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MARCH 21, 2005
By Peter Burrows Commentary: Apple's Blueprint for Genius Handling its own design work is one reason for best-sellers like the iPod and Shuffle. Steve Jobs is the other "Designed by Apple in California." The words are printed in such small type on the back of Apple's (AAPL ) tiny new iPod Shuffle MP3 player that you have to squint to read them. But they speak volumes about why Apple is standing so far out from the crowd these days. At a time when rivals are outsourcing as much design as possible to cut costs, Apple remains at its core a product company -- one that would never give up control of how those products are created. In this age of commodity tech products, design, after all, is what makes Apple Apple. This focus is apparent to anyone who has used one of its trailblazing products. While the Silicon Valley pioneer sells only a few dozen models, compared to the hundreds offered by many of its rivals, many of those "designed in California" products are startling departures from the norm -- and they often set the directions for the rest of the industry. Examples abound, from the iPod, to the flat screen look of the new iMac, to the simple smallness of the new Mac mini PC. What's the secret? The precise details are almost impossible to get, because Apple treats its product-development processes like state secrets -- going so far as to string black drapes around the production lines at the factories of the contract manufacturers it hires to assemble its products. In one case, says a source who once worked on an Apple project, the outfit even insisted that its wares be built only on the midnight shift, when fewer prying eyes might be around. "INSANELY GREAT." But the general themes are clear. Most CEOs are focused on achieving their financial and operational goals, and on executing a strategy. But Apple's Steve Jobs believes his company's ultimate advantage comes from its ability to make unique, or as he calls them, "insanely great" products. Jobs's entire company is focused on that task. That means while rival computer makers increasingly rely on so-called outsourced design manufacturers (ODMs), for key design decisions, Jobs keeps most of those tasks in-house. Sure, he relies on ODMs to manufacture his products, but the big decisions on Apple products are made in Silicon Valley. Jobs himself is a crucial part of the formula. He's unique among big-time hardware CEOs for his hands-on involvement in the design process. Even product-design experts marvel at the power of the Jobs factor. FIRST, AN IDEA. "I've been thinking hard about the Apple product-development process since I left," says design guru Donald Norman, co-founder the design consultants Nielsen Norman Group, who left Apple in 1997. "If you follow my [guidelines], it will guarantee good design. But Steve Jobs doesn't want good design. He wants great design, and my method will never give you that. That takes a rare leader, who can bring both the cohesion and commitment and style. And Steve has it." Many executives believe that outsourcing design allows them to lower the salaries they must pay, and lets them have engineers working on the products across all time zones. Jobs thinks that's short-sighted. He argues that the cost-savings aren't worth what you give up in terms of teamwork, communication, and the ability to get groups of people working together to bring a new idea to life. Indeed, with top-notch mechanical, electrical, software, and industrial designers all housed at Apple's Infinite Loop campus in Cupertino, Calif., the company's design capability is more vertically integrated than almost any other tech outfit. Typically, a new Apple product starts with a big idea for an unmet customer need. For the original iPod, it was for an MP3 player that, unlike earlier models, could hold and easily manage your entire music collection. Then, Apple's product architects and industrial designers figure out what that product should look like and what features it should have -- and, importantly, not have. "Apple has a much more holistic view of product design," says David Carey, president of design consulting firm Portelligent. "Good product design starts from the outside, and works its way inside."
 Burrows is Computer editor in BusinessWeek's Silicon Valley bureau
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