Lexmark 2011 Annual Report Download - page 11

mix will increasingly include services and software, in addition to supplies. The addition of Perceptive
Software and its expansion through Pallas Athena add to Lexmark’s traditional strength in providing
document process solutions for specific industries and business processes. The Company’s
management believes that Lexmark has the following strengths related to this business model:
• First, Lexmark is highly focused on delivering printing, imaging and document process
solutions and services for specific industries and business processes in distributed
environments. The Company’s management believes that this focus has enabled Lexmark to
be responsive and flexible in meeting specific business customer needs.
• Second, Lexmark internally develops all three of the key print technologies associated with
distributed printing: inkjet, monochrome laser and color laser. The Company’s monochrome
laser technology platform has historically allowed Lexmark to provide one of the best values in
enterprise network printer-based products and also build unique capabilities into its products
that enable it to offer customized printing and document workflow solutions. Lexmark is
focused on advancing its inkjet technology, products and solutions to address higher usage
customers. Lexmark also internally develops its print, content and process management
software platforms and tools that enable it to provide leading edge managed print services and
content and process management solutions.
• Third, Lexmark, through Perceptive Software and Pallas Athena, provides ECM, BPM, and
DOM software products and corresponding industry tailored solutions to help companies
manage the lifecycle of their content and business processes all in the context of their existing
enterprise applications. This combination of platform, product, and solutions integrates rapidly
into a customer’s existing IT infrastructure and is easy to use, which drives user adoption and
accelerates the customer’s process improvements.
• Fourth, Lexmark has leveraged its technological capabilities and its commitment to flexibility
and responsiveness to build strong relationships with large-account customers and channel
partners, including major office super stores, distributors, and value-added resellers. Lexmark’s
path-to-market includes industry-focused consultative sales and services teams that deliver
unique and differentiated solutions to both large accounts and channel partners that sell into
the Company’s target industries.
Lexmark is focused on driving long-term performance by strategically investing in technology,
hardware and software products and solutions to secure high value product installations and capture
profitable supplies, software maintenance and service annuities in document-intensive industries and
business processes in distributed environments.
Lexmark’s ISS segment continues to focus on capturing profitable supplies and service annuities
generated from its monochrome and color laser printers, laser MFPs and inkjet all-in-one (“AIO”)
devices. Associated strategic initiatives include:
• Expanding and strengthening the Company’s product line of workgroup, color and MFP
devices;
• Advancing and strengthening the Company’s industry solutions including integrated ECM, BPM
and DOM solutions to maintain and grow the Company’s penetration in selected industries;
• Advancing and growing the Company’s MPS business; and
• Expanding the Company’s rate of participation in market opportunities and channels.
ISS’ strategy requires that it provide an array of high-quality, technologically-advanced products and
solutions at competitive prices. ISS continually enhances its products to ensure that they function
efficiently in increasingly-complex enterprise network environments. It also provides flexible tools to
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