Xerox PARC an innovation ecology? PAR wy | / »" a™ e> - he 7 \ Didn't you guys fumble the future : *) and give it all to Apple?

What question did Arthur D. Little fail to ask that caused IBM to turn down buying the patent rights?

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i eS eae eae (73 ah, a aa acetic ae 7) our work and social practices.

Learning: Think deeply about network effects.

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Growth of Xerox outpaces the growth of Microsoft

Haloid/Xerox revenues1956-74

(in constant dollars)

4000

3500

3000

q 2500

fe} = 2000 —E w@ 1500

1000

500

0 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 YEAR

After 15 years, Microsoft was about 70% of what xrx was.

In radical innovation tech & marketing often need to be creatively coupled.

4) Fantastic wealth created because of TWO ¢ ORY complementary innovations - one tech, =<) the other marketing.

Nay v? vf

The Art of Seeing Differently Palo Alto Research Center (PARC)

pioneering new frontiers for the digital age

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PARC fulfilled its original charter: the architecture of information and the office of the future

ethernet ssciseesiaeeceeiineteea uae em i sabe a » I | ae computing , ee object- = ine _S folders Progiamminl iii |

is wysiwyd

and created the modern xerographic laser printer

Building the foundation for the (Digital) Document Company

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and then marched on

Social computing, MOOs, Ubiquitous computing Smart matter, collaborative filtering, DRM, Liveboarc tablet computing, mems based printing, ePaper,-,-, and some spin outs.— SPL,

Who Are We?

Disciplines Countries Universities (atoms to culture) (27 countries) (60% Phds) physics north america —- Stanford materials science centralamericg MIT electrical engr south america Berkeley computer science europe CMU mathematics asia Princeton psychology Harvard linguistics Cornell anthropology Cambridge design UCSB art +many others

budget ~ $55m

size ~ 325 folks (including post-docs) 1995 or so

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paths for creating value

- docuprint nps & ips 5. ts 350/HC, 390/HC, 4635, 4180 existing business - laser diodes (lakes, DT 180)

technet, ttm ~ compression for ip-core

~ eureka for sales & service

new business - Contentguard - mobiledoc

- inxight

pioneering - placeware

research . intellectual property _ 168 patents

comip, xipo (up 73% from 1993 )

- Ideation strategy hew competencies - intra, internet x2005, parc2000 | ~ "* media documents

~ systemic mems ; ; - major news stories mind share, mind shear ote corporate p.r. - standards : http 1.1, NG, IPvé

Increasing the adaptability of the corporation (1/3 of 1% of revenue —— genetic variance)

How We Work

core values style

" bold but grounded * radical (both meanings): " inter-disciplinary 1) go to the root

* honoring the emergent 2) think out of the box * passion for impact

we strive to hire: style prime

* those with deep intuitions "QTL":

* the creative 1) link

* those with a passion for impact ae

3) | * risk takers 4) lead

pioneering research: opening up new frontiers

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Key Insight

At 1/3'4 of 1% can almost be viewed 4s a round-off error and thus doesn’t need adult supervision

stay small but large enough to achieve critical mass and be fundamentally unpredictable (failure permitted)

PARC Themes

Document Tools and Practices to Support Knowledge Creation and Use in Organizations

Networks and —— Docu ments Document Services on the Internet

Combining Computation and Matter at Smart Matter New Scales and Revolutionizing Xerox Product Competency

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Early Mantra

Build what you need use what you build

Ah, you had to eat your own dog

food..

SS ee eh a —y ————— ————— ——— ee

Designed to be experimented with.

