Out of the Box

20 11 2014

Apple’s packaging is brilliant and a lesson for packaging design. The boxes are about as small as they can get and all the parts are very thoughfully placed and pieced together in the box in the most efficent and space-saving way possible.

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Apple’s products and packaging is mass produced. The company sells millions of products but even though they are mass produced they don’t look like packaging just needed to protect a product on its way to customers. You feel like you’re holding a quality product, hand-made for you even when you open the box. If you take out an iPhone or an iPad the packaging then seems to be the perfect lid line of your purchase.

Unboxing …

Unboxing is the unpacking of new products, especially high tech consumer products. The product’s owner captures the process on video and later uploads it to the web. No wonder the phenomenon’s principal exponent, Andru Edwards – chief executive of the specialist, Seattle-based website unboxing.com – calls it geek porn.

Indeed, his website’s dedicated unboxing video channel, Unboxing Live!, boasts the tagline “Vicarious thrills from opening new gear.” (“It’s similar to an experience you’d have in a strip club,” Edwards said. “It’s stuff that you’re lusting over – you can’t have it, but you want it.”)

See an example of a fanboy who just got his brand new iPhone 5S Gold from an Apple Store in St. Louis. The video was published on September 20, 2013 and had about 2.5 million views until September 2014.

(3:33 min)

Some consider the popularity of this practice is due to the ability of showing the product exactly for what it is without any adulteration advertises usually make around the product. Being able to see what you are getting can contribute to the decisional process. So unboxing is a very special kind of advertisement done by many fanboys each time a new Apple product comes to life.

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Martin Lindstrom, author of Buyology, How Everything We Believe About Why We Buy Is Wrong, is an expert in neuro-marketing, “where science and marketing meet”. He claims the unboxing phenomenon is a result of so-called mirror neurons.
“Mirror neurons mean, in principle, that when I observe other people doing things, I feel that I am doing the same,” he explains. “When I scratch my head, and you watch me doing it, the same regions in your brain will be activated as would be if you were actually scratching your head.”

Buyology: Truth and Lies About Why We Buy (published October 2008)
is a bestselling book by Martin Lindstrom, in which he analyzes what makes people buy.

Apple’s packaging …

Apple’s classic packaging design makes it the unboxing market leader, but Lindstrom cautions against crediting the company with originating the trend. “Let’s not be fooled here – the concept of the portable player came from the Walkman, and the MP3 player was around for six years before the iPod arrived. The iPod wheel was invented by Bang and Olufsen in 1986, but it forgot to put a patent on it.

“Apple adapts a message very cleverly, about five minutes before it breaks through, and I have great respect for that. They’ve done it with packaging design, too, but in Japan you could have seen beautiful concept packaging design as long ago as the Seventies. It also appeared in the fashion and perfume industries long before Apple went into it.”

Apple and its rivals have made unboxing a mainstream pursuit, but they’ll have to be careful: if too many of us discover that we can just stay in and watch a video, will we still bother to buy the company’s beautiful gadgets?

The environment ….

Since 2008 Apple publishes environmental reports for all its products. Is there any competitor doing so? No, and sorry for the dig at Samsung.

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Smaller packaging means smarter packing.
Making thinner, lighter, and more material-efficient products not only reduces their carbon footprint and conserves resources, but also helps reduce greenhouse gas emissions produced during transportation. Apple ships more and more products per trip, and the savings is adding up. Along with designing the iPhone 5s box to be 41 percent smaller in volume than the first iPhone box, Apple also redesigned the iMac packaging. The slanted shape of the iMac box makes it easier to stack more on each shipping pallet. So more products can be shipped in one trip, resulting in fewer emissions.

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60 % more iPhone 5s boxes in each airline shipping container saves one 747 flight for every 416,667 units Apple ships.

Climate change …

Optimizing the packaging is one side of the coin. The product itself plays the more essential role in the fight against pollution of any kind.

There are still climate change deniers.
This is what Tim Cook told them at the annual shareholder meeting 2014 in Cupertino:

If you only want me to make things, make decisions that have a clear ROI, then you should get out of the stock.

Greenhouse gas emissions have an impact on the planet’s balance of land, ocean, and air temperature. Most of Apple’s corporate greenhouse gas emissions come from the production, transport, use, and recycling of its products.

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Apple seeks to minimize greenhouse gas emissions by setting stringent design-related goals for material and energy efficiency. The charts (source Apple) above provide the estimated greenhouse gas emissions for the iPhone 3G and the 5S over its life cycle. Apple put the focus on reducing emissions during customer use which usually is a quite long time of 3 years according to Apple.

Summary …

No one spends more time with an Apple product than an Apple customer. By minimizing or outright eliminating many harmful toxins, Apple ensures that each product is safe to use, year after year. Power cords are PVC- and phthalate-free, touch screens are arsenic-free, cases and enclosures are BFR-free. No other company does more to keep its products free of so many toxins like Apple and the company does it already since decades.

So it’s not only better for the people who use the products but also better for the people who make them and better for the environment.

Related links …

Publications on Apple’s website …

Apple’s Environmental Responsibility

Articles on iNotes4You’s blog …

The Hidden Price

Apple’s Supplier Responsibility

About the iPhone

About the iPad

Thanks for visiting iNotes4You.





About the iPad

8 10 2014

People once marveled at the interactive tablets carried around by characters in Gene Roddenberry’s Star Trek, or the touch screens in Spielberg’s Minority Report – dream futures that have become reality.
In 1983 Apple co-founder Steve Jobs stated that his ultimate ambition was

“to put an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes…”.

That vision would take him 27 years to realize. With the launch of the iPad in 2010 Apple’s engineers again demonstrated their formidable skills.

A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology.

Within a few years the early idea of Steve Jobs hit the computer industry to the core and the list of MUST-HAVE-Devices was complemented by a tablet and analysts started talking about the Post-PC-Era.

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With the release of the iPad, mobile devices reached a new quality because of it’s screen size and the possibility to operate them just with the fingers, without any peripherals. They initiated a shift in paradigm of teaching and learning as well and from that time ‘people could hold the internet in their hands‘.

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Historically the term first originated when Apple‘s founder Steve Jobs discussed the future of personal computing during an interview alongside Bill Gates at the fifth All Things Digital conference in 2007. At that time he described

“a category of devices that aren’t as general purpose, that are really more focused on specific functions, whether they’re phones or iPods or Zunes or what have you. And I think that category of devices is going to continue to be very innovative and we’re going to see lots of them,”

Jobs said.

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Apple’s been kicking around the idea of a tablet since at least 1983. From real, physical prototypes to out-there ideas such as the Knowledge Navigator – the company has, somewhat unsurprisingly, seen fit to investigate the possibility for almost as long as it’s been around. For one reason or another, though, they’ve never actually produced a device which saw the light of retail day (besides the Newton). Perhaps that’s part of the fascination that Apple fans have with the product a it’s been rumored so long, and seemed on the verge of actual arrival so many times that it’s become a Holy Grail of sorts for the tech community.

Optimizing the workflow …

On the go, in the air, simply everywhere an iPad may help to optimize workflows in all areas of our lives. Apple published tons of information about the application of it’s jack-of-all-trades. You can find some interesting documents when you open the iBooks app and search for ‘ipad at work’.

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In 2011 the Federal Aviation Administration approved the iPad for in-cockpit use and many airlines, starting with Alaska Airlines, began to optimize their pilots workflow.

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At United for example, the iPad became standard equipment on the flight deck, providing pilots with one-touch access to charts, maps, and other crucial navigation tools.

In a business where extra weight translates directly into extra costs, choosing iPad means fewer pounds on every route United flies—not to mention less baggage for United pilots to lug through the airport.

“A pilot’s flight bag weighs about 45 pounds,” says Captain David Sambrano, who has flown United planes for 22 years. “With iPad, we get rid of that big 45-pound bag. Being able to take all those books and charts and bring it down to about a pound and a half is incredible.”

Eliminating all that paper translates into serious savings, says Captain Joe Burns, Managing Director of Technology and Flight Test, another 20-year United veteran. “With iPad we’re able to save 16 million sheets of paper a year. Just removing the weight of that paper works out to 326,000 gallons of fuel saved per year.”

But replacing traditional flight charts with electronic documents on iPad does more than merely lighten the load. It also helps United pilots pinpoint essential flight information the moment they need it.

“In the past we’d have to pull a binder out, find the airport and the approach code, pull the paper out, clip it onto a chart holder somewhere, then enter that data into the flight control computer on the aircraft,” Burns recalls. “We view iPad as a big safety and time saver.”

“The iPad display allows us to see the chart very clearly,” Sambrano adds, “and it’s readable in different types of lighting, which is extremely important. And you can get to that particular chart or that particular piece of information so quickly.”
(Source Apple)

iPad in education …

The iPad can be a transformative tool in education as it can house all resources (books, readings, video, audio), connects to the internet for doing research, provides a vehicle for maintaining communication, replaces ‘dead tree’ paper versions of resources and does it all in an easy to carry around, quick starting, and simple interface.

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Using an iPad in classrooms is a paradigm shift from didactic models of ‘Teaching’ to constructivist models of ‘Learning’. Technology has always been good that and that’s one reason schools began investing in computers in the 70s and 80s. But the iPad brought that engagement to a very personal level.

It’s because a touchscreen is much nearer to human activities than any other device or textbook could be.

What we do is mostly what we do with our hands. It’s our first approach to new things.

Creating artworks, modeling new devices or writing down all the ideas leading to the E=m c c equation on a sheet of paper while walking through the room and reflecting our thoughts is almost always done by hand.

Apple-IBM …

In July 2014 Apple published a press info about

Apple and IBM Forge Global Partnership to Transform Enterprise Mobility

What does this mean?

IT departments and tech purchasers will now enjoy

  • the reliability of IBM’s enterprise solutions on Apple’s platform
  • powerful mobile device management
  • tailored services and support
  • the most secure mobile operating system
  • easy to use devices with lots of new tailored business applications
  • an incredible lifetime cycle because of high build-quality and less fragmentation of the OS

Apple’s devices were already in use in many enterprises but now the footprint is institutionalized.

Some tidbits …

Call it innovation, evolution, improvement or whatever you like, the first iPad is quite different from the actual model, the iPad Air, if you take a look at the details.

1st Gen iPad Air
Power 25 Wh 32 Wh
Memory 256 MB 1000 MB
Display 132 ppi 264 ppi
Weight 730 g 478 g
Storage 16,32,64 16,32,64,128

The most impressive developments of Apple’s engineers are the Retina display and the 64-Bit-Processor which opens the door to high-performance software applications.

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Build-quality, performance, and the operating system show us what Steve Jobs had in mind when saying “to put an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes.”

Summary …

A shining example for disruptive technology developed by a company with a strong focus on high-quality products serving people and enriching their lives.

Related links …

iPad @ Universities

iPad @ School

iPad in education

iPad in cockpits

Thanks for dropping by.





Kernel Updates

22 09 2014

Thanks to Peter, welcome Angela, Lisa, and Luca.

Apple regularly releases updates of the operating systems iOS and OSX.
With a much lower frequency the executive board and the product line-up of the company is updated.

Confirmed …

Luca Maestri will replace long-time Apple CFO (Chief Financial Officer) Peter Oppenheimer.

According to his profile, Maestri will report directly to CEO Tim Cook on issues related to “accounting, business support, financial planning and analysis, treasury, mergers and acquisitions, investor relations, internal audit and tax functions.” As Apple notes, Maestri will continue to serve as the company’s principal accounting officer alongside his new duties as CFO.

About Luca
Luca has over 25 years of experience building and leading finance teams in global companies with significant operating scale and complexity. Prior to joining Apple, Luca was CFO at Xerox and previously at Nokia Siemens Networks. He began his career with General Motors and spent 20 years in finance and operating roles in the Americas, Asia Pacific and Europe. While at GM, Luca was part of the team that established GM’s regional Asia Pacific operations, including manufacturing investments in China and Thailand. He later became CFO for all of GM’s operations in Europe, which spanned over 45 countries with annual net revenue of approximately $40 billion.

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The board now has 10 members, one more than before and the responsibility for retail and online stores now goes to Apple’s Angela Ahrendts.

Angela joined Apple from Burberry, where she served as CEO and led the company through a period of outstanding global growth. Prior to Burberry, she was executive vice president at Liz Claiborne Inc., and earlier in her career she served as president of Donna Karan International.

So here is the actual status visualized in a mind map.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts for iOS (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

The Beatles …

Two colorful figures, Dr. Dre and Jimmy Iovine, came into the discussion after Apple acquired Beats Music + Beats Electronics.

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Although the two companies may have very different cultures, the partnership is not so strange as it might first appear.

James Iovine (born March 11, 1953) is an American entrepreneur, record producer, and film producer. He is best known as the co-founder of Interscope Records and chairman of Interscope Geffen A&M. In 2006, Iovine teamed with Dr. Dre to found Beats Electronics, a company which produces audio products and operates a music streaming service. The company was purchased by Apple for $3.2 billion in May of 2014.

Andre Romelle Young (born February 18, 1965), known by his stage name Dr. Dre, is an American record producer, rapper and entrepreneur. He is the founder and current CEO of Aftermath Entertainment and Beats Electronics. Dre was previously the co-owner of, and an artist on, Death Row Records. He has produced albums for and overseen the careers of many rappers, including Snoop Dogg, Eminem, Xzibit, 50 Cent, The Game, and Kendrick Lamar. He is credited as a key figure in the popularization of West Coast G-funk, a style of rap music characterized as synthesizer-based with slow, heavy beats. In 2014, Dr. Dre was ranked as the second richest figure in the American hip hop scene by Forbes with a net worth of $550 million.

This is what Apple published on its website:

CUPERTINO, California—May 28, 2014
Apple today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.

Apple is planning to give Iovine the keys to its iTunes music empire, according to one source. He would head up all music-related strategy at the company, and be tasked with handling relationships with record labels and music producers. Those are responsibilities that have until now largely fallen to SVP Eddy Cue and his team.

Eduardo H. “Eddy” Cue is Apple’s senior vice president of Internet Software and Services and reports to CEO Tim Cook. He played a role in setting up the Apple online store in 1998, the iTunes Music Store in 2003 and the App Store in 2008. In November 2012, he took charge of map software and Siri. Cue joined Ferrari’s Board of Directors in November 2012.

Eddy is the iFixit part of Apple’s executive board, Apple’s do everything, fix any problem man. According to WSJ, he’s the guy who’s in charge of fixing Apple Maps and Siri.

Apple is under pressure to remedy mapping software widely faulted for unreliable landmark searches, routes that get users lost and a lack of public-transit directions. Building confidence in the tools is crucial as Google prepares its own downloadable mapping application for the iPhone and iPad, threatening to lure users and ad dollars away from Apple.

But paid music downloads are falling, with more and more consumers choosing subscription services like Spotify over the per-track model that Apple revolutionized the music business with so many years ago. Apple may be hoping that Iovine can shake things up and rejuvenate its music business.

It needs a sophisticated concept to get back on the track in the music business. So we have to wait what the considerations of the company will be.

My wish …

Apple’s green initiatives, including the company’s huge solar panel installation at one of its data centers in Maiden, show us, that there are ways to support a growing number of connected devices while at the same time shrinking the company’s carbon footprint.

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Lisa P. Jackson is Apple’s Vice President of Environmental Initiatives and explains it with using clean energy like solar power, biogas generators, and geothermal energy.

“We feel the responsibility to consider everything we do in order to reduce our impact on the environment. This means using greener materials and constantly inventing new ways to conserve precious resources. [...]
We think this is an opportunity for us and for our sector to leave it (the world) better than we find it, to actually help people convert to cleaner energy without even knowing they’re doing it,”

Jackson said, echoing statements made earlier by Apple CEO Tim Cook.

Greenpeace, which has previously been critical of Apple for sourcing energy from fossil fuels, recently praised the company for improving the energy mix powering its data centers, ranking it above other technology giants such as Amazon.

Most wanted …

It’s a fact that all the decisions regarding the board are less important if the product line-up charms the audience and is seen as innovative, revolutionary, or simply beautiful.

Reviewing the last decade we saw innovative and disruptive technology in 2007 (lauch of the internet in your pocket) and 2010 (launch of an incredible great computer in a book). From 1983, when Steve Jobs first mentioned the tablet, it took him 27 years to realize.

Publishing media all over the world are talking about a watch, a band, or whatever the company will call it. Hiring Angela Ahrendts was seen as an indicator for Apple’s move into a fast growing market of wearables in which clockworks are replaced by processors.

As always, publishing media all over the world are talking about products which are likely to be unveiled on the next event. Whatever it will be, a warm welcome in advance from all ecosystem dwellers.
Commissioners for Migration, Refugees and Integration, aka software developers, will take care of you and cure all childhood illnesses.

At the WWDC (World Wide Developer Conference) 2014 Apple announced iOS 8 and set some milestones for the future usage of their electronic devices. For further information see my post ‘iOS 8 Beta’ under ‘Related links’.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts for iOS (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

It doesn’t take a long time until we know whether iOS 8 either can be seen as a disruptive concept for mobiles or just an evolution of its predecessors.

Summary …

As the CEO it’s Tim Cook’s task to build a powerful team leading the company in a fiercely competitive mobile market, the market in which Apple makes 75% of its revenues.

Related links …

The Hidden Price

About Statistics

iOS 8 Beta

Thanks for flying with iNotes4You.





Apple and Porsche

16 09 2014

Apple’s engineer Mark Zimmer about the iPhone:

Yes, this is one of the biggest vehicles for change because it raised the bar on handheld social media, on internet in your pocket, and on the spread of digital photography. The ability to make a difference was propagated with the iPhone and the devices that copied it. Did Steve Jobs know he was starting this kind of change? He knew it was transformative. And he built ecosystems like iTunes, the App store, and the iBookstore to make it all work. Without the App Store, we’d all still be in the dark ages of social media. The mobile revolution is here to stay.
Holding the first iPhone was like holding a bit of the future in your hands. It was that far ahead of the pack. Its amazing glass keyboard was met with skepticism from analysts at first, but the public was quick to decide it was just fine for them. A phone that was just a huge glass screen was more than an innovation. It was a revolution.
[…]
Each new iPhone iteration brings remarkable value. Better telephony (3G quickly became 4G and that quickly became LTE), better sensors (accelerometer, GPS, magnetometer, gyrometer, etc.), and better camera, lenses, flashes, and BSI sensors. Bluetooth connectivity makes it work in our cars. Siri makes it work by voice command. Each new feature is so well-integrated that it just feels like it’s been there all along. Now that I have used my iPhone 5S for awhile, I feel like the fingerprint sensor is part of what an iPhone means, now.
This all-in-one device has led to unprecedented spread of pictures. It and its (ahem, copycat) devices supporting Google‘s Android and more recently Microsoft‘s Windows Phone 8 have enabled social media to become ever more present, and influential, in our world.

Basically this is also valid for a well-known sports car, the Porsche 911, designed by F.A. Porsche and first sold in 1964.

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Both companies offer high-priced products with an outstanding build-quality, a timeless design, and an extraordinary user experience. Each product iteration can be seen as an innovative step to perfectness.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts for iOS (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

The two entrepreneurs as well as the two top designers share similar values, the design philosophies follow the same convictions, and both businesses are built around a few products which are the focus of innovation, the carrier of technology, and the basis for financial success.

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Upholding values like

  • Quality
  • Design
  • Durability
  • Continuity
  • Innovation
  • Brand Loyalty
  • Customer Satisfaction
  • Customer Relationships

for decades give rise to a cult, a myth.

Mathias Müller, CEO of the Porsche AG, in the Annual Report 2013 …

It has been just about three years since my colleagues on the Executive Board of Management and I developed guide- lines for Porsche management’s business activities. Since then, I have always been clear about the most important point of this “Strategy 2018”: Our mission is to impress our customers with a unique purchase and ownership experience. This includes offering them outstanding products that fully satisfy their requirements for an exclusive sports car.

Tim Cook, CEO of Apple Inc, in the SEC filing 2013 …

The Company is committed to bringing the best user experience to its customers through its innovative hardware, software and services. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The Company believes continual investment in research and development, marketing and advertising is critical to the development and sale of innovative products and technologies. As part of its strategy, the Company continues to expand its platform for the discovery and delivery of third-party digital content and applications through the iTunes Store. [...]
The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Company’s products and services greatly enhances its ability to attract and retain customers. Therefore, the Company’s strategy also includes enhancing and expanding its own retail and online stores and its third-party distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience.

Both companies not only offer products but also services. The overwhelming revenue is made with their kernel products, the iPhone/iPad and the 911/Cayenne.

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Here are the product line-ups (without all the available variants) of both companies with their main products, founders, actual CEOs, and designers who were/are responsible for the companies’ top sellers.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts for iOS (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

Customer relationships …

Apple Stores with the Genius Bars represent the company’s philosophy of customer relationships. A distinct fanboyism is typical for both brands.

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It was Steve Jobs’ saying ‘To purchase is to build relationships’ and here is what Porsche does to keep the brand loyalty.

Today’s customers have high expectations. They expect any company they interact with to give them the a great experience. In order to succeed, organizations need to make sure that they are delivering the best customer care possible, making the experience memorable for customers and enticing them to go back to do business with that firm and recommend it to others. Forward-thinking business leaders are cognizant that the experience they deliver to both customers and prospects will make a difference between a closed sale or a disappointed customer who will never do business with that company again.
The Porsche AG, winner of the Sales Force Effectiveness category in the Gartner & 1to1 Media CRM Excellence Awards 2013 in the EMEA and Asia Pacific region, is a firm believer in the importance of delivering the best customer experience throughout the entire customer journey, starting from the first moment of interaction with the brand. In line with its corporate objective of value-creating growth, the German company wanted to refine its sales process, allowing the brand to interact with customers with relevant and personalized communications over various touchpoints at different points in their purchasing journey.
In order to achieve this objective, in 2010 the company embarked on an ambitious project to optimize the utilization of every sales opportunity and at the same time promote customer care through an improved service quality. This included pairing each customer with a sales contact person who can help and guide the customer throughout the vehicle acquisition process.

Another objective was to reduce the number of unattended sales opportunities, but leverage each customer contact as a way to build a relationship with the client. Porsche developed a global CRM system (rolled out globally in 2011) to bring together customer contacts and information from different channels, allowing the company to carry out the necessary follow-up activities and create personalized interactions tailored to the individual customer’s exact needs.

In 2012, the first full year that the initiative was in operation, the company saw a two-point increase in its purchase satisfaction index while CRM-based sales follow-up activities went up by 70 percent.
Porsche’s results clearly show that customers value organizations that deliver best-in-class service. In a competitive environment, only these organizations will remain successful and be able to beat the competition.

It should be mentioned that neither Google, nor Samsung or any other of Apple’s competitors are engaged in customer relationships on a personal basis. Replace the brand names Google, Samsung, Microsoft, etc by Anonymous Inc. and you get a true definition of your relationship after buying a product. ‘Brand-conscious’ means preferring the low-price product line-ups.

Differences …

Well, it’s hard to imagine the Porsche CEO presenting a new model with jeans and a turtleneck pullover. And there are some quite obvious explanations.

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We talk about

  • products of $1.000 and $100.000,
  • easy life in sunny California and stiff politeness in rainy Germany,
  • completely different product line-ups calling for different kinds of presentations

Cooperation …

There is an app for that and it’s obviously running on iOS devices.

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Porsche Car Connect
Remote display and control your new Panamera
Starting from model year 2014, Porsche Car Connecl now brings you the ability to remotely access your new Panamera from your iPhone. This requires that your Panamera is equipped with a Porsche Car Connect unit. Depending on your country, your model and the options installed, you will be able e.g. to remotely locate the position of your Panamera, fold exterior mirrors, set timers for charging, read the tire pressure or set a geo and speed fence.
Porsche Car Connect is available for the new Panamera (model year 2014) and requires a Porsche Car Connect unit in your vehicle. The functionality of this app varies depending on your country of residence as well as on the options available in your vehicle.

Environmental initiatives …

Apple as well as Porsche are leading companies regarding environmental initiatives and show us that innovation is not limited to products but also to the process of production and recycling.

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I cannot forget Tim Cook’s call for climate change deniers at the annual shareholders’ meeting in 2014:

If you only want me to make things, make decisions that have a clear ROI, then you should get out of the stock.

At the time the main difference between the two companies is about production.

Porsche cars are engineered and manufactured in Germany whereas the overwhelming part of Apple products are produced in China. Controlling the environmental and labor conditions in foreign countries, particularly in China and developing countries, is a pretty hard task and some principles must be sacrificed.

Let’s see whether Apple’s strategy to bring the production back home and Porsche’s considerations to build cars in China will change the future situation.

Summary …

Creating and leading a brand needs more than just to be a business man.
Important character traits, the right co-workers, a dash of genius, passion, and luck may initiate the development of a business DNA followed by the birth of a brand.

Outstanding personalities, thinkers, team workers, visionaries can create something out of nothing and put a dent in the universe.

Related links …

Designed by Apple in California

Going Apple

Porsche Car Connect for iOS…

Porsche Car Connect

About the environmental initiatives …

The Hidden Price

Porsche: Ecological Responsibility

Apple: Environmental Responsibility

Facts about Apple and Porsche …

Porsche Annual Report 2013

Apple SEC Filing 2013

Thanks for surfing by.





Tim Cook

24 08 2014

“The only thing that Steve cared about was creating great products. The company, the employees were only there to facilitate that goal,” said a former Apple employee. “Tim is much more worried about everything at the company.”

Four years after the iPad – the most recent of Jobs’s great trilogy of mobile products that began with the iPod in 2001, followed by the iPhone in 2007 and the iPad in 2010 – Apple’s product lineup has changed little. But meanwhile, the competition is much more challenging. Time goes by and the growth in smartphone sales is slowing, the iPhone is losing market share to competitors running Google’s Android operating system, and a new product category was initiated by Nike (btw, Tim wears a Nike fuelband), Google and others, the wearables. The iPad remains the dominant brand of tablet computers, but the overall surge in tablet sales is a waning moon in the Milky Way of mobile technology.

The arrival …

After graduating from Auburn University, Cook spent 12 years in IBM’s personal computer business, ultimately serving as the director of North American Fulfillment. Later, he served as chief operating officer (COO) of the computer reseller division of Intelligent Electronics and was Vice President (VP) for Corporate Materials at Compaq for six months.

Cook was asked by Steve Jobs to join Apple in 1998. In a commencement speech at his alma mater Auburn University, Cook said he decided to join Apple after meeting Jobs for the first time:

Any purely rational consideration of cost and benefits lined up in Compaq’s favor, and the people who knew me best advised me to stay at Compaq…
On that day in early 1998 I listened to my intuition, not the left side of my brain or for that matter even the people who knew me best… no more than five minutes into my initial interview with Steve, I wanted to throw caution and logic to the wind and join Apple. My intuition already knew that joining Apple was a once in a lifetime opportunity to work for the creative genius, and to be on the executive team that could resurrect a great American company.

His first assignment was Senior Vice President (SVP) for worldwide operations. Cook closed factories and warehouses, replacing them with contract manufacturers, causing the company’s inventory to fall from months to days, following the ‘Just in time’ philosophy.

This was the key to Apple’s recovery.

Predicting demand and delivering product on time is crucial in the technology industry where new products could cannibalize existing offerings, yet Apple “routinely pulls off the miraculous: unveiling revolutionary products that have been kept completely secret until they magically appear on stage and in stores all over the world.”

Cook was credited with keeping costs under control, and combined with the company’s design and marketing savvy that allows them to charge premiums generating huge profits.

In January 2011, Apple’s Board of Directors approved a third medical leave of absence requested by Jobs. During that time, Cook was responsible for most of Apple’s day-to-day operations while Jobs still made the major decisions.

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After Jobs resigned as CEO and became chairman of the board, Cook was named CEO of Apple on August 24, 2011. On October 5, 2011 Steve Jobs died, one day after Apple’s Keynote on October 4. On that keynote iOS 5, iPhone 4S, Siri, and iCloud were announced.

Apple’s DNA …

People on stage are always seen as the one who impersonate Apple’s DNA, Steve Jobs, Sir Jonathan Ive, Craig Federighi, and others. But since 1998 another top influencer and friend of Steve built his career as a behind-the-scenes expert of operations. Subtle changes were stringently required and Tim now is pushing Apple to be more collaborative as it faces new challenges, particularly from Google and its Android mobile operating system. At the same time, he appears to be broadening the company’s legendary laser-like focus.

In a fascinating interview with Calcalist radio, the largest economic newspaper in Israel, Horace Dediu gives us a scintillating insight into how Apple works. Horace Dediu is a well-respected analyst who knows a thing or two about Apple.

“I studied their DNA,” Dediu explains. “But Apple cannot possibly be perceived as normal or average, but is analyzed as such. This is a company that breaks all categories, as based on the growth front and on the value or dynamic versus static. It just works differently. ”

Dediu posits that Apple uses the same strategy as an army. ”You have to look at Apple as adopted by the pattern of military activity,” said Dediu. ”The army has no obligation to produce profits, but it has a deep commitment to achieving goals. Everyone focused and training for a specific task, and then another mission.”

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Apple is no longer the underdog that Jobs rescued from the brink of bankruptcy. The company is the most valuable brand in the world, and the most profitable in the technology industry. Its profit for the fiscal year ended September 28 2013 was triple Google’s 2013 earnings and $9 billion more than its nearest competitor, Samsung Electronics. Disruptive technology initiated by a genius is just one side of a coin, the other side is an optimized worldwide operating infrastructure. So the credit belongs to both, the visionary and the businessman.

Tim Cook plays an essential role when looking at the company’s DNA. Here are his essential beliefs fully consistent with those of Steve Jobs and with an overall impact on the development of products and their advertisment.

Let Tim Cook talk …

Innovation
Some people see innovation as change, but we have never really seen it like that. It’s making things better. iOS 7 is a great example of that. It’s significantly better than 6 or any of those that came before it, and obviously significantly better than the other OS out there.

Mobile market
For smartphones, I think it’s even more a two-operating-system world today than it was before. Maybe that changes. Maybe it doesn’t, but that is the state of things today. I think that Android is more fragmented than ever and, as a result, when you look at things like customer satisfaction and usage, you see the gap between Android and iOS being huge.

There is a huge difference between market share of units and usage share. And it shouldn’t surprise anybody that it’s like that. Anybody that’s used both should not be surprised that that is the natural result. And that’s really important to us because we have never been about selling the most. We’re about selling the best and having the best experience and having the happiest customers.

Android’s market share
I don’t think of Android as one thing. Most people do. I mean, from a consumer point of view, if you look at what Amazon does with Android, forget the name Android for a minute. If you’re coming down from a different planet and you were going to name it, you wouldn’t name it the same thing as what another company does. If you compared that to what Samsung does, I’m not sure you would name that the same thing either.

The fragmentation
It’s a growing problem. It’s a compounding problem. And think about all these people that they’re leaving behind from a customer point of view. People do hold on. Most people hold on to their phones a couple of years. They enter a contract and honor that contract and then upgrade after that two-year period. So in essence, by the time they buy the phone, many of these operating systems are old. They’re not the latest ones by the time people buy. And so by the time they exit, they’re using an operating system that’s three or four years old. That would be like me right now having in my pocket iOS 3. I can’t imagine it.

Software and Hardware
We’re not looking for external validation of our strategy, but I think it does suggest that there’s a lot of copying, kind of, on the strategy, and that people have recognized that importance.

Now, we’re well beyond just the surface level of design of hardware and software. We’re deep in the guts. This week you saw the A7. You saw our new M chip. Well, these are only possible because many years ago we elected to start building our own silicon team, and now we have many, many people designing silicon.

And you saw us go to 64-bit. Well, why are we able to do that first? It’s because we’re at that level of being vertical. Does anybody—do these other three companies have silicon expertise? You can answer that. Maybe they have something that I’m not aware of, but in terms of the depth of it ….

You look at innovation like the iPhone’s camera and the detail that went into the camera. Most people hear the word camera, and they think of hardware. And hardware is really important to it, you know? With the stuff we did with the flash on this. But it’s software, and it’s the silicon—I mean, it’s everything.

So the way I think about Apple is that the magic of this place really comes up at its best when hardware, software, and services come together.

And it’s sort of the intersection of those things is where things get incredibly magical. So facilitating that to happen and getting the collaboration level for that to happen is the magic here.

And one of my proudest moments is when other people see that. They don’t know that they’re seeing that, and that’s also the beauty. They don’t have to do it. But look at these (gesturing to iPhones). These are perfect examples where the hardware and the software and the service begin to blend.
Excerpts (Businessweek, 2013-08-20)

See this mind map summarizing some essentials of Tim’s beliefs revealing Apple’s DNA.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts for iOS (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

Steve and Tim …

Tim Cook says he doesn’t ask What Would Jobs Do. He says that Steve told him before he died to never ask this question. Can there be more evidence that Steve totally trusted in Tim and his beliefs?

As time goes by …

Last year, Apple CEO Tim Cook spent a lot of time answering questions about how Apple would be different from what it was under Steve Jobs, and just how he would continue Jobs’s incredible legacy.

There are a lot of questions to answer. The Apple CEO finds himself defending the company’s tax policy, fighting a declining stock price, dealing with a number of antitrust issues and facing questions about just how Apple will stay ahead of always-intense competition.
And, of course, one thing hasn’t changed. Tech watchers still hang on Cook’s every word, and scrounge for any tidbits that might indicate just what phone, computer, TV or watch might be coming next from Cupertino.

The changes are larger than the numbers. For more than a decade, the company revolved around Jobs’s unique and mercurial talents. Cook, who is as measured and accessible as Jobs was volatile and intimidating, is more a manager than a visionary, and won’t be forgiven in the same way for ignoring shareholders or belittling subordinates. In short, he runs Apple more like most other companies.

One challenge facing Tim Cook is what Wall Street calls the law of large numbers: even a successful new product may barely move the needle for Apple, which generated $171 billion in revenue in the fiscal year ended last September. A flop could underscore that Apple’s product heydays are tied to the late Steve Jobs.

It was Steve’s job to say no. In many ways Tim is not as comfortable doing that.

I think Steve would have been saying yes to more things if he were still running the company. Steve was an intuitive decision maker, knowing what he liked and didn’t like immediately, his snap decisions sometimes led to errors in judgment.

Tim Cook seems to be more thoughtful and will take extra time to minimize mistakes.

Tim is also more willing to delegate to deputies. He has given greater control over product development to Jonathan Ive, Apple’s design chief. Sir Jonathan Ive, who oversaw Apple’s hardware designs under Steve Jobs, also is responsible for the look and feel of its software. Other executives gaining authority include Craig Federighi, the software engineering boss; Phil Schiller, the company’s marketing head; and Eddy Cue, its Internet services lead, current and former employees said. He has turned over Apple’s executive leadership team. Five of the nine members were promoted or hired by Tim Cook.

While Steve Jobs dominated the spotlight, Tim Cook has shown a willingness to let others share the attention.

At the developer conference, for example, Craig Federighi dominated the stage. Cook also hasn’t shied away from bringing in high-profile outsiders, such as Angela Ahrendts and Beats co-founders Jimmy Iovine and Dr. Dre.

We’re not going to go out and buy something for the purposes of just being big. Something that makes more fantastic products, something that’s very strategic, all these things are of interest and we’re always looking regardless of size.

Tim about innovation …

Tim said

Some people see innovation as change, but we have never really seen it like that. It’s making things better.

Ken Segall, author of the bestselling book – Insanely Simple: The Obsession That Drives Apple’s Success, suggests that Apple and Samsung have differing philosophies when it comes to innovation.

“Innovation comes in many flavors,” Ken Segall said. “Sometimes it’s about creating revolutions, other times it’s about adding features. Sometimes it’s about creating things that people fall in love with, other times it’s simply about creating things.”

According to Segall, Samsung’s approach to innovation is more about adding features and in most cases, at the expense of customers’ satisfaction:

Less than six months after launching the Galaxy Gear watch, Samsung replaced that device in February 2014 with two models, the Gear 2 and the Gear 2 Neo. These aren’t just upgrades — they’re new watches, running a completely different OS. Android has been replaced by Samsung’s home-grown Tizen OS.

So what happens to the people who just months ago bought into Samsung’s last “next big thing”? Well, they get stuck with a Galaxy Gear, which will be quickly forgotten. They also become living proof that Samsung values innovation over customers.

On the other hand, Segall posits that

“Apple’s innovation philosophy is quite different. Its highest priority is creating a product that people can fall in love with – a product that will improve customers’ lives without frustrating them in the process.”

“Of course, Apple loves features too.. The difference is, when Apple innovates, it’s innovating in the most user-centric way. That’s consistent with one thing I heard Steve Jobs say often: Apple’s highest priority is earning the love of its customers,” he explains.

In concluding, Ken Segall emphasizes that it is impossible to judge who’s leading in innovation by tallying products and features.

Meaningful innovation will forever be about quality, not quantity.

Publishing/Punishing media all over the world call for innovation and unsurprisingly it’s always Apple standing in the focus and criticized for not being innovative since Jobs trilogy of disruptive technology. Innovation takes time and to be fair some newspapers and websites should take a close look at the innovative power of Apple’s competitors.

Tim Cook’s message …

In August 2014 Tim Cook published a letter picturing his basic beliefs about Apple’s future philosophy.

A Message from Tim Cook.

