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Q&A: Fuji Xerox President on the Necessity of Change

F.Y. Teng | Oct. 7, 2013
Tadahito Yamamoto's transformation agenda for one of the world's leading business communication solutions provider.

How has it been going down that road?
It hasn't been easy. In order to bring about the transformation we want enterprisewide, we have had to get our people to switch their mindsets-from dealing in solid devices to dealing in services and/or total business solution and services contracts-which is always difficult. Take for example the sales guy-you have to get him to stop thinking about selling a copier or printer, and start thinking about selling the copier or printer, as well as the support and services arrangements to go with it. His pitch going into every sales call used to be simple. He just had to convince his customer that his product was better than what the competitors had. Now, it's more complex. He now has to go through, with the customer, the overall cost and value of an investment in our hardware, software and services over a period of time to show the business advantages of a Fuji Xerox relationship. He has to approach things like a consultant for the customer, no longer selling just devices but also ideas and the other associated things that go into creating business value and lowering costs.

What kind of company do you see Fuji Xerox becoming by the time you've completely transformed it?
Many people have asked me that kind of question. It's hard to say. I know we won't become an Accenture- or IBM- or Fujitsu-type company, but rather be somewhere between a full-fledged hardware producer and a dedicated consulting house. We won't be just a device maker. At the same time, we won't become an Accenture because we still want to continue producing the machines that are part of our imaging solutions for customers. Also, we have strong competencies in document management and imaging-in print and digital-that we cannot responsibly give up because our customers rely on us to provide solutions to serve their needs in those areas.

How do you envision the spread of revenue coming in the years to come?
We want to see continued growth in both sides of our business, of course. But if you're asking about ratios and such, in the fiscal year 2012, devices delivered 74 percent of our revenue and services 26 percent. We expect to see services making 30 percent of our revenue by the end of this fiscal year. Eventually, we should see an even split of 50 percent due to services and 50 percent devices.

How will you go about realising this 50:50 split in revenue?
We're looking at cultivating our consultation business, which seriously looks into the setups of our customers and helps them change their systems and processes where needed for cost effectiveness, higher productivity and business opportunity. Part of that is the design and implementation of new systems, if not also the reengineering of the processes that go with them. Also a part of that is the administration and support of those systems once we've put them in place for the customers. If you consider our history, these are relatively new areas of business for Fuji Xerox.

 

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