Paradise Lost: The

Xerox Alto
 Case Summary:
• In 1970, Xerox was uniquely positioned to take advantage in office automation
technology.
• In 1973, Xerox Alto was the first stand-alone personal computer.
• Xerox had launched its Model 914 photocopier that turned Xerox into a million dollar
company.
• In 1974, the company then decided to go with Model 800 magnetic tape which was a
safer choice at the time.
 Cont…
• During the 60’s and 70’s, the Xerox corporation became a company that didn’t believe in
taking big risks and refused to invest in something new and innovative, but instead,
invest in something that they knew would bring their company guaranteed revenue.
• By 1979, company’s unique opportunity was lost.
• When IBM released its new electric typewriter, so Xerox did the same.
• In the end, the Xerox corporation was only left with “would’ve” and “could’ve” because
of their incremental strategy.
 History
• The Xerox Alto is the first computer designed from its inception to support an operating
system
• It is the system to bring together all of the components of the modern Graphical User
Interface (GUI)
• The Alto was first conceived in a December 1972 memorandum written by the PARC
scientist and manager Butler Lampson
• Alto was inspired by the On-Line System (NLS) 
• The PARC Altos were connected together in a local area network, using a new networking
technology named Ethernet.
 DO YOU SEE A LOGICAL CONTRADICTION IN XEROX'S
WILLINGNESS TO DEVOTE MILLIONS OF DOLLARS TO SUPPORT
PURE RESEARCH SITES LIKE PARC AND THEN ITS REFUSAL TO
COMMERCIALLY INTRODUCE THE PRODUCTS PRODUCED?

• The legal contradiction of XEROX'S willingness to devote millions of dollars in the alto,
then stop any marketing efforts to produce are evident in XEROX'S incremental
approach of their product.
• XEROX was not willing to take a chance on the product they devoted so much money
into;
• This is contradictory because why would you not promote an item invested millions of
dollars into?
HOW DOES XEROX'S STRATEGIC VISION WORK IN FAVOR OF OR
AGAINST THE DEVELOPMENT OF RADICAL NEW TECHNOLOGIES
SUCH AS ALTO?

• XEROX'S strategic vision worked against the development of radical new technologies
such as ALTO
• because they were directed toward moving head to head with the competition in an
incremental approach.
• an example is IMB's new electric typewriter; when IBM released it, XEROX did the
same.
HOW DID OTHER UNFORESEEABLE EVENTS COMBINE TO MAKE
XEROX'S EXECUTIVES UNWILLING TO TAKE ANY NEW RISKS
PRECISELY AT THE TIME THAT THE ALTO WAS READY TO BE
RELEASED?
• They caused XEROX to second guess what they had initially foreseen to begin with.
• Being that XEROX was already successful with past attempts, you would have thought
that their decision making would have been very clear of any fear or uncertainties that
may have arisen,
• Especially after spending so much time and money into its development.
RADICAL INNOVATION CANNOT BE TOO RADICAL IF WE WANT IT
TO BE COMMERCIALLY SUCCESSFUL." ARGUE EITHER IN FAVOR
OF OR AGAINST THIS STATEMENT

• We are in favour of this statement mainly because technology in this day and age had to
have taken some sort of radical approach in order to be successful.
• Radical innovation is the here and now, not the yesterday or past revelations being in the
era where competition is in almost everything we do being radical is the only way to not
only get the attention of our consumers but making sure it is a newer or better way to
make everyday task much easier, more accessible, and being a success in all the same
sense.
Strength:
• Strong corporate brand
• PARC (R & D lab)
• Technological advancement
• Innovation
Weakness:
• Lack of strategic focus
• Incremental approach

Opportunities: Threat:
• Launch of Xerox Alto • Competition