you know well I'd say two

things number one things are packages of

emphasis some things are emphasized in a

product some things are not done as well

in a product some things are chosen not

to be done at all in a product and so

different people make different choices

and if the market tells us we're making

the wrong choices we listen to the

market we're just we're just people

running this company we're trying to

make great products for people and so

we're we have at least the courage of

our convictions to say we don't think

this is part of what makes a great

product we're gonna leave it out some

people are gonna not like that they're

gonna call us names it's not going to be

in certain companies vested interests

that we do that but we're gonna take the

heat because we want to make the best

product in the world for customers we're

going to instead focus our energy on

these technologies which we think are in

their ascendancy and we think are going

to be the right technologies for

customers and you know what they're

paying us to make those choices that's

what a lot of customers pay us to do is

to try to make the best products we can

and if we succeed they'll buy them and

if we don't they won't and it'll all

work itself out

[Applause]