DinarStandard Editors

Apple's i-Phenomenons and the Design factor

Apple's latest i-phenomenon -- the i-Phone has once again mesmerized the world of consumer electronics. Following the success of its sleek i-Pod music media players, the i-Phone is set to revolutionize the convergence of mobile devices - email, Internet, media player and mobile phone all packaged in one very impressive looking and functioning device.

The analysts and media, from Business Week, Harvard Business Review to The Economist, are all a-buzz trying to crack the Apple code on what makes it one of the most innovative companies in the world.   
 
Sure, as many say, its the Founder Steve Job's visionary leadership. But, the essence of his vision that sets Apple apart is his 'design thinking' mixed with the 'cool factor' that runs across every aspect of a users experience.  After-all, Mp3 music players were a plenty before i-Pods hit the market, but the i-Pod design and usability and its i-Tune tie-in galvanized the mobile music consumers.  Similarly, Nokia, Motorola, and Samsung have led the global mobile phone market, but are sweating the impact of i-Phone's ingeniousness. 
 
'Design Thinking' addressess business problems/needs with a non-traditional approach that involves intense user observance and employs creative problem solving involving people from various diverse tracks to develop 'out-of-the-box' solutions.  This approach applies to tangible products, user technologies, business services and even operations, and is fast becoming a key business growth driver.
 
IDEO is one of the most prominent consulting firms that specializes in this space and had also helped Apple design the first Macintosh mouse.  In a special edition on the Power of Design, BusinessWeek profiled IDEO as an innovative company that has "redefined good design by creating experiences, not just products.  Now its changing the way companies innovate."
 
To get some idea on what design thinking entails, I found a great presentation by Timothy Brown, CEO, IDEO given at MIT in which he covers their design thinking process of surveying the “landscape of innovation” focussing on people, their needs, technology and business, and their rapid prototyping methods to ideate and create solutions.
 
There will be a lot more we will focus on the process of design thinking.  In the meantime, the success of Apple's i-Phenomenon has once again re-iterated the importance of design thinking in every aspect of today's global competitive strategy.

What do you think about the power of design? Do share your thoughts by submitting your comments.

    

How Gulf Companies Can Build Global Businesses

The McKinsey Quarterly recently commented on ‘How Gulf companies can build global businesses.’  This frank assessment references companies based in the Gulf Cooperation Council (GCC) states who are using the petrodollar windfall to expand strategically into global markets.  The piece also states that expanding globally for such companies will require the development of distinctive capabilities and skills.

Some of the referenced investments include DP World $7.1 billion acquisition of the British port and ferry operator P&O in 2006;  Saudi Basic Industries (Sabic) $2 billion acquisition of the petrochemical division of the Dutch chemicals and pharma group DSM in 2002; Dubai Aerospace Enterprise (DAE) paying $1.3 billion for the Swiss company SR Technics, the leading independent supplier of aircraft maintenance, repair, and overhaul services; and, Kuwaiti logistics group Agility (formerly PWC Logistics) buying companies in Singapore and the United States as part of a drive to become one of the world’s top logistics groups.

The commentary however points out that in order for such investments to bear fruit for GCC players, the advantages that drove margins at home—high-income customer pools, cheap labor, protected markets, and low energy costs—won’t be transferred to external markets, and they will need to become more efficient abroad to be profitable/competitive there.

Some of the areas of focus suggested include:

• A strong customer service ethos
• Integration skills - especially important when the acquirer is buying a company to gain its capabilities
• Finding and retaining managerial talent
• A change in corporate culture
• Working within the governance structures of other business environments, which may be quite different from the GCC norm

From our point of view, in addition to the above points, the positive momentum of these strategic global investments now needs to be directed to building a business culture that focuses on ‘customer needs’ in all aspects of business operations - from market research, innovation, branding, product development, design, to communication.   As global business leaders will attest, building a global business requires major investment in knowing and serving the global customer. 

In addition, just as the traders of Arabia did in earlier days, these GCC global business leaders would not only gain from global trade but also have the opportunity to contribute to global business thinking around corporate scandals, environmental concerns, and social responsibility by sharing the business ethics and value system of Islamic culture.