@by Here’s the rub; BOTH LEX and XRX are failed companies.
Lex’s financials were FAR worse than Xerox’s, pre-acquisition. That’s 100% on Lexmark mgmt.
LEX because they can make a box and absolutely nothing beyond that. They can’t build a competent cutting-edge driver stack for it. They can’t build a software platform to save their lives. They can’t operate a successful field service org. They can’t architect an MPS technology stack when that’s the prerequisite for even responding to a customer RFP. They don’t have a platform, other than the print engine itself, and even those still don’t hold a candle to the image quality of the Xerox-developed IP that made Fuji IBG what they are now. Lexmark’s business model was little changed from a pre-1990 view of printing, and all the “off-box” technology and pi-s-poor telemetry reflects that. Lexmark didn’t sell its manufacturing capacity and its hardware competency, so it can still make the physical box. And nothing more.
Xerox could do all those things, and do them better than anyone else and cheaper than anyone else (when HP was Palo Alto-centric, they were paying 3x in total labor cost for engineering versus XRX in Webster). For years.
What made Xerox fail was UB cutting R&D in the USA and outsourcing to India, followed by the ACS acquisition that removed core R&D as a company priority. By the time the lapdog board realized how terrible all of this was turning out, they fired her. Then they fired JJ, who tried to sell out a U.S. company to Fuji for a fraction of its value at the time. But the damage was done and the native Fuji software was terrible and took a decade of sunk costs to make borderline functional, most of this while outsiders ran Xerox and would fire every manager who pointed out the follies and timelines needed to correct them. But no one wanted to rip the band aid off to fix all the post-2009 strategic blunders by management (which didn’t begin to affect the products until 4-7 years later). Top talent hemorrhaged out of the company, and what’s left are a skeleton crew of extremely competent people who have been powerless to fix anything, but are far enough along in their careers where it makes more sense to ride it out than to try and find a job in tech and a late middle aged white guy (or even retirement aged white guy).
The other type of being that survived the generation of attrition, is the cockroach. They’re the minority of technical people, and probably the minority of non-technical people…though way more of them are non-technical. They wormed their way into decision-making roles and stood up entire orgs that did nothing but su-k value out of everything. TA and the LOB is the epitome of this, but the entirety of the sales organization doesn’t get sufficient blame for habitually ignoring customers and selling them sh*t sandwiches. Their commission was based on a 1980’s hardware compensation model. Not a modern software-defined, services-dependent approach. At no point was anyone in sales concerned with how much needless complexity selling totally incompatible rebadged products in a marketplace Xerox invented with the managed services suite over a quarter century ago. Just their sales sheets, little changed from the light lens era.
So yeah, pun-intended, most Lextards need to get off their high horses, and realize your management have been spending way too much on their extracurricular activities, like horses, for decades as a glorified box company, and you simply don’t know what you don’t know. Xerox’s world-leading IP portfolio and breadth of class-creating products transformed offices around the globe for 55 years. A DEI CEO (and a bunch of nepotistic Kodak failures-as-VPs imported shortly before this, denying lifelong Xeroids of management-track status) sabotaged it in six years.
Yours is the product on page 127 of the CDW catalog, after HP, after Samsung, after Canon, after Brother, after Epson. A plug-n-play commodity for a home office. Not an enterprise-ready, deployable and manageable at scale solution that have been the cost of admission for 20 years to any customer larger than a solo practitioner dentist with a secretary and one PC and one printer.
Because the only value you have in the B-school equation here, is you can build a box. A box of mere commodity utility to all of the others.
Meanwhile, Xerox invented the analog and digital eras of the industry. So dominant for so long, in fact, that Xerox is the verb people the world over still use when they need to make a copy.