Summary from We Need To Rethink The Myth Of Macintosh And Xerox PARC by Greg Satell.
Key Takeaway
Innovation requires actively seeking out new problems, and the story of Xerox and the Macintosh, often considered a corporate misstep, is better seen as a visionary and successful research strategy by Xerox, which likely saved the company.
Summary
- Xerox faced a crisis in the late 1960s with key patents expiring, leading to a loss of industry dominance.
- CEO Peter McColough’s visionary strategy involved creating PARC (Palo Alto Research Center) to explore new technologies and save the company.
- Despite the myth that Xerox failed with the Macintosh, the context reveals a strategic success, not a blunder.
- The creation of the laser printer at PARC was a breakthrough, providing incredible profits and saving Xerox from decline.
- PARC’s technologies, including graphical user interface and networking, laid the foundation for personal computing.
- Xerox’s research strategy was a model investment, with the laser printer alone paying for the PARC investment multiple times over.
- Spinoffs from PARC, such as 3Com, Adobe, and Synoptics, contributed substantial value to Xerox, showcasing the success of the strategy.
- Evaluating Xerox’s success shouldn’t focus on missed opportunities but on the considerable value generated by PARC initiatives.
- The article emphasizes the importance of active exploration for innovation, stating that not exploring leads to disruption.
- Innovation requires continuous exploration, which may not be efficient but is crucial for sustained success.
- Large enterprises can invest in labs, while even small businesses can access world-class research by connecting with larger institutions.
- The equation presented is clear: No exploration means no discovery, no discovery means no invention, and without invention, disruption is inevitable.
This report outlines the historical context, challenges, and triumphs of Xerox’s innovative approach through PARC, emphasizing the broader lesson of actively seeking new problems for continuous success in the ever-changing business landscape.