Techaisle Blog

In the dynamic world of technology, strategic acquisitions often serve as pivotal moments, reshaping market landscapes and redefining how services are delivered. The recent integration of ITsavvy into Xerox IT Solutions stands as a testament to this, marking a significant evolution from a successful channel partner to a critical component of a global IT powerhouse. This is not merely an acquisition; it is a strategic convergence that warrants a closer examination of the underlying rationale, the intricate platform integration, and the transformative impact it promises for Xerox's service delivery capabilities, particularly within the often-underestimated SMB sector. 

The Genesis of a Strategic Convergence 

The initial reaction to the announcement – "Why Xerox?" – underscored a perceived unconventional pairing. ITsavvy, a recognized provider of robust IT infrastructure solutions, aligning with Xerox, a brand historically anchored in printing and document management, initially seemed an outlier. However, a deeper analysis reveals a strategically sound convergence built upon complementary strengths and a shared vision for unlocking significant potential in the IT solutions landscape. This partnership wasn't born of chance but from a calculated recognition of mutual benefits. 

In its evolution from a hardware-centric entity to a service-oriented enterprise, Xerox has progressively broadened its service portfolio beyond traditional maintenance into digital transformation and comprehensive IT support. This transition has been underpinned by its extensive service network and a substantial base of technical representatives. Over time, Xerox strategically accumulated a portfolio of IT services acquisitions across various geographies. However, these assets remained somewhat fragmented. ITsavvy, with its unified and agile platform, experienced leadership, and a well-established partner ecosystem, presented a compelling solution. The proposition of consolidating Xerox's diverse IT assets onto ITsavvy’s cohesive platform offered a clear pathway to unify and significantly enhance Xerox's overall IT service offerings. 

In today's interconnected and threat-prone digital environment, securing print infrastructure is more crucial than ever. Businesses of all sizes require robust and comprehensive security solutions to safeguard sensitive data and ensure compliance. Print security has become a significant topic of discussion in the industry, given its essential role in protecting confidential information and mitigating cyber risks. Despite often being overlooked, printers and multifunction devices manage highly sensitive documents such as architectural plans, legal contracts, and financial records, making them potential vulnerabilities.

In addition, the rise of hybrid work has increased the focus on print security. As employees print and scan from various locations and devices, traditional security measures are no longer sufficient. Printers also act as network access points, which can be potential entryways for hackers to infiltrate systems. This increased risk, along with regulatory compliance requirements in industries such as finance and legal services, has made print security a key topic in IT security discussions. Businesses are now acknowledging that implementing secure print and scan solutions are essential not only for protecting physical and digital documents but also for maintaining their reputation, client trust, and business continuity in a complex threat landscape.

Xerox addresses the challenges of print security in the modern distributed workplace through a multi-faceted approach. The company takes a comprehensive approach to print security that includes device security, fleet management, and digital services. Xerox aims to be the print industry's most secure and trusted provider, which drives continuous improvement in its products, services, and infrastructure security. This Techaisle Take examines Xerox's security strategy, key offerings, and how it differs from competitors.

A Vision of Security and Trust

Xerox's vision is to be the most secure and trusted provider of workplace services. This commitment is driven by an executive mandate to continuously improve the security of its infrastructure, products, and services. To achieve this, Xerox has adopted the NIST Cybersecurity Framework (CSF) as a baseline for measuring and improving its cybersecurity program. Xerox tracks its security investments by mapping them to the NIST CSF and measures outcomes against desired targets. This framework ensures a systematic approach to security, aligning with industry best practices.

Xerox, synonymous with photocopying, has embarked on a bold transformation to remain relevant in the digital age. From its humble beginnings as a copier manufacturer to its status as a diversified technology services company, Xerox's journey is a testament to its resilience and adaptability. Groundbreaking innovations punctuate Xerox's history. The introduction of the plain paper copier in the 1950s revolutionized document reproduction, and the company's subsequent development of the graphical user interface (GUI) and computer mouse laid the foundation for modern computing. The laser printer, another Xerox invention, further cemented its position as a technology pioneer. However, the rise of digital technology and the decline of traditional printing posed significant challenges to the company.  Xerox began a strategic shift towards IT Services with the 2010 acquisition of Affiliated Computer Services (ACS), rebranded as “Conduent” and spun off as a separate business services division in 2016.  The COVID-19 pandemic accelerated the shift towards remote work and digital document management.  While Xerox saw a decline in traditional office printing, it also identified new opportunities in emerging segments, demonstrating its agility and forward-thinking approach, which should give us all optimism about its future. 

It was my great pleasure to speak with John G. Bruno, Xerox's President and Chief Operating Officer. The conversation covered a broad array of subjects, focusing on Xerox's strategy for Reinvention. 

The traditional office environment has undergone a seismic shift with the rise of remote and hybrid work models. Once synonymous with physical document management, Xerox is adapting to this new reality by strategically balancing the preservation of its core print business with a bold venture into Digital Services and IT Services. While print remains a critical component of Xerox's operations, the company recognizes the growing demand for digital tools. It is investing heavily in technologies that can extract value from documents in a digital format. 

