Running head: WEEK 4 GROUP RESEARCH PAPER

Research Paper for Group Project

February 5, 2013

WEEK 1 CREATIVITY PAPER Introduction My role in the group PowerPoint project is to research and provide information on how and why Microsofts and Apples management of creativity and/or innovation adds value. While the purpose of innovation is to create business value, the value itself can take many

different forms, including incremental improvements to existing products, breakthroughs such as new products and services, cost reductions, efficiency improvements, new business models and new ventures. The process used innovate is to discover, create and develop ideas, to refine them into useful forms and to use them to earn profits, increase efficiency and/or reduce costs."Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it" (Kirkpatrick, 2013). Exertion of Strong Leadership on the Innovation Strategy The executive management team must lead innovation management and trust its people to make it successful. Strong leadership from top management is essential to achieving success in innovation (Fudge, 2012). The leadership at Microsoft and Apple have developed a culture of innovation, where others throughout the organization apply innovative thinking to solve problems and develop new products and services. This type of culture has made the innovation process more effective and value added. Steve Jobs was instrumental in the leadership of innovation at Apple. Bill Gates is dedicated to innovation management at Microsoft. Choosing the Right Innovative Strategy to Add Value How are Microsoft and Apple going to play the innovation game? One of the 1st rules of innovation is that an organization must clearly decide how it is to going to play the innovation game. The management team must manage the innovation to be effective and value added. The management teams have to craft their own innovation strategy, adapt to changing conditions, and choose the right time to make key moves. This will ensure that the innovation is effective and

WEEK 1 CREATIVITY PAPER value added. Both Microsoft and Apple maintain innovative ideas in-line with their companys vision and business strategies. Both companys management teams must keep the innovation ideas within their core competencies for the innovation to be value added. Innovation Management as Value

The goal of innovation and creativity is to produce significant competitive advantages so that competitors will not be able to easily or quickly match (Jassim, 2000). The ability to increase business value through innovation is a critical success driver for most organizations. The markets that Microsoft and Apple operate in provide both opportunity and risk from an innovation perspective as they are rapidly changing. Microsoft and Apple were not the first companies with smartphones, tablets or other advanced technologies. They were just the first to package a set of compelling technologies, wrap them up with great marketing strategies, and get us to line up to buy them. How the Companies Added Value with Innovation Redefined the basis for competition For years, Microsoft and Apple have differentiated themselves through design and ease-of-use. Their competitors, on the other hand, have seemed determined to create products that are as non-innovative as possible. Fused hardware and software While most of their competitors have specialized in either hardware or software, Microsoft and Apple have pursued excellence in both. By tightly integrating hardware and software design, the companies have been able to optimize system performance to the benefit of their customers. Mastered a broad array of complementary technologies Microsoft and Apple exhibit a broader array of technological competencies than any of its competitors. Extended their company's core competencies into new markets Both Microsoft and Apple's competencies arent centered on a particular product or market, but on an array of competences. (Hamel, 2011).

WEEK 1 CREATIVITY PAPER Conclusion Innovation is generally understood as the introduction of a new thing or method. Innovation is the embodiment, combination or synthesis of knowledge in original, relevant, valued new products, processes or services (Luecke & Katz, 2003). Managing innovation is a

challenge for all organizations. But among the worlds biggest and/or best companies, we know that Microsoft and Apple do this extraordinarily well.

WEEK 1 CREATIVITY PAPER References Hamel, G. (2011, October 7). What makes Apple Apple. Management Innovative Exchange. Retrieved February 5, 2013, from http://www.managementexchange.com/blog/whatmakes-apple-apple Jassim, R. (2000). Competitive advantage through the employees. My World Guide. Retrieved February 5, 2013, from http://www.my-world-

guide.com/upload/File/Reports/e/egipt/Competitive%20Advantage%20Through%20the% 20Employees.pdf Fudge, C. (2012, April 12). 10 tips for successful innovation teams. MBI Executive: Innovation Management. Retrieved February 5, 2013, from http://www.innovationmanagement.se/2012/04/12/10-tips-for-successful-innovationteams/ Kirkpatrick, D. (1998, November 9). The second coming of Apple through a magical fusion of man--Steve Jobs--and company, Apple is becoming itself again: the little anticompany that could. Fortune Magazine. Retrieved February 5, 2013, from http://money.cnn.com/magazines/fortune/fortune_archive/1998/11/09/250834/index.htm Luecke, R. and Katz, R. (2003). Managing creativity and innovation. Boston, MA: Harvard Business School Press. Retrieved February 5, 2013, from http://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_innovation_manage ment_jul07.pdf.pdf