Xerox 2006 Annual Report Download - page 18

Overview
References in this section to “we,” “us,” “our,” the
“Company” and “Xerox” refer to Xerox Corporation and
its subsidiaries unless the context specifically states or
implies otherwise.
Xerox markets and supports
document management systems,
supplies, and services through a
variety of distribution channels
around the world.
Xerox Europe covers 17 countries
across Europe.
Developing Markets Operations
supports more than 130 countries.
Fuji Xerox, an unconsolidated
entity of which we own 25%,
develops, manufactures, and
distributes document management
systems, supplies, and services.
Xerox North America operates
across the United States and Canada.
North America DMO Europe Fuji Xerox
The document industry is transitioning to digital
systems, to color, and to an increased reliance on
electronic documents. More and more, businesses are
creating and storing documents digitally and using the
Internet to exchange electronic documents. We believe
these trends play to the strengths of our product and
service offerings and represent opportunities for future
growth in the $117 billion market we serve.
In our core markets of Production and Office, we are
well-placed to grow by leading the transition to color and
by reaching new customers with our broadened offerings
and expanded distribution channels. Within these
markets, the fastest growing segment is color, which we
estimate is a $21 billion opportunity. At the same time,
we continue to compete to capture growth opportunities
within the black-and-white segment of our core markets,
which we estimate is a $58 billion market.
We are expanding our core markets with Document
Management Services, which is the combination of
managed services and value-added services. We have
organized our Document Management Services around
three offerings: 1. Xerox Office Services, where we help
our customers reduce costs and improve productivity by
optimizing their global print infrastructure through
analyzing the most efficient ways to create and share
documents in the office; 2. Document Outsourcing and
Communication Services, which focuses on optimizing
the production environment as well as operating in-house
production centers; and 3. Business Process Services,
where we show our customers how to use digital
workflow and develop online document repositories.
Our products include high-end printing and
publishing systems; digital multifunctional devices
(“MFDs”) which can print, copy, scan and fax; digital
copiers; laser and solid ink printers; fax machines;
document-management software; and supplies such as
toner, paper and ink. We provide software and workflow
solutions with which businesses can easily and affordably
print books, create personalized documents for their
customers, and scan and route digital information. We
are creating new market opportunities with digital
printing as a complement to traditional offset printing,
which we refer to as the Eligible Offset market. Within
the Eligible Offset market we offer leading digital
technology, led by our market-making Xerox iGen3®
technology, which meets the increasing demand for
short-run, customized and quick-turnaround offset
quality printing.
Our business model is an annuity model, based on
increasing equipment installations and Document
Management Services in order to increase the number of
machines in the field (“MIF”) that will produce pages
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