Cary interviews Xerox President of Technology Business Armando Zagalo de Lima and gets his perspective on what it will take for printers to enter the new era and succeed as the industry shifts from ink on paper to multi-channel content curation and creation.
Cary Sherburne: Hi, I’m Cary Sherburne, Senior Editor at WhatTheyThink, and I’m here with Armando Zagalo de Lima, who is the President of Xerox’s Technology Business. And welcome.
Armando Zagalo de Lima: Thank you.
Cary Sherburne: So, I just wanted to start by getting a feel from you where you see the industry going. We’ve been through some tough times and, you know, where do you see us going and what are the top two or three things that printers should be really thinking about as they, you know, enter hopefully this new period of prosperity?
Armando Zagalo de Lima: Yeah, hopefully to be the case. You know, there is – we have done studies for many, many years and we came to the conclusion there is a very, very strong correlation between GDP growth and the pages printed, believe it or not, extremely strong correlation. So clearly the economic pressures don’t help the industry and I think that there will be a recovery because I believe the economy will necessarily enter at a given moment into a recovery, but I think the industry in itself is going through a few challenges, and this is not new news, it’s been happening for a few years now, but I think there are a few coming. And I think, to simplify, I will divide it into two groups, semi-technological. I think that we have been talking about digital for many, many years and the realities that it is still a very small portion of the printed pages versus traditional technologies. And I believe that to accelerate, now I’ve very suspect to say that.
Cary Sherburne: You’re biased, yes.
Armando Zagalo de Lima: Absolutely. But that’s what the analysis also say, so hopefully it will be what is going to happen. And this is because of the dynamics of the demand bascially.
And the second one is the related with the same dynamics. And I believe that handling content, apart from print, is going to be increasingly important for the industry.
Cary Sherburne: I’m sorry, what kind of content?
Armando Zagalo de Lima: You know, more and more we’ve – and this is already happening, but I think it will accelerate that customers will look to commercial printers and try that they handle all their – yeah, yeah.
Cary Sherburne: Right. Multi-channel more than just ink and toner on paper.
Armados Zagalo de Lima: Yeah, just print me that. Compared with this is the type of work I want to do, be it a promotional piece of work or an advertising piece or whatever. It can just handle everything for me.
Cary Sherburne: Everything for me, yeah. And even make my iPad application out of it.
Armando Zagalo de Lima: Yeah. Exactly.
Cary Sherburne: Exactly, yeah. And then if you look at Xerox as a company, you’ve recently restructured the business into two parts, technology and services. Of course, you run the technology business, and you’re CEO, Ursula Burns has put a lot of emphasis on services. So a lot of us sort of wonder, what does that mean for the technology side, you now, are you going to ship everything over to Fuji Xerox or, you know, what’s going to hap-, are you abandoning the graphic arts. What’s happening there with that?
Armando Zagalo de Lima: All the opposite. In fact, our recent – with the creation of the two plans of business, services and technology, we reorganized ourselves inside of technology and we created the graphic communication line of business.
Cary Sherburne: Okay.
Armando Zagalo de Lima: So we have never been so much focused into the industry and we have never been so much focused into technology as we are today. I mean there is absolutely no intention to leave this industry, it’s a very, very attractive industry with very acceptable margins and our investment continues to be there and, of course, we are moving it around depending on, you know, where the market is going as you would expect, but there is absolutely no intention to the opposite.
Cary Sherburne: Yeah, and now, recently, you brought onboard Jeff Jacobsen who’s been in the industry for quite a long time. So, he’s running your Graphic Communication Business.
Armando Zagalo de Lima: Another illustration here, we are bringing new people in, in this case, Jeff is not really new, but he’s ...
Cary Sherburne: New to Xerox, but not new to the industry, yeah.
Armando Zagalo de Lima: A veteran of the industry, 35 years, and we are very, very happy to have him and I think he’s happy to be with us. He’s going to bring us an incremental focus into, you know, helping us to bring everything we have because, as you know, it’s not only about technology, it’s also about workflow, it’s about business development. We have a very wide look at the way we see and what it means for us helping the industry. So, Jeff is going to help us with his knowledge and bring that more – in a more powerful way into the market.
Cary Sherburne: Great. Thank you very much and we’ll look forward to talking to you again about where Xerox is going in the future.
Armando Zagalo de Lima: It will be a pleasure.