| What the other Steve has to say...  Date: September 2007 Author: Allan Cohen, Jay Rao and BI Staff
 Published at:    www.babsoninsight.com
  · · · A. Cohen and J. Rao · Creating Great Products with Woz · · ·Creating Great Products with Apple's Steve Wozniak, Inventor of the Personal Computer
                              Professors Allan Cohen, Jay Rao and BI Staff. Used with friendly permission by Jay Rao.
                                  
  Introduction  
 2007 marks the thirtieth anniversary of the introduction of the Apple  II, the first true personal computer. Because of his belief that  everyone should be able to afford and use a computer, its creator,  Steve Wozniak, pioneered an ingenious low-cost design that combined  ease-of-use with valuable functionality. With its own monitor, a  cassette for storing data and loading programs and eventually much  more, this new computer for the first time allowed non-techies to use a  real computer.
 
 Babson Insight recently interviewed the Woz, as he is known, and asked  him to go beyond the tale of the invention of the first user-friendly  personal computer and tell us how the lessons he has learned can be  applied today. He spoke on a range of subjects, including how to foster  user-focused innovations and how to identify people who have the  potential to produce great breakthroughs. He also shared his thoughts  on the future of computing and several new technologies that may  reshape our everyday life.
 
 
 
 
                                  Interview 
 I.  Mastering the Art of Innovation
 
 Babson: Very early on you were convinced that people without any  technical ability should be able to use computers. This was a very big  change and meant that almost everything you designed had to be based on  understanding a customer that did not yet exist. How did you do this?
 
 Woz:  In my mind I thought about younger people, those who have not been  influenced by the world and how they approach problems and learn to  solve things. They have not yet learned how things are supposed to  work. When given something new they’re going to try to adapt by finding  the easiest, most understandable set of steps to get things done. So  test your products on young people, people who haven’t used these sorts  of things before and find out what works best.
 
 Babson:  How do you know when you have created a great new product?
 
 The key to creating great products is that they have to be easy to use.  I look at the manual; the shorter your manual is, the fewer things you  have to explain and the better you’ve done your job. That has been  partly subverted today by the fact that many products have small  manuals. But it’s largely a trick; we sort of say it’s alright to  assume you know it all, or that you can figure it out. And if that  doesn’t work, you can go to the bookstore and buy a 700-page book  written by someone else.
 Reaching that point of greatness is very, very hard. I  would say to people, “Here’s a list of all the things the product has  to do in the end, or here’s a list of all the methods it has to have.”  Then you have to think through all the functions, the user steps and  the possible solutions. Then ask, “How can we combine things to make it  easier with fewer steps?” It takes an awful long time to think that out  and do it well. 
 We’ve done that at Apple and in those few periods we really made things easy and changed the world.
 
 Babson: Let’s talk about the innovation process. In your book, iWoz,  you describe being methodical and logical, working your way through a  problem step by step. You also talk about seeing a complete solution in  a flash, without going through all those steps. Are those two very  separate processes or do they sometimes go hand in hand in helping you  innovate?
 
 Woz:  It’s hard to say. Those flashes seem to occur at points  when you’re forcing the mind to focus strictly on the end goal,  allowing nothing else to distract you and being motivated to do it  better than other people have done it.
 
 You’ll fall asleep thinking, “How can I shorten the code, is there a  way that I can make it run faster; is there a way that I can design it  with fewer components, a way to make it easier?” For me during my early  high school days and on through Apple a lot of the solutions came to me  while I was dreaming. I’d wake up with a solution in my head.
 
 Babson: There seems to be a common theme in all your product  development and design where you have an insight that causes you to  make choices that create not just a technical advance, but also a  product that is much easier for the user. Where does this focus on the  user come from? Is it a conscious choice?
 
 Woz:  Yes, I think design and development should always be done from a  point of view that believes the human being is worth more than the  technology. You just have to have it in your head that you will apply a  lot of effort to bend your hardware and create your software design so  that the user has a nice easy flow in using this product. In this way  it fits their life as they live it now. The opposite way is where  someone decides to put in all the functionality in a way that causes  the user to modify the way they do things. This difference is where the  huge value is, at least for Apple.
 
 Babson:  Do you think that happened in you naturally, or was there something that caused you to crystallize on that approach?
 
