How Apple Is Organized for Innovation: The Functional Organization

Harvard Business Review3 minutes read

Apple's innovation in hardware, software, and services, led by Steve Jobs upon his return as CEO, revolutionized the company's structure and decision-making process, resulting in groundbreaking products like the iPhone 7 Plus with dual lens camera.

Insights

  • Steve Jobs' restructuring of Apple in 1997, consolidating the company under one profit and loss responsibility, played a pivotal role in fostering innovation within the organization.
  • Apple's organizational structure, emphasizing technical experts' judgment for decision-making, enables bold moves like the introduction of the dual lens camera in the iPhone 7 Plus, showcasing a commitment to cutting-edge technology.

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Recent questions

  • What is Apple known for in the tech industry?

    Apple is renowned for its innovation in hardware, software, and services across a variety of products like computers, iPhones, and iPads.

  • How did Steve Jobs restructure Apple in 1997?

    Upon Steve Jobs' return as CEO in 1997, he restructured Apple by eliminating business unit general managers and consolidating the company under one profit and loss responsibility, fostering innovation.

  • What is the organizational structure of Apple?

    Apple's organizational structure is led by functional managers with expertise in specific domains, prioritizing technical experts' judgment for predicting successful technologies and designs.

  • How does Apple make bold decisions in product development?

    Apple makes bold decisions in product development by enabling technical experts to make judgments on successful technologies and designs, leading to innovations like introducing the dual lens camera in the iPhone 7 Plus.

  • What was a significant innovation in the iPhone 7 Plus?

    A significant innovation in the iPhone 7 Plus was the introduction of the dual lens camera, showcasing Apple's commitment to pushing technological boundaries in its products.

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Summary

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Apple's Innovative Restructuring and Organizational Structure

  • Apple is renowned for its innovation in hardware, software, and services across a variety of products like computers, iPhones, and iPads.
  • Upon Steve Jobs' return as CEO in 1997, he restructured Apple by eliminating business unit general managers and consolidating the company under one profit and loss responsibility, fostering innovation.
  • Apple's organizational structure, led by functional managers with expertise in specific domains, prioritizes technical experts' judgment for predicting successful technologies and designs, enabling bold decisions like introducing the dual lens camera in the iPhone 7 Plus.
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