Xerox Communication and Marketing Services
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1 Xerox Communication and Marketing Services Market Positioning and Strategy Andrew Morrison Vice President Worldwide Delivery Services Xerox Global Document Outsourcing Xerox Corp. NDA Presentation: This presentation is provided under non-disclosure agreement (NDA). This material should not be distributed by your firm externally. No portion of the information contained in this NDA presentation should be released without review and prior consent by Xerox. Thank you Xerox Corporation. All Rights Reserved. XEROX and XEROX and Design are trademarks of Xerox Corporation in the United States and/or other countries. 9/11
2 Overview Trends Market Size and CMS Focus Business Update Go to Market Strategy Current State/Market Messaging/Desired State Marketing Strategy Architecture Global Delivery Real Benefits Delivered Future Expansion Page 2
3 Trends Market Trends Game shift away from print to multi-channel campaign execution Cloud marketing pushing ease of use growth of links to lead and content repositories CMO Multi-channel and touchpoint attribution become highly relevant Integrated marketing and communication , PURLs, DB management, social media as core COO CEO Marketers Communicator Trends Instant gratification customers demanding faster response, led by social media Measurable end-to-end results ROI and meaningful business insights essential Content re-engineered to meet demands of mobile and content delivery models Product Owners Campaign Owners Brand positioning closer to brand, agencies and values Customer segments define end customer segments, profiles and personalization Agencies CIO Compliance End-user Trends Increased adoption digital channels and daily tools Mobile transferable formats Backlash against nonpersonalized, poorly targeted communications Suppliers and Partners Page 3
4 Market Size and Our Focus Cross-Media Print marketing remains important but increasingly integrated with digital Variable data printing must focus on meaningful personalization Growth in opt-in personalization Requirement for creative to fuse with and offer marketing execution services Supply Chain and Downstream Creative and print procurement/management augmented by complementary marketing services Marketing Resource (MRM) tools growing in prominence as more focus on cost and value Specialist campaign delivery project management skills are vital for successful campaign execution Marketing Services Utilizing effective descriptive and predictive analytics is vital for effective campaign management Establish real linked connections with customer across multiple channels Social Media Developments include sentimental analysis, online reputation management, increased use of QR codes and Augmented Reality (prominent online) Document Outsourcing Market (DO) $45B Communication & Marketing Services $19B Source: Xerox Market Size Analysis Similar upstream services Innovative services Other notable services Managed Print Services $26B Marketing space specific, database marketing companies, software players Evolving players demonstrating plethora of channels available (new perspective, intelligent content, bring relevance to static/inanimate communications) Growth in social media; cloud marketing platforms; diversified agencies; location, video, mobile; multi-lingual Page 4
5 Business Update Sales and Pipeline Significant Growth Projections Large pipeline, all sectors, all geographies >100 CMS specialist sales tigers Specialist training and deal coaching globally Increase in multi-country/regional deals Investments Significant RDE Focus Sustain: Workflow; DAMs; eps; Sourcing and Procurement; Marketing storefront; variable data publishing; epublishing and VDP mailing; emessaging; epresentment; Marketing campaign management and cross-media enablement with XMPie Extend: Data analytics, integrated CMS SOA, integration inbound communications Service Offering Expand and Further Integrate Increased use of personalization and data analytics to improve business outcome measures Focus on digital transition, increased access and output channels for true cross-media Integrated cross-media, campaign management, execution as well as end-to-end supply chain management Global Delivery and Capability Scale and Productivity Extensible network of Global Delivery Centers in all territories Common platform, interoperable resources and capabilities in key disciplines Skill and talent acquisition to enable us to be best in class Page 5
6 Our Strategy Solutions - Address complexity and provide end-to-end, integrated solutions across all areas of design, content development and supply chain management including cross-media marketing and output services Architecture - Consistently deploy our offerings and leverage our global technology/portfolio investments to drive cost productivity and scale Global Delivery - Expand in all major geographies and industries with particular focus on retail, financial services and government Platform-Based Service - Continue to innovate and expand our business process and technology platforms in epresentment/cross-media, marketing workflow, procurement and supply chain management Benefits Realization - Focus on performance and cost, customer benefit realization, process efficiency, transformation and business outcome measures Expansion and Integration - Further integration and collaboration with customers and strategic partners to address full scope and ROI Differentiation - Continue to leverage and increase our key advantages in markets and geographies with cloud-based delivery technologies such as XMPie, Across, Aprimo Page 6
7 Our Marketing Proposition Grow Market Share. Grow Mind Share. At the heart of attracting new customers, delighting current ones, and engaging employees, stakeholder, and citizens, you ll find effective marketing and communication. Yet managing those processes may not be the core focus of your business. It is one of ours. In fact, when we manage these processes for clients like you, we uncover hidden opportunities for savings and revenue growth - and free your organization to do more of what you do best. Page 7 September 13, 2011
8 Marketing and Communication Complexities Multiple Functions and Messages Multiple Media Multiple Audiences Typical Barriers in Organizations Multiple suppliers Disparate data Marketing Web Limited collaboration Increased costs Product Mgmt. Mobile Complex approval cycles Complex supply chains Slower time to market Tablet PC Disparate purchasing Operations Limited management information Print/Mail Loss of brand assets No central control HR/IT/Legal Call Center Page 8
