Xerox Corp’s latest attempt at getting itself a future beyond copiers is a new focus on providing networked document services, end-to-end solutions modeled on IBM Corp’s global services business. Xerox CEO Rick Thoman, formerly Big Blue CEO, told ComputerWire that the image of Xerox is behind the game, adding: what Xerox is doing is what IBM did, taking great technology and changing the focus.
Thoman also vowed that the company would halt the exodus of ideas from its revered Xerox PARC Palo Alto Research Center and in future nail those appropriating its technologies. PARC is credited with inventing the graphical user interface, mouse and Ethernet amongst other technologies. Xerox is going to offer 17 products and service packages aimed at four industry segments: financial services, manufacturing, graphic arts and the public sector.
Additionally it has some 20 knowledge sharing tools that combine elements of software, internet and services. Xerox wants services to account for up to half its business from 15% today outsourced. However, this isn’t a new story. Five years ago former Xerox CEO Paul Allaire said that the key to Xerox’s future would be to provide IT and services building upon its strength in the office. Xerox would like to pick up more deals like the one it has with Matsushita Electric Industrial Co where it has effectively become the company’s printing operation.
Xerox, which now styles itself ‘the document company’ slashed 9,000 jobs and took a charge of $1bn last year in a bid to haul itself into the digital age. Net income improved by 14% in Xerox’s first quarter, while revenue was flat, falling $4m to $4.3bn. Digital-copier sales rose 28% and now account for half of the company’s business. Xerox has a leading 35% share of the market. Xerox blamed ongoing restructuring and the realignment of its sales force. Xerox is using Documentum Inc’s technology to create new manufacturing applications, including a set of document transaction services for ERP which it says provide net access to ERP and non-ERP documents. It will provide automatic document creation through a Product to Market solution and has new multilingual document management and search and retrieval services. It is partnering with RTMS for customer relationship management.
