Critical analysis of Apple's technology and entertainment business 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.

Lessons Learned

Apple foresaw the beauty of digital data; no matter what the original format of the information, it could all be turned into a digital format and Apple created the devices, which allow business and consumers to access, use and share the digital information. As mentioned in the case, Apple has mastered four important business growth strategies: focus on a solution rather than a gadget, wisely choose between making, buying or partnering for technology innovations and capabilities that may already exist or are beyond the company's current skill set, turn problems into opportunities and get the product into the market as quickly as possible.

Apple, generally thought of as a consumer electronics manufacturer, is really a change agent, which creates a digital lifestyle. What is the difference? A consumer electronic manufacturer creates tangible products, which may or may not; provide access to a service or information, such as a satellite radio. A lifestyle creator thinks beyond the device. In Apple's case, they thought about how the device can change the lives of consumers, businesses and industries. Rather than just creating an updated Sony Walkman, Apple's designed a solution for obtaining, managing, storing, transporting and sharing all forms of data.

In order to meet the challenge of creating a lifestyle rather than a product, Apple needed to design a solution. The device, be it an iPod, iPhone, iPad or a Mac Book, was considered only a means to an end, with the end being a full spectrum of data usage. The following lessons can be learned from Apple's success:

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: