A Byte Out of
Apple Computer
• ISM 158 -- W ’04
• Apple Computer, Inc
• By Sam Braff
Topics to Address:
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Industry Background
Company History
Products Offered
Financial Performance
Information Systems
Roles, Roles and Relationships
The Future
Apple’s Competitive Role
• Competed within the
Personal Computer
Industry
• Consistently undercut
through pricing and
quantity
• Began to explore the
fringes defined by the
PC
The Digital Hub Industry
• Focus not on the PC
itself but on the use of
the PC as a hub for
associated digital
devices (e.g. the iPod,
iSight, Palm V)
• Competition is derived
from eight unique
categories
• Areas of Competition:
• Digital Devices
Offered/Supported
• Software Integration
• Personal Computers
• Services
• Sales Strategy
• Customer Strategy
• Information Systems
Strategy
Major Players in the DHI
• Apple Computer
• Sony Corporation
• Hewlett Packard
• Dell Computer
----------------------------------• MicroSoft
• Hardware Manufacturers
• Intel, AMD, Motorola, IBM, Hitachi, etc…
Historical Perspective
• Apple was founded by Steve Jobs and Steve
Wozniak, two college dropouts, on April 1, 1976
• 1984 was the year of the Macintosh, arguably the
first “personal” computer
• In 1985, Jobs left the company after losing a
power struggle between him and John Sculley, the
ex-president of Pepsi-Cola who Steve himself had
courted
• Between 1985 and 1993, Apple had many
successes and was positioned as a Personal
Computer Industry leader
Historical Perspective
(continued)
• In 1993, John Sculley stepped down as CEO and
Apple began trudging down a rocky road
• 1995-1996 was the worst year ever for Apple,
almost leading to their demise. No corporate
executive could seem to turn it around
• Then, in the last month of 1996, Steve Jobs was
hired back through the purchase of the NeXT
project
• Steve Jobs quickly returned to the level of upper
management and attempted to give hope to the
struggling corporation
Historical Perspective
(there’s more?)
• Jobs allied with MicroSoft and brokered a deal
giving Apple $150M and Microsoft’s Internet
Explorer default installation rights on Apple
systems
• In 1997, the Apple Online Store is created and
quickly becomes one of the top e-commerce sites
around
• In the new few years, Apple debuts the iMac, the
iBook, the iPod, the Xserve and their own chain of
brick & mortar retail stores in an attempt to
redefine their business in the Digital Hub Industry
Products Offered by Apple
• Hardware
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iMac
iBook
Power Mac
Power Book
Xserve
XRAID
iPod
iSight
• Software
• iLife Suite
• AppleWorks
• Utilities
Services
- .Mac
- iPod Engraving
- iPhoto Albums
Financial Performance
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
Importance of IT
• Apple Computer, Inc. places an enormous
role at the foot of their I.S. department.
• Two major retail units, numerous third-party
retailers, numerous suppliers and customers
• Apple maintains an impressive database of
nearly every piece of information they can
track and quantify
• Managed by three top executives
Two Major Systems at Apple
• Online Retail Store
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Transaction Processing
E-mail notification
Shipment Tracking
Data Mining
Customer History
Variable Pricing
• iTunes Music Store
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Transaction Processing
Data Mining
Visitor Tracking
Customer History
Important Faces
Names to go with the Faces
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Steve Jobs -- CEO
Fred Anderson -- CFO
Ron Johnson -- Senior VP of Retail
Avadis “Avie” Tevanian -Chief Software Technology Officer
• These four men constitute the backbone of
the company, although recently Fred
Anderson stepped as CFO
Roles, Roles and Relationships
• The IT department at Apple is controlled by the
CFO, who was until recently Fred Anderson
• For the two major systems mentioned previously
(Online Retail, iTunes MS), both Avie Tevanian
and Ron Johnson communicate with the IT
department to receive their desired levels of
support
• If IT is unable to support Avie or Ron’s current
application of information systems, they contact
Fred Anderson.
Role of the CEO?
What is Steve Jobs’ role?
The CEO, with
regards to the IS
department, is merely
a watchdog to see that
enough attention is
paid to gaining added
efficiency,
effectiveness, and/or
competitive advantage
What lies ahead?
• The future of Apple Computer, Inc. looks rather
good. The last year has seen the stock price
double and the iPod mini is currently sold out
across the country
• If Apple wants to remain an leader in the DHI they
need to continue to innovate.
• To avoid the emergence of competition, Apple
must create new barriers to entry. One way to do
this is by releasing a larger selection of Apple
manufactured digital devices
Thank you for your time