The Xerox Movement IPC 560 Communication and Change Joe D. PhearseInstructor: Dr. Gayle Pohl Central Michigan University, Schofield Barracks, Hi 96857 The Xerox Movement Xerox from its inception has always been regarded as an organization that thrives on innovation and diversification. The introduction of the their xerographic office copier in 1959 is seen as one the main technological advancements in the 20th Century. Even as late as the 1990's Xerox has been boldly reinventing itself from a predominantly black and white, light lens copier company to a digital, color and document solutions company. Even the release of their third quarter results for 2001 in October, showed despite a 5% drop in revenue, the organization still looks forward to improving its overall strategy by revealing a new turnaround program "Our actions are centered on improved cash flow and profitability - and at the same time strengthening our strategic core"- Mark Bernstein- Interim CEO "This plan provides Xerox with a strong financial foundation, to build on the unique strength inherent in our brand, market position, technology, people and leadership team" - Anne Mulcahy-Chairman & Chief Operating Office. Mission Statement Xerox Mission Statement - "Our strategic intent is to help people find better ways to do great work - by constantly leading in a document technologies, products and services that improve our customers' work processes and business results.

Xerox operates under the guidance of six core values: 1. We succeed though satisfied customers 2. We value and empower employees 3. We deliver quality and excellence in all we do. 4.

We provide superior return to our shareholders 5. We use technology to deliver market leadership 6. We behave responsibly as a corporate citizen. Xerox, with 78,900 employees worldwide and revenues in excess of $17 billion, is the global leader in the document management business, offering the widest array of innovative document solutions, services and systems -including color and black and white printers, digital presses, multifunction devices and digital copiers - designed for offices and production printing environments. It also offers supplies, software, and support.

Xerox and their need to become innovative, Xerox had enjoyed what could be almost described as a monopoly when they introduced their xerographic office copier in 1959. The Company pinpointed markets where it would capture the high profit margins and concentrated its sales on these markets. Xerox removed itself from the low-end business focusing its attention on the middle-volume markets and high-volume markets, with development of a product to meet these markets. The Company grew at a prodigious rate but with a problem of becoming "internally oriented", in the sense that with no competitors of any notable size, it depended on its own standards and its own internal competition as a means to quantify performance and achievement.

But Xerox reliance on its own monopoly was to be its own debasement. With the eventual removal of its monopoly in 1973, there was a surge from other corporations to challenge them for the markets. Xerox was always a corporation who relied on producing innovative products, but this diversification was often to no effect. In 1969, Xerox diversified after acquiring the Scientific Data Systems Company, which manufactured mainframe computers.

This particular venture backfired as the minicomputer was introduced and the requirement for the larger mainframe computers lessened. A newly formed office products divisions introduced a word processor and a workstation, each of which failed to take off for different reasons. In the interim Japanese competitors established a solid position within the low-volume markets and turned its attention to the more profitable medium & high volume markets. By the start of the '80's, Xerox was losing significant market share to its Japanese competitors.

Not only were the Japanese products excellent, they were sold cheaper than Xerox could manufacture them. Xerox market share dropped from nearly 100% in the '60's to below 50% in 1980. It was this threat that changed the way Xerox was to focus in the future. For a long time, Western Companies rationalized Japans success to low labor costs, the Japanese work ethic, lifetime employment and other factors. Japan had simply developed vastly superior products, practices and processes. Xerox had to look outside its particular functions to identify the best competitors and how they did certain things, be it cost, quality or product reliability.

The work for the 1980's for Xerox was to rise to the challenges of the 70's, to meet increase competition, sustain growth and profitability, control costs and improves quality. To quote Rogers's definition of innovation -" is an idea, practice, or object that is perceived as new by an individual or other unit of adoption". Innovation is the generation, acceptance, and implementation of new ideas, process, products or services". This quote best describes the way Xerox wanted to give rise to a vision of its future, which would engage the attention of management to become covetous of success.

Driven by the vision of David Kearns, their Chief Executive Officer at the time, Xerox introduced what could be described as a "make or break innovative process" through their program of Total-Quality control "The Xerox Movement". The ideals encompassed the need to work together to improve quality, by doing the job right in the first place and meeting customer's requirements. The new Xerox movement resulted in a dramatic turnaround in results, and had shown the organization that it was possible to raise to the challenges - a rise that would have to embrace change and a new drive to manage. The detailed company wide strategy launched in 1983 had taken months to design and would take years to implement. Its objective was to create a culture in which the quality of goods and services would improve while costs declined, thereby enabling Xerox to become an effective competitor in an increasingly competitive marketplace. Product & Services as mentioned previously Xerox offers a broad array of document products, services and solutions in the industry.

