Xerox PARC: Innovation without Profit?
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Case Details:
Case Code : BSTR150
Case Length : 16 Pages
Period : 1970-2004
Organization : Xerox PARC
Pub Date : 2005
Teaching Note :Not Available
Countries : United States
Industry : -
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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EXCERPTS Contd...
The Ones That Got Away
Over the years, PARC, the people who worked there, and the breakthroughs achieved at the center have attained a near mythical status.
Many of the innovations perfected at PARC had a profound impact on computing, and consequently, given the ubiquity of personal computers and the Internet today, on people's lives.
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Often though, Xerox and PARC are known more for letting many of the pathbreaking innovations get away from them, and allowing other companies to reap the rewards - often huge - that came from commercializing the ideas.
This is particularly true of the work done at PARC upto the early 1980s. (See Exhibit II for a detailed description of some these ideas and products).
In fact, when discussing PARC, these are the two questions that are the most
intriguing: One, how could one research center produce so many innovations that
were truly revolutionary? Two, having produced so many great innovations, how could Xerox fail to commercialize them?...
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Now, To Innovation With Profit?
PARC, in the 21st century was a changed organization. The business environment in which Xerox was operating was vastly changed from the days when the center was set up.
In its new avatar as a subsidiary of Xerox, PARC was attempting to break away from its past of missed chances and was working on a number of new and innovative products like blue lasers; multi-beam lasers; micro-electro-mechanical systems, and the path breaking Hyperbolic Tree, which was expected revolutionize the way people browsed the internet. Xerox also seemed to have become more concerned about putting to use its intellectual property. Even before spinning off PARC, in 1996, Xerox had created a business development division, Xerox New Enterprises (XNE), to commercialize the innovations coming out of its research centers, which were outside its core businesses...
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Exhibits
Exhibit I: Background Note on Xerox Corp.
Exhibit II: The PC
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