Shifting paradigms and Apple
June 18, 2008When I was attending classes for my MA degree, whenever someone wanted to come up with an example of for innovation, the usual suspect was the iPod. And I’m quite sure that this is an analogy that almost everyone use. I can clearly imagine a conversation between two managers from a call centre in India (or any other type of business):
Manager 1: We need to innovate
Manager 2: Yes, I agree, but how?
Manager 1: I don’t know. Think of iPod…
Clearly, the iPod, and the whole business model around iTunes, established a ‘dominant design’ in the MP3 player and music industry. From now on, it is very likely that most competitors will folow the standards established by the iPod, instead of trying to come up with new and different ideas.
And now when the iPod hype was almost settling down, Apple came up with a new, radical innovation that is creating a new paradigm: the iPhone.
Apple is changing it’s strategy to sell phones, where from now on, handsets will be subsidised by operators, bringing the it’s price down. Apple is also expanding it presence in the market, going from 6 to 70. Not only the iPhone will rapidly get a large chunk of the market share worldwide, but aslo set a new standard in terms of how people relate to and use mobile phones.
Next time you go to a meeting to discuss innovation, you’ll probably won’t use the iPod example anymore. You’ll use the iPhone instead! And this, my friends, is a true shift in paradigms. I’m not trying to be an Apple advocate, but I guess there are some good lessons to be learned.
According to an article published by The Economist, “Apple is now turning the iPhone into a hand held computer, and allowing other firms to write software to run on it. Other handset makers are doing the same, but the iPhone’s operating system and programming tools are better than theirs. There is no doubt that Mr Jobs is trying to lead a third revolution in consumer technology in his lifetime”.

Posted by Erick


