Pitney Bowes 2009 Annual Report Download - page 5

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3
Advancing in higher-growth markets
Mail is a vital business tool for our customers, so profitable growth within our mailing
businesses is fundamental to our strategy. At the same time, we are aggressively exploring
faster-growing markets not solely dependent on physical mail, areas where our expertise
and credibility give us special advantages. Three of the most promising are customer
communication management, secure transactions, and records and information management.
Customer communication management (CCM) combines two critical functions: understanding
what drives customer buying decisions, then applying that insight to communicating and
transacting business using whatever channel the customer prefers — mail, the Web, a mobile
device or a retail location. By combining our traditional expertise in mail, data quality, and
secure transactions with newer capabilities like location intelligence and predictive analytics,
our CCM portfolio offers unique value to the marketplace.
We are also leveraging our expertise in data encryption and funds management to expand our
presence in secure transactions to new settings and new services. Some of the biggest names
in online retailing use our e-commerce solutions to reach international customers, and this
year we added 50 countries to our network. A growing number of corporate, university and
retail customers have been purchasing our self-service mail-and-shipping kiosks, recognizing
them as a convenience for their employees and students and a traffic-builder for their stores.
Records and information management (RIM), our third area of focus, draws on our document-
processing expertise as well as the deep industry knowledge we have gained from years
of providing vertical market solutions and consulting services. RIM has long been a key
component of risk management in highly regulated environments. Today its importance spans
virtually every industry. Customers who already rely on us to manage and process millions
of documents are now also turning to us for comprehensive RIM solutions that improve access,
protect assets and facilitate regulatory compliance. We were recently named one of the
world’s top 100 outsourcing service providers by the International Association of Outsourcing
Professionals, marking our fourth straight year on the list.
Strategic transformation
To capitalize on our opportunities, we need both financial capacity and an organizational
structure that can anticipate market conditions. Those needs, together with the economic
downturn, drove our decision to undertake a top-to-bottom review of how we run our business
and how we can improve it. Currently, we are targeting annualized benefits, net of systems
and related investments, in the range of at least $150 million to $200 million on a pretax
basis. We are focusing on solutions that will deliver long-term value to our customers and
“Some of the biggest names in online retailing use our
e-commerce solutions to reach international customers.”