Apple Design Process
Apple is a global technology giant, founded in 1976 by Ronald Wayne, the late Steve Jobs and Steve Wozniak as a personal computer company. The company operates out of its Cupertino, California head office, selling computer hardware, mobile devices, computer software, and consumer electronics such as music players (iPod), smart watches, and digital television. Apple used innovative marketing approaches, coupled with innovative products such as innovative graphical user interfaces and such strategies have seen the company grow to become the most valuable company in the world with cash reserves of an astounding $ 257 billion (Badenhausen, 2017). Apple is ubiquitous with futuristic innovations and technology; it pioneered the smart phone as we know it today with touch screens that eliminated the key-pad, a concept that led to the near death of the smart phone icon, Blackberry, and spawned an industry that has revolutionized communication and personal electronics.
Apple’s design principles have led the company to achieve a high level of brand loyalty; with products such as the all Aluminum body iMac, Macbooks, iPhone, iPod, and the iPad. Further, its mobile devices are considered some of the safest that ensures the highest standard of mass privacy and security for its users. Its software products, including the iOS operating system, music, photo, and video software, as well as iTunes have made its products highly popular and sought after; budding musicians can produce their own music using Apple music software such as garage band. The key to the company’s success is its ecosystem (Haselton, 2017). The products are not only functional, but beautiful and easy on the eye, enhancing its products popularity (Barker, 2012). A very interesting fact about Apple is that in the 1980s, faced with dwindling sales of its computers, the company ventured in several product lines including video game consoles (the Apple Pippin), digital cameras (the Apple Quick take), and even went as far as having a clothing line! Apple banned pets at its Apple campus as well (Weinberger, 2015).
Apple is considered the greatest design organization in the world, and the secret is its product development process, which is considered among the most successful (Panzarino, 2012). The company’s design process is first and foremost highly secretive ensuring competitors never know what the company is developing; its design process is one of the factors responsible for its competitive advantage. Design is at the center of the Apple product development process; the design team, led by the Briton John Ive, do not report to any other department, and are completely free to implement their design principles. At the center of the development process is Apple’s Industrial Design Studio where small select teams work to develop a product. The design team is ‘separated’ from the main company hierarchy and work autonomously with their own reporting structures. Development starts when ANPP (Apple New Product Process) information is passed to the product development team; the team defines all stages that the product goes through, with teams/ individuals assigned roles (Pham, 2015).
Apple Sales Process
The team uses a method similar to agile development where reviews are undertaken every Monday, and once approved, a product is tested; the overall method is iterative. Once approved for production, the Engineering product manager and the Global Supply manager take over to prepare a product for production. Production is done by outsourced companies to keep production costs low and remove the manufacturing headache from Apple. Throughout manufacturing, the product is iterated where a manufactured product is tested, reviewed, and improvements made until it is close to perfection and has as few faults a possible; faults are eliminated during the continuous iterative processes. Testing is done at its headquarters and the prototypes unboxed at the packaging room; also a highly secretive place. After testing, changes can be made and new products manufactured, until the team feels the product is as good as envisaged; this is followed by the launch where an action plan called ‘rules of the road’ that defines all processes for a commercial production (‘Interaction-Design’, 2017), (Johnson, Li, Phan, Singer & Trinh, 2012).
The sales process at Apple starts way before the products are manufactured; it starts with the pre-product launch and the launch. The pre-product launch is designed to create a hype about the product, which culminates with the product launch where there is a key-note speech to tell the customers what the product is all about. This is then followed by a sales copy that Apple sales team are adept at in creating catchy and attractive sales copy’s. Following the launch hype, products can be bought at its stores or pre-ordered/ ordered online from its online sales portal. At its retail outlets, where Apple sales people/ advisors approach customers with a warm, personalized welcome (Heisler, 2012). Apple sales people are given basic ideas and messages before they hit the sales floor, with each product having a catchy headline. The next step entails polite probing in order to understand the needs of the customer using a series of open and close ended questions directed at the potential client.
The third step entails the customer being given a take-home solution based on the probe questions; for instance, if a potential customer travels a lot, the sales person will introduce them to the Passbook. After presenting a solution, the sales person listen to all issues by the customer and resolves them and the sales ends with a farewell and an invitation for the customer to return (Gallo, 2012). At the online portal, the customer reviews products, and can then customize the products based on what they want. There is a live help button where customers can ask a few questions. Once they select their desired item, they can make payments and give their shipping address, to which the product is delivered. A significant amount of sales occurs through mobile service providers that sell Apple mobile devices with a subscription.
Apple Supply Chain Process
Supply chain refer to the main activities involving in giving end users products; supply chain management attempts to manage and control the chain from start to the end user’s order. Apple utilizes sophisticated software systems and high level inventory control. Apple has maintained a number 1 rank in the past five years in terms of SCM. Apple’s primary SCM activities include inbound logistics and outbound logistics. For the inbounding logistics, Apple works with several suppliers spread across the world using a sophisticated SCM. The Inbound logistics starts with sourcing from countries like the USA, China, Europe, and Asian countries. Manufacturing entails mostly assembly in China, followed by Warehousing using intermediate and main warehouses; distribution occurs at its retail stores, online store, direct sales, and wholesalers that include network carriers. At the end is warranty, trade-ins, and return or re-use programs.
