Cover Page by Marc Epstein, Robert Shelton, Tony Davila

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1. Driving Success: How You Innovate Determines What You Innovate

Innovation Is the Power to Redefine the Industry

For any organization, innovation represents the opportunity not only to grow and survive, but also to significantly influence the direction of the industry. Apple Computers (now called Apple, Inc.) took the industry by surprise when it launched iTunes and iPod—but not so much because these were innovations nobody had ever thought in the PC arena. Instead, the surprise was the strategy of combining technology change and business model change into a one–two innovation punch. And the iTunes/iPod combination is only starting to generate new concepts; one of the latest is an iPod special edition with rock band U2, which opens up rich ...

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