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We Need To Rethink The Myth Of Macintosh And Xerox PARC
When people like to tell stories of historic corporate missteps, the story of Xerox and the Macintosh is near the top of the list. As the tale goes, the corporate giant spent a fortune to create all the technology that the famous computer was based on, but failed to market it and let Steve Jobs steal it out from under them.
But that version leaves out important context. Yes, Xerox did create the technology. It was also true that Steve Jobs, while touring the company’s research facility, understood that he could use it to make a revolutionary consumer product. But it wasn’t a blunder. Steve Jobs was there because Xerox had invested in Apple at bargain prices, not because they were tricked in some way.
The story has deeper implications, because the myth of Xerox’s blunder influences how firms invest in technology. The truth is that Xerox’s research strategy was visionary and incredibly successful. In fact, it likely saved the company. So rather than looking at the story of Xerox and the Macintosh as a cautionary tale, we should see it as a model to replicate.
The Xerox PARC Strategy
When Peter McColough took the helm of Xerox in 1968, it was at the top of American industry. An incredibly profitable business, it had a culture devoted to technical excellence and produced the world’s best performing copiers. Over the years it also developed a great sales and service organization that built strong relationships with its customers.
But it was becoming clear that trouble was looming. Japanese competitors like Canon and Ricoh started selling simpler, cheaper copiers, based on 20-year-old technology, that were easier to use and needed less maintenance. Rather than staffing a “copy room,” companies could place these smaller, less expensive units on every floor.
Xerox was getting disrupted. It continued to innovate, but most of those efforts were going toward making its copiers better and better at things people cared less and less about. McColough saw the nascent computer industry as an opportunity and sought to control the “architecture of information.
“It was a great phrase,” someone would later say, “because no one knew exactly what it meant.” To that end, he created the…
