[NTLK] AOL Auditorium: Guy Kawasaki and Doug Menuez.

From: Jeff Sheldon (jeff_at_jurai.net)
Date: Thu Mar 04 2004 - 22:03:45 PST


I was going through some of my old Newton files looking for some saved
eWorld interviews and found this "live interview" from AOL with Doug
Menuez. In it he has some comments on the Newton.

--
The following file is a transcript and has not been altered in any 
way. All of the information that you see is as it was typed directly 
by the guest(s) and emcee(s). 
 
MENUEZ          Hi, thanks for having me. 
 
Mac Way         1/100 of the features of an N90 type camera 
 
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OnlineHost      "Newton" isn't new to Center Stage. Members were 
                introduced to the information storer-retriever a 
                short while ago. Tonight, however, you can learn 
                what went into "The Making of the Newton: The 
                Inside Story." Hosting tonight's event is author 
                Doug Menuez (MENUEZ) who wrote "Defying Gravity, 
                the Making of the Newton". Joining Doug will be 
                fellow author Guy Kawasaki (MacWay). 
 
OnlineHost      Doug Menuez began his career shooting for 
                newspapers in 1978 and shortly thereafter won an 
                internship at the Washington Post. In 1982 he began 
                working for Time, Life, Newsweek, US News, Fortune, 
                People, USA Today and other national and 
                international publications, accepting assignments 
                to cover news, feature stories and sports in the 
                US and abroad. 
 
OnlineHost      Menuez has covered many of the major news stories 
                of the day, including the famine in Ethiopia, 
                presidential campaigns and party conventions, and 
                the Los Angeles Olympics in 1984. He has documented 
                the homeless in America, the destruction of the 
                Amazon rain forest and the AIDS story. His work has 
                appeared in six "Day in the Life" books, "The Power 
                to Heal", and the "Circle of Life". 
 
OnlineHost      In 1987 he founded Reportage, a photographic agency 
                specializing in black-and-white photojournalism for 
                corporations. He has completed special assignments, 
                annual reports, books, videos and long-term 
                documentary projects worldwide with his team of 
                associate photographers for such companies as Apple 
                Computer, Beckman Instruments, Eastman Kodak, Avco 
                Insurance and more. 
 
OnlineHost      In 1989, Menuez co-produced "15 Seconds: The Great 
                California Earthquake of 1989", using Macintosh 
                computers to complete book layout and design in ten 
                days. It was number one on the San Francisco 
                Chronicle bestseller list, selling more than 
                70,000 copies. It raised over a half-million 
                dollars for earthquake victims. Now, meet your 
                host, Guy Kawasaki and his guest, Doug Menuez. 
 
LindaG24        Hi Everyone, and welcome honored guests! 
 
Mac Way         Hi all. Guy here. 
 
MENUEZ          Hi, Great to be here! 
 
Mac Way         I'm going to ask you a few 
 
Mac Way         questions and we'll be soliciting questions 
 
Mac Way         from the audience at the same time. 
 
MENUEZ          OK. REady when you are 
 
Mac Way         Briefly, tell us about the book you wrote. What's the 
                format?  etc 
 
MENUEZ          It is a photo and text documentary of Apple's quest 
                to come up with the next cool technology. The form 
 
MENUEZ          format is unusual in that we combine black and white 
                photos with text in sort of magazine style layout 
 
MENUEZ          we call it a bookazine 
 
Mac Way         What sparked the idea to do the book? 
 
MENUEZ          As a photojournalist 
 
MENUEZ          I've covered lots of stories 
 
MENUEZ          around the world but  I'd never seen photos of the 
                people 
 
MENUEZ          who create the new technologies that 
 
MENUEZ          impact our lives. Also, I have become increasingly 
                aware of 
 
MENUEZ          the immense 
 
MENUEZ          changes going on in business today 
 
MENUEZ          I wanted to combine these two ideas: 
 
MENUEZ          like Soul of a New Machine and Day 
 
MENUEZ          in the life. 
 
Mac Way         How unrestricted was your access? 
 
MENUEZ          I had a 24 hour unrestricted badge 
 
MENUEZ          and pretty much came and went in the labs as I wanted 
                to. 
 
MENUEZ          Of course, the story was happening on three 
                continents 
 
MENUEZ          at once and there were certainly things that I 
                missed. 
 
