Xerox and IBM

Strengthen Document

Management in the

Networked Enterprise

Xerox Document Centre

family to Link with IBM’s

Lotus Domino Software

In his remarks at the opening of

the Xerox Knowledge Sharing Centre at

245 Park Ave., Xerox President and

Chief Operating Officer,

G. Richard Thoman

announced a major new

initiative between Xerox

and IBM that will strengthen

document management in

the enterprise.

The announcement

builds on a rich history of collaboration

between the two companies. It expands

the value customers have come to expect

from two of the industry’s flagship solu-

tions, the Xerox Document Centre family

and Lotus Domino webserver software,

which is developed by IBM subsidiary Lotus

Development Corp.

“When I came to Xerox 15 months ago

from IBM, it didn’t take long to see how

the complementary strengths of our two

companies could be applied to address

the problem of sharing knowledge in the

mainstream office,” said Thoman. “I am

delighted to announce that Xerox, IBM and

Lotus are teaming to help customers more

effectively manage information in the net-

worked world.”

“As we began to network our Document

Centre products, we saw coming to life the

promise of the intelligent digital office

product,” he continued. “It’s grown into a

document portal -- easily moving between,

and serving, both the paper and digital

worlds.”

Under the new relationship, the compa-

nies will enable Document Centre devices

to link with the Lotus Domino infrastructure

and the Lotus Domino.Doc document

management and workflow product. This

will provide customers with an integrated

solution that bridges the paper and

electronic worlds, enabling office users --

whether on-site or remote -- to quickly

and easily access any documents they need

from anywhere, at any time.

The solution, which will be available

initially to customers in North America

and Europe, will include support of the

Salutation Consortium’s Salutation

Architecture. The Salutation Architecture –

industry standard middleware for enabling

computers and office devices to communi-

cate – is supported by both IBM and Xerox.

The companies are also planning collabora-

tive marketing programs based on the new

solution.

Since the beginning of September, New

York was wondering what was happening at

245 Park Ave. China silks with a large red X

were hung in all the windows, but no one

could see inside.

On the 10th of September, the China

silks dropped. The doors opened. New York

dignitaries along with the chief executive

officer of Xerox Corporation addressed

those who arrived for the event. And when

they all went inside, they found most of

the first floor had been transformed into a

working, interactive exhibit on knowledge

sharing.

Xerox Chairman and CEO Paul A. Allaire

christened the high-tech

showcase the Xerox

Knowledge Sharing Centre,

and traced its roots back to

the invention of xerography

by Chester Carlson, nearly

60 years ago.

“Over the past 30 years

of my career, I’ve been a part of Chester

Carlson’s legacy, and I’ve had the opportuni-

ty to be a steward of one of the world’s

most inventive companies, with one of the

world’s most powerful brand names,” said

Allaire.

“Today Xerox is committing to a strategy

that transforms its core business, completes

the transition to digital, and leads our indus-

try in a new direction – rediscovering and

reinventing the way people share what they

know,” he continued.

Allaire promised attendees that through-

out the day Xerox would outline its vision

of sharing knowledge through documents

in a digital and connected age that will

characterize the 21st Century.

Inside the building, guides ushered

guests into a series of talks and dramatiza-

tions that illustrated and elaborated on a full

range of knowledge-sharing solutions for

various kinds of enterprises. It was a two-

day event entirely devoted to a new way of

working, where the sharing of knowledge

becomes the key to economic growth.

For this event, Xerox invited analysts,

customers, CEOs, reporters, and consultants

into what was essentially a showcase for

how to create new and faster traffic patterns

for the flow of knowledge throughout an

enterprise. Xerox conducted demonstra-

tions, put on performances, and gave

speeches – organizing a highly structured

and purposeful event to help people visual-

ize new business solutions. The products

Xerox demonstrated were impressive –

everything from new Document Centre

multifunction devices to software for man-

aging the portal between paper and digital

documentation. For people who wanted to

work on immediate solutions to immediate

problems, the show was a feast.

Yet no single, new product alone was as

remarkable as the company’s total vision of

a new way of doing work.

Xerox believes knowledge

sharing drives business.

If you stand back and take in the whole

picture of what these new products repre-

sent, you can anticipate a new horizon in

knowledge-sharing systems from Xerox.

These systems integrate seamlessly into a

standard suite of information technology – a

company’s existing mainframe systems and

client-server networks and desktop

PCs and intranet firewalls and World Wide

Web sites. That horizon is visible in the

knowledge-sharing solutions Xerox has put

in place for many of its customers: which,

essentially, enables them to gain far greater

value from knowledge at a lower and lower

cost.

The company’s recent results prove it’s

exactly the right thing to do: to anticipate

and help drive the shift toward a new way of

putting documents to work. It’s a compre-

hensive change, a crucial turning point –

for both Xerox and its customers.

With the same products that enable

Xerox to help customers take care of

business now – doing copying and printing

in their traditional workflow patterns – the

company is laying the groundwork to help

these customers take advantage of new

opportunities in the not-so-distant future.

For Xerox, and for its customers, the future

is an opportunity to enter a new world of

knowledge-sharing which Xerox, and

others, are now in the process of re-inventing.

Xerox Showcases More

Than 20 New Products

at Park Avenue Event

While the big message focused on new

ways for organizations to share knowledge,

including a new strategic alliance with

Lotus, Xerox supported that message with

a wide array of new products.

Together with new software solutions

that facilitate the sharing, distribution and

production of documents in all forms –

digital, paper, black and white, and color –

plus Xerox professional services, consulting

and outsourcing, the company is poised

with an impressive portfolio of knowledge-

sharing offerings that span the enterprise.

From networked color inkjet and black-

and-white laser printers to new Document

Centre systems, Xerox signaled their intent

to intensify the battle with Hewlett-Packard

in the office. (see p. 6)

New DocuPrint color laser printers and

DocuColor copier-printers fill strategic gaps

in the Xerox color solutions spectrum –

offering customers the widest array of

choices in price point, capabilities, and

distribution. (see p. 4)

In the production environment, Xerox

unveiled two new solutions, the DocuPrint

65 and DocuTech 65, