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Microsoft PowerPoint - Xerox @ Oracle Turning Ideas into Profit
unleashing potential
Working closely with clients to discover the hidden potential
for document process improvement.
Bernie Gooch
Service Development Manager
Xerox Global Services | November 2005
Xerox Product Lifecycle Services Turning Ideas into Profit
Xerox
Why change?
Challenge of value creation
From products to services
Xerox Office Services
Different worlds
The journey
Xerox today
Our future
Agenda Turning Ideas into Profit
Pioneering Research and Development
Pioneered Xerography
Invented laser printing
Led development of desktop computing
Page description languages
Innovative technologies adding structure and
intelligence to documents:
Smarter Document Management
SM
Leadership through Quality
Malcolm Baldrige Award
Deming Prize
European Quality Award
Xerography
1959
First automatic plain paper copier
Tribo Electricity - Charge Transports in
Semiconductors - Polymer Physics -
Amorphous Semi-Conductors -
Organic Photoconductors - Surface
Physics & Chemistry - Graphical User
Interface - Solid State Lasers - Laser
Printing Ethernet - Bit-mapped
Displays - Distributed File Systems -
Overlapping Windows - Page
Description Languages - First
Commercial Mouse - Object-oriented
Programming - WYSIWYG Editing -
Distributed Computing - VLSI Design
Methodologies - Client/Server
Architecture - Device Independent
Imaging - Very high res. LC Flat Panel
Display Turning Ideas into Profit
1990: DocuTech
®
1
st
Digital Publishing System
1995: Document Centre
®
Family
2001:
Common Controller Across MFP Platforms
WorkCentre
®
WorkCentre
®
Pro
Color
CopyCentre WorkCentre
®
Pro
Phaser
®
2003:
Industrys Broadest Portfolio
1977: 9700 Production Printer
1
st
Xerographic Laser Printer (120 ppm)
1959: The Xerox 914
1
st
Plain Paper Copier
1996: DocuColor
®
1973: Telecopier
®
200
1
st
Laser Plain-paper Fax
1
st
LAN
1979: Ethernet
2005:
The Innovation Continues
New
Phaser
®
New
Desktop
Color WorkCentre
®
New
WorkCentre
®
Models
New
WorkCentre
®
Personal Edition
New
Workflow Solutions
1973: Laser Printing/Fax/Personal Computing
A History of Innovation Turning Ideas into Profit
Why Change?
Xerox
Cost base and debt.
Competitiveness and market dynamics.
Unsustainable business model.
Office
Market leadership in main product segments.
Commoditised market place with falling prices.
Vendor(s) business model always under pressure.
Significant market space to grow into. Turning Ideas into Profit
The challenge of value creation beyond the product
Listen to voice of the customer
What challenges do they face
What answers are they really
asking you to provide
Understand where value can be
provided to customer
Use existing strengths as a base.
Build solution to address customer
challenges and add value - to client
and to Xerox!
Customer view of the Office
Output technology merging
Different owners (copy, print, fax)
No overall ownership or control
Attempted to control asset prices
No control of device numbers
No control of on-costs
Proliferation of devices
Device:people ratio of 1:2
Underutilised less than 2%
Out of control
Costly Turning Ideas into Profit
Xerox Office Services
Services
Equipment
Assets
Initial
Cost
Base
Due
Diligence
ODA 7.0
Ricoh
HP
Canon
XEROX
XGS
Support
Services
Savings
Around
25%
XEROX
XGS
Support
Services
Other Vendors
Today 2 - 4 Months Contract day one Optimisation
1-5 years +
5-10%
Saving
New
Cost
Per
Page
Model
Multi-
Vendor
Day 1
Cost
Base
Office
Soft Costs
Break/Fix
IT Helpdesk
MACD
Consumables
HP
Ricoh
Lexmark
Canon
XEROX Turning Ideas into Profit
Sustainable results require:
People:
Skilled and experienced teams to deliver
the project, and run the operation.
Process:
Methodology to deliver measurable
results and continuous improvements.
Technology:
Hardware and software deployed to
deliver maximum efficiencies.
Operations centres in Dublin and Cincinnati.
Six sigma methodologies
(ODA 7 / Optimisation)
Continued R & D in tools
(4.1 launched Oct 05)
Proven multi-vendor management.
Sustainable, guaranteed savings - not a one-off event Turning Ideas into Profit
Two Different Worlds
Product Business - Build & Sell
Product innovation
Strong go to market
Robust support model
Inventory management
30/60/90 sales management process
Localised selling process
Price led transactional sale
Leased assets, sale revenue driven
Profit from outset
Minimal contract risk
Services Business - Sense & respond
Methodology and process
Innovative value creation
Proven transformation capability
Operational excellence - people assets
Longer selling cycles
Globalised clients
Value led relationship sale
Services, annuity revenue driven
Profit over contract life
Managed contract risk
Success factors, Management skills, Business model.. Turning Ideas into Profit
Making the Change the journey for Xerox Office Services
CONCEPT
The Office
you want
Concept wins
INVEST
Core team
established
Lighthouse
wins
Delivery team
DEVELOP
Resources
Processes
Training
Evangelise
MASS DRIVE
Align all
organisations
Remove
barriers
#1 Priority
Total Commitment, Sponsorship and Voice in the Organisation
1997 - 2005 Turning Ideas into Profit
We offer a broad portfolio of services
including consulting, systems design
and implementation, strategic
outsourcing and process management.
Vision
We will be the leading innovator
in the outsourcing of document activity
and the transformation of document-
intensive business processes.
Value Proposition
Deliver cost savings and
efficiencies through outsourced
document services
Deliver improved process
effectiveness through
outsourced document processes
Xerox Global Services Today Turning Ideas into Profit
Portfolio of Document Outsourcing and Business Process Services
Document Outsourcing
Document Advisor Office
Xerox Office Services
Eprintsourcing
Creative Services
Customer Communication Services
Transactional Production Services
Document Production & Publishing Services
Mailroom Services
Business Process Services
Imaging and Archive Services
Client Account Lifecycle Management
Finance and Administrative Services
Product Lifecycle Services
Localisation Services Turning Ideas into Profit
The Future
Continued market leadership in products - #1 portfolio in industry.
Drive growth of Xerox Global Services business
Listen to customers and identify new areas of value
Build winning propositions based on strengths and expertise
Invest in people, process and technology
Total commitment, sponsorship and voice in the organisation:
We have a $3 billion services business today and were ramping up.
Anne Mulcahy, Chairman and CEO, Xerox Corporation Turning Ideas into Profit
Questions
Thank you! Turning Ideas into Profit
Xerox Corporation
2004 Worldwide
Revenue
$15.7 BN
Profit
$859 M
Earnings
$0.86 per share
Cash balance
$3.2 BN
R & D Innovation
$760 M (
5% Revenue)
Employees 58.000
Xerox
Innovation
Group
Xerox Global Services
Europe
Revenue (% of Xerox total)
15-20%
Employees 4.000
Contracts
1.200
Countries
17
Xerox
Office
Group
Xerox
Production
Systems
Xerox
Global
Services
Xerox
Xerox
Global
Services