MENUEZ          And I also think that as the tension increased there 
                were efforts 
 
MENUEZ          made to keep us out of certain loops, particularly 
                management stuff 
 
MENUEZ          but we developed great sources and were able 
 
MENUEZ          to get great back channel info on what 
 
MENUEZ          was happening. By the way 
 
MENUEZ          we did not report everything we learned by any means. 
 
MENUEZ          We took the point of view that although this was 
 
MENUEZ          a warts and all story, we felt that it was a positive 
                story 
 
MENUEZ          of high-level risktaking of the kind that other us 
                business should be taking to compete and survive 
 
MENUEZ          in the 90's. 
 
Mac Way         How'd  you get Apple to open the kimono? Did you have 
                a picture of Sculley in fishnet hose? 
 
MENUEZ          I missed the fishnet shot, but did get him getting 
                make-up on at CBS at 3am 
 
MENUEZ          I got access because I of a combination of the trust 
                I'd built up in the valley working on non 
 
MENUEZ          disclosure for a number of firms. Also the personal 
                relationships I had at apple helped, but the over- 
 
MENUEZ          riding thing was probably that Apple felt that so 
 
MENUEZ          much of the Newton project was a crapshoot, and "what 
                the hell, at a minimum we can learn from it" 
 
MENUEZ          was kind of the attitude toward the book. I think. I 
                should explain that 
 
MENUEZ          I was invited to come in and shoot for Apple in Early 
                1992 by Keith Yamashita. I immediately saw 
 
MENUEZ          in the Newton project my chance to combine the 
                technolgy story with the behind the scenes at at 
 
MENUEZ          a company in transition story and began 
 
MENUEZ          lobbying Apple to come in as a journalist. It did 
                take about six months to convince them. Once they co 
 
MENUEZ          committed, the commited to the idea all the way. 
 
Mac Way         What do you think of the Newton bashing that happened 
                right after shipment? 
 
MENUEZ          Unfair, but not unexpected. 
 
Mac Way         Why do you say not unexpected? 
 
MENUEZ          Well, I think there was and is a big gap between the 
                high 
 
MENUEZ          expectations for Newt and the product that shipped. 
 
MENUEZ          It was fairly clear that there was a huge buildup and 
                frankly I don't think Newton would have matched 
 
MENUEZ          the expectations even if it could wash your car. 
 
Mac Way         But didn't Apple/Sculley cause this gap by over- 
                hyping? 
 
Mac Way         If they caused it, they should suffer the 
                consequences. 
 
Mac Way         Live by hype, die by hype, I say. 
 
MENUEZ          Absolutely, I agree.And yes they did hype it, but it 
                was interesting to see what they did 
 
MENUEZ          from the inside, and the huge result in the media 
                from actually very little hype. 
 
Mac Way         Who's the engineering genius behind the project? 
 
MENUEZ          There were many. I will get killed for this but these 
                folks come to mind: Steve Capps who in many ways 
 
MENUEZ          was the soul of the NM and spiritual leader 
 
MENUEZ          , also Walter Smith, Michael Tibbot, Bob Welland 
 
MENUEZ          Michael Culbert, Larry Kenyon, Suki Lee 
 
MENUEZ          Sarah Clark, Don Luv, Martin... Impossible to name 
                all but I should also mention Larry Tesler 
 
MENUEZ          who saved the project from being killed and led the 
 
MENUEZ          team for three years before turning it over 
 
MENUEZ          to shane. 
 
Mac Way         Is Sculley the visionary he tried to make himself out 
                to be? 
 
MENUEZ          I think you can trace Newton to John 
 
MENUEZ          s vision for an product that would have intelligent 
                assistance and 
 
MENUEZ          be  very personal, going back to knowledge navigaton. 
 
MENUEZ          He was the only senior mgmt guy to actively support 
                newton and keep it funded. He should get credit fo 
 
MENUEZ          for that.  The idea with Newton for John I believe 
 
MENUEZ          was that Apple missed a big opp to license the mac OS 
                and that Apple should create new products 
 
MENUEZ          for new markets and 
MENUEZ          develop new revenue streams. This was smart but long 
                term, not very popular in today's US biz world 
 
Mac Way         When I was working on Mac at Apple, the Apple II 
                people resisted it. 
 
Mac Way         Are the Mac people resisting it? 
 
MENUEZ          The history at Apple is that the new technology 
 
MENUEZ          kills the old. That was true here. It was like a 
                rebel unit for awhile. 
 
Mac Way         For a while? How is it now? 
 
