1. A Byte Out of Apple Computer ISM 158 -- W ’04 Apple Computer, Inc By Sam Braff

2. Topics to Address: Industry Background Company History Products Offered Financial Performance Information Systems Roles, Roles and Relationships The Future

3. Apple’s Competitive Role Competed within the Personal Computer Industry Consistently undercut through pricing and quantity Began to explore the fringes defined by the PC

4. The Digital Hub Industry Focus not on the PC itself but on the use of the PC as a hub for associated digital devices (e.g. the iPod, iSight, Palm V) Competition is derived from eight unique categories Areas of Competition: Digital Devices Offered/Supported Software Integration Personal Computers Services Sales Strategy Customer Strategy Information Systems Strategy

5. Major Players in the DHI Apple Computer Sony Corporation Hewlett Packard Dell Computer ----------------------------------- MicroSoft Hardware Manufacturers Intel, AMD, Motorola, IBM, Hitachi, etc…

6. Historical Perspective Apple was founded by Steve Jobs and Steve Wozniak, two college dropouts, on April 1, 1976 1984 was the year of the Macintosh, arguably the first “personal” computer In 1985, Jobs left the company after losing a power struggle between him and John Sculley, the ex-president of Pepsi-Cola who Steve himself had courted Between 1985 and 1993, Apple had many successes and was positioned as a Personal Computer Industry leader

7. Historical Perspective (continued) In 1993, John Sculley stepped down as CEO and Apple began trudging down a rocky road 1995-1996 was the worst year ever for Apple, almost leading to their demise. No corporate executive could seem to turn it around Then, in the last month of 1996, Steve Jobs was hired back through the purchase of the NeXT project Steve Jobs quickly returned to the level of upper management and attempted to give hope to the struggling corporation

8. Historical Perspective (there’s more?) Jobs allied with MicroSoft and brokered a deal giving Apple $150M and Microsoft’s Internet Explorer default installation rights on Apple systems In 1997, the Apple Online Store is created and quickly becomes one of the top e-commerce sites around In the new few years, Apple debuts the iMac, the iBook, the iPod, the Xserve and their own chain of brick & mortar retail stores in an attempt to redefine their business in the Digital Hub Industry

9. Products Offered by Apple Hardware iMac iBook Power Mac Power Book Xserve XRAID iPod iSight Software iLife Suite AppleWorks Utilities Services -.Mac -iPod Engraving - iPhoto Albums

10. Financial Performance

11. Importance of IT Apple Computer, Inc. places an enormous role at the foot of their I.S. department. Two major retail units, numerous third- party retailers, numerous suppliers and customers Apple maintains an impressive database of nearly every piece of information they can track and quantify Managed by three top executives

12. Two Major Systems at Apple Online Retail Store Transaction Processing E-mail notification Shipment Tracking Data Mining Customer History Variable Pricing iTunes Music Store Transaction Processing Data Mining Visitor Tracking Customer History

13. Important Faces

14. Names to go with the Faces Steve Jobs -- CEO Fred Anderson -- CFO Ron Johnson -- Senior VP of Retail Avadis “Avie” Tevanian -- Chief Software Technology Officer These four men constitute the backbone of the company, although recently Fred Anderson stepped as CFO

15. Roles, Roles and Relationships The IT department at Apple is controlled by the CFO, who was until recently Fred Anderson For the two major systems mentioned previously (Online Retail, iTunes MS), both Avie Tevanian and Ron Johnson communicate with the IT department to receive their desired levels of support If IT is unable to support Avie or Ron’s current application of information systems, they contact Fred Anderson.

16. Role of the CEO? What is Steve Jobs’ role? The CEO, with regards to the IS department, is merely a watchdog to see that enough attention is paid to gaining added efficiency, effectiveness, and/or competitive advantage

17. What lies ahead? The future of Apple Computer, Inc. looks rather good. The last year has seen the stock price double and the iPod mini is currently sold out across the country If Apple wants to remain an leader in the DHI they need to continue to innovate. To avoid the emergence of competition, Apple must create new barriers to entry. One way to do this is by releasing a larger selection of Apple manufactured digital devices

18. Thank you for your time