Most people are very familiar with their copiers, printers, fax machines, scanners, desktop software, digital printing and publishing systems. However, they also offer a number of different services to the market in order to back up their products. They offered a complete range of cost-effective business solutions and services, from printing on demand, customer consulting services, to strategic consulting and training, equipment relocation services, electronic delivery unit, education services, and online billing. Xerox apply powerful document-focused technologies to an individuals problems and opportunities by offering solutions that deliver value and help reduce costs and boost services. Analysis of the product Development Process in the Organization John Bessant (1994) wrote, "Developing technological competence through process innovation is more than a shopping expedition for new equipment; it requires the systematic assessment, exploration and development of capabilities so that they support the broader business objectives".

Product Development Process at Xerox Corporation to succeed in today's highly competitive business environment a company must ensure that it provides the right product of the right quality at the right price. It must also ensure the effective use of resources in developing the product. These aims require both the use of appropriate design techniques and a thorough understanding of the processes involved plus a willingness to adapt to new working practices and organizational arrangements. Product development is the total integrated activity aimed at providing new or improved products for the markets, and taking account of all influences on the product throughout its life. Xerox Corporation manages its development process using a process they call Product Delivery Process (PDP). Product Delivery Process The Product Delivery Process is the collection of events, decisions and deliverable's required to develop and deliver new Xerox products to a worldwide market.

The primary customers for the process are the Product Delivery Teams, to enable them to deliver products, while meeting their QCD requirements. Secondary customers include D&M Senior Management, the Operating Units and worldwide Marketing. For Xerox using the PDP the process of developing and delivering products is really a sequence of customer / supplier relationships. The PDP looks at those relationships throughout a product program life cycle and identifies what it takes to successfully meet these management requirements. There are three key components to the PDP: Process Enablers Management Decision, 2. Process Elements, 3.

Decision Process Process. Management Decision Process The Management Decision Process provides the guidance for the management and the control of Design and Manufacturing product programs through all phases of the product life cycle. Also the MDP helps product delivery teams understand the requirements of each phase of the program, and at the same time it provides management with the information it needs to make decisions to release funds and resources where and when they are needed. There are seven phases of the Management Decision Process and these are; 1) Pre-Concept 2) Concept 3) Design 4) Development 5) Production 6) Launch 7) Maintenance Process Elements and Phase Deliverables Process elements help the Product Development Teams to understand what they need to do to get where they need to go.

They are the detailed descriptions of what needs to be done on a program from Pre-Concept to Maintenance on one particular area of specialization. Every element defines steps, inputs and process outputs required to meet the phase deliverable's. The Process Enablers facilitate and aid use of the process. The process enablers for PDP include documentation, organization effectiveness and network of computer systems. The documentation provides information to many users at many levels of detail. Distribution of the documentation is made in conjunction with completed PDP training courses.

Effective Product Design and Development Effective product design and development is essential if companies are going to compete successfully with their industry rivals. Xerox know that the PDP alone will not deliver them world class products but it is dependent on linking it with other Xerox groups, and organizations, defining deliverable's, requirements and timing. But Xerox is committed to using Product Development Processes to help them achieve their goals of delivering world-class products to the worldwide market. The Customer Delivery Process The Customer Delivery Process (CDP) defies the practices and procedures used by the operating units.

These are there to provide planning engagement, launch and field support for end user products and services. Xerox also realizes that the PDP will only be successful if they have a commitment to Development and Manufacturing, and create an environment that supports this. The environment will need to include a stable and consistent strategic business focus, the total cooperation and visible commitment of management, and the provision of required resources and critical skills for the implementation of these new processes. Xerox is very much committed to new product development. The have research centers worldwide, in the US, Canada and Europe and in collaboration with Fuji Xerox in Japan and Palo Alto Research Center (PARC) in California. Palo Alto Research Center was founded in 1970 and challenged by the organization to create the office of the future.

The scientists invented the Ethernet network cabling topology. They invented "laser printing" which is a large part of the FX Palo Alto Laboratory, Inc., has been asked to provide Fiji Xerox with a digital technology base for the 21st Century. The Wilson Center for Research and Technology provides four services to Xerox: it scans new marking and related technologies, exploring and internalizing those with the most promise, it refines and improves xerographic marking technologies, and it integrates marking and related technologies into Xerox prototype marking platforms, usually in collaboration with suppliers. Architecture Center (XC) is driving Xerox to achieve "enterprise coherence" by overseeing the company's Document Systems Coherence Program.

Its goal is to enable Xerox to offer products and services that are fully interoperable, easy Xerox Research Centre Europe (X RCE) to use and consistent in performance. It was formed in 1993 and comprises of three organizations located at two sites, Grenoble in France and Cambridge in England. It pursues commercialization opportunities and has increased the visibility of Xerox's research efforts through extensive participation in European and other scientific collaboration. Xerox Research Centre of Canada is Xerox strategic materials research center. It enables the flow document materials in both paper and digital word from research concepts or document solutions. The PARC center in California is well known for having developed the network technology Ethernet, although it never pushed it enough it only got little recognition for its endeavors.

