Anyone who thinks the last 18-24 months have been uneventful for Lexmark International obviously has not been paying attention. The whirlwind of activity taking place with the manufacturer and provider of multifunction devices, supplies and accessories, MPS, solutions and professional services has been nothing short of astounding.
The Lexington, KY-based firm, a 1991 spinoff of IBM, employs 13,000 worldwide. The company endured its share of ups and downs during a memorable 2017 which, incidentally, followed a year in which Lexmark endured a number of organizational changes. Among them:
- Lexmark was acquired by a consortium of Chinese investors, led by Apex Technology, Legend Capital and PAG Asia Capital.
- Its president and CEO, Paul Rooke, stepped down in November of 2016 and was replaced by David Reeder, the company’s vice president and CFO. Reeder decided to step down for personal reasons in June of 2017, and was replaced in October by Rich Geruson, the former top executive of Phoenix Technologies, a firmware and optimization software specialist.
- In a surprising decision, Lexmark lost its patent infringement suit against Impression Products when the U.S. Supreme Court ruled a patentee’s decision to sell a product exhausts all of its patent rights in that item.
- At the time of its acquisition by the Chinese consortium, Lexmark announced its intentions to sell its Enterprise Software business. In May, the company found a suitor in private equity firm Thoma Bravo.
Despite all the ups and downs, Lexmark continues to demonstrate unwavering focus on augmenting its core competencies. The company was named the industry’s Best A4 Multifunction Printer Manufacturer by The Cannata Report. Lexmark was also named a leader in print and document security solutions in the IDC MarketScape report, and also hauled in a Buyers Lab Pacesetter award for document imaging security.
Greg Chavers, Lexmark
Lexmark released a suite of document capture solutions for several vertical markets, along with its latest line of A3 laser color printers and multifunction devices. This only scratches the surface of the company’s achievements. ENX Magazine checked in with Greg Chavers, vice president, North America Dealer Channel Sales for Lexmark, to gain more insight into the many events that have helped shape the company, and learn how these experiences will shape its future.
Tell us about your career path leading up to current position at Lexmark
Chavers: In 1989, I started as a college intern, selling $25,000 color thermal printers that printed 11×17” pages for QMS, a color thermal printer manufacturer based in Mobile, AL. I soon accepted my first “official” corporate paying job as a marketing specialist for QMS, then moved into sales several years later and eventually joined Lexmark as a commercial sales rep while residing in Austin, TX. Later, I obtained my MBA—financed by Lexmark—and held several sales and industry management roles in Atlanta, Lexington, KY and Texas. Most of my tenure with Lexmark has been in direct Enterprise Sales. My most recent role (during the last five years) and first channel role at Lexmark was managing U.S. copier sales as director of the Copier Channel. Now I’m vice president for North America Channel Sales.
What factors led to Lexmark choosing Rich Geruson as its next president and CEO?
Chavers: The Lexmark Board of Directors selected Rich after an extensive search. We believe his track record of growing established technology businesses while ensuring profitability makes him an ideal choice to lead Lexmark to its next level of success.
Lexmark made headlines with the decision to sell its Enterprise Software business to Thoma Bravo. Can you talk about the impetus behind this move?
Chavers: We felt that we needed to get back to the basics of our business, providing the best devices and solutions related to distributed output. What we found when working with our customers is that they were not looking for an end-to–end solution, but were looking to leverage the systems that they have, in some cases, made massive investments in. They wanted to leverage these systems, not displace them.
In 2016, Lexmark was sold to a Chinese consortium led by Apex, now Ninestar. How has this provided greater opportunities for the company on a global basis?
Chavers: Among other opportunities, the purchase of Lexmark by Ninestar provides us with access and insight into the Asian market, which is an important and certainly growing market for distributed output. Over time, we hope that our relationship will provide us with synergies in regards to supplies, solutions and devices.
