MGT201 SEU Apple Inc. Questions Why are data, information, business intelligence, and knowledge important to Apple? Give an example of each type in relation to the iPad. (1 Mark)Explain how Apple achieved business success through the use of information, information technology, and people. (1 Mark)Evaluate how Apple can gain business intelligence through the implementation of a customer relationship management system. (1 Mark) Management Information System MIS 201
Course: MIS 201
Academic Year: 1439-1440
student grade: (out of 3)
Level of the Mark: Mark
Case Study-1 -Question
Prepare an in-depth analysis of four case studies during the semester. Here are some guidelines:
This is an individual assessment, which is a part from your course score. It requires effort and
Answer all the questions listed below for each case.
The ‘answers’ to the questions are best formulated by reviewing the case and the reading
materials up and including the current week in the course.
The questions are worded to help you apply the readings to the case, so don’t limit yourself
to the case’s terminology and perspective. The best analysis will abstract the case content by
applying the reading materials to draw broader lessons about the material
Case Study 1: Apple Merging Technology, Business, and Entertainment
1) Why are data, information, business intelligence, and knowledge important to Apple? Give
an example of each type in relation to the iPad. (1 Mark)
2) Explain how Apple achieved business success through the use of information, information
technology, and people. (1 Mark)
3) Evaluate how Apple can gain business intelligence through the implementation of a
customer relationship management system. (1 Mark)
Date of release
Due date of submission from
End of 3th Week
End of 5th Week
Case Study 1: Apple Merging Technology, Business, and Entertainment
This might sound hard to believe, but a bit more than a decade ago, Apple was on the brink of
bankruptcy. Apple Computer Inc., now back from near oblivion, is blazing a trail through the
digital world with innovation and creativity that has been missing from the company for the past
20 years. The unique feature of Apple’s competitive advantages is that they come from customers
and users, not Apple employees. That’s right; the company welcomes products created by
consumers to sell to consumers, a trend new to business.
Capitalizing on the iPod
With millions of iPods in the hands of consumers, many people are finding ways to capitalize on
the product. John Lin created a prototype of a remote control for the iPod and took his prototype
to Macworld, where he found success. A few months later, Lin’s company had Apple’s blessing
and a commitment for shelf space in its retail stores. “This is how Apple supports the iPod
economy,” Lin said. In the iPod-dominated market, hundreds of companies have been inspired to
develop more than 500 accessories—everything from rechargers for the car to $1,500 Fendi bags.
Eric Tong, vice president at Belkin, a cable and peripheral manufacturer, believes that 75 percent
of all iPod owners purchase at least one accessory—selling over 30 million accessories to date.
With most of the products priced between $10 and $200, that puts the iPod economy well over
$300 million and perhaps as high as $6 billion. Popular iPod accessories include:
■ Altec Lansing Technologies—iPod speakers and recharger dock ($150).
■ Belkin—TuneCast mobile FM transmitter ($40).
■ Etymotic Research—high-end earphones ($150).
■ Griffin Technology—iTrip FM transmitter ($35).
■ Kate Spade—Geneva faux-croc mini iPod holder ($55).
■ Apple—socks set in six colors: green, purple, blue, orange, pink, and gray ($29).
■ Apple—digital camera connector ($29).
Capitalizing on the iPhone
Looking at someone using an iPhone is an interesting experience because there is a good chance
they are not making a phone call. They could be doing a number of things from playing a game to
trading stocks, watching a TV show, or even conducting business with a mobile version of
salesforce.com ’s customer-management software. In a brilliant strategic move, Apple let outsiders
offer software for the iPhone and in less than six months, more than 10,000 applications had been
created. In fact, more than 15,000 applications are available at its app store section of iTunes, and
they have been downloaded a total of 500 million times. Now, many of the iPhone apps are
available for the iPad. The iPhone and iPad app store market is getting so huge relative to other
smartphone markets that some developers argue there is little point adapting applications for
Google’s Android or any other iPhone competitor. According to Jeff Holden, CEO of Pelago Inc.,
when he created his social networking company he fully intended to follow the conventional
wisdom for how to build a sizable, fast-growing software company: Get your programs on as many
platforms and devices as possible. But when he crunched the numbers he came to an interesting
business conclusion: The 13 million iPhone owners had already downloaded more applications
than the 1.1 billion other cell phone owners! To entrepreneurs, developing a program for the
iPhone automatically provides a significantly larger market—almost 94 times larger than its
competitors. “Why would I ever build for anything but the iPhone?” Holden asked
Capitalizing on the iPad
Apple’s latest release, the iPad, is a lightweight, portable, tablet computer, similar to the iPhone,
that allows customers to download applications, check email, and play music all at the touch of a
button. Both the iPhone and the iPad can multitask, allowing customers to read a web page while
downloading email in the background over wireless networks. The arrival of the iPad brought a
simultaneous expansion of the network of accessories. Because the iPad was designed with an
exposed screen and without a camera, separate keyboard, memory card slots, or expansion ports,
one might say it was specifically built for accessories. Many owners will modify it in some way,
whether for mere decoration or hard-core protection. A few of the new accessories include:
■ iPad Clear Armor screen protector—$35.
■ iPad Antique book case cover—$40.
■ iPad wireless keyboard—$99.
■ iPad overcoat sleeve—$35.
■ iPad Joule luxury stand—$130.
Apple has consistently outperformed its key rivals through the development of its MP3 player, the
iPod, and continues to make its products smaller and less expensive, while providing
complementary features such as games and applications. For the iPhone, Apple developed a unique
application called Siri, a voice-activation system that is capable of recognizing voice commands.
Siri can perform all kinds of functions from dialing a contact and creating an email to location
services such as “Find my Phone,” ensuring lost phones are found quickly.
Apple’s latest offering is a new service called the iCloud. The iCloud has the ability to collect all
of the content, including videos, photos, songs, books, etc., from customer devices such as iPods,
iPads, and iPhones in one secure location in “the cloud.” Apple customers no longer have to worry
about backing up their applications or data because everything is automatically uploaded and
stored in the iCloud when using an Apple device. In a fast-paced, technology-driven sector, with
competitors quickly following suit, Apple is constantly pressured to develop new products and
product extensions. Luckily Apple stays ahead of the pack by focusing on the following key
■ Customer focus: Apple is driven by customer satisfaction and ensures customers are deeply
involved in product development and application development.
■ Resources and capabilities: Apple continues to invest heavily in research and development to
take advantage of new technologies, improved facilities, and cloud infrastructures.
■ Strategic vision: Apple has a clear alignment of its vision, mission, and business leadership
■ Branding: Apple is the leader in brand loyalty as it has achieved cult status with its authentic
■ Quality focus: Apple has an outstanding commitment to quality.24
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