Xerox 2015 Annual Report Download - page 19

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. By applying our expertise in imaging, business process, analytics, automation and user-centric insights, we
engineer the flow of work to provide greater productivity, efficiency and personalization. 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 narrowing our focus, 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 deliver superior technology and
services to customers of all sizes, 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 2015. The business services markets have
attractive market growth rates generally in the mid-single digits, and we believe we can accelerate our Services
revenue 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.
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. In 2015, we updated our product portfolio by
introducing nine new devices and also launched nineteen 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 and 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 more
than 40 percent of our filings in 2015. We are investing in attractive markets, such as healthcare and transportation,
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
our global scale and ensure service delivery excellence across our BPO offerings. We also have initiatives
underway to continue improving our software platform implementation capability, particularly within our Government
Healthcare business where we have narrowed the focus of our platform development initiatives. With our ongoing
efforts and targeted initiatives in both Services and Document Technology, we expect over time to maintain or
increase our profitability and overall competitive positioning.
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