Posts Tagged ‘strategy’

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How Apple Did It

September 27, 2008

When the iPhone was first announced, I remember exchanging many emails with industry colleagues -as many people did – speculating about the possibilities of Apple hitting the 10 million target that Steve Jobs set during the announcement.

Many emails were based on market research: how many people were buying phones at over $500 at the time, how big was the market for smartphones, etc. I was skeptical given the complexity of the software stack that powers a phone. Most of us had to eat our words.

How did Steve pull it off?

There are amny answers: articles and surely books are being written about it. I found a key piece today while reading a new book “Do you matter? how great design will make people love your company“. In this book, the authors explain how apple and other leading companies are design-driven and how most other companies are metrics-driven.

As a marketer and product marketer, many times I have had to justify my plans with market research: opportunity analysis, market sizing, CAGR (compound annual growth rate) numbers, etc. Most companies financial discipline require this type of financial justification based on hard data and require some kind of proof that an investment will yield results based on research, focus groups, etc.

Not at Apple. The key to design-driven companies is that they place significant value in customer experience. The company is aligned behind it. The problem with customer experience is that it is emotional, therefore not measurable. Steve Jobs has a knack for great design (in the broad sense of the word, meaning how to create products people love) and is able to pull it off because he runs the company and the board of director trusts his investments will pay off most of the time. Or at least he has a success ratio that allows the company to experiment.

If Steve had to justify the iPhone based on hard numbers, or if anyone at Motorola had envisioned the iPhone, they would have more than likely been shut down by senior managers because market research, hard data and market trends do not support the idea of a $600 first-generation smartphone selling 10 million units in the first 18 months.

Intersentingly enough, Motorola actually came up with the idea of the iPhone: they went to Apple and had to convince Jobs it was a good idea based on the fact you don’t leave your house without three things: car keys, cell phone and wallet. Everything esle is secondary. But I digress.

If this is a topic you are interested in, I highly recommend the book. It is written by Robert Brunner and Stweart Emery. I am half-way though but it is well worth it already.