At Apple, our 98,000 employees share a passion for products that change people’s lives, and from the very earliest days we have known that diversity is critical to our success. We believe deeply that inclusion inspires innovation.

Our definition of diversity goes far beyond the traditional categories of race, gender, and ethnicity. It includes personal qualities that usually go unmeasured, like sexual orientation, veteran status, and disabilities. Who we are, where we come from, and what we’ve experienced influence the way we perceive issues and solve problems. We believe in celebrating that diversity and investing in it.

Apple is committed to transparency, which is why we are publishing statistics about the race and gender makeup of our company. Let me say up front:

As CEO, I’m not satisfied with the numbers on this page. They’re not new to us, and we’ve been working hard for quite some time to improve them. We are making progress, and we’re committed to being as innovative in advancing diversity as we are in developing our products.

Inclusion and diversity have been a focus for me throughout my time at Apple, and they’re among my top priorities as CEO.

I’m proud to work alongside the many senior executives we’ve hired and promoted in the past few years, including Eddy Cue and Angela Ahrendts, Lisa Jackson and Denise Young-Smith. The talented leaders on my staff come from around the world, and they each bring a unique point of view based on their experience and heritage. And our board of directors is stronger than ever with the addition of Sue Wagner, who was elected in July.

I receive emails from customers around the world, and a name that comes up often is Kim Paulk. She’s a Specialist at the Apple Store on West 14th Street in Manhattan. Kim has a medical condition that has impaired her vision and hearing since she was a child. Our customers rave about Kim’s service, and they say she embodies the best characteristics of Apple. Her guide dog, Gemma, is affectionately known around the store as the “seeing iDog.”

When we think of diversity, we think of individuals like Kim. She inspires her coworkers and her customers as well.
We also think of Walter Freeman, who leads a procurement team here in Cupertino and was recently recognized by the National Minority Supplier Development Council. Last year, Walter’s team provided over $3 billion in business opportunities with Apple to more than 7,000 small businesses in the western United States.
Both Walter and Kim exemplify what we value in diversity. Not only do they enrich the experience of their coworkers and make our business stronger, but they extend the benefits of Apple’s diversity to our customers, into our supply chain and the broader economy. And there are many more people at Apple doing the same.

Above all, when we think of the diversity of our team, we think of the values and ideas they bring with them as individuals. Ideas drive the innovation that makes Apple unique, and they deliver the level of excellence our customers have come to expect.

Beyond the work we do creating innovative tools for our customers, improving education is one of the best ways in which Apple can have a meaningful impact on society. We recently pledged $100 million to President Obama’s ConnectED initiative to bring cutting-edge technologies to economically disadvantaged schools. Eighty percent of the student population in the schools we will equip and support are from groups currently underrepresented in our industry.

Apple is also a sponsor of the Human Rights Campaign, the country’s largest LGBT rights organization, as well as the National Center for Women + Information Technology, which is encouraging young women to get involved in technology and the sciences. The work we do with these groups is meaningful and inspiring. We know we can do more, and we will.
This summer marks the anniversary of the U.S. Civil Rights Act of 1964 — an opportunity to reflect on the progress of the past half-century and acknowledge the work that remains to be done. When he introduced the bill in June 1963, President Kennedy urged Congress to pass it “for the one plain, proud and priceless quality that unites us all as Americans: a sense of justice.”

All around the world, our team at Apple is united in the belief that being different makes us better. We know that each generation has a responsibility to build upon the gains of the past, expanding the rights and freedoms we enjoy to the many who are still striving for justice.

Together, we are committed to diversity within our company and the advancement of equality and human rights everywhere.

Tim

(Source Apple on Diversity)

Apple’s strong efforts regarding environment, supplier responsibility and inclusion simply can be summarized by a maxim published on the company’s website

We want to leave the world better than we found it.

This reminds me of a newspaper advertisement where Apple indirectly mocks its rival Samsung. It was published after launching a website and video detailing the environmental efforts.

At the top of the page, the company has placed a huge headline that reads:

There are some ideas we want every company to copy.

Sad to say that there are vanishingly low chances that Asian companies will start their photocopiers.

Summary …

Tim Cook is opening Apple, optimizing the infrastructure, forcing internal and external collaboration, and trying to develop the responsibilities of the company regarding fair labor, environment, and inclusion.

So there is one question left.

Is Tim the better CEO?

In some way we must say YES although it remains untold which way Steve would have gone in times of massive changes in the mobile market which is still the most important market and area of innovation and disruptive technology for Apple.

Related links …

Apple’s Strategy and Ad

Apple’s Key Events

About Innovation

Going Apple

The Hidden Price

Apple’s Supplier Responsibility

Tim Cook about tax loophole

Thanks for surfing by.





About the iPhone

17 08 2014

After years of hard work on January 9, 2007, Steve Jobs let the lion out of the basket. Let’s say it with William Shakepeare: Well roar’d Lion.

(14:00 min, January 9, 2007, Steve Jobs introduced the iPhone)

This All-In-One is still the basis of Apple’s success making 53% of the total sales as reported in the SEC filing for the fiscal year 2012/2013. Within the company it takes the lion’s share when it comes to revenues, customer satisfaction, and brand loyalty.

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Today it’s much more than just ‘the internet in your pocket’. It’s seamlessly integrated in Apple’s product line-up and services. Hundreds of thousands of apps let users do everything they want to do.

The device …

It’s a fact that Apple’s iPhone is the smartphone with the highest build-quality as compared to all competitors.

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High quality makes a device attractive for people with substantial income and goes along with weakness in demand in emerging markets.

But it’s not only the hardware which makes a device successful. The environment is an essential part of product acceptance and success. It’s the All-In-One idea represented by the Apple ID the company offers its customers.

Think of it like this …

You order the latest Porsche 911 GT 3, for sure the company’s flagship. It’s delivered to an place about 250 miles south-west of India. I’m talking about a small part of the 1192 islands of the Republic of the Maldives. Your GT 3 is powered by a 475 hp engine and runs about 195 mph. Unfortunately the island is just about 500 ft in diameter and so I’m sure you won’t need one of the implemented airbags, the anti-skid breaking system, or any other innovative feature.

It’s the environment, the ecosystem, which makes a device as powerful as it is seen today pulling millions of people into it. Beside the internet, not provided by Apple, it’s the App Store, iTunes, iCloud, and more wherein an iPhone feels well and with it Apple’s customers.

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Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts HD for iPad (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

From 2007 on Apple released phones to beat the iPhone every year. The company breathed life into the device with a seamless to use operating system, iOS, which got a completely new design in October 2013. The credit belongs to Sir Jonathan Ive, Senior Vice President of Apple’s Industrial Design.

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Compared to a human being the iPhone has it all, admittedly with some limitations regarding the brain, sorry, the processor and the memory which still cannot beat the human specs.

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Fanboys, following competing platforms always refer to the design of iOS, the missing features for customization, and a liaison with Apple’s ecosystem, aka vendor lock-in. They ignore the fact that there is a OS-DNA, a well-considered design strategy, not shown on the touch screen but in the depths of its code.

According to malware researchers at F-Secure Labs, the number of active mobile threat families and variants initially spiked in Q4 2012, with Android’s share jumping from 49 out of 74 known threats to 96 out of 100, with the balance being related to Nokia’s essentially mothballed Symbian platform.

That was enough to rouse a tweet from the rarely used account of Apple’s head of worldwide marketing Phil Schiller, who linked to the report with the brief admonition “be safe out there”.

However, F-Secure’s new report for Q1 2013 shows Android now accounts for 136 out of 149 known threats, or 91.3 percent of all malware activity (up from 79 percent in 2012).

