Lexmark 2013 Annual Report Download - page 11

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Third, 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 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 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 subscriptions, and maintenance and
service annuities in content-intensive industries and business processes.
Lexmark’s ISS segment continues to focus on capturing profitable supplies and service annuities generated from its monochrome and
color laser printers and MFPs. 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, DOM, intelligent data
capture and search 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 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 2012, ISS has significantly
strengthened the breadth and depth of its workgroup laser line, color laser line and laser MFPs.
Because of ISS’ strength and 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, Pallas Athena, Brainware, Isys, Nolij, Acuo, AccessVia, Twistage, Saperion and
PACSGEAR 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 content and process
management software platform, in a model that is easy to integrate, use, and support. Key software strategic initiatives include:
Advancing and growing the Company’s content and process management solutions business internationally;
Expanding and strengthening the Company’s content and process management software product line; and
Expanding the Company’s rate of participation in content and process management software solutions for specific industries
and processes.
Segment Information — ISS
• Products — ISS
ISS offers a broad portfolio of monochrome and color laser printers and laser MFPs, as well as supplies, software applications,
software solutions and MPS to help businesses efficiently capture, manage and access information. ISS laser 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 output on a variety of media types and sizes. When combined with innovative document management
and business process workflow software, primarily from Perceptive Software, these products accelerate productivity by connecting
people with the information they need.
o Monochrome Laser
Within the single-function monochrome laser printer category, ISS continues to offer the Lexmark MS310, MS410, MS510, MS610,
MS710 and MS810 Series printers, which are designed to meet the needs of small, midsize and large workgroups. These monochrome
laser printers deliver print speeds ranging from 35 pages per minute (ppm) to 70 ppm. ISS also continues to offer the W850 Series for
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