Xerox 2003 Annual Report Download - page 7

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5
There is, of course, the $9 billion production market, which
we lead. A strong array of systems and solutions – led by the
Xerox DocuColor®iGen3®Digital Production Press – promises
to dramatically expand the market opportunity for Xerox.
As you will see elsewhere in this report, our new generation
of digital technology and services expands our market oppor-
tunity three-fold. We are driving the New Business of Printing™
in areas such as one-to-one marketing and print-on-demand.
Early customer response to our new generation of color
production technology has been very encouraging. By year’s
end, we had installed more than 125 DocuColor iGen3 presses.
Many customers are buying more than one. In fact, our
leading DocuColor iGen3 partner already has a half-dozen.
Our second opportunity is in the office, a market that is
huge. Xerox is well established in this market and focused on
segments that are growing the fastest – color, digital multi-
function, and office services and solutions. Last year, we brought
15 new offerings to the office market – color and black-and-
white, printers and copiers, multifunction and services – at price
points that are highly competitive. Our customers approved.
We participated in more buying decisions than ever before –
and we’re winning.
Our third opportunity is in the services market, in which we
are making significant inroads. Our customers – particularly
our larger ones – are turning to us for help in designing and
improving work processes that are document intensive. These
include mining customer databases for one-to-one marketing
applications, content management and retrieval, seamless
integration of paper and digital documents and a host of other
applications. Our successful document outsourcing business
gives us a strong base on which to build.
Three years ago we made a critical strategic decision – to place
our investment bets on market segments that were growing
the fastest, where our customers needed help and where
we could add value. That meant putting our technology and
innovation muscle and brainpower behind digital production,
the digital office, color and value-added services. Last year,
70 percent of our revenue came from these areas and revenue
from these segments grew 8 percent.
Improving Selling,
Administrative and
General Expenses
($ millions)
4,437 4,249
5,518
4,728
2000 2001 2002 2003