MENUEZ          Now, the whole org is accepting and supporting Newton 
                more broadley. There was huge resistance for the 
 
MENUEZ          longest time.  Newton was taking $ away from the cash 
                cow and that was resented.  There was no 
 
MENUEZ          way to prove that Newton would work. Even little 
                things 
 
MENUEZ          got resitance such as changing the font from Apple 
                Garamond to Gil Sans created stress. 
 
Mac Way         Why did your book end at the intro of the Newton? 
 
MENUEZ          When we were planning the book and our own production 
                schedule, we had 
 
MENUEZ          to pick an end point in advance. We thought it would 
                be interesting for readers to fill in the blanks 
 
MENUEZ          as to what happend to Newton in the market. It 
 
MENUEZ          also seemed natural to break of with the "birth" of 
                newton. 
 
Mac Way         Here's a question from the audience. 
 
Mac Way         Do you have and juicy features and arrival  time of 
                next generation Newtons? 
 
MENUEZ          There are several new configurations in the pipeline 
                but I am not at liberty to say much.. 
 
Mac Way         Okay, then what would you think would be the natural 
                progression? 
 
MENUEZ          I think you will see Newton's in different form 
                factors for different segments of the market 
 
MENUEZ          I also think Newton technology wil be incorporated 
                into macs and everything in your house from your ph 
 
MENUEZ          phone to your frig. 
 
Mac Way         Another one from the audience. 
 
Mac Way         What was your reaction when you saw the Doonsbury 
                cartoon? 
 
MENUEZ          I thought it was funny. The team was thrilled since 
                they were instantly elevated to cultural 
 
MENUEZ          icon status. But it speaks to the misunderstanding 
 
MENUEZ          about the handwriting recognition. The thing is that 
                you have to train your newton. It also is diction 
 
MENUEZ          ary based so that proper names are not in the 
                dictionary, so it does not get them until you ad 
                them. 
 
MENUEZ          This is a problem obviously, in that the first thing 
                people want to do is write their names! 
 
Mac Way         Yeah, but why didn't the team make the decision to 
                put more words in the dictionary? 
 
Mac Way         This seems as dumb as shipping the first Mac with 
                only 128K 
 
Mac Way         Which, I was a part of this dumb decision 
 
Mac Way         :-) 
 
MENUEZ          Its interesting what people do under pressure. That 
                was one of the things we wanted to convey. 
 
MENUEZ          That is the context of the process leading up to ship 
                date.  There are 10,000 words in the dictionary a 
 
MENUEZ          and the team felt that was a reasonable start and 
                that users would add to that... good question 
 
MENUEZ          I bought a 128 k mac by the way and I loved it 
                despite the lack of software 
 
Mac Way         Thank God for people like you. Hey, Habadex was great 
                in its time. 
 
Mac Way         And all the clipart! What do you mean no software? 
 
Mac Way         Another audience question: What are the plans for 
                incorporating cellular phone technology in Newton? 
 
MENUEZ          Remember Main Street Filer? Siemens is at work on a 
                version of Newton that has 
 
MENUEZ          a phone built in and I am sure you will see more 
 
MENUEZ          comm stuff soon. Every conceivable type 
 
MENUEZ          of communications that exists is built in to newt 
 
Mac Way         Say it's ten years from now, how many Newtons do you 
                think will have been sold? 
 
MENUEZ          Billions. Actually, I think Newton will survive, 
                evolve and prosper. 
 
MENUEZ          The fact that Apple just announced the catagory PDAs 
 
MENUEZ          set off a whole new market. 
 
MENUEZ          There is a lot of support strangely enough, from 
 
MENUEZ          newton competition to see it succeed. It expands the 
                market for everyone. 
 
MENUEZ          I really like my Newton, and use it daily. 
 
MENUEZ          I think it is a huge leap forward toward the vision' 
 
MENUEZ          of truly intuitive tools that are user friendly' 
 
MENUEZ          that started with the mac. That is the key thing. 
 
Mac Way         "It expands the market for everyone." Bill Gates said 
                that to me once. :-) 
 
Mac Way         So if you could change one feature of the Newton, 
                what would it be? 
 
MENUEZ          I would like a backlit screen right now, but that is 
                an energy issue 
 
Mac Way         Okay, we've been going for 45 minutes. 
 
Mac Way         Plug your book: name, price, how to buy, etc 
 
MENUEZ          :-) Thanks! I'd be happy to. 
 
MENUEZ          Called "Defying Gravity: The Making of Newton" 
                available at fine bookstores everywhere or direct 
                from 
 
MENUEZ          the publisher at 503-647-5109. The bookstore price is 
                $29.95, a great deal since you 
 
MENUEZ          get 130 black and white photos and terrific, high 
 
MENUEZ          quality production and 30,000 words of text. 
 
