Xerox 2004 Annual Report Download - page 5

Building the New Business of Printing
The second area in which we are investing
is the digital production market. Our strong
array of digital systems and solutions – led by
the Xerox iGen3®Digital Production Press
and augmented by the highly acclaimed Xerox
Nuvera®family of products – promises to
dramatically expand our market opportunity.
Market response to our new generation
of color production technology has been very
encouraging. Increasingly, our commercial
print customers are relying on the iGen3 to
fuel their business growth. In fact, many iGen3
customers own multiple systems – some own
six or more. Weare driving the NewBusiness
of Printing®in areas such as one-to-one
marketing, print-on-demand, and on-demand
book publishing.
One example is a large retail customer
who maintains many bridal registries. After
the couple returns from their honeymoon
and settles into married life, they receive a spe-
cial sales promotion of all the products they
had selected for their registry but didn’t receive.
The brochure is printed on a Xerox iGen3.
Direct mail experts consider a 1-percent
response to be quite good. This promotion runs
about 40 percent. That’s the power of one-to-one
marketing – power we bring to our customers.
Digital production printing is a huge
market opportunity for Xerox as more and
more customers see that they can augment
traditional offset printing and penetrate new
markets with new applications that create new
revenue streams.
It’sthe ultimate win-win-win – for Xerox, for
Xerox customers and for their customers.
Leading With Value-Added Services
The third area in which we are investing is
value-added services.Here, too, we are making a
great deal of progress. In fact, revenue from our
value-added services business grew 20 percent
last year and 25percent in the fourth quarter
from a year ago.
More and more, our customers – particularly
our larger ones – are turning to us for help in
designing and improving work processes that are
document intensive. We provide consulting,
imaging, content management and outsourcing
services that help our customers reduce costs
through processes that deliver the right informa-
tion, in the right form, at the right time.
Although we manage our business in
three areas, wego to market as one Xerox. The
umbrella for much of what wedo – the value we
provide – is something we call Smarter Document
Management™. Just about every organization
you can think of has made significant investments
in information technology over the past several
years. In fact, between 1997 and 2003, United
States companies alone invested an estimated
$2.5 trillion in the promise of information technol-
ogy. Many are still looking for the return. They
are realizing that more is not necessarily better.
Xerox is uniquely positioned to help our
customers leverage and streamline their
legacy investments and make wise investment
decisions going forward. Since our earliest
days, we have been on a mission to harness the
marvels of technology to the needs of people.
We take a holistic approach that considers the
waypeople work, the culture they work in, the
Building the New Business of Printing
The second area in which we are investing
is the digital production market. Our strong
array of digital systems and solutions – led by
the Xerox iGen3®Digital Production Press
and augmented by the highly acclaimed Xerox
Nuvera®family of products – promises to
dramatically expand our market opportunity.
Market response to our new generation
of color production technology has been very
encouraging. Increasingly, our commercial
print customers are relying on the iGen3 to
fuel their business growth. In fact, many iGen3
customers own multiple systems – some own
six or more. Weare driving the NewBusiness
of Printing®in areas such as one-to-one
marketing, print-on-demand, and on-demand
book publishing.
One example is a large retail customer
who maintains many bridal registries. After
the couple returns from their honeymoon
and settles into married life, they receive a spe-
cial sales promotion of all the products they
had selected for their registry but didn’t receive.
The brochure is printed on a Xerox iGen3.
Direct mail experts consider a 1-percent
response to be quite good. This promotion runs
about 40 percent. That’s the power of one-to-one
marketing – power we bring to our customers.
Digital production printing is a huge
market opportunity for Xerox as more and
more customers see that they can augment
traditional offset printing and penetrate new
markets with new applications that create new
revenue streams.
It’sthe ultimate win-win-win – for Xerox, for
Xerox customers and for their customers.
Leading With Value-Added Services
The third area in which we are investing is
value-added services.Here, too, we are making a
great deal of progress. In fact, revenue from our
value-added services business grew 20 percent
last year and 25percent in the fourth quarter
from a year ago.
More and more, our customers – particularly
our larger ones – are turning to us for help in
designing and improving work processes that are
document intensive. We provide consulting,
imaging, content management and outsourcing
services that help our customers reduce costs
through processes that deliver the right informa-
tion, in the right form, at the right time.
Although we manage our business in
three areas, wego to market as one Xerox. The
umbrella for much of what wedo – the value we
provide – is something we call Smarter Document
Management™. Just about every organization
you can think of has made significant investments
in information technology over the past several
years. In fact, between 1997 and 2003, United
States companies alone invested an estimated
$2.5 trillion in the promise of information technol-
ogy. Many are still looking for the return. They
are realizing that more is not necessarily better.
Xerox is uniquely positioned to help our
customers leverage and streamline their
legacy investments and make wise investment
decisions going forward. Since our earliest
days, we have been on a mission to harness the
marvels of technology to the needs of people.
We take a holistic approach that considers the
waypeople work, the culture they work in, the
3
’00 ’02 ’03 ’04’01 ’00’02 ’03 ’04’01
($ millions)
3,970 4,250 4,480
5,264
4,403
Equipment Sales
($ millions)
4,437 4,249 4,203
5,518
4,728
Improving Selling,
Administrativeand
General Expenses