For much of 2020, businesses of every stripe were in “survival mode,” reacting to the internal and external changes the pandemic had wrought. Companies are now able to focus more on long-term strategy, and Xerox Corp. is one of the document imaging industry players looking to reorganize to help the company better align its businesses to market demands.
In conjunction with its Q4 and FY 2020 financial-results announcement, Xerox unveiled plans to set up its Software, Financing, and Innovation organizations as separate internal business units by 2022. The Software business will include a growing portfolio comprised of the DocuShare family of cloud-based and on-premises content management products, the XMPie software that supports multichannel marketing campaigns, and the newly acquired CareAR augmented reality business. Xerox Financial Services (XFS) will become a global payment solutions business, offering leasing for Xerox and third-party technology and office equipment. The company says that the new divisional structure will allow XFS to expand the company’s customer base, create cross-selling opportunities, and provide more leasing options for small and medium-sized businesses.
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| Xerox plans on standing up its Software, Finance, and Innovation offerings in distinct internal (for now) business units. |
Also as part of the re-org, the storied Palo Alto Research Center (PARC) will be the centerpiece of the Innovation division—positioned to develop technologies for Xerox and outside clients. Over the past few years, PARC has been central in advancing the company’s innovation portfolio, including 3D printing and digital manufacturing, IoT sensors and services, and clean technology. Xerox will also establish a $250 million corporate venture capital fund to invest in start-ups and early and mid-stage growth companies aligned with the company’s innovation pillars and targeted adjacencies.
The new structure makes sense from an internal standpoint, as it gives executives greater visibility into the functioning and performance of the disparate businesses under the Xerox umbrella. Of course, clearly delineating these business units from Xerox’s core business of document imaging hardware (and apps tied to that hardware) also sets up these divisions to be spun off or sold eventually if conditions warrant.
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