Gopal Krishnan Vikalp Chaudhary Sunita Singh Anirudh

XEROX PARC: INNOVATION WITHOUT PROFIT?

History of µXerox¶
1906: Haloid Photographic Company 1906: Chester F. Carlson was born 1939-1944: Turned down by 20 companies 1944: Battelle Memorial Institute , an NPO, contracted with Carlson to refine his process 1947: Haloid approached Battelle 1948: Haloid decided to call this Xerox 1949: Model µA¶ was launched in market

Business Expansion
1953: Subsidiary in Canada 1960: Rank Xerox
1962: Joint venture between Fuji Photo film and Xerox

Arrangements for southern and central America

Monopoly Lost!!
1970s: Modification and expansion of business due to patent expiry Heavy competition from Japanese companies Canon, Ricoh and Sevin Lower operating costs of Japanese µ70-80: Xerox¶s market share fell from 96 to 45% 1980s: Diversification into financial services, insurance and investment banking later liquidated

PARC
1968: Carlson died and Xerox shifted to Connecticut 1970: Palo Alto Research Center (PARC) was founded
† Partly

by government † Develop technologies of future † 1971: First laser printer was developed

1973: The Alto was innovated

Purpose of PARC
Xerox¶s fear was that computer would render copiers and typewriters obsolete PARC was established as a research center that would determine the future of computers and technology Its job was to invent a future for Xerox that went beyond photocopiers

Innovations at PARC
Laser Printer: Xerox introduced it in market The Alto: First commercial use of mouse, GUI and Bit mapping Smalltalk: First of objet oriented programming language used cut, copy and paste editor Windows and Apple Mac used GUI similar to what was developed at PARC Ethernet: Became standard for LANs, Xerox started providing it at a nominal fee

Innovations at PARC contd«
Charles Simonyi: Developed µBravo¶ and µGypsy¶, first user friendly software in 1974 Simonyi joined Microsoft later 1979: Very Large Scale Integration (VLSI) Xerox 5400: First copier with a build-in diagnostic microcomputer 1981: Commercial design of personal computers 8010 Star information system, which for the first time had features like title bar, scroll bar, menus, etc.

REASONS 

Cultures at Xerox and PARC  free wheeling place  bureaucratic and sluggish  laid back attitude- copier/printer business Objectives of Scientists and Managers Time frames    

PARC- tremendous autonomy  Outside the grasp of headquarters  Interested areas  Casual atmosphere  Flexible timings lavishly funded Later stage-New inventions and ideas««..Problems Myopia   

Employees leaving PARC Did Xerox miss out on some great opportunities? 

HUMAN ANGLE 
Founder of PARC(Palo Alto Research Center) ± Jack Goldman , chief scientist at Xerox in 1969.  George Pake - Director of PARC , was believed to be responsible for relocating the center from Rochester, N.Y to Palo Alto(3000 miles from N.Y)  Attracting best talent available in the country .  Nurturing µLeadership through quality¶(LTQ) approach ± a fully integrated business process. 3 major components of LTQ are : a) Employee Involvement b) Competitive Benchmarking c) Quality Improvement process

HUMAN ANGLE 
Competitive Benchmarking ± quality , product reliability & cost 

Vague Objectives ± a cause for concern ?  Diversity of researchers backgrounds and interests.  Robert Taylor ± a visionary leader of modern computing technology. Initiated ARPAnet project ± forerunner of today¶s internet. Awarded µNational Medal of technology¶ in 1999.  Bob Taylor ± unmatched leadership in PARC.  Dr. Alan Kay ± brain behind the laptop computer. µThe best way to predict the future is to invent it¶

LATER INNOVATIONS
1980s ‡ Superpaint ± first pixel based buffer system ‡ Xerox 4050 Laser printer ± advanced printing system ‡ PARCtabs and PARCpads ± ubiquitous computing ‡ Postscript ± page description language(1989) 1990s ‡ LambdaMOO ± multi user domain ‡ Xerox 5100 copier ‡ Knowledge management system ± Eureka ‡ Blue laser technology ‡ Mobile Doc software ± access remote documents 2000 -present ‡ PARC- subsidiary of Xerox ‡ SmartPaperportable electronic paper software

Turning points
1980s : µubiquitous computing¶ era 1990s: Eureka ± dawn of knowledge management system 2000 ± present : Commercialisation of ideas by Xerox.

XEROX LEARNING FROM ITS MISTAKES
PARC as a subsidiary of Xerox ‡ PARC working on new innovations ‡ Xerox New Enterprises (XNE)
‡

‡ ‡

To commercialize the innovations

To provide seed capital and business advice to startup companies

‡

Xerox Innovation Group (XIG)

Role of Xerox Innovation Group
To look after R&D † Intellectual Property Management † Business Development for Licensing and New Business Opportunities † Business Unit Operations
†

a. b.

c.

XIG¶s units included: Various Research Centers of Xerox Divisions within the company to develop and market new products Spin-offs to exploit innovations

Take always from the above discussion A. With all of this Xerox was willing to capitalize on the innovations from PARC B. And PARC was required to be more focused on the business implication of its research.

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