Innovation as I mentioned before, can be applied to various aspects of the company and in various ways.
1. Evolutiontionary Innovation is divided into two broad categories:
a) Continuous evolutionary innovation, these are alterations in the product characteristics instead of a new product and do not require any user learning. (Http://www.businessdictionary.com/definition/innovation.html).
An example would be the Iphone. From the Iphone released in 2007 to the Iphone 4s released just last year (2011). They are fundamentally the same product, however by using continuous evolutionary innovation, Apple have altered the product cosmetically and increased function ability, rather than developing a new product every year. As a result customers ritually upgrade their old Iphone every year to the new Iphone.
An example would be the Iphone. From the Iphone released in 2007 to the Iphone 4s released just last year (2011). They are fundamentally the same product, however by using continuous evolutionary innovation, Apple have altered the product cosmetically and increased function ability, rather than developing a new product every year. As a result customers ritually upgrade their old Iphone every year to the new Iphone.
b) Dynamic continuous evolutionary innovations, these do require some user-learning but again isn’t revolutionary. (Http://www.businessdictionary.com/definition/innovation.html).
An example would be a laptop; a desktop you can take with you.
An example would be a laptop; a desktop you can take with you.
2. Revolutionary Innovations (or discontinuous innovations) require a good deal of user learning and often disrupt his or her routine; they may even require new behavioral patterns. (http://www.businessdictionary.com/definition/innovation.html)
An example of this would be the Internet. This generated new routines, behaviours and a whole new user-learning experience.
Apple uses both of these types of Innovation in adding value and desire for their products.
Continuous evolutionary innovation is in fact used with all their products; every year there is a new variation of the Mac, Mac book, Ipod and Iphone. This provides a competitive advantage because every year the new product alterations create curiosity for consumers. This has also generated a high amount of consumer loyalty.
I recently visited a friend who works for an Apple store in Sheffield who said:
“Every year we have a gentleman who comes in on the day of our new product release, he buys the new Mac, a new Ipod for his daughter for Christmas and the new Iphone for his wife. He’s even on first name terms with all the staff he comes in that often. But we do get a lot of regular customers, it’s amazing how loyal people are to the Apple brand.”
“Every year we have a gentleman who comes in on the day of our new product release, he buys the new Mac, a new Ipod for his daughter for Christmas and the new Iphone for his wife. He’s even on first name terms with all the staff he comes in that often. But we do get a lot of regular customers, it’s amazing how loyal people are to the Apple brand.”
This is a key benefit of Apple’s innovations – Consumer Loyalty.
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