9 Marketing and Communication Solutions Multiple Functions and Messages Multiple Media Multiple Touchpoints Typical Barriers in Organizations Marketing Product Mgmt. Operations Communication and Marketing Services Web Mobile Tablet PC Improve time to market and message coordination Established workflow and cost management Consistency of targeted messaging and brand management Centralized customer databases Effective execution of complex personalization Significant measurability and ROI Scale and efficiency Mail Multiple access/output channels HR/IT/Legal Call Center Page 9
10 Architecture Approach CMS Global Delivery Business Benefit Market Share Grow Mind Share Goals/Results by Industry Attract New Customers Enhance Customer Experience Invigorate and Align Employees and Citizens Streamline Communication Processes Configurable Capabilities Strategy and Planning Communication Strategy Strategic Planning Language Consultancy Strategic Sourcing Supplier Data and Analytics Data Modeling Data Transformation Analytics Data Content Creation and Document Communication Engineering Creative Authoring Translation Pre-Media Brand Digital Services Message Multi- Channel Delivery On-Site Print Off-Site Print Mail and Fulfillment SMS/MMS Preference Command and Control Catalog Response Mgmt Data Capture Response Fulfillment On-Boarding Technology & Infrastructure Global Delivery Center Network, Technology Development and Support Infrastructure Page 10
11 Global Delivery (GSDN) CMS Global Delivery Delivering strategic communication and marketing services through a combination of a pre-sales, on-site, near site and offshore Global Delivery Center network operating on a common technology architecture and infrastructure support service. CMS Centers IT/Data Centers 1 Webster 2 Redmond 3 Welwyn 4 Chennai 5 Bangalore 6 Toronto Buffalo 2 Rochester 3 Pittsburg 4 Dallas 5 Telford 6 Kochi Global Delivery Centers Technology Platforms Methodologies/ Processes Partner Network Page 11
12 Platform-Based Service CMS Global Delivery Technology, people and service in a structured centric framework to maximize both brand and operational marketing value and cost efficiencies. Integrated CRM Order Mgmt. Campaign Mgmt. Advisory System Project MI IT SRM Procurement Support System Service Service Delivery Input Order Products Services Outputs Print Stationery Consumables Direct Mail Campaign Mgmt. Data Analytics Creative Svs. Repro. Warehouse Distribution Logistics Integrated service and supplier management Central brand and campaign execution End-to-end collaboration Integrated supply and demand Simple approval cycles Time-to-market Structure purchasing Sourcing, demand and category management Real time analytics and MI Strategic partners and supply chain Page 12
13 At The End of The Day Real Benefits! Make Budgets Go Further 30 % Lower document production costs for a retail bank Do more for less Customer Centricity 42 % Reduction in statement queries to the call center of a telecom provider Faster payments and cashflow Speed and Flexibility 6 months Extra time for pricing decisions for a catalogue retailer Bottom-line growth Brand Consistency 20 Increase in customers satisfied % with policy documents at an insurance company Customer satisfaction Visibility and Control 100 On-time delivery of point-of-sale % campaigns in a fast-moving retail environment Ability to meet SLAs and lower business risk Higher Response Rates 6 % Sales conversion rate on direct marketing campaign for a car dealership Revenue growth Page 13
14 Continued Expansion and Integration Supply chain and downstream management will be heavily influenced by upstream areas and decisions. End-to-end integrated services are essential. Differentiated High Value-add Value Commoditized Low Value-add Marketing Lower Spend Cross-media Targeted, effective communications Personal, preferences, predictive, closed loop to ensure right message, right time, right results Multi-Channel Communication High quality print communications, migration to electronic, automation and aligned to key business processes Supply Chain and Downstream Proportion of Spend Supply Chain Process efficiency, ease of order management and workflow, consolidation, end-to-end control over all physical costs and information Higher Spend *Note: Box size represents Xerox current footprint Key Forces Ability to provide ROI and effective targeting via analytics drives selection Ability to re-engineer campaign material across channel drives brand consistency and cost extraction Managing campaign execution (across channels) will drive supply chain ownership/preferences Page 14
15 Differentiation An integrated, comprehensive platform-driven approach that delivers end-to-end value to the top and bottom line of our clients through continued significant RDE investment in the Document Outsourcing Space Global footprint coverage and service delivery capability in major regions Cloud-based platform approach enabling consistency and speed of on-boarding End-to-end focus and capabilities Intellectual property on workflow, infrastructure and tools such as XMPie Unique procurement and SRM approach (elemental level and global partners) Centralized, strategic delivery centers and network of partners Breadth and experience in communication capabilities and expertise Leader in Global Document Outsourcing Link to client s business processes Localization and language translation Collaborative tools and approach to working with agencies, partners and clients History and success in understanding and delivering on our client communication challenges Page 15
16 Summary Market, communicator and end-user preferences changing Significant activity and opportunities in all sectors and markets with market opportunity of $19B Focused and ready to deliver end-to-end marketing and communication outsourcing and integration Equipped to manage the transition from print to digital communication through skilled resources, project execution capabilities and technologies Global reach, established partner network and service management capabilities supported by continued focus on innovation, technology and delivery solutions that delivers real business insight Building on our heritage of delivering business value to our clients that are meaningful and demonstrable against set metrics such as ROI Platform-driven, structured and consistent capabilities in an unstructured environment and landscape across all major geographies. Page 16
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