Pitney Bowes 2014 Annual Report Download - page 14

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Our Strategy and Business Segments
Our business is organized around three distinct sets of solutions -- Small and Medium Business (SMB) Solutions, Enterprise Business
Solutions and Digital Commerce Solutions (DCS).
Small and Medium Business Solutions
We are a global leader in providing a full range of mailing equipment, software, supplies and support services that enable our clients to
efficiently create mail and evidence postage. We segment the SMB Solutions group between our North America operations, comprising
the U.S. and Canadian businesses, and our International operations, comprising all other SMB businesses globally. We are a leading
provider of postage meters and have over 900,000 meters installed in North America and over 300,000 meters installed elsewhere. This
business is characterized by a high level of recurring revenue driven by rental, lease and loan arrangements, contract support services
and supplies sales.
Enterprise Business Solutions
Our Enterprise Business Solutions group includes equipment and services that enable large enterprises to process inbound and outbound
mail. We segment the Enterprise Business Solutions group between our Production Mail operations and Presort Services operations.
Production Mail
Our product and service offerings enable clients to integrate all areas of print and mail into an end-to-end production environment from
message creation to dispatch while realizing cost savings on postage. The core products within this segment include high-speed, high-
volume inserting equipment, customized sortation products for mail and parcels and high-speed digital color printing systems that create
high-value, relevant and timely communications targeted to our clients' customers.
Presort Services
We are a national outsource provider of mail presort services for first-class, standard-class and flat mail in the U.S. and a workshare
partner of the United States Postal Service (USPS). Our Presort Services network provides mailers with end-to-end solutions from pick
up at their location to delivery into the postal system. Approximately 90 billion pieces of mail are processed annually by third-parties
like us or through in-house operations. Through our network of 32 U.S. locations, and with our fully-customized proprietary technology,
we process approximately 15 billion pieces of mail annually and are able to expedite mail delivery and optimize postage savings for our
clients. Our client volumes represent less than 25% of all automated first-class, standard-class and flat mail.
Digital Commerce Solutions
We provide a broad range of solutions, including customer information management, location intelligence, customer engagement, shipping
management and global ecommerce. These solutions are primarily delivered as traditional software licenses, enterprise platforms,
software-as-a-service (SaaS) and on-demand applications. The DCS segment is dependent on a relatively small number of clients and
business partners for a large portion of its revenue.
Customer information management solutions help businesses harness and deliver a deep and broad understanding of their customers and
their context, such as location, relationships, propensity, sentiment and influence. The trusted data and associated insights allow our
clients to deliver a personalized customer experience across multiple channels, manage risk and compliance, and improve sales, marketing
and service effectiveness. We are one of the market leaders in the data quality segment. Large corporations and government agencies rely
on our products in very complex, high-volume, transactional environments to support their business processes.
Location intelligence solutions enable our clients to organize and understand the complex relationships between location, geographic
and other forms of data to drive business decisions and customer experiences. Our location intelligence solutions use predictive analytics,
location, geographic and socio-demographic characteristics, which enable our clients to harness the power of location to better serve their
customers, solve business problems, deliver location-based services and ultimately drive business growth.
Customer engagement solutions provide clients with insight and understanding into customer behavior and interactions across the entire
customer lifecycle, enabling them to orchestrate impactful, relevant and timely physical and digital interactions. When coupled with our
inserting, sortation and digital print products, we are able to provide clients an all-inclusive solution that enables them to create, print
and distribute wide-spread targeted customer communications. Our customer engagement solutions enable our clients to create connected
experiences that positively influence future consumer behavior and generate business growth.