The other threats remained related to Symbian, with zero discovered for Blackberry, Microsoft’s Windows Mobile/Phone or Apple’s iOS. The research noted that mobile threats are overwhelmingly motivated by profits, with 76.5 percent designed specifically to con users out of money, rather than seeking to just cause damage.

If you like customization you are welcome in Android’s monopoly on malware.

Supplier responsibility …

Manufacturing an iPhone is done by 777 companies all over the world.
The Chinese company Foxconn, assembling devices, is able to employ 230,000 assembly line workers producing 72,000 back plates for the iPhone per day. 40% of consumer electronics worldwide are made by Foxconn in a large number of production lines. The company is a contracting party of Apple, Dell, Nintendo, Motorola, Amazon, Nokia, Sony, Samsung and others.

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Since years international organizations like the UN or Transparency International are monitoring human rights. What does Apple do?
In contrast to the RMG industry Apple takes care of labor conditions. The company undertook many steps and is taking towards all issues regarding infringements of human rights (unlike other tech companies).

Ending the industrywide practice of excessive overtime is a top priority for Apple. They tracked work hours weekly at a handful of suppliers, and when they found excessive hours, they were able to address the problems quickly with the supplier.

In 2012, Apple expanded that program and tracked work hours weekly for over 1 million employees, publishing the data every month. As a result of this effort, the suppliers have achieved an average of 92 percent compliance across all work weeks, and the average hours worked per week was under 50.

Many large companies are members of the Fair Labor Association (FLA). Activities of the FLA are targeted to audits of the company’s suppliers, mainly located in foreign countries. Reports are published on the FLA website.

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Members of the FLA are e.g. Apple (as the first technology company), adidas, asics, Fruit of the Loom, H+M, Nestle, Nike, Puma, S.Oliver, etc. Apple’s main competitor Samsung is not an affiliate of the FLA. The list shows that most of the members are companies active in the garment industry.

The FLA regularly reports about audits (announced and unannounced) and everyone can download the reports in Adobe PDF or Microsoft Excel file format.
Apple’s membership in the FLA shows the companies efforts to take care of the environment in which it’s products are manufactured.

Manufacturing …

Beside Apple’s ecosystem there is a much greater and more important one, our planet. In April 2014 scientists elaborated that parts of China are no longer suitable as a habitat for human beings, animals, and plants because of a tremendous pollution load in the air, the water, and the soil.

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What the company does to keep the environment healthy is published here:

http://www.apple.com/environment/reports

Cormorant energy eaters are the worldwide growing number of data centers which are necessary to offer all the services electronic devices are using. In contrast to others Apple accepts the climate change as a fact and wants “to leave the world better than we found it”. So here are some facts about Apple’s facilities providing iCloud, iMessage, Facetime, Stores, and administration services, published in April 2014.

  • Maiden, North Carolina
    We designed our Maiden, North Carolina, data center from the ground up for energy efficiency, and it has earned the LEED Platinum certification from the U.S. Green Building Council — the first data center of its size to be honored.
    On any given day, between 60 and 100 percent of the renewable energy it uses is generated onsite through biogas fuel cells and two 20-megawatt solar arrays — the nation’s largest privately owned renewable energy installation — and we purchase any remaining power we need from entirely clean sources. The Maiden center generates 167 million kilowatt-hours of renewable energy onsite per year — enough to power the equivalent of 13,837 homes.
  • Prineville, Oregon
    Our data center in Prineville, Oregon, is every bit as environmentally responsible as the one in Maiden. We’re building a micro-hydro system that will harness the power of water that flows through local irrigation canals.
    When completed in 2014, it will serve most of the center’s energy needs, In the meantime, since Oregon allows the direct wholesale purchase of renewable energy, we’re able to directly access enough local wind energy to power the entire data center.
  • Reno, Nevada
    Our newest data center, in Reno, Nevada, follows in the footsteps of our 100 percent renewable energy centers in Maiden and Prineville. We’re working with the local utility to codevelop an 18- to 20-megawatt solar array using a new kind of photovoltaic panel with curved mirrors to concentrate sunlight.
    Expected to be operational in early 2015, the solar array will have an annual production capacity of over 43 million kilowatt-hours of clean, renewable energy. Until then, the center will be powered by renewable geothermal energy purchased from the local utility.
  • Newark, California
    Like our facilities in Maiden, Prineville, and Reno, our data center in Newark, California, is powered by 100 percent renewable energy. We hit this milestone in January 2013, when we began serving the data center with energy sourced primarily from California wind power. We’re acquiring this energy directly from the wholesale market through California’s Direct Access program.

Investments in low-pollution manufacturing are one of the reasons why Apple products are expensive. To manufacture smartphones with nearly the same features of an iPhone for half the price is only possible with a rigorous exploitation of the resources. Well, 330 suppliers of Apple are located in China but there are strong efforts to bring parts of the production back home. At the time this is only possible for some computer products but not for mobiles because of missing capacities of human resources. There is just one company able to assemble hundreds of thousands of mobile devices within a narrow timeframe. It’s the Chinese-based company Foxconn. ABC News’ Bill Weir was invited to take a look inside Foxconn.

(15:12 min, Apr 18, 2012, AlbaIM Social Network)

Outsourcing is the key to Apple’s supply chain success. Apple outsources manufacturing and assembly to suppliers. Many suppliers are “fabless” (no company-owned fabrication facilities) and, in turn, outsource fabrication. Companies headquartered in the US and Europe subcontract fabrication to Asian companies. Many of these Asian companies based in Japan, Taiwan and South Korea then outsource fabrication to places with cheaper labor or greater ability to scale up production.

That’s how everything ends up being Made in China. Singapore, Malaysia, Thailand, and the Philippines get a lot of the adion, too, mostly as suppliers for back-end components.

Highlights in 2013 …

Apple events are always an exciting show viewed by millions of people.
It was the event in October 2013 with the most significant steps since iPhone’s birthday in 2007.

In 2012 Apple acquired Authentec, a Florida-based company specialized on biometric authentication. Authentec’s fingerprint sensor debuted on the iPhone 5S one year later.
With no production facilities of its own, all fabrication is outsourced to Taiwanese company TMSC, which does most of the manufacturing in its Shanghai facilities.

The Touch ID (Apple’s implementation of a fingerprint scanner), improves seamless usage and security and can be seen as a first step to payments using biometric authentication.

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Apple realizes the value of wearable tech through M7 – a mixed signal chip from NXP (Netherlands), which can make sense of the data from the motion detected by the iPhone accelerometer of Bosch (Germany), gyroscope of STMicroelectronic (Italy) and electromagnetic compass of AKM (France). Current and future apps that can take advantage of this data are poised for the jackpot.

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It’s the iPhone which is the carrier for new and innovative technologies or even disruptive technologies.

From SEC filings …

As the leading industrial nation the USA developed rules for financial reports which are basically overtaken by the majority of other countries. The responsible commission in the USA is the SEC (U.S. Security and Exchange Commission).

The laws and rules that govern the securities industry not only in the United States but also in all other industrialized countries derive from a simple and straightforward concept:

All investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it.

If we look at Apple’s SEC filings of the fiscal year 2012/2013 which ended on September28, 2013 we can see that the company is dependent from iPhone sales.

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Total net sales were $170,910m with $91,279m generated by the iPhone which is about 53% of the companies sales. If we include the iPad as the 2nd important iOS device, 72% of the company’s sales are generated by mobile devices. So it’s quite clear that mobiles call the shots.

The cult …

“Apple’s brand is just overwhelming here,” said Eiji Mori, a Tokyo-based analyst at BCN Inc. “It’s not about specifications. It’s not about rationale. It’s about owning an iPhone.

