iPad – Lessons in Operations Strategy, Quality Management and New Product Introduction @ Apple
Even several months before the introduction of iPad by Apple CEO Steve Jobs on January 27th, 2010 the media was humming with the anticipation of this new revolutionary product. The 9.7 inches touch-screen mobile computing devise is supposed to let users play games, check emails, watch videos and read books on an attractive product with a vibrant color screen. This device can either take advantage of the existing wireless internet networks or access information via AT&T’s 3G networks around the United States. The iPad (some say a big brother of iPhone) is priced between $499 – $829. Additional specs about this product are outlined below in Figure 1 (source: Wall Street Journal: January 28, 2010).
Figure 1: Some features of iPad
The ultimate success of this product will be determined on a number of factors including pricing, product features, quality, competition, and apple’s ability to consistently enhance the future generation of products. Nevertheless regardless of its success or failure, iPad is destined to encourage the development of a series of products that will be introduced by companies in the upcoming months that have the potential to revolutionize the mobile computing and the telecommunications industry.
Apple’s introduction of iPad and other innovative products since its inception provide many lessons for effective operations strategy (Chapter 1) and quality management (Chapter 2) and new product development (chapter 3). An example of major products launches of Apple are summarized below in Figure 2 (source: Wall Street Journal: January 28, 2010).
Figure 2: Major Product Launches by Apple
Clearly some products such as Macintosh (1984), iMac (1998), iPod (2001) and iPhone (2007) have been highly successful; while some other products (e.g. Lisa (1983), Newton (1992), Apple TV (2007)) have been equally big failures. Furthermore, while several apple products were designed to appeal to new markets and consumers, many similarities can be seen across its product offerings. In addition, there is a common perception that apple products are generally more expensive than its competitors. They’re also supposed to be astatically more pleasing than other products the marketplace.
Finally, the launch of iPad and its uncertain market potential creates an interesting production planning problem for the company. For example, if Apple forecasts sales of 2 million units the first year, what happens if the actual sales are 1 million? or 4 million? How do they or should they build a responsive supply chain to facilitate the uncertain demand for a new product?
Discussion Questions
- Based on the information provided above, what can you infer about apple’s dominant competitive priority? Is it cost, quality, delivery, or flexibility, or some combination of the four? (Chapter 1).
- Which of the eight determinants on product quality does apple emphasize In its products? (Chapter 2)
- Explain how Apple can use the newsvendor analysis and related concepts to build a responsive supply chain for their new products such as iPad (Chapter 6).
- Explain which of the following new product development concepts are applicable to the development and launch of iPad? Explain, why? (Chapter 3)
- Time based competition
- Continuous or disruptive innovation
- Mass customization
- Modular design
- Concurrent engineering
- Product platforms
- Reverse engineering
Additional Information:
Watch iPad Launch Video: http://www.apple.com/ipad/#video
Wall Street Journal Articles about iPad: http://topics.wsj.com/subject/A/apple-ipad/5857