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Deep Focus on the Soft Stuff

Subsidized and great cafeteria Cross disciplinary teams nearly always Long lunch tables so disciplines ate with each other Wall to wall whiteboards near all the coffee machines Coffee machines on ether net Labs never larger than 60 people, usually 45. Heavy use of intern program for hiring High rate of failure expected. Never micro managed. Big audacious projects the norm 15 folks or more for multi years Craft folks appreciated as much as researchers.. (treated the same)

A ionel baer of nermt age ce ee rf (mR Praline: Fret lie seh Hom eng tdi tel See = Foe. a

; te ele

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War for Talent & Whom We Sought

imagination

intuition aspiration

Never looked at a transcript

The Innovative Organization: productively bridging two worlds

designers deep domain knowledge _ playful grounded grounded analytic artistic focused on trenches transcending boundaries predictable nner He A

Appli ional ro pplies to a regional advantage as well \5

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The Secret Receipt

SCIENCE

SPECULATIVE DESIGN SPECULATIVE ENGINEERING

OUTWARD

ENGINEERING }

Rich Gold & Anne Balsamo

|] DESTEN

MOVE MINDS MOVE MOLECULES

PAIR: PARC ARTIST IN RESIDENCE PROGRAM Technologies of Imagination

Pairing Artists and Scientists, One on One, Using Technology as a Common Language.

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Inspiration Can Come From Anywhere

: toes ak a ' teh yr Es i Sele Ehey SY

—_ ter igh, ek ae : ee ar To

Co » Ah, you see art, | see 4 conformal mapping 4 of a hyperbolic half plane onto a unit circle + a A

Hyperbolic Tree Browser

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Hyperbolic Comic Browser/Book

Tunnel ve Leads To Tunnel Design

Gai

Individuals Communities

Communication

Information fons

Honor the Periphery

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12

Metaphors/Images & Stories help orient the mind and the organization

A guiding metaphor: The Blind Man & the Cane it

IN |

at it

Ready-at-hand: the handle disappears.

(Heidegger)

Reaching thru the ‘interface’ to touch the world directly almost like a prosthetics reaching thru the interface to the subject matter itself.

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Taking Computing out of Computers and embedding it in the world around us

technology that gets out of the

the essence of the ubiquitous computing movement

Automobile or 4. wheel computational platform?

Dozens of computer sensor/actuator systems all in service of you, sensing when you are in trouble and seamlessly stepping in to help. The Ultimate Experience??

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Replacing Mass with Computation using a dynamic auction-based control system

smart column

Hmmm, bringing computation deeply into the physical world. Beyond PID type controllers almost mimicking human muscle??

The Need for Balance the conscious & the subconscious Implicit

eriphe Gttuni ats

explicit center Uy atte ng ge

Subconscious? This is weird, {sb.

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Steps toward attunement The dangling The water wang ee (indicator of ether traffic) Cindicator of stock prices)

s that roa

aD Thanks Thin ~ ¢ a?) Natalie think want i rf

to link !

_- (se °

Some guiding metaphors for designing CALM technology

The key is the Taste rich interplay o matters! ! 3 domains.

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Shoulder to Shoulder Computing

Might this help to explain SL’s apparent success?

Turning 4 constraint into q resource?

Reconceptualizing how to scan documents.

Leverage slop rather than trying to eliminate it

Learning: We can learn bunches from natural systems

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If god were a Xerox engineer what would people look like?

Guides to the Unknown

The way ahead is to look around, not just ahead. isb/pd

The future is already here just not evenly distributed William Gibson

Fortune favors the prepared mind Louis Pasteur

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Smart Staples -- eTags

4 Lot bebtayfe |

Pee ered far

Heeitane ) »»

—— =

L/ an http address

ae

5 - | And it takes no power!

Keys to Innovation

“Thus, the task is not so much to see what no one yet has seen but to think what nobody yet has thought about that which everybody sees.”

Arthur Schopenha Uer 1788-1860

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Beware

‘The real difficulty in changing any enterprise lies not in developing new ideas, but in escaping from the old ones’ John Mayand Keynes:

Wisdom can stultify innovation. The more experience you have the more you know why something can’t be done.

Why did Xerox not grok the significance of the PC?

Steve Jobs got it in a nano second.

~~. e—_— = a

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20

The Social Life of Information

A STORYTELLING IN ORGANIZATIONS

John Seely Brown Patil Dotignsiel

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