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Apple's aura may be thinning

The launch of the Apple iPhone 3G is a perfect segue way into the next stage of my design differentiation discussion: the source of innovation -- and why Apple seems to have a lock on it. Or maybe not.

Patrick Mannion
Patrick Mannion
Editor in Chief, TechOnline

Let's face it, some have it, some don't. Companies have been churning out handsets by the boatload with 1000 different SKUs and hundreds of features. Some have been successful with a few hits and hundreds of so-so's. RIM hit the jackpot with the BlackBerry. Nice email reader, but a terrible handset. It's just too clunky. I've dropped it - hard - at least 10 times and it has the scars to prove it.

So, Apple comes along last year with the iPhone and with the first pitch it just hits it out of the park. No base runs, no foul balls. Just go straight to home base. Same for iPhone 3G, but this time it's global. My cohort at TechOnline, Steve Bitton, questioned the source of the Apple buzz on his blog and got some interesting feedback. Check it out.

But the big question still remains very much unanswered: How can Apple succeed in one shot where so many others have failed or are struggling? What's its secret sauce -- and how long can it last?

I have no idea. Wish I did know. But the beauty of my job is that I don't have to know. What I do know, or at least have access to, are a lot of really smart people who may have an inkling. One of these people is Andrew Hargadon, the director of the Center for Entrepreneurship and the Energy Efficiency Center at the University of California, Davis.

He also authored the book "How Breakthroughs Happen: The Surprising Truth About How Companies Innovate."

Hargadon will be sharing his insights on innovation (and how it can meet the Earth's energy challenges) at the closing keynote address for NIWeek 2008 next month (August 5-7) in Austin, so he agreed to chat with me in advance to discuss this Apple phenomenon.

I figured if anyone could explain it, he could. Heck, he wrote the book on it. It turns out, he was also employed with Apple in the nineties. How fortuitous is that?

Now comes the bummer: I'm posting this as a podcast (is that a groan I heard?) Why? It also turns out that he's a very good speaker and makes his points clear and succinctly. It's actually a pleasure to listen to, once you get over my 'blurty' questions. Check it out here

It lasts for about 15 minutes, so be patient, it'll take a few minutes to get started. In that 15 minutes or so he answers quite well the questions:

What makes Apple so great (and no, it's not just 'cool' devices--think 'network')?
Who else may have the innovation gene?
What makes some products more successful than others?
Why do we never see Apple's engineering team in public, except for that one photo years ago?
What needs to be in place to spur innovation?
Will Apple beat RIM?
Will Apple be a victim not of its success, but of its ambitions (specifically, the Apps store)?

If you’re an engineering manager, product manager or a CEO, you'll want to hear this to see how to structure your ecosystem and teams to release their innate drive to innovate.
If you're an investor, you'll see why it may be a good time to short Apple's stock.
If you're RIM, be afraid, and if you're National Instruments you'll be happy to hear that thanks to LabView you're high on the 'innovators' list. Enjoy!



Posted by Patrick Mannion on Jul 16, 2008 06:42 PM in DesignScape


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