Lexmark International [NYSE:LXK]: The Print and Digital Harmony

Paul A Rooke, Chairman & CEO

The drastic rise in the data volume and its type has driven companies across industries to consider electronic documents as the core aspect behind enhancing business operations and decision making. The fundamental nature of electronic data in the form of documents serves as backbone of companies thriving in the ongoing digital revolution. In the absence of a right system to manage content, businesses are left to dabble with the some of the biggest barriers affecting their productivity—the proliferation of unsecured, untracked, unmanaged, and redundant content across the organizational structure. IDC has estimated that a typical enterprise with 1,000 knowledge workers waste between $2.5 million to $3.5 million per year while searching for nonexistent information, failing to find existing information, or recreating information that can’t be found.

With nearly every business looking for realistic ways to “go green” and curb their environmental impact, the key behind creating order to avoid content chaos is by embracing efficacious document management software built around a strategic software-based approach. “There are a number of industries like government and social service, where users still require signed documents. Many still prefer paper, since it’s inexpensive and easy; while others choose to do it digitally. Our customers ask for help in bridging these two worlds. That’s where we jump in and help,” propounds Paul A Rooke, Chairman and CEO, Lexmark. Creating enterprise software, hardware, and services that remove the inefficiencies of information silos and disconnected processes, Lexington-based Lexmark International [NYSE:LXK] combines unconventional technology with deep industry expertise to automate information-driven processes— connecting people, processes, and technology.

Assuring Data Accuracy

By ensuring a seamless interaction between paper and digital world, Lexmark’s document management software serves as a complete process and content management framework that enhances information accessibility, promotes organized collaboration, and secures content in all forms. The software comprises of flexible saved, ad hoc, and integrated search options to aid users in performing full text-searches across large repositories. It also facilitates the process of locating specific documents within the context of a pre-defined process using system-assigned values or manually entering metadata.

From capture to disposition, document management features start by eliminating unmanaged content creation. Providing structure to all kinds of content and streamlining operations, Lexmark’s highlighted solutions also include document imaging, intelligent capture, multichannel capture, and E-forms to automate steps and validate data accuracy. For instance, the firm’s enterprise capture software collects and secures all content and data intelligently— extracting, organizing and sharing information at a faster pace.

As we have evolved, we’ve become more of a solutions company. We like to say ‘print less, save more

A Central Content Repository

With the rising popularity of BYOD policies and facile document collaboration available through unauthorized cloud sharing applications, many organizations face increased number of data security risks and compliance issues. A central repository is thus needed to support electronic document management system. Lexmark’s document control suite eliminates unmanaged, redundant documents, and ensures utmost security—empowering users across the organization to create, edit, and maintain documents using any desktop application. Users can also apply version control and library services, directly from a variety of interfaces including interact applications and web services client. The document control suite helps individuals analyze the latest version of a document, review revision history, and even sign the documents digitally.

Additionally, the firm’s integrated content modules are built on industry requirements to enable businesses to locate process and secure content quickly. The module also allows clients to structure, manage, and preserve content to best meet the business requirements. Proffering an essential tool for rapidly associating unstructured information with records in the customer’s core business systems, the content module is configured in combination with standard technologies including LearnMode and Pretrieve.

Connecting People to Precise Information

By providing an effortless approach to preserve the security and integrity of business documents, Lexmark’s perceptive document control suite, a key offering, can collaborate on important document management tasks within an array of applications. Incorporating version control and library services, perceptive document control suite is formed on the proven enterprise content management foundation of perceptive content. Furthermore, the suite is built around a security model that is engineered to grant and repeal individuals and groups the rights to each distinct system function, restrict document and document types based on user’s point of access, and organize enterprise information in a central, electronic repository.

“Perceptive Software gives Lexmark the capability to do more with our customers than we’ve ever been able to do before,” affirms Rooke. Understanding customers’ complex challenges and connecting people to the precise information they need at the moment, Lexmark’s offerings have evolved from single-function printers to multi-function printers. These printers have transformed to fleet management, vertical solutions, and currently, to software solutions.

Increased Visibility through Automation

Expanding in recent years, primarily with through acquisitions of software companies, Lexmark has a direct sales force calling on the largest Fortune 1000 class accounts. “In the medical market, we’re focused on the largest hospital systems in the world. Our sales executives are highly trained, very sophisticated, and communicate directly in selling our proposition,” Rooke says.

“As we have evolved, we’ve become more of a solutions company. We like to say ‘print less, save more.’ We’re all about helping with smart devices and managing fleet cost effectively.”

As a case in point, Presence Health—a healthcare services provider faced intricacies with consolidation of office systems, upgrading of IT infrastructures, and implementation of new technologies that relieve administrative burdens placed on operational management and staff.

Once the decision was made to pursue automation technology in accounts payable, the client decided to achieve the goal of complete elimination of paper. The customer was in need of a product that would enable them to improve the bottom-line—to take work out of the system. After evaluating several document management software Presence Heath observed that Lexmark clearly demonstrated a potential to eliminate significant amount of costs, throughout the accounts payable process. With Lexmark, the client experienced a rapid, substantial boost in efficiency and productivity. “Perceptive Intelligence Capture implementation has helped us reduce the hourly staff, entering data into the system by 40 percent. Our accountants also use it to efficiently recall invoices related to specific checks. As we continue to roll out Lexmark’s solutions more broadly, we anticipate the technology benefitting additional users as well,” explains Robert Banwart, Director of Accounts Payable, Presence Health.

"When we identify gaps in our offering, we focus on filling them either organically or inorganically with acquisitions"

Detailing a document’s chain of custody through powerful auditing capabilities, Lexmark ensures document accessibility, collaboration and security, with its powerful solutions. “A very important focus for Lexmark is to be more knowledgeable and a thought leader, whether it be in retail, manufacturing, banking or insurance,” Rooke says. Focused on maximizing the quality of customer experience and keeping business processes on-track, he adds, “Our best ideas come from our customers. However, the challenge is to stay close to them, to make sure we’ve got the right people with the right skills, to cater to client requirements.”

Creating a Perfect Blend

On a mission to be a top-notch solution provider across various industries, “Lexmark has its future strategy mapped out. As we transition from being hardware to software solutions-centric company, we are shifting the mix of our products and services. Being focused on broader solutions—beyond hardware—to encompass software and services, Lexmark is now bringing a different set of skills to the customers,” Rooke states.

As each of the company’s latest acquisitions neatly fit within various adjacencies, Rooke exclaims that, “acquisitions are part of the strategy. When we identify gaps in our offering, we focus on filling them either organically or inorganically with acquisitions. We will continue to focus on those as a part of our strategy. We not only acquired sales people who have knowledge in a particular industry, but also gained good research, development capabilities, software, and service skills from them.” Banking on paper is never really disappearing—an area that the company is bolstering through targeted acquisitions.

- Aishwarya Kannan
August 22, 2016