 Woz:  I think it was just luck. In my own case, I believe it is  well known that when Jeff Raskin sat down with Steve Jobs and me in our  garage in the early Apple I days, he explained a lot of the thinking  about making products simple. I admired him so much because he was  saying, “This is what the academics are thinking in colleges, the  professors who are thinking so far ahead on how this technology  interacts with human beings.” That influenced me so much. But, in my  own work, I was thinking, “I’m building a product for myself that has  to be so good.” It had to be the best in the world, very simple,  straightforward. I had this very good idea about architecture and  components. Whether it’s the architecture of a house or the  architecture of a computer, you should look at the pieces that are  available and build it in a way that with very minimal steps and parts  you wind up with just as good a solution as if you had many more parts.
 
 It’s like building a house. You could build it out of southern yellow  pine, which is wood that is a natural air conditioner. It can be 51  degrees hotter outside the house than in. The inside of the house will  always be around 71 degrees, and the wood now is the frame of the  house, so you don’t need insulation. It is also your air conditioner  and your heater. Why build a house and then add the air conditioner and  heater? Think it out from the start. That’s the way to be broad with  engineering covering multiple disciplines. You know the materials that  are available, you know the end solution that you want, and you just  design it to be the most efficient way to get there. That’s the way I  think about engineering.
 
 Babson: You have said in your book and elsewhere that a lack of  money and resources forced you to think differently. Because of this  you had to find a better way of doing things than if you had been at a  big company with a large budget. You built a prototype of a computer  using a television set and store-bought components. Is having limited  resources one of the keys to creating original designs?
 
 Woz:  It doesn’t mean being too sparse on resources, but it forced me to  be a lot more efficient and absolutely led me to think of ways of  building things that used very few parts. For example, when I was  starting out, I could have never afforded an output device for a  computer.
 
 I was thinking about that output problem and, well, we have these TV’s,  but TV’s didn’t even have video inputs back then. Nobody would build a  device to talk to their own television, but I wanted to be able to see  the instructions I was putting into the computer and have it show me  the response, the output. So you know what I had to get? A Pong game.  The game had input through the hand-held controller and you would see  the output on the TV screen. I saw one and had to have it. It could  work for my computer problem. So it forced me to think, “Is there any  way I could I do this with my limited resources?” And basically, I had  to build it.
  Working this way I hit on a lot of good approaches and I was able to  start from scratch – fresh. Everything I did, all the early Apple  stuff, was on things I had never done before in my life. I studied the  data sheets to see how they worked, figured out a real good solution,  and my real good solution tended to be better than anyone had ever done  before. 
 Companies can also foster thinking like this by creating challenges for  their people. Before Apple, I worked at another company and a manager  there would sometimes give us a little problem, such as, “Can you  program this in the fewest steps?” It was a challenge to look for  solutions that other people might not see. Some companies think we  educate people only by sending them to Stanford. But they can foster  inside learning with these little challenges by saying, “Hey, we’ll  sponsor you with some resources, parts and tools, and we’ll challenge  you to do this better.”
 
 The education that led me to writing great software and making great  hardware was not in schools. It was largely just little challenges  throughout my life. In high school when I designed all those  mini-computers over and over on paper, I had a rule of trying to beat  myself and design it with fewer chips than last time.
 
 Babson: You mentioned the word luck. Even where there are great people  and processes, the element of luck also seems to come into play. What  is your view on that?
 
 Woz:  My view on that is that markets can’t be predicted precisely. In my  case, a lot of the time I worked at something I was very interested in  working on and all of a sudden it became very valuable to the universe,  such as the personal computer. It was just something I was going to be  building that year in my life no matter what, and I’d been working  toward that from the time I was 10-years-old. So it just turns out to  be that valuable. That’s what I was going to do. Sometimes, you could  build a device that is so incredible, but it doesn’t solve a need for  the masses, and you don’t get recognized. Some products hit it bigger  than others. You know, there were a lot of people looking for the  formula, too, for a personal computer. I guess ours just turned out to  be the right one.
 
 
 II. Managing and Leading Invention
 
 Babson:  How do you know when you have a great innovative engineer, particularly if it’s early on?
 
 Woz:  Sometimes you can spot people who are going to be productive in an  extremely creative way because they have some strong internal goal.  When you watch and listen it is just so obvious they are passionate to  solve something that nobody else has solved before, they want to find a  better way to do it, but they don’t have the resources yet. These are  the people that are just thinking very differently. They are usually  excited and continually spouting a whole bunch of stuff about their  subject and this intensity and energy tells you right away that they’re  gifted in some sense.
 
 Babson: How can you tell the difference between the people who  are simply creative and those who are creative and able to produce  something of great value?
 
 Woz:  I think you can tell the difference pretty quickly, but maybe not  instantly. Some are just creative, like an artist doing things in a lot  of new and different ways, but not all will come back to something  real. The problem is that you can’t instantly separate the creative and  productive from those who are merely creative, because sometimes the  value of what they’ve done is not immediately seen. Every once in  awhile they may stumble onto something that isn’t useful for their  project, but can be built on by others, or used for an entirely  different purpose.
 
 Babson: In your book you talk about good engineers being creative and  approaching work like sole practitioners, doing it all themselves like  an artist. We deal a lot with corporate situations where the complexity  of a problem requires the collaboration of several people. Do you see a  way to foster collaboration for creativity and innovation?
 
 Woz:  I don’t think of it so much in terms of managing the people  as how the company inspires them. One way to do this is to give people  time to work on the things that interest them the most. Google does  this formally. In my time at Hewlett-Packard they offered resources,  such as parts from the stock room for your own designs, figuring that  you are going to work hardest on the things you design yourself and  these are the things that you’ll learn the most from, making you a  better employee.
 
 The trouble with creating innovation in larger corporations is the  culture. There is a message that goes along with the company’s products  that causes engineers to design and develop new products in a way that  fits the existing products. This limits people’s thinking, yet the big  breakthroughs come from people doing incredible things that don’t fit  the culture.
 
 Babson: Research and design has in many cases become too complex for  one person. How do you get these inward-looking engineers to work with  others who may have different skills?
 
 Woz:  The people who have specialized knowledge may simply understand how  it has been done before. But someone who is very goal oriented and  extremely skillful, (sort of like me), will take on a task they have  never done before by just reading examples, or thinking through how  people actually use the product. Working in this way they may write the  new textbook on how to do it. When given the most modern tools,  techniques and components, people like this are going to come out with  probably a better solution than others do using the standard well-known  way.
 
 Some people might see this as breaking the rules, but good engineers  don’t have to break the rules. They can use the same processes and by  being very motivated and goal oriented, they are going to solve that  problem no matter what it takes. So if they have to grab another person  to do something they can’t, maybe write a piece of code, they’ll do it.
 
 Babson: You’re saying that you can create ownership of a project by  giving someone responsibility for both the detailed tasks and the  broader project result, creating a passion that overcomes ego and makes  people reach out to draw in others and their skills when needed?
 
 Woz:  Yes. The most important thing from the management point of view is  to not tell people what they should be doing, or how they are going to  do it, but instead to communicate a passion for the goal and its  benefits. All the plans, facts and figures in the world that you may  provide an engineer won’t result in anything if you can’t motivate them  to want to get this thing done well. Then give them some freedom in the  work to think up great ideas along the way.
 
 Babson:  You mentioned finding the right people; how do you find the right people, bring them along and encourage them?
 
 Woz:  The people you want for great innovative engineering are the young  people, some of them may not have even attended college yet. They’re  out there building a bunch of stuff on their own. They’ve looked at  many examples and have taught themselves which parts to use to be more  efficient, how to wire things, make their own PC boards and write their  own software. So you have to look beyond just the campuses.
 
 Often, they are not the sort of person who wants a corporate job; you  know 9-5 jobs, they want a lot of freedom. They work best when the  ideas are flowing, whether that’s dinner time or two in the morning. So  freedom in their work is the key to drawing them in and allowing  flexible hours is a big part of that.
 
 Encouraging them is really just a matter of giving them important work  and the resources to do it, along with the freedom to solve things in  new ways.
 
 Babson: Are you saying that we have to find people who are already  involved in creating new solutions and then set up an environment that  is encouraging and not too restricting?
 
 Woz:  Yes. One problem with this is that people who are already  recognized for being creative have probably developed something that  became a big success. So they’re already established and they’ll come  at a high price. You have to find very creative people at lower levels.  These are usually young people and they may be difficult to manage. So  you have to give them responsibility and take some risks.
 
 Babson: You just started a new business with some former Apple people.  Are there specific characteristics that you look for when you are  trying to find great technical people?
 
 Woz:  I look for someone who will explain what they have done before in  terms of why it was so much better than what others had done. They  should sound like they can’t live without solving these problems. It’s  just what’s inside them; it’s their passion. You can hear it in the  words they use and the excitement in their voice. They have trouble  falling asleep because their mind is still on the problem. And when  they do sleep, they dream about solutions, sometimes waking with new  ideas they have to rush off and try. I remember that happened to me  with the Apple I and II and other early Apple products. I’d fall asleep  and wake up with a better way to make something work.
 
 Babson:  It sounds like you want people to describe more than just technology; you want to hear about the benefits to the user.
 
 Woz:  More than that. I want to hear what’s the greatness? What’s the  excellence? And why is it important? You don’t even have to be able to  understand the excellence they are describing, but you can feel how  important it is to them. It’s this passion that made them do things  that other people did not think of.
 
 Babson: You mentioned passion and compared engineers to artists. Do  those characteristics help you identify the people you would want on  your projects?
 
 Woz:  You really can only spot that kind of excellence after the fact.  You can look at their work and talk to them and understand exactly why  they use a certain code sequence instead of some other method. No one  else did it that way because no one else drove themselves that deep  into the problem. The fact that they care about the excellence so  deeply is, in a sense, what makes them an artist.
 
 Babson:  Is that why you say they work best when they’re alone?
 
 Woz:  The best part of working alone is that you have one mind, one  mentality that will make a product extremely good. That one mind  doesn’t have to be limited to a small part of the project and spend  time interfacing with everyone else. They don’t have to be a strong  personality because they are totally insulated and protected. That  person can have skills in many disciplines and then reach out to others  for additional knowledge on particular things.
 
 Babson: At several points in your book you hint at being apprehensive  toward marketing and marketing people. What problems do you see in the  marketing function that collides with invention and innovation?
 
 Woz:  Engineers, marketers and managers all contribute in some way to the problem.
 
 Many engineers are inside people. They do their jobs with a mental  intensity that means they pretty much work alone. Some engineers have a  difficult time communicating and are also wary of marketing people. But  they would be a lot more effective if they had a better understanding  of the process; such as the trade offs that have to be made in design  and the selection of features based on their value.
 
 Often a product’s greatness comes from the little ideas that engineers  come up with as they are working through the design problems. But  management creates a problem with this because they make the important  decisions without leaving room for this.
 
 Marketers like to work in a way that is opposite to this  discovery process. They want to have a product completely defined with  50 pages covering every little detail before the engineering work  starts. This doesn’t leave you any flexibility for new ideas that come  up along the way. So marketing is also not very understanding of the  critical engineering process.
 
 Babson: One hallmark of your career is that you’ve created simply for  the challenge, for the sake of making things better. You shared  everything you created and didn’t seem concerned about patents. Do you  see that things have changed today because of all the money in initial  public offerings, stock options and venture capital? Do you think it  has changed the craft or the process for the engineer inventors?
 
 Woz:  I do not. I do think that sometimes things have to be structured so  that the engineer is allowed to be an engineer. You have to allow them  to be the creative problem solver and get recognition for that. An  engineer should not have to sacrifice their desire to do good things  for the world. That doesn’t mean that you’re working for free. Being in  a money-making operation is okay. It’s just that it shouldn’t change  the sort of person you are, or the quality of your product and designs.
 
 Babson: One of the challenges in business today is to retain great  players. How do you keep good engineers and innovators? How do you  compensate them, reward them and give them visibility?
 
 Woz:  I would have a policy like Hewlett-Packard had when I worked there,  before starting Apple. They encouraged you to work on little inventions  of your own, and you would get some financial support from the company  to build them. The company benefits in two ways. You’re becoming better  at designing things for the company because you’ll force yourself to  learn ways to solve your own problems and you’ll carry the quality of  this design work over to your work for the company. But also, if you  come up with something that is worth a lot of money, there may be a  spin-off and the company would get a good share of this new business.  That kind of support policy can be implemented very openly at some  companies. Stock rooms should be open for engineers so you can use the  parts for your own designs. If this happens, and your mind can take  flight, you’re going to love your company more.
 
 
 III.  A View of the Future
 
 Babson:  What’s the future of the personal computer as we see it today?
 
 Woz:  It’s going to be the primary technology device in our life for the  foreseeable future and the long-term future. I guess we used a keyboard  on a typewriter long before computers, but we are going to be using  this keyboard-based machine basically forever. Even our programs, back  in the early days of computers, got typed into something and popped up  on a card. The only example of a program that didn’t get typed into  something was the Apple II.
 
 Babson:  You mentioned that you think we’ll be interfacing with computers in the future using speech recognition.
 
 Woz:  I see some applications where speech recognition will work, but  keyboards will not disappear. They’ll be your main storage information  tool.
 
 We talk about this a lot. I haven’t been too happy with any speech  recognition I’ve seen; they all take a lot of correction steps. We’ve  never really built a device that can hear like a human. It’s a huge  change and we can’t really predict when some technology or formula may  come out that works well.
 