Decision Support Systems: These are diverse but interactive computer applications and tools with software that can be customized to aid in decision making (‘Advameg’, 2017). a DSS is important for Apple to reduce human deficiencies in decision making, make informed decisions especially in the age of management accounting, save time, improve interpersonal communication, reduce costs, and confer a competitive advantage (Burstein, 2008)
Management Information Systems: This is a computerized system for processing information that is aimed at supporting a company’s activity and aid in its management; in entails business processes and resources, as well as software systems. An effective MIS is important for Apple to satisfy diverse needs, such as analyses and queries. It is also important for Apple for strategic planning, operations, and management control, aid management and increasing productivity (Laudon & Laudon, 2016).
Transaction Processing System: refers to an information processing system that handles business transactions that include the safe collection, modification and retrieving of all transaction information and data. It is essential for Apple to ease operations by managing thousands of operations concurrently, such as managing online sales. It also enables better customer service and provides a means for accessing new markets (Magal, 2009)
Executive Support System: This is system for supporting and facilitating decision making and executive information by an organizations’ senior executive. It is important for Apple as it provides a means for accessing external and internal information that relate to the goals of the organization. It is also useful in identifying and prioritizing activities
Apple Human Resource System: Is an electronic tool utilized in accessing information related to HR as well as performing HR roles. This is important for Apple to ensure the effectiveness of the organization, enhance employee commitment, empower the employees, enhance customer service and ensure occupational safety (Sarkissian, 2017)
References
‘Advameg’. (2017). Decision Support Systems. Retrieved July 30, 2017, from https://www.referenceforbusiness.com/encyclopedia/Cos-Des/Decision-Support- Systems.html
Badenhausen, K. (2017, May 30). Apple Heads The World’s Most Valuable Brands Of 2017 At $170 Billion. Retrieved July 30, 2017, from https://www.forbes.com/sites/kurtbadenhausen/2017/05/23/apple-heads-the-worlds-most- valuable-brands-of-2017-at-170-billion/#76eccc9c384b
Burstein, F. (2008). Handbook on decision support systems. Berlin: Springer.
Barker, E. (2012, March 14). Why do people love Apple products so much? Retrieved July 29, 2017, from https://www.businessinsider.com/why-do-people-love-apple-products-so-much- 2012-3?IR=T
Gallo, C. (2012, September 27). The Five Steps Apple Store Salespeople Take To Sell You An iPhone 5. Retrieved July 30, 2017, from https://www.forbes.com/sites/carminegallo/2012/09/27/the-five-steps-apple-store- salespeople-take-to-sell-you-an-iphone-5/#159646470d93eathe
Haselton, T. (2017, May 02). Here’s why people keep buying Apple products. Retrieved July 30, 2017, from https://www.cnbc.com/2017/05/01/why-people-keep-buying-apple- products.html
Heisler, Y. (2012, August 03). How Apple conducts Market Research and keeps iOS source code locked down. Retrieved July 30, 2017, from https://www.networkworld.com/article/2222892/wireless/how-apple-conducts-market- research-and-keeps-ios-source-code-locked-down.html
‘Interaction-Design’. (2017, June 29). Apple’s Product Development Process – Inside the World’s Greatest Design Organization. Retrieved July 30, 2017, from https://www.interaction- design.org/literature/article/apple-s-product-development-process-inside-the-world-s- greatest-design-organization
Johnson, K., Li, Y., Phan, H., Singer, J., Trinh, H., & Marshall University. (2012). The innovative success that is Apple, Inc. Huntington, WV: Marshall University Libraries.
Laudon, K. C., & Laudon, J. P. (2016). Essentials of management information systems. Boston : Pearson
Magal, S. R. (2009). Introduction to information systems: Enabling and transforming business. Place of publication not identified: John Wiley.
Panzarino, M. (2012, January 24). This is how Apple’s top secret product development process works. Retrieved July 30, 2017, from https://thenextweb.com/apple/2012/01/24/this-is-how- apples-top-secret-product-development-process-works/#.tnw_sEz5o8ii
Pham, J. (2015, November). AppleAnalysis-Iphone 6S. Retrieved July 30, 2017, from https://www.linkedin.com/pulse/apple-analysis-iphone-6s-johno-pham
Sarkissian , A. (2017). The Significance of Human Resource Management Systems. Retrieved July 30, 2017, from https://smallbusiness.chron.com/significance-human-resource-management- systems-62126.html
Weinberger, M. (2015, December 28). 17 incredible facts you probably didn’t know about Apple. Retrieved July 30, 2017, from https://www.businessinsider.com/17-incredible-facts-about- apple-2015-12?IR=T%2F#one-of-jobs-first-acts-as-ceo-was-to-ban-pets-on-the-apple- campus-in-return-he-gave-employees-better-food-in-the-cafe-15
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