It was the first to create the graphical user interface that most people with computers will be aware of and that is now incorporated into Microsoft Windows. Xerox still is a dominant force and an innovator in black and white copying, office and data center printing, production publishing and through Fuji Xerox a leader in color copying and printing. Although Xerox have had a bad year financially it still produces massive amounts of new innovative inventions particularly from its original research center PARC. Some sources within the industry feel now it's the perfect time for Xerox to outsource development of new systems. However there are some conditions to this outsourcing, and that is Xerox remaining in control of the source code, and that once the system is developed they move maintenance back internally in Xerox. The gains from all this would mean that their would be more revenue available for R&D and new products, and more focus on new product development.

However, it is how the money is spent that distinguishes the successful organizations from the ordinary organizations. Xerox is certainly an organization that realizes the need to invest in research and technology with the view of increasing the overall worth of the business. Even with their ongoing expenditure in this field, the management structure is such to ensure that any investment will yield a long-term competitive and profitable advantage. Research is conducted at research centers in the U. S, Canada, and Europe, in collaboration with research conducted by Fuji Xerox in Japan and Palo Alto, Calif.

Advanced technology development takes place at technology centers in the U. S and Europe. In 1999, Xerox spent nearly $1 billion on research and development with a predicted 10% increase in it for 2000. Xerox Research and Technology (XR&T) drives invention, innovation and integration throughout the corporation. Advanced development teams engineer the technologies and platforms that make Xerox products superior in the industry.

The focus of XR&T is in 5 key areas - digital imaging, document services, marking, materials and systems solutions. XR&T creates customer and business value by driving industry standards for many technologies and by generating intellectual capital through patents, invention proposals and license opportunities. The Xerox Research Center of Canada, the world's laboratory for research into materials for documents, has provided numerous innovative developments that have fostered a veritable worldwide creative revolution in many document technologies that are now vital to modern Xerox business. In 1999, Xerox joined up with 3 M (as the manufacturer) to bring its Electronic paper to the market. This collaboration is another example of Xerox's ongoing efforts to leverage its annual investment in research and technology to deliver new products, develop research based strategic alliances, and license its rich portfolio of patents and inventions to other companies. Also in 1999 Xerox linked up with Amazon. com with the view of selling its complete line of products over the Internet.

Rival companies scorned this innovative move as it "undermines resellers". On the 5th of January 2000, Xerox acquired Tektronix for $900 million, the largest acquisition in Xerox's history. "The purchase of Tektronix family of Phases color laser, solid ink printers, which last year generated sales of nearly $725 million, will propel Xerox into the number two position in the global color printing market behind Hewlett-Packard. Xerox scientists are also developing collaborative processes, practices and technologies that facilitate knowledge sharing. Examples include Xerox "meta" search engine askance, Docu share, a web based, cross platform program for file sharing.

Also "Eureka", a community based system that lets Xerox technicians exchange tips and advice on servicing on Xerox products. They have created the research centers such as PARC, which is known in the industry as being a virtual breeding ground for new and innovative ideas. But Xerox has suffered from some of their attempts to be innovative in their approach to business strategy. Xerox has become famous for inventions, which they have not capitalized on, and in so doing they have let others bring them to the market and gain any success that was forthcoming.

Xerox for instance had through one of their divisions had invented a technology which allowed field technicians to share troubleshooting tips in the field. This technology, which was known as Eureka was to be turned into a commercial product tai. The new Chairman and Chief Executive Officer of Xerox Corp, Anne Mulcahy says "She is looking at ways of reducing and offsetting R&D costs". One of the ways is to enter into joint ventures partnerships with strategic partners. However, she does not want to curb investment in technology. Xerox with over 100,000 employees worldwide had found that it was difficult to change the company culture.

"Xerox, with 100,000 plus employees, found it difficult to change the company culture, to become more flexible as market and technology trends required". She believes to succeed; innovation must be applied to all aspects of the business, including technology. The company, which innovates and comes up with ideas, will control the market in the shortest time possible. Recommendations In today's increasingly global economy the traditional focus on planning and efficiency must now be complemented by better capabilities of innovation and adaptation. Individual customer decisions govern today's market place and the advent of information technology has enabled smaller companies reach a worldwide market base. The modern company must be an enabler of change & stimulate an environment to react to individual tastes.

Innovation is not something that can really be controlled, however its existence within a company relies on the corporate environment within the firm. Xerox is recognized as a world leader in innovation, however one of the most common reasons organizations lose a winning position is to stagnate once they have attained success. Having worked out the formula for today they fail to consider the winning formula for tomorrow. Organizations that let innovation slide today invite extinction in the longer term. Innovation is the successful realization of new ideas that cause significant change. So it entails a lot more than mere creativity; it's also about seeing ideas through to acceptance and commercialization.

