Closed and Open Source Innovation Cultures in the Global Consumer Electronic Industry

Apple vs. Samsung – Analyzing Closed Source and Open Source Innovation Cultures in the Global Consumer Electronic Industry
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Apple vs. Samsung – Analyzing Closed Source and Open Source Innovation Cultures in the Global Consumer Electronic Industry
1. Introduction
Innovation is a fundamental source of growth in businesses. Organizations engage in innovations to extend growth lifecycles by offering new products and services to customers with value propositions. Innovation is not limited to products or services. Progressive organizations perform innovation in the business processes and models to maintain competitive advantages in an industry. Some innovations are sustaining, which improves business processes. However, some businesses introduce disruptive innovation that changes industry market practices and product needs (Boyles, 2022). Successful companies follow both innovations to secure market leadership and a customer base collectively.
Innovation is essential for businesses for adaptability, growth, and competitive advantages. The recent outbreak of COVID-19 worldwide is an example of innovation-based growth for the retail industry. Organizations changed business models and practices by introducing knowledge-sharing innovations for continuing operations under COVID-19 constraints. Most organizations fail to sustain the paradigm shifts in the initiative introduced by the pandemic due to a lack of innovation in the business processes and controls. Innovation offers customers desirability, feasibility, and visibility when making a purchase decision (Azeem et al., 2021). The retail industry is progressing towards growth and economic viability by introducing innovative practices in the products, services, and process controls to retain customers.
This paper will examine the innovation process in the global retail industry. The report will review the innovation practices exhibited by Apple Inc. (Apple) and Samsung Electronics (Samsung), two leading brands in the global consumer electronics sector. The analysis would further create an innovation roadmap for Apple by performing environmental scanning and identifying firm-level strategies.
2. Discussion
2.1 Apple Inc. and Closed Source Innovation
Closed source innovation (CSI) is an internal innovation process developed by a team. CSI would engage companies to define boundaries, build an innovation roadmap from the initial phase, and execute to practice. Companies with the CSI framework are likelier to avoid knowledge-sharing space in the business ecosystem. The system dynamics and business model simulation remains exclusive for the company instead of sharing with other supporting stakeholders and professional collaborates throughout the process controls (Yuana et al., 2021). Apple is a leading example of practicing CSI in its products, services, and business model.
According to Podolny and Hansen (2020), Apple is an organized company when practicing CSI in business processes. The innovation practices made Apple a USD260 billion company in revenue until FY2019. The company followed a conventional leadership process and business struct...