Steve Jobs On Why Xerox Failed

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Steve Jobs On Why Xerox Failed

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[Steve Jobs On Why Xerox Failed]

[Interviewer:] Source: LYBIO.net
So they were very skillful?

[Steve Jobs:]
Yeah, but they did show us.

[Interviewer:]
Yeah…

[Steve Jobs:]
So uh… And it is good that they showed us because the technology crashed and burned at Xerox. And —

[Interviewer:]
Why?

[Steve Jobs:]
They used to call —

[Interviewer:]
No, I was just –

[Steve Jobs:]
What’s that? Why?

[Interviewer:]
Ya, why?

[Steve Jobs:]
Oh very — I actually thought lot about that. And uh… I learned more about that with John Sculley later on. I think that I understand it now pretty well.

What happens is like with John Sculley. John came from PepsiCo. They at most would change their products once every ten years. I mean, to them a new product was like a new size of a bottle, right?.

If you were a product person you couldn’t change the course of that company very much.

So, who influenced the success of PepsiCo? The sales and marketing people!

Therefore they were the ones who got promoted. Therefore they were the ones who ran the company.

Well, for PepsicCo that might have been okay.

But – it turns out that the same thing can happen in technology companies that get monopolies – like oh… IBM and Xerox. If you were a product person at IBM or Xerox – so you make a better copier or computer? So what?

When you have a monopoly market share, the company is not any more successful.

So the people that can make a company more successful are sales and marketing people. And they end up running the companies.
And the product people get driven out of decision making forums. And the companies forget what it means to make great products.

So the product sensibility and the product genius, that brought them to that monopolistic position, gets rotted out by people running this companies who have no conception of a good product versus a bad product.

They have no conception of the craftsmanship that is required to take a good idea and turn it in to a good product.

And they really have no feeling in their hearts usually about wanting to really help the customers.

So, that’s what happened at Xerox. The people at Xerox PARC used to call this people toner heads.

Uh… and these toner heads came out to Xerox PARC and had no clue about what they were seeing.

[Interviewer:]
And for our audience, toner is what?

[Steve Jobs:]
Oh toner, toner is what you put into a copier. Ya, you know the toner that you add.

[Interviewer:]
Ya.

[Steve Jobs:]
To an industrial copier, the black stuff. The black stuff yeah. So… basically, they were copier heads that just had no clue about a computer or what it could do. And so they just grabbed defeat from the greatest victory in the computer industry. Xerox could have owned the entire computer industry today. Could of been a company, you know, ten times its size. Could of been IBM. Could of been the IBM in the 90’s, could of been Microsoft in the 90’s. So um… so anyway that is all ancient history, it doesn’t really matter anymore.

[Interviewer:] Source: L Y B I O . N E T
Sure.

Steve Jobs On Why Xerox Failed

Steve Jobs On Why Xerox Failed

Steve Jobs On Why Xerox Failed. Companies forget what it means to make great products. Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.

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