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  • [ Birds chirping ]

  • [ Music ]

  • >> Steven Jobs figures heroically in the history

  • of American entrepreneurship.

  • At the age of 22 he founded a company called Apple Computer

  • and proceeded to grow it into a $2 billion business.

  • In the spring of 1985 he lost a power struggle inside Apple

  • and left the company he had created.

  • He spent the summer considering his next move

  • and resolved to begin again.

  • In September he started a new computer company

  • with his own money.

  • With characteristic flair, he called it NeXT Incorporated.

  • This morning at its offices in Silicon Valley, California,

  • the company is about to get a first look at its new trademark,

  • the signature it hopes to make familiar around the world.

  • The designer, Paul Rand, created the logos for IBM,

  • Westinghouse, UPS, and many others.

  • Rand doesn't normally work for infant companies even

  • if they could afford him, but NeXT isn't an ordinary startup.

  • >> The idea is to, please don't open,

  • don't look at the back first.

  • This is the front.

  • And don't get scared, this is not the design.

  • [laughter] The reason I did this was to sort of floor Steve

  • when he saw it, you know and think,

  • Jesus 100,000 bucks down the drain.

  • [laughter] [Inaudible]

  • >> Jobs has had a sneak preview of the logo and loves it.

  • As he waits for a verdict

  • from his staff he can hardly contain his excitement.

  • Assertive as he is, he values consensus.

  • Most of these young computer and software designers were

  • on the team that developed the Macintosh.

  • They left secure jobs at Apple to follow their boss

  • in pursuit of his new vision.

  • Steve's goal is to transform the learning process at the college

  • and graduate school level with a powerful computer

  • and a new kind of software.

  • >> And we decided we wanted to start a company that had a lot

  • to do with education, and in particular, higher education;

  • colleges and universities.

  • So what our vision is is that there's a revolution

  • in software going on now on college and university campuses,

  • and it has to do with providing two types

  • of breakthrough software.

  • One is called simulated learning environments.

  • It's where you can't give a student

  • in physics a linear accelerator.

  • You can't give a student

  • in biology a $5 million recombinant DNA laboratory

  • but you can simulate those things.

  • You can simulate them on a very powerful computer,

  • and it is not possible for students to afford these things.

  • It is not possible for most faculty members

  • to afford these things.

  • So if we can take what we do best which is

  • to find really great technology and pull it

  • down to a price point that's affordable to people,

  • if we can do the same thing for this type of computer

  • which is maybe 10 times as powerful as a personal computer

  • that we did for personal computers,

  • then I think we can make a real difference

  • in the way the learning experience happens

  • in the next five years.

  • And that's what we're trying to do.

  • [ Waves crashing ]

  • Companies come and go at the crest of the wave.

  • I mean you know IBM had their day way back when when they,

  • you know, they were at the crest.

  • >> In December, 1985, in business for just 90 days,

  • Jobs and his 11 employees hold their first retreat.

  • Company retreats like this are the continuation

  • of a tradition Steve established at Apple early on.

  • Watching him in action at these brainstorming sessions is an

  • opportunity to observe him at his lucid best

  • as a company builder and motivator.

  • >> Slicing into the future.

  • >> His opening remarks reveal his faith in high technology

  • and his idealism, an unusual combination

  • that is part of his uniqueness.

  • In effect, he is planting the seeds

  • of a new corporate culture.

  • >> More important than building a product, we are in the process

  • of architecting a company that will hopefully be much,

  • much more incredible-- the total will be much more incredible

  • than the sum of its parts.

  • And the cumulative effort of approximately, you know,

  • 20,000 decisions that we're all going to make

  • over the next two years are going

  • to define what our company is.

  • And one of the things that made Apple great was

  • that in the early days, it was built from the heart.

  • Not by somebody who came in

  • and said I know how to build a company.

  • Here's what you do.

  • Da da da da da da da.

  • It wasn't built that way.

  • It was built from the heart.

  • Now unfortunately we didn't always use our heads

  • and we can do better in many respects because we are wiser

  • and smarter and know more and those kinds of things.

  • But one of the most important things,

  • one of my largest wishes is that we build NeXT from the heart

  • and the people that are thinking about coming to work for us

  • or buying or products or who want

  • to sell us things feel that, that we're doing this

  • because we have a passion about it.

  • We're doing this because we really care

  • about the higher educational process,

  • not because we want to make a buck.

  • Not because, you know, we just want to do it to do it.

  • >> Jobs can be overbearing and impatient,

  • but this team knows what to expect

  • and is not easily intimidated.

  • They are smart and they are focused.

  • And their preferred language is computer ease.

  • >> They actually provided analogous

  • to [inaudible] small talk.

  • [Inaudible] provided you a way to drop actually

  • into [inaudible] and program the actions that happened

  • when you double clicked on an icon

  • or when you dropped something on an icon.