Xerox's foray into digital services is driven by the understanding that information is increasingly digitized. The company is developing services to capture, process, and analyze content from various sources, including physical documents. By doing so, Xerox aims to position itself as a trusted partner for businesses seeking to optimize their document workflows and extract valuable insights from their data. 

Furthermore, Xerox is expanding its service offerings to include IT services, particularly for small and medium-sized businesses. By providing a comprehensive suite of IT services, including managed security and cloud solutions, Xerox is addressing the growing technology needs of this market segment. This strategic move diversifies the company's revenue streams and strengthens client relationships. In essence, Xerox is evolving from a hardware-centric company to a technology-driven organization that empowers businesses to navigate the digital landscape. 

The company's Reinvention strategy is threefold. This three-pronged approach demonstrates Xerox's commitment to preserving its core print business, simplifying its operations to improve the client and employee experience, and capitalizing on the opportunities presented by the digital revolution. 

1. Strengthening the Core Print Business:

Xerox aims to maintain its leadership in the print industry by focusing on efficiency and productivity, reducing costs, and capturing growing segments like home office printing and production print. Despite the rise of digital platforms, print remains a significant market, and Xerox is determined to solidify its position as a leader in this space. As remote work and hybrid work models become the norm, the demand for home printers is expected to rise. Xerox is positioning itself to capitalize on this trend by offering high-quality, user-friendly printers to address the evolving needs of hybrid workers.   On the other end of the spectrum, Xerox also focuses on production print. This segment caters to businesses with high-volume printing needs, such as publishing houses, advertising agencies, and direct mail companies. Xerox aims to increase its market share in this lucrative sector by investing in advanced printing technologies and workflow solutions. 

2. Driving Efficiency and Growth through Global Business Services:

A key component of the Xerox Reinvention is the formation of a new Global Business Services organization. By centralizing internal processes and leveraging shared capabilities, Xerox aims to simplify operations, reduce costs, and improve the overall client and employee experience. This, in turn, frees up resources for investment in growth areas, such as emerging technologies and digital services. As Xerox continues to evolve, the Global Business Services organization will play a pivotal role in ensuring the company's long-term success. 

3. Expanding into Digital Services and IT Services:

Recognizing the digital transformation, Xerox is investing heavily in digital services, including intelligent document processing, content management, and data capture. The company also sees significant potential in IT services, particularly for small and medium-sized businesses. Recognizing the inevitable shift towards digitalization, Xerox is increasingly investing in digital services. At the heart of this strategy is intelligent document processing, which involves extracting valuable information from physical and digital documents. This technology is crucial for businesses looking to automate workflows, improve efficiency, and gain insights from their data. In addition to document processing, Xerox is focusing on customer engagement services, whereby Xerox helps companies utilize proprietary content to more effectively target and communicate with their customers, even designing and implementing omnichannel marketing campaigns. Xerox entered the IT services market to expand its digital footprint, particularly targeting small and medium-sized businesses (SMBs). By offering a range of IT services, including managed security, cloud solutions, and technical support, Xerox aims to become a one-stop shop for SMBs' technology needs. 

Current trends show that Robotic Process Automation (RPA) adoption rates have risen significantly, with many businesses wanting to automate processes to increase efficiency. RPA is a non-invasive technology for making daily operations more efficient, allowing for increased productivity. While larger organizations have started early, smaller businesses have also begun to adopt RPA increasingly. While there is still some misconception that RPA is not so relevant for SMBs. The rise in adoption can be attributed to the fact that RPA technology helps boost productivity, enhance customer and employee satisfaction, improve cash flow, support audit and compliance requirements, and gain a competitive advantage. SMBs rely on efficient workflows and effective systems throughout all processes, and in the SMB space, efficiency is often a critical competitive advantage.

Importance of RPA to SMBs and midmarket firms

SMBs have constraints, such as limited resources and budgets, that demand flexibility. However, because SMBs are agile, they can quickly adopt new technologies with less friction. Large enterprises are generally burdened with complexity and red tape, but SMBs can embrace change and gain immensely by implementing RPA.

1. Technological competitive advantage: SMBs can improve productivity to gain a competitive advantage by automating repetitive and time-consuming tasks traditionally associated with back-end office functions.
2. Real-time tracking: RPA systems can track, analyze, and estimate an organization’s data in real time. Based on the estimates, SMBs can focus on improving their shortcomings and building their strengths. In addition, the data can be accessed anytime when required.
3. Cost reduction: SMBs often have limited resources and are highly cautious about direct and indirect costs. Hiring more personnel increases business costs, but by adopting RPA, SMBs can handle daily operations with lesser dependency on the human workforce.

RPA Use Cases for SMBs

As RPA technology continues to evolve, its applicability across industries, functions, and systems also expands. Here are some of its SMB use cases.