Lexmark 2011 Annual Report Download - page 12

enable network administrators to improve productivity. ISS’ target markets include large corporations,
small and medium businesses (“SMBs”), and the public sector. ISS’ strategy requires that it continually
identify and focus on industry-specific print and document process-related issues so that it can
differentiate itself by offering unique industry solutions and related services. With the introduction of
new laser products that began in the fall of 2008 and continued through 2011, ISS has announced
products that represent the most extensive series of laser product introductions in the Company’s
history. The new product introductions have significantly strengthened the breadth and depth of ISS’
workgroup laser line, color laser line and laser MFPs. ISS also continues to invest in product and
solution development as well as solution sales related to business inkjet products. This investment has
led to new inkjet products and solutions aimed at targeted growth segments as well as a pipeline of
future products.
Because of ISS’ focus on printing and document process solutions, the Company has formed alliances
and original equipment manufacturer (“OEM”) arrangements to pursue incremental business
opportunities through its alliance partners.
The acquisitions of Perceptive Software and Pallas Athena enhance Lexmark’s capabilities as a
content and process management solutions provider, expand the Company’s market opportunity, and
provide a core strategic component for Lexmark’s future. Lexmark’s software strategy is to deliver
affordable, industry and process specific workflow enhancing solutions through deep industry expertise
and a broad ECM and BPM software platform, in a model that is easy to integrate, use, and support.
Key software strategic initiatives include:
• Advancing and growing the Company’s ECM and BPM business internationally;
• Expanding and strengthening the Company’s ECM and BPM product line; and
• Expanding the Company’s rate of participation in ECM, BPM, and case management market
opportunities.
Segment Information — ISS
• Products — ISS
ISS offers a broad portfolio of monochrome and color laser printers, laser MFPs, inkjet AIOs and
accessories, as well as software applications, software solutions and managed print services to help
businesses efficiently capture, manage and access information. ISS laser and inkjet products are core
building blocks for enabling information on demand. They are designed to enable intelligent document
capture in addition to delivering high-quality printed business documents. When combined with
innovative document management and business process workflow software primarily from Lexmark
and Perceptive Software, these products accelerate productivity by connecting people with the
information they need.
oMonochrome Laser
Within the single-function laser printer category, ISS continues to offer its successful E Series, which
includes the Lexmark E260, E360 and E460 Series for small to midsize workgroups. For medium to
large workgroups, ISS continues to offer both the Lexmark T650 Series and the Lexmark W850 Series.
In 2011, ISS announced the Lexmark 6500e MFP Option, a high-volume scanner that adds
multifunction and software solutions capabilities to T650, T652 and T654 devices. The W850 Series
provides departmental workgroups with A3 (11 inch x 17 inch) paper support and robust finishing
options.
The ISS monochrome MFP line ranges from versatile low-end and midrange workgroup models to
high-end devices equipped with the ISS smart MFP architecture and e-Task touch screen. For
individual users and small workgroups, ISS continues to offer the Lexmark X264dn and the Lexmark
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