Earlier this year, Lexmark rolled out its next generation of A3 color laser printers and smart multifunction devices. How do these models augment your existing line?
Chavers: The new devices that we announced in August give Lexmark a full A3 color printer line with published speed points at 35, 45, 55 and 65 ppm. The Lexmark CS920 series and the Lexmark CX920 series also feature Lexmark’s fastest printing and scanning devices, as well as its highest paper capacity. Theses A3 additions provide Lexmark with a full portfolio, but allow us to execute on a strategy of A4 printers first—which we have widely been recognized for with 2017 Color Printer/MFP Line of the Year from Buyers Laboratory for 2017 and most recently by The Cannata Report.
In August, Lexmark unveiled its Smart Document Capture for the banking and government markets. How do these tools speak to the needs of these vertical markets?
Chavers: Both tools are intended to streamline processes in the front office for their respective industries and streamline processes to better serve customers, gain efficiencies and ensure compliance. This allows office workers to focus on the needs of customers or constituents in their respective industries. These solutions also reduce human error by capturing content digitally at the edge of where paper is introduced into the process.
Lexmark has brought several enhancements to market for fleet management and proposals. Tell us a little about the company’s strong influence in this space.
Chavers: Leveraging years of industry-leading enterprise MPS experience, Lexmark has been able to repackage and re-tool critical assessment and fleet management offerings for the dealer that needs a turnkey solution. Lexmark has proven to be one of the very best at MPS, and we recognize that the average dealer can use an off-the-shelf solution to get into this business segment.
Leveraging years of industry-leading enterprise MPS experience, Lexmark has been able to repackage and re-tool critical assessment and fleet management offerings for the dealer that needs a turnkey solution. Lexmark has proven to be one of the very best at MPS, and we recognize that the average dealer can use an off-the-shelf solution to get into this business segment.
Lexmark has consistently been recognized as an MPS leader by industry research firms for their assessment best practices and operational excellence in delivering Managed Print Services for Global Enterprise Accounts, achieving industry-leading customer renewal rates. Our customer experiences have shown that assessment and proposal disciplines are critical elements in demonstrating MPS value to a prospective customer. We now are extending this expertise to our channel partners as a turnkey fleet assessment, analytics and proposal offering. Our channel partners have really embraced this offering to help elevate their MPS practices and win more in the markets they serve.
The company was recognized with a Buyers Lab Pacesetter award in the Document Imaging Security category. Device security is such a hot-button topic. How is Lexmark positioning itself as a leader in this regard?
Chavers: Lexmark positions itself as having all of the fundamental device security elements required to meet the needs of small, medium and large businesses. Lexmark’s comprehensive approach to product security addresses the full spectrum of threats in today’s complex business information environments. We also extend our capabilities to integrate with data loss prevention platforms that many large enterprises have already made an investment in, helping our customers close hidden security gaps in their printing environments.
With so many structural changes happening within the company, how is Lexmark redefining itself within the markets it serves?
Chavers: The biggest beneficiaries are Lexmark dealers. With the sale of our Enterprise Software unit, Lexmark has been able to focus on its core competency—providing the best A4 platform in the market. With new leadership in place, Lexmark has been able to invest more in growing the company and market share through its dealer channel.
What changes in the BTA space are influencing your go-to-market strategy, and what variables will play a role in your strategy going forward?
Chavers: While industry-unique solutions are not new to Lexmark, many dealers are beginning to take notice of this conversation change-agent. Lexmark has many vertical market solutions that enable its dealers to win more business and create a value gap against competition. Color technologies continue to be very important, and Lexmark is constantly monitoring the proper positioning of its A4 color platforms for dealers to expand their presence.
What are your goals for 2018?
Chavers: Lexmark wants its dealer network to continue to win by growing revenues, profits and placements with the Lexmark brand. By providing the best sales and service support available, we believe our dealers can blow past their goals for 2018, which in turn allows Lexmark to achieve its goals as well.