Mac Way         Does Beyond Words have any other interesting books 
                coming out soon? 
 
MENUEZ          :-) I'm glad you asked. Being a leading edge 
                publishing firm 
 
MENUEZ          Beyond Words is bringing out your new book soon. 
                Please 
 
MENUEZ          say a few words about "Hindsights" guy. 
 
Mac Way         Nah. Here's another from the audience. Do you think 
                Newton is a "bet the company" product? 
 
MENUEZ          Yes and no. Macintosh has had several years of 
 
MENUEZ          rapidly decreasing margins, and very little market 
 
MENUEZ          expansion, save for the powerbook burst last year. 
 
MENUEZ          I think Apple must expand its markets and Newton is 
                the 
 
MENUEZ          first product they' 
 
MENUEZ          ve come out with for a whold new market. 
 
MENUEZ          It is too early to 
 
MENUEZ          tell if it is really going to save the company. 
 
MENUEZ          Probably, it will be a combination of 
 
MENUEZ          Power Pc products, increased flexibilitiy of the mac 
                and 
 
MENUEZ          Newton. 
 
Mac Way         Another one from the audience: 
 
Mac Way         Did the direction Sculley took with the Newton lead 
                to his being pushed out at apple? 
 
MENUEZ          I don't believe Newton was that 
 
MENUEZ          popular with the board 
 
MENUEZ          and John was its only supporter for 
 
MENUEZ          a long time. Again, it was a combination of factors 
 
MENUEZ          that led to John leaving. 
 
Mac Way         Another from the audience 
 
Mac Way         What's the history of the relationship between 
                General Magic and Newton/ 
 
Mac Way         Are they competitive? Complementary? 
 
MENUEZ          We cover this in the book in more detail, but 
 
MENUEZ          the early origin was Marc Porat talking with Larry 
                Tesler about the idea and Apple's feeling at the 
 
MENUEZ          time that they could not support 
 
MENUEZ          the idea in house, and 
 
MENUEZ          that it would be better served as a partner 
 
MENUEZ          company. That led to Bill and Andy joining with Porat 
                to 
 
MENUEZ          leave Apple and form GM. 
 
MENUEZ          There was a time when Steve Capps was actually on 
 
Mac Way         What was "the idea? 
 
MENUEZ          the GM team and had to decide 
 
MENUEZ          whether to stay at GM or continue with 
 
MENUEZ          Newton. It became a bit of a rivalry and 
 
MENUEZ          was fairly complex. It is in the book. 
 
Mac Way         What was "the idea" that Tesler felt he couldn't 
                support inside Apple? 
 
MENUEZ          A new communications paradigm and business that was 
                not Apple's core business. I have to say 
 
MENUEZ          though that I am not the expert on GM. 
 
Mac Way         Is it true that you had a choice of going to George 
                Lucas's house with Robert Redford to watch 
 
Mac Way         a screening of Bob's new movie or do this conference? 
 
MENUEZ          :-) Yes! 
 
Mac Way         Do either of them use Macs or Newtons? 
 
MENUEZ          Both do. Lucasfilm is Mac City. 
 
Mac Way         Let's say it's ten year from now again 
 
Mac Way         will Newton have "killed" Macintosh? 
 
MENUEZ          No, because they are made for different purposes. 
 
MENUEZ          The newton is about 
 
MENUEZ          capturing your brilliant ideas 
 
MENUEZ          in the bar, or on the plane 
 
MENUEZ          and quickly communicating them. 
 
MENUEZ          The mac is about document production 
 
MENUEZ          and desktop publishing. 
 
LindaG24        Well folks, our time is about up for this evening! 
 
Mac Way         What if you don't get brilliant ideas? Should you buy 
                a HP 100? 
 
MENUEZ          :-) Nah, I think Newton will inspire you! 
 
Mac Way         Well, that's it folks. Thanks for being with us. 
 
Mac Way         If you have any questions about the book, please 
                contact Doug 
 
Mac Way         at "Menuez." Beyond Words is also here at 
                "Beyondword." 
 
Mac Way         Night all! 
 
MENUEZ          Good night and thanks everyone! 
 
LindaG24        Thanks you so much Mac Way and MENUEZ for this very 
                enjoyable hour! 
 
LindaG24        Good night audience! 
 
OnlineHost      Our thanks to host Guy Kawasaki and his special 
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                night! 
 
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