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Apple’s Organizational Crossroads

176 pointsby hulloabout 9 years ago

12 comments

abaloneabout 9 years ago
Nah. DuPont was selling gunpowder and paint to completely different customers. Apple sells devices and services to the same customers. Furthermore what they are selling needs to be tightly integrated.
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Osiris30about 9 years ago
Well argued rebuttal and counter by John Kirk at Techpinions<p><a href="https:&#x2F;&#x2F;techpinions.com&#x2F;apple-shouldnt-cross-that-road-till-they-come-to-it&#x2F;45209" rel="nofollow">https:&#x2F;&#x2F;techpinions.com&#x2F;apple-shouldnt-cross-that-road-till-...</a>
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xtx23about 9 years ago
The reason why services and devices can&#x27;t be totally separated as gunpowders and paint is software. Apple&#x27;s recent software qualities have been facing many challenges and varied user feedbacks, Apple Map, Siri, FinalCut update, New Photos, iCloud hack issues. I doubt their organization structure is the magic fix to their software issues, in fact, a complete separation between devices + services might make some of their software challenges even harder.
tyingqabout 9 years ago
Is Amazon a good comparison? Amazon Web Services is a separate organization from the consumer side (amazon.com, zappos, etc).<p>As I understand it, the &quot;jewels&quot; (retail&#x2F;consumer) do depend on AWS...they supposedly are strong on &quot;eating your own dog food&quot;. But, they have roughly equal footing and representation. There is the difference that Amazon&#x27;s services can be sold standalone, rather than just bundled, I suppose.
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blinkingledabout 9 years ago
Services are hardly a unique Apple specific problem though. For a few that get services right you&#x27;ll find many that suck. It takes a very different collective mindset, culture, processes and iterative improvements - those are a no brainer. Beyond those it also takes unconventional innovation at multiple different levels - look at how HTTP2 happened for example and look at how everything underneath GMail must have improved to make it what it is. Also think of AWS and how many first-have problems they must have needed to solve.<p>It&#x27;s hard to get services right and even harder to keep them right. I am of course not saying Apple can&#x27;t get there but merely separating the hardware and software&#x2F;services isn&#x27;t a meaningful first step.
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majestikabout 9 years ago
This article makes the case Apple should have a dedicated Services division.<p>Pretty sure Eddy Cue runs a division called &quot;Internet Software and Services&quot; which is iCloud&#x2F;Maps&#x2F;Siri etc: <a href="http:&#x2F;&#x2F;www.apple.com&#x2F;pr&#x2F;bios&#x2F;eddy-cue.html" rel="nofollow">http:&#x2F;&#x2F;www.apple.com&#x2F;pr&#x2F;bios&#x2F;eddy-cue.html</a><p>Article: 0 Fact: 1
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marcus_holmesabout 9 years ago
This is the road that IBM and HP went down, isn&#x27;t it?<p>Stop making things and start providing services around the things you used to make.
appleflaxenabout 9 years ago
This is dated 4&#x2F;19, but I would swear I&#x27;ve read this (and seen the same organizational graphics) before. Was this already posted somewhere else? Is this a summary of a bigger work that is getting the summary treatment on multiple sites?<p>Weird.
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acqqabout 9 years ago
The scary example against the &quot;separation&quot; the author suggests is Sony, having the structure where the different profits and loses produced the results where one Sony makes another Sony worse and vice versa.
hansabout 9 years ago
fascinating thought is what a well-run services Org looks like?<p>and how that can layer onto a hardware &#x2F; device Org.. they never seem compatible
nocarrierabout 9 years ago
This post makes the case that Apple is not organized in a way to allow it to effectively run services like iCloud, iTunes, Apple Pay, etc. I haven&#x27;t worked there in ten years, but back then at least, I&#x27;d agree with that. Teams and orgs were heavily siloed and vertical.<p>However, then it goes on to say a few things that I think are harder to defend. The author talks about how it&#x27;s hard for Apple to build good services since they&#x27;re so focused on achieving perfection with a tightly integrated device that has a new release once or twice a year. Basically, the thesis is that since the market penalty for releasing a bad device is so high, Apple has thrown a lot of resources into getting the device right the first time, which makes it very hard for them to think or operate at the tempo you need when operating services:<p>&quot;You only get one shot to get a device right, so all of Apple’s internal rhythms and processes are organized around delivering as perfect a product as possible at a specific moment in time.&quot;<p>This isn&#x27;t right in a couple ways. First, Apple has released all kinds of sub-par hardware in the past. And will likely do so in the future. Apple says they are looking to achieve perfection, and it sounds noble, but it&#x27;s more of an iterative process than this article makes it sound like.<p>Second, many of a device&#x27;s features, especially the integration that the author lauds, are actually in software. Particularly the integration pieces that make the device seem like magic. And those are updated often as one can see with the release tempo of iOS updates. The pattern has been the same for a long time--release a bunch of new features in iOS X.0, then do point releases to fix bugs, plug security holes, and make minor tweaks to fix annoying things and make the user experience feel more smooth.<p>The other conclusion I don&#x27;t agree with is that the author says that in order for them to build better services, they need more accountability, which would be achieved by tracking profit and loss for each service and making the leaders financially accountable. I agree that accountability is something that&#x27;s required to create strong services, but it&#x27;s not the primary lever I would use. And I certainly wouldn&#x27;t bring P&amp;L into the accountability equation since that incentivizes the different service orgs to grow adversarial relationships. It&#x27;s old company thinking IMO.<p>Instead, I feel you need to build better services by building a better infrastructure culture. A lot of people look at situations like this and look for punitive or regressive measures to fix the problem, i.e. using the stick instead of the carrot. I think however they would build better services by focusing on other levers like open communication (the heavy siloing meant a lot of duplicated work), being open to criticism (lots of politics and defensiveness meant fiefdoms and grudges were created), a focus on instrumenting and measuring performance of services to have the right picture for how everything is working together (instrumentation and visualization of performance was terrible), a culture of learning from mistakes instead of assigning blame, having embedded SRE-like engineers who focus on production quality and availability instead of having separate second-class ops teams, etc. I could go on, but I have a really strong objection to boiling all their problems down to not making each service unit financially accountable. That won&#x27;t fix things, it will instead make the internal culture on the infrastructure side much worse.
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chillaxtianabout 9 years ago
this article is all fluff.