 For example if we’re all sitting in the same room right now I could  talk and you’d understand what I am saying. We know where to direct our  attention, and we sort of know that the syllables have a regular  rhythm, so we can finish sentences in our head. If I begin a sentence  by saying “Tomorrow I’m headed to Florida,”  you’re already thinking that I’m going to say a place and that helps  you get the word forward correct. Computers don’t yet know this. There  is research going on for this, but we’ve never really combined the  technology with the logic to create a full human ear.
 
 Babson: In your book you describe walking into Xerox Park Research Lab  in 1980 and having a eureka moment, seeing many gadgets instantly and  realized what the future would be like. Are there any products,  developments or technology you have come across lately that create  those same eureka views of the future?
 
 Woz:  Yes, ideas just pop into my head and I think “This would be a  fantastic product for the world.” Or I’ll see a new technology and  maybe all of sudden I wake up and have an image of a use for it that’s  really good. Sometimes I’m walking around and see other people’s  technology and say “Wow! That’s really incredible.” The iPod is an  example of that. But this doesn’t happen now as often as when I was  younger. That is largely because I’ve gotten so occupied with my daily  life. My routine is so full right now.
 
 Babson:  Are there any core technologies that you’ve been thinking about or seen that you find interesting?
 
 Woz:  Yes, absolutely: Photonics. Photonics are basically photon  switching systems that can be imbedded in silicon. It still needs a lot  of development. You can have extremely fast processing in the middle of  a silicon chip without the heat issue. You can make chips that actually  run 100 times faster than we have now, and then we can start  approaching some of the needs of the future, such as making computers  more like humans. With technology like this, we could make a computer  that can be a teacher. A real human teacher can sense a child’s feeling  by looking at the child’s facial expressions. A real teacher can sense  the tone of the voice, can ask questions about the family, and can tell  if something is on the child’s mind. Our education software to this day  doesn’t do all of these human things.
 
 Babson:  What new things get you very excited?
 
 Woz:  I like things that other people largely don’t know about, but are  very, very well run, very intriguing. One of them is from a specialty  company kind of along the lines of Apple. Bang & Olufsen has a cell  phone called the Serene cell phone and it doesn’t look like a phone in  any way. It’s like a little fold-up clam shell with an odd shape. It’s  soft rubber, with no display and no buttons. You can’t even tell it’s a  camera phone because the camera lens is built into a hinge. You start  to open the phone and a motor opens it up for you. The dial goes around  in a circle, sort of reminding you of the old rotary dial phones. In  the middle of the circle is the little scroll wheel on the user  interface with the click buttons to operate through the menu system.  The menu operates very much like the iPod and it’s just the most  gorgeous phone in the world. It does all the things that a modern phone  does. I love showing off products that have a lot of unique and  different thinking and yet work so well. Everybody is amazed by it.
 
 Babson: Here we are 30 years past the start of the PC revolution; if  you were 20 again what would you do, how would you change computing?
 
 Woz:  I honestly don’t have the answer. Computing is pretty much  in the right place, but I sure like portability and computers need to  keep getting smaller.
 
 I’ve got this little device that displays a little  laser-created keyboard on any table surface. It doesn’t work well  enough to use now, but what if eventually those three lasers were able  to produce a full color display? I could carry this thing that is the  size of a salt shaker in my pocket and it displays a full color  keyboard in front of me on whatever surface I have, a table, paper, or  whatever. Then I can touch-type using it. Eventually it could be a  touch screen. Now that would be very nice. I could have the full  computer, as full as today’s, minus the CD and DVD and carry it in my  pocket. That would be interesting; having a strong, full computer  that’s portable and not be limited to the tiny display of a cell phone.
 
 Babson:  What are you working on now? What drives your passion and enthusiasm?  What might we see out of the Woz in the future?
 
 Woz:  Ever since my last son graduated from high school I’ve been  really busy. I wrote a book. I’m on an exploration drive to the South  Pole with a group of people including former astronaut Buzz Aldrin. And  we have this new starter company where my role is not clear yet. It’s a  chip-making company. I won’t be deciding what chips to make; I want a  role that sort of defines what the technology will be.
 
 There are so many ideas that I have, like many people, but if you stick  with the ones that are pressing you, you can succeed. It doesn’t happen  in just a couple of months, it usually takes me years, but almost all  the strong goals in my life have come through eventually.
 
 
 Acknowledgements
 
 We owe a special thank you to Jim Watkinson, Tom Nutile and Gabriele  Ricci for their enthusiasm and tireless work researching, planning and  conducting this interview, as well as reviewing and editing this  article.
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