Immediately after the launch of a new iPhone rumors about a successor start.

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Apple enjoys a cult-like following for its platforms, especially following the massive increase in popularity for the brand brought about by the huge increase in sales for all its products that started around the time the company introduced the original iPod in late 2001.
The mass usage of computing devices in everyday life, mixed with Apple’s vertical integration of its products, has helped to bring about this increase in popularity, and combined with a tight-lipped corporate policy about future products, helped foster an interest in the company’s activities.

No other company is in a daily focus of publishing media no matter authors like or hate what’s launched in Cupertino.

Summary …

The iPhone is Apple’s engine, the carrier of innovative technology. The credit belongs to Steve Jobs whose vision of the ‘Internet in your pocket’ initiated a fiercely competitive market in which all leading tech companies participate. Google, Samsung, and Microsoft force Apple to keep the innovative power in a transition phase from PC to mobiles.

Related links …

Fingerprint Technology

iOS Updates

iCloud, a paradigm shift

About Innovation

About Statistics

Designed by Apple in California

Apple’s Supplier Responsibility

Thanks for visiting iNotes4You.





The Pareto Principle

5 08 2014

The Pareto principle, also known as 80-20 rule states that roughly only 20% of the causes affect 80% of the effects.

20140418-095204.jpg

I would like to give you some examples and an attempt to connect the rule with some aspects of Apple’s strategy to design hardware and software products although I didn’t find any hints published by Apple which explicitly refer to the 80-20 rule. But I’m sure it’s in the mind of Apple’s engineers and can be seen as a guideline for developing products.

Microsoft and the Pareto principle …

Paula Rooney published this noteworthy insight on October 3, 2002

Microsoft’s CEO: 80-20 Rule Applies To Bugs, Not Just Features

In recent months, Microsoft has learned that 80 percent of the errors and crashes in Windows and Office are caused by 20 percent of the entire pool of bugs detected, and that more than 50 percent of the headaches derive from a mere 1 percent of all flawed code.

In an e-mail update sent out broadly to enterprise customers on Oct. 2, 2002, Microsoft CEO Steve Ballmer highlighted initial progress being made on the company’s Trustworthy Computing initiative, an effort rolled out by the vendor last January to improve its reputation in the reliability and security arenas. For one thing, there will be faster bug-fixing as a result of an error-reporting facility embedded in Office and Windows. And that error-reporting tool will be part of the forthcoming Windows.Net Server 2003.

The automated error-reporting tool enables customers to relay errors to Microsoft in a condensed “mini-dump” format, which simplifies the process, Ballmer said.

“One really exciting thing we learned is how, among all these software bugs involved in the report, a relatively small proportion causes most of the errors,” Ballmer wrote in his three-page memo. “About 20 percent of the bugs causes 80 percent of all errors, and – this is stunning to me – 1 percent of bugs caused half of all errors.”

But one analyst said that customers should not come to the conclusion that the 80-20 bug ratio will make it easier for Microsoft to clean up problems with its software.

“The 80-20 rule is often believed to be true in most things. Most often it is used by vendors to distract people from the problem of inadequate quality with the implication that they only need to work on a small number of issues to correct that problem,”

said Rob Enderle, research fellow at Giga Information Group.

“What’s forgotten is that 20 percent are often the most complex, most difficult issues to correct and the most likely to spawn new problems as part of the correction process.”

The tool and debugging method, however, did help Microsoft address 20 percent of all Windows XP bugs in Service Pack 1, more than half of all application errors fixed in Office XP Service Pack 2 and 74 percent bugs of fixed in the beta test version of Visual Studio.Net, Ballmer claimed.

A summary …

Ready for a summary of Pareto’s principle?

So here it is and as usual on iNotes4You it’s summarized with the help of a mind map.

20140531-061531.jpg

Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

Apple and the Pareto principle …

Apple’s operating system for mobiles, the hardware, and software applications are as complex as other comparable systems. Only developers are deeply engaged in what’s going on in the code if a user e.g. taps on the touch screen of an iPhone or an iPad. Be sure, it’s a lot what has to be considered when designing the code and providing APIs (Application Programming Interface) to developers who then create their apps based on implemented functionalities of iOS.

20140418-105007.jpg

For us, as users of Apple’s mobile devices, there are only two but quite important things, the UX (user experience) and the UI (user interface).

One common adage in the IT industry is that 80 percent of all end users generally use only 20 percent of a software application’s features. Aside the concrete numbers this seems to hit the nail right on the head and I think nearly all of you can agree. Only a minority, the power users, get more mileage out of an application.

Basically there are two options to increase the UX of software products

  • two versions
    a standard and a professional version with extended features
  • one version
    with features limited to the commonly accepted needs of customers

Apple goes the latter way roughly according to the Pareto principle.
But there seems to be a problem.

What are the features if all the options are roughly reduced to the mentioned 20%?

Well, it depends on the application and necessary features can only be identified by constantly looking on the behavior of customers.

If you settled all the needs of customers the next problem comes up.

How can the features be packed in a clean and tidy user interface?

It was Sir Jonathan Ive, Apple’s top designer, who once said

Simplicity is often equated with minimalism. Yet true simplicity is so much more than just the absence of clutter or the removal of decoration. It’s about offering up the right things, in the right place, right when you need them. It’s about bringing order to complexity. And it’s about making something that always seems to “just work.” When you pick something up for the first time and already know how to do the things you want to do, that’s simplicity.

Regarding the UX and UI I found a noteworthy article by Susan Weinschenk, Ph.D., on uxmag.com about The Psychologist’s View of UX Design (please use the link under ‘Related link’ to read the full article). It can be seen as a validation of the Pareto principle in the sense of separate the vital few from the trivial many. And with this it also proofs Apple’s strategy of seamless usage of its mobile devices.

Here is a summarization of the main points visualized in a mind map.

20140419-205613.jpg

Feel free to download this map from my Box account.

The alternative file formats have been created with iThoughts HD for iPad (.ITMZ file format). Compatibility to other tools is limited. The DOCX file format is suggested for those who don’t use a mind mapping tool. The file contains the image as well as a detailed outline of all topics.

Application File format
Adobe Reader PDF
Apple iWork/Microsoft Office DOCX
iThoughts ITMZ
MindManager MMAP
XMind XMIND

There’s a finite amount of resources to focus on finding and fixing issues or improving the user experience. It’s the task of designers and engineers to find out the small number of items account for a disproportionate amount of results. An effective strategy is to separate these vital few from the trivial many to improve the user experience.

If you use an Apple mobile device you already recognized that problems with the operating system can be solved with solely three methods

  • Reboot
  • Restore
  • Recover

This is a quite remarkable step to reduce the efforts of users to fix problems.

It’s definitely the wrong and most ineffective way to fill a knowledge base with thousands of articles, often not applicable for devices even if they run on the same version of an operating system. That’s my experience of working on Microsoft Windows based computers in the last 30 years. Problems with drivers, Dynamic Link Libraries, vulnerabilities, monthly published patches, etc. have been quite frustrating tasks, wasted your time, and, regarding the usage of Windows PCs in businesses, cost a lot of money. A reason could be the genes Microsoft put into the cradle of its operating system.

Summary …

Companies looking at the 80-20 rule have to identify the 20% in all areas which means find out the few vital from the many trivial.

Going along with this analysis more simple solutions for usability problems, feature requests, support calls, software bugs or revenues can be created.

If you recognize that reading just 20% of my blog post let you understand 100% of my intention than you have a further validation of Pareto’s principle.

Related links …

Apple’s Focusing

Apple’s Strategy and Ad

The Psychologist’s View of UX Design

Thanks for stopping by.








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