The best way to get creativity is through the inter-working of mixed minds - from different backgrounds and disciplines. Enlisting suppliers and customers is valuable. Collaborating with entirely different industries presents a further huge opportunity. Continually striving for new ways of doing business, not simply by solving new problems as they arise but by renewing the organization when there is no pressing need, keeps the organization alive. Xerox should focus on their competitive advantage, diversity of information and interactions, communication and collaboration challenge assumptions, establish customer intimacy, resource innovation, strategic meaning, the correct environment. Structure leadership the role of organizational and try to avoid complacency.

Leaders can create the space for others to innovate by providing resources and giving innovation value and meaning. They can integrate the promotion of innovation into their interactions and communications, i.e. in the messages they send out. They can also encourage innovation by being innovators themselves. Communication and collaboration these are well-recognized factors in stimulating ideas. Openness, sharing and knowledge transfer increase the quantity of quality information, and help people see the world from a different perspective. They are also crucial factors in ensuring that ideas are implemented into valuable organizational innovations.

Cross-functional communication (via internal communication or cross functional teams) keeps people involved in all parts of the organization and makes innovations usable and useful to all. Individuals, groups and organizations can learn from each other only if they communicate. Diversity of information and interactions the extent to which people and groups are subject to different sets of information and different points of contact has an impact on the level of innovation. The more diversity there is the more likely the outcomes are to be original and innovative. By challenging ideas and creating a constructive controversy between groups, new ways of thinking, and new solutions emerge. One way to produce diversity is to encourage sub-cultures within the organization can change the order.

Challenge assumptions staying within accepted boundaries preserves normality. But innovation is produced when those boundaries are broken and when our assumptions about the way we live, the way we work, and the way we interact are challenged. Challenging assumptions means going beyond individual and organizational comfort zones. Customer intimacy this refers to something more than providing customer satisfaction.

It is about understanding the customer, and knowing how the customer acts. Another way of expressing this skill is matched empathy. An organization can use their insights into the client organization to develop innovations for the benefit of both. Managerial behaviors like organizational leaders, managers at all levels and in all places in the organization can empower individuals to be creative and innovative. Through their closer interactions managing individual resistance to change is easier, for example in the feedback they give, in the goals they set, and in the rewards they offer. If line managers don't value, support, allow, reward or do innovation the message about the importance of innovation is lost.

By allowing autonomy, encouraging risk taking and playfulness managers can create the space for innovation. However, managers can stifle innovation by criticizing anything different and only rewarding behavior that stays within the organization. The role of management today should be to create change, not just focusing on getting the job done. Providing the correct environment innovation is most likely in an environment where individuals feel safe and un-threatened.

A secure base enables us to look beyond our current comfort zones into the unfamiliar. Managerial behaviors are a key part of the psychological environment, and in promoting innovation managers give people freedom to take risks, but don't criticize mistakes when they occur. We all make big decisions and take on large responsibilities in our personal lives, so why not make this the norm at work? For example, give individuals the freedom to make their own decisions about how they work, don't restrict the design of the office to the traditional - allow people to make it feel like home in the layout and decoration, or allow work to be sociable. Celebrating success and making innovations highly visible can do strategic meaning. By putting it on the corporate agenda, both literally and metaphorically, employees recognize the importance of innovation.

Resource innovation could be simple by building a strong R&D unit. However, this favors product innovation over process innovation and doesn't guarantee either. Other ways to resource innovation are to create time for individuals and groups to consider change, to fund communication, familiarization and training of new processes, and to give innovation champions the financial and staff resources they need to turn ideas it into something which can be implemented. Innovation often happens in pockets within the organization, and where resources (time, money, people) are flexible enough to feed emergent ideas ongoing innovation can be sustained. Organizations are made up of individuals, and therefore one of the keys to a healthy organization is in its human resources. To be innovative an organization should consist of people at all levels of the organization, i.e. non-managers as well as managers, who are creative, who welcome change, and who are not restricted by unfamiliarity.

These things occur naturally in some people and an organization can recruit those who have these attributes and who can take responsibility for innovation. But they can also be developed and managed by other people (managers, colleagues, organizational leaders) and by the organizational values and systems. Avoid complacency taking risks is always OK and challenges should always be created and addressed. This does not mean organizations should innovate for the sake of innovating, innovations, which are clever, do not always, have market value, but they should consider development as a survival mechanism. Constant and sustained innovation requires a long-term perspective and a willingness to invest current resources for future. Structuring the organization to facilitate communication and knowledge transfer helps innovation.

One means is to have a structure, which is flexible and allows people, ideas and information to flow from one part of the organization to the other. The adoption of an idea within in an organization can be internal or external and once everyone gets the fever of innovation it becomes contagious and that's the key to a successful organization.


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