The next products and services to be leased by the company did not only save the business but also [Dyer, Greenest & Christensen, 2011]made a substantial impact in the global music industry which at the time was plagued with piracy. The digital hub strategy was an encompassing innovative strategy developed by Apple that rejuvenated the personal computer market, disrupted digital publishing and the music industry. The digital hub strategy took advantage that its discovery driven manager understood the capabilities of Apple has a business.
The capabilities of the business was based on three main factors which are, its resources, its processes and its values. When these factors are meshed together with the DNA, vision and creativity of its leader, a resulting disruptive innovation was developed in the technology industry as a whole [Christensen,1997]. The tangible resources at Apple at the time the innovative digital hub strategy was developed consists of some discovery-driven people who were part of the initial team Apple started out with on the Apple l.
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These people have over the years been involved with experimenting and launching of innovative products during the early days of Apple as a company. Another tangible resources also available was he technologies Apple had. It was believed that Apple was the only company which “owned the whole widget – the hardware, the software and the operating system” [Caisson, 2012] and could deliver an end to end solution, thereby controlling the user experience from all front.
To create this digital hub, Apple had to depend mostly on the capabilities of the mimic, firework, the Macintosh and the ability of its software and hardware engineers to produce simple intuitive programs and products respectively. To elaborate further on the latter, Apple with its processes formal and informal – always ensures across all teams communication, interaction and strong collaboration between its software and hardware engineers to transform resources into products and services[Christensen,1997]. The first foray into the digital market was with video.
Apple realized that by creating a program that allows a user to not only record videos but can allow for personalization and recreation of a recorded video. According to Steve Jobs, this “makes your camcorder ten times more valuable [Caisson, 2012]. ” This lead to the production of software applications or editing and which also allows the user burn digital videos to a DVD drive; movie, DVD. Similarly, technology of a consumer drive that could burn a DVD which Apple was the first to ship [Caisson, 2012].
The main drive for this complete innovation in the digital video market was to make the portable device easy to use by removing complicated functionalities manufacturers had cramped into these devices. The same strategy Nas used in digital photography. The mimic became the hub for portable cameras and software application; photo – for editing pictures. However, there was an already existing competitor in this market, but because of the success of ‘DVD and movie in digital video, creative people were more inclined to try out software applications developed by Apple for digital photography as well.
As was mentioned above, the idea of a digital hub strategy embodied all classes of innovation – incremental, radical, sustaining and disruptive. At this point where there was impact in the digital ‘died and photography market, Apple was both incrementally and radically innovating in terms of technology focus but in a sustaining way to acquire more market share to remain in the technology market. The disruptive moment came for the company when it ventured into using the same strategy in the digital music market. The foray into the digital music was in similar fashion as into other digital markets.
Learning from its mistake of not producing computers that had the ability to burn CDC, Apple developed software applications that made portable music devices ten times more valuable, “Greenland – for creating and mixing music; tunes for competition in this market, Apple was able to make an impact in the music revolution that was going on at the time by making tunes really simple and removing lots of extraction other music managing software had at the time. This in itself didn’t disrupt the market but what came next did. In the same year, the company introduced its own portable media player the pod.
The pod at the time of release questioned all the status quo concerning music and technology. It was the only media player that could hold up to a thousand songs and could fit into a pocket – ultramontane. To realism this ultra portability, a lot of creative effort was put into the technology of hard drive that was thin and small enough. Once this technology was achieved, combined with Apple’s own technology of firework – fast transfer, it was easy enough to disrupt the music player market by producing a device that embodied the values of Apple in simplicity in marrying art, design and technology.
Ninth complete integration with its own music management software, the device was simple and intuitive enough, because most functionalists where put in tunes that made the pod ten times more valuable. Cannibal Illumined Syllabi – 1263626 sides owning the hardware that delivered great music experience and the software that managed music in the most intuitive and simple way, Apples’ aim to liver the best experience with music wasn’t complete as there was no control of Inhere users acquired their music from.
Moreover, at the time the music industry was trying so hard to resolve the issue of privacy. Apple realized early that one of the important use of the internet was for music delivery as it gives users near instant preview and most of all allowed for unauthorized usage of music. To solve the latter Nas the main need for the music industry. Apple was able to deliver a solution with the tunes store, which managed the technologies available – the internet and a huge USIA database to provide a legal way for users to acquire music.
The most part was getting the main players in the music industry to realism that Apple was the only company that could solve the problem as they had the hardware, software and could create a service that uses these resources. The role of Steve Jobs as the head of Apple was important in creating this service as he understood the great divide between the art industry as a whole and the technology industry [Caisson, 2012]. Ere creative people lacked how to maximize technology to their advantage which he noticed during his time at Paxar.
Likewise, the technology industry had major shortfalls in creative designs when it came to their products. He leveraged on his capabilities to relate with suppliers, distributors and customers of the music Industry. With over 200,000 music available at launch, unbinding purchase of singles from an album and close integration with tunes which eliminates poor management of music files, the tunes Store, tunes and the pod disrupted the “hole music and technology industry.
Finally, it can be said that the whole digital hub strategy could only have been delivered by Apple which understood its abilities of having resources like Steve Jobs a discovery driven manager and other people like him, a brand, different technologies and expertise which have been developed over time, processes that ensure close collaboration between teams to transform resources into products and service and values that reflect simplicity by blurring the line between art, design and technology.
This strategy would begin “the transformation of Apple from being a computer maker into being the world’s most ‘liable company. [locations, 2012]” NH It is Disruptive ‘Disruptive innovation transforms a product or service that was expensive and implicated that only a few people with a lot of money and skills had access to.
Disruptive innovation makes it so much more affordable and accessible to a much larger population” – Christensen Clayton [Christensen,1997] Apple went through the different forms of innovation – incremental sustaining innovation, radical sustaining innovation, incremental disruptive innovation and radical disruptive innovation – before succeeding in being disruptive. One of the transformation understood, was to change the market context it operated in. Before the digital hub strategy, Apple was leveled to be in the personal computer (PC) market.
The PC market was in a decline and it was used mostly for professional use. Software applications were developed to improve productivity in the business context. Figure 1: Business Model – Personal Computers User 70% Business Professionals 30% Everyday Creative Individuals Value Capture Value Creation Improved Productivity Value Prop MIDGET Personal Computers Ere digital hub strategy disrupted the PC market in the sense that it made the capabilities of the PC more accessible to a larger population which was everyday retrieve users.
Using the same model as seen in Fig. In which the real value creation Nas improved productivity but for creative and art contents like video, photography and music. Despite the fact that manufactures of portable devices that delivered ‘alee creation for creative and art contents tried so hard to cramp more functionalities to improve productivity relating to creating, editing and sharing these content, they got to a point of producing products that became complicated and difficult to use. Figure 2: Business Model – Video Recorders User User Record Video
Record Video, Personalize, Share MIDGET – camcorder Oldie Recorder Ere first innovation came from Apple solving this complex model by transferring some of the value creation of the portable devices (e. G video recorder) to the personal computer which was better at handling this functionalities due to its capabilities, for example the PC had a larger screen size. Incremental innovation was also carried out on the personal computer to carry out these functionalities faster. Example is the development of the DVD burn drive that allowed for easy creation and sharing of contents.