Xerox 2014 Annual Report Download - page 17

Leverage Brand Strength and Market Position
We have a strong and valuable brand that continues to be ranked in the top percentile of the most valuable global
brands. Well-recognized and respected, our brand is associated worldwide with delivering innovative solutions, and
industry-leading business process and document management services and technology.
Xerox has a broad, diverse set of offerings in Services and a strong, well-positioned product portfolio in Document
Technology. We are strengthening our market positions by constantly evaluating our businesses and focusing our
investments in areas where we have an advantage, and where the greatest market opportunities exist. We expect
to accomplish this by targeting acquisitions and investing in businesses that will enhance our Services offerings and
capabilities, capitalize on our deep industry expertise and expand services globally, while maintaining our Document
Technology leadership in attractive market segments.
Geographically, our footprint spans more than 180 countries and allows us to serve customers of all sizes to deliver
superior technology and services regardless of complexity or number of customer locations.
Profitably Grow Services in Attractive Markets
Over half of our revenue was derived from business services in 2014. The business services markets have
attractive market growth rates of mid-single digits or above and we believe we can grow our Services revenue at or
above the market growth rates over time through both organic and inorganic growth. Across our business, we serve
industry verticals where we have deep expertise resulting from years of experience, strong customer relationships,
global scale and renowned innovation. Capitalizing on the opportunities that these strengths provide will continue to
be key to our growth.
We are also focusing on international markets for Services growth. Currently, our BPO revenues are largely derived
from services provided to customers in the U.S. By leveraging our existing global presence and customer
relationships, we are actively expanding our BPO services internationally, and we will also grow globally through
acquisitions.
Lead in Document Technology
We are focused on maintaining our leadership position in the Document Technology market and continuing to
innovate around our software, hardware and services offerings. For example, in 2014 we expanded the software
and application capabilities of Xerox® ConnectKey®, a major new software and solutions capability we launched
in 2013, and also broadened the number of devices that are enabled with this capability. In 2014, we expanded our
product portfolio by introducing over twenty new devices and also launched over twenty new workflow and software
solutions. These include products and solutions in the growing graphic communications market, and expanding
upon our investments in the production inkjet market and further building upon our 2013 Impika acquisition.
Continuing to bring innovative new products and solutions to market while also enhancing existing products and
solutions will enable us to sustain our Document Technology market leadership.
Innovate to Differentiate Our Offerings
Differentiating our offerings is key to our strategy. A critical role of our research is to envision the future and define
new research and competency areas for that future. We direct our research & development (R&D) investments to
areas such as data analytics, business process automation, and improving the quality and reducing the
environmental impact of digital printing. The proportion of our annual U.S. patent filings related to software,
solutions and analytics oriented capabilities has increased each of the last five years and they represented almost
forty percent of our filings in 2014. We are investing in attractive markets, such as healthcare, to create
differentiation. In addition, our acquisitions target companies providing new capabilities and offering access to
adjacent services, solutions and technologies. We expect this will deliver incremental value for our customers and
drive profitable revenue growth for our business.
Drive Operational Excellence Across Our Businesses
Our operational excellence model leverages our global delivery capabilities, production model, incentive-based
compensation process, proprietary systems and financial discipline to deliver increased productivity and lower costs
for our customers and for our own business. Margin expansion is a key priority within Services and an overall
opportunity for Xerox that we will achieve through specific initiatives aimed at improving our cost structure and
portfolio mix. As markets shift, we undertake restructuring to optimize our workforce and facilities to best align our
resources with the growth areas of our business, and to maximize profitability and cash flow in businesses that are
declining. In Services, we realigned our delivery resources into global capability organizations in order to maximize
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