Apple’s success seems like magic: The Business Innovation Funnel has 2nd side

Did Apple “any” innovations or just business innovations? In Bloomberg’s article Richard P. Rumelt offers another explanation:

“To many people, Apple’s success seems like magic. Others attribute it to cool products, good marketing, and Steve Jobs’s charisma or presentation skills. Critics credit the Apple co- founder’s ability to project a “reality distortion field.” In his new book “Good Strategy, Bad Strategy: The Difference and Why It Matters,” Richard P. Rumelt, a strategy professor at UCLA’s Anderson School of Management, offers another explanation: the ruthless execution of good strategy.”

“Traditional” Innovation Funnel

The traditional innovation funnel focusing on a new product, product line, service or similar objects. The product or service innovation funnel can be described simply as a funnel from idea to product and service.

The Business Innovation Funnel has 2nd side

The first funnel is from many ideas to a few “elements” of innovation. Basically, we select the key elements for innovation such as customer’s needs, product features, design, etc. In the end, we have something ready, but not yet properly in the market or we don’t have “the execution” ready for innovation. In the 2nd funnel of innovation, which is, based on my experience, the harder part of innovation. We have to consider strategic issues concerning e.g. marketing, sales, delivery, customer service and also leadership and management innovations.

The 2nd Funnel

We need to use tools, which are more linked to strategic management & leadership, for example:

  • Business model (“what”)
  • Strategy model (“how to implement”)
  • Strategic Project Management, PMO (“managing investments”)
  • Key Performance Indicators, KPI, scorecard (“managing activities”)
  • Incentive, reward and compensation plans

The Business Innovation Funnel has Two Sides

Also Paul Hobcraft wrote in his blog about There are two distinct parts to any Innovation Funnel. This is the real innovation, when we combine product, service and business innovations together.

What you think? Is Apple’s success more about 2nd funnel – business innovation funnel or the 1st one?

See more about business innovations from slideshare presentation