Lexmark 2014 Annual Report Download - page 11

 First, Lexmark is highly focused on delivering printing, imaging, and content and process management software solutions
and services for specific industries and business processes in distributed work environments. The Company’s management
believes that this focus has enabled Lexmark to be responsive and flexible in meeting specific business customer needs.
 Second, Lexmark internally develops both monochrome and color laser printing technology. The Company’s monochrome
laser technology platform has historically allowed Lexmark to provide one of the best values in enterprise network printer-
based products and also build unique capabilities into its products that enable it to offer customized printing and document
workflow solutions. Lexmark also internally develops its print and fleet management, content and process management
software platforms and tools that enable it to provide leading edge MPS and content and process management solutions.
Lexmark, through Perceptive Software, also internally develops content and process management software that includes
DOM, intelligent capture, search, rich content management, and healthcare specific medical imaging and VNA software
products as well as other industry tailored solutions to help companies manage the lifecycle of their content and business
processes all in the context of their existing enterprise applications. This combination of platform, product, and solutions
integrates rapidly into a customer’s existing IT infrastructure and is easy to use, which drives user adoption and accelerates
the customer’s process improvements.
 Third, Lexmark has leveraged its technological capabilities and its commitment to flexibility and responsiveness to build
strong relationships with large enterprise customers and channel partners, including distributors and value-added resellers.
Lexmark’s path-to-market includes industry-focused consultative sales and services teams that deliver unique and
differentiated solutions to large accounts and channel partners that sell into the Company’s target industries.
Lexmark is focused on driving long-term performance by strategically investing in technology, hardware and software products and
solutions to secure high value product installations and capture profitable supplies, software subscriptions, and maintenance and
service annuities in content-intensive industries and business processes.
Lexmark’s ISS segment continues to focus on capturing profitable supplies and service annuities generated from its monochrome and
color laser printers and MFPs. Associated strategic initiatives include:
 Expanding and strengthening the Company’s product line of workgroup, color and MFP devices;
 Advancing and strengthening the Company’s industry solutions including integrated ECM, BPM, DOM, intelligent data
capture and search solutions to maintain and grow the Company’s penetration in selected industries;
 Advancing and growing the Company’s MPS business; and
 Expanding the Company’s rate of participation in market opportunities and channels.
ISS’ strategy requires that it provide an array of high-quality, technologically-advanced products and solutions at competitive prices.
ISS continually enhances its products to ensure that they function efficiently in increasingly-complex enterprise network
environments. It also provides flexible tools to enable network administrators to improve productivity. ISS’ target markets include
large corporations, small and medium businesses (“SMBs”), and the public sector. ISS’ strategy requires that it continually identify
and focus on industry-specific print and document process-related issues so that it can differentiate itself by offering unique industry
solutions and related services. ISS’ research and development investments continue to strengthen the breadth and depth of its
workgroup laser line, color laser line and laser MFPs.
Because of ISS’ strength and focus on printing and document process solutions, the Company has formed alliances and original
equipment manufacturer (“OEM”) arrangements to pursue incremental business opportunities through its alliance partners.
The acquisitions of Perceptive Software, Pallas Athena, Brainware, Isys, Nolij, Acuo, AccessVia, Twistage, Saperion, PACSGEAR,
ReadSoft, GNAX Health and Claron enhance Lexmark’s capabilities as a content and process management solutions provider, expand
the Company’s market opportunity, and provide a core strategic component for Lexmark’s future. Lexmark’s software strategy is to
deliver affordable, industry and process specific workflow enhancing solutions through deep industry expertise and a broad content
and process management software platform, with a focus on making solutions easy to integrate, use, and support. Key software
strategic initiatives include:
 Advancing and growing the Company’s content and process management solutions business internationally;
 Expanding and strengthening the Company’s content and process management software product line; and
 Expanding the Company’s rate of participation in content and process management software solutions for specific industries
and processes.
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