Apple's digital lifestyle strategy and product ecosystem integration

Apple Case

Apple represents the business of the future - a business that provides solutions to problems a customer may not even know they possess. Apple has shown how to be first in the market with devices, content and communications and has changed life, as we know it with each product introduction. From the early days of the Macintosh computer to the present day Mac Book Pro, iPhone G4 and the iPad, Apple has differentiated itself from Microsoft and is now in the data access, generation, portability and sharing business rather than just software and hardware.This paper will update the case of Apple-Merging Technology, Business, and Entertainment" and examine the strategies used by Apple and their impact on information system managers.

Case Update

The iPod was launched in October, 2001, since that time Apple has launched multiple variations of the iPod including the most recent iPod 4th Generation, iPod Nano 6th Generation, iPod Shuffle 4th Generations, multiple upgrades to its' iTunes software and store, and in 2010 Apple released the iPhone G4 and the iPad. Each product improvements and new products has provided solutions for access and storage of digital content: music (downloads and copies from CDs), news (print and broadcast), movies (downloads and user generated), photography, books and magazines (audio and text versions) and user generated conversations. Additionally, all of Apple's products allow the user to have information portability, information creation, information search, information sharing and digital commerce. Incredibly, all this can fit into the pocket of a pair of jeans.

Create a solution rather than a device

By considering the device as only a means to the end, Apple thought about how the consumer would use digital data. How would the data be obtained? Answer: create an online store from which a person can choose, purchase and download a song, a book, a movie or a pod cast. How would the consumer manage their data? Answer: create software that can store, organize, categorize and search an individual's database. What information other than entertainment would an individual want to create, store, port and share? Answer: add capabilities for telephony, text, email, photography and commerce.

Build the best solution possible

From this strategic approach, Apple as an organization developed the ability to either build, buy or partner. Apple designed the iPod, outsourced the manufacturing and purchased a company that had already designed a prototype of the software. As the iPod lead to the iPhone, Apple partnered with AT&T to provide the cellular service needed to make the iPhone functional. As Apple enhanced both the iPod and the iPhone, Apple partnered with Amazon for printed books and with Audible.com to bring audio books to the devices. To make the devices more useful, they have partners with application developers to provide more ways for the user to create, organize and use content. The recent launch of the iPad, was to put these capabilities into a user-friendlier interface, which mimics the experience of holding a book or a magazine. This enhancement will provide publishers with a new method of delivering their products to the consumer.

Problems are really opportunities in disguise

At the end of the case, there is a discussion about a flaw with the Nike+ products; just by having the sensor in their shoe, a person's actions can be tracked by others. Since this "problem" was noticed, Apple and its app developers have created programs using GPS to track, map and share a running or bike route. MapMyRun.com and MapMyRide.com are widely accepted training tools for professional and amateur runners, cyclists and triathlon participants.

Get the product out there

In many cases, Apple releases their products with minor flaws and prices their products to attract first adopters. This strategy provides first mover advantage and provides for a beta-test with the most sophisticated users while covering costs and possibly making a profit. The original products are then followed up with fixes for the problems and enhancements for capabilities early adopters have express an interest in having. The most current example is the iPad, it's not perfect but it got Apple into the market and they are receiving valuable feedback from their consumers. It is rumored that the iPad 2 will have five additional features:

Video phone feature, presumably FaceTime

Thinner glass on the display panels, which could mean it's slightly lighter.

Retina display is coming.

A USB connection so you don't have to use Apple's proprietary standard.

3-axis gyroscope for improved gaming. This feature is in the iPhone already.

Source: http://www.businessinsider.com/iPad-2-getting-gyroscope-retina-display-usb-2010-11#ixzz16i09aVsh

Implications for Information Systems Managers

Given Apple's products and business strategies, information systems managers will need to be aware of two important implications. The first is to understand how their company can take advantage of digital information; how it will impact its products, service, billing and customer care. The second implication is the manager will need to update their systems and train their colleagues on digital information creation, manipulation, storage and sharing, so that they can revise business processes to take advantage of Apple's current and future solutions.