  • >> We have to create a product that's an order

  • of magnitude more powerful than the current generation of PCs.

  • >> For two solid days the group listens

  • to progress reports from each department.

  • The goal is to arrive at design decisions, production deadlines,

  • and a marketing strategy aimed at selling on college campuses.

  • >> is define the problem.

  • >> The point is that June, July,

  • and August are the timeframes when people do work.

  • When they, when the school's out and when the people

  • or researchers and the staff that deal

  • with making computing happen for September,

  • that's when they do work.

  • >> That is, that's like a bomb run.

  • You don't change your target when you're in the bomb run.

  • >> From the sidelines, Jobs probes and challenges.

  • He has a remarkable ability

  • to identify the conclusions implicit

  • in what the others have to say.

  • >> So really the next 90 days are real important.

  • >> We are going to make it or break it based

  • on whether we can provide products to higher education

  • and services and relationships to higher education

  • that no one else provides.

  • And I think we ought to spend 100%

  • of our time thinking about that.

  • And if we can't do that, then we ought to go broke.

  • There needs to be someone who is sort of the keeper

  • and reiterator of the vision

  • because there's just a ton of work to do.

  • And a lot of times, you know, when you have

  • to walk 1,000 miles and you take the first step it looks

  • like a long ways.

  • And it really helps if there's someone there saying well we're

  • one step closer.

  • You know the goal definitely exists.

  • It's not just a mirage out there.

  • So in 1001 little, and sometimes larger ways,

  • the vision needs to be reiterated.

  • I do that a lot.

  • >> There was the price one, the schedule one--

  • >> The technology.

  • >> and technology.

  • >> Yeah.

  • >> Jobs continually interrupts to focus the lens

  • of his vision on priorities.

  • By the end of the first day the team has established the

  • critical importance of keeping the price of the computer

  • within the reach of students and professors

  • and bringing the product to market by spring 1987.

  • A survey of college campuses has indicated

  • that the new computer should sell for no more than $3,000

  • to be considered affordable.

  • Since college buying takes place in the summer, Jobs is concerned

  • that a failure to have their product ready

  • by spring 1987 will delay the company an entire year.

  • >> If we don't deliver this by spring '87,

  • we're out of business so my first priority is

  • to make sure this damn thing is out by spring '87.

  • >> I think spring can basically push out to summer,

  • but I also hear that that is number one.

  • >> Right.

  • >> I guess I disagree with price being the second thing

  • because unless we have,

  • unless we have this technology that wows people--

  • >> Um hum.

  • >> we're not going to have a firm foundation

  • that people are going to buy from.

  • And I think people are going to be a lot more flexible saying,

  • well jeez, this runs three times faster, seven times faster than,

  • you know, a computer--

  • >> Well what's the highest we could go here?

  • >> Oh well [inaudible] technology jumps ahead in price.

  • >> Well we couldn't make this 5,000.

  • I think we're, they didn't say

  • if you made it go three times faster we'd pay 4,000.

  • They didn't say that.

  • >> No they said [inaudible].

  • >> That's right, they said if it's $3,000 it's a hot product.

  • >> But they were--

  • >> They said you're over 3,000, forget it.

  • >> Yeah.

  • >> That that's their magic number.

  • They've also told us that nobody else says they can do that.

  • And they think that's a really big number.

  • Now, whether it is or not in reality, who knows?

  • >> Um hum.

  • >> Whether it is or not in terms of their commitment--

  • >> Yes.

  • >> to push us, we've established that.

  • >> Um hum.

  • >> That's right.

  • >> If we really do believe that we have to ship this by summer

  • of '87, then how are we going to move that up?

  • I don't think price is going to change the schedule that much.

  • I think the real risk is

  • in the technology, it's not in the cost.

  • >> Yeah.

  • >> There's another option, it can go to the spring of '88.

  • >> Yeah, we could.

  • [laughs] But the problem is if we do that, then the--

  • >> Then [inaudible].

  • >> Well wait I think--

  • >> No that's not the worst thing.

  • The worst thing is, every, the world isn't standing still,

  • so by the spring of '88 well we want color.

  • The technology window sort of passes us by

  • and all the work we've done we throw

  • down the toilet and we start over.

  • And you know since we've proved we can't do something great

  • in 18 months, why should we believe we could do it,

  • you know, a year later?

  • >> I don't care what you're saying, reality--

  • distortion is reality distortion

  • and its has its motivational value and that's fine.

  • And I think it has a very strong point

  • and a very important value.

  • However when it comes to the, when it comes

  • to that date affecting the design of the product,

  • that's when we get into a rut.

  • Real, deep, shit because if we are unrealistic about this date,

  • we make design decisions that we have to then go over, reiterate,

  • throw out, start all over again.

  • >> Um hum.

  • >> And you told us yesterday we have a past