Lexmark 2015 Annual Report Download - page 11

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ReadSoft, GNAX Health, Claron and Kofax (“Acquired Entities”) add to Lexmark’s traditional technology strengths and provide
content and process management 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 content and process management software solutions
and services for specific industries and business processes in distributed work 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 both monochrome and color laser printing technology. The Company’s monochrome
laser technology product 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 targeted printing and
document workflow solutions. Lexmark also internally develops its print and fleet management, content and process
management software platforms and tools that enable it to provide leading edge MPS and content and process management
solutions. Lexmark, through Enterprise Software, also internally develops content and process management software that
includes DOM/CCM, intelligent capture, enterprise search, rich media content management, electronic signature, process
analytics and healthcare specific medical imaging and VNA software products as well as other industry tailored solutions to
help companies manage the lifecycle of their content and business processes in the context of their existing enterprise
applications. This combination of platform, product and solutions is integrated into a customer’s existing IT infrastructure
and is designed to be easy to use, which drives user adoption and accelerates the customer’s process improvements.
 Third, Lexmark has leveraged its technological capabilities and its commitment to flexibility and responsiveness to build
strong relationships with large enterprise 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, and software subscriptions, 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 an integrated suite of ECM, BPM and DOM/CCM,
products and 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. ISS’ research and development investments continue to strengthen the breadth and depth of its
workgroup laser line that includes color laser and laser MFP products.
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 the Acquired Entities 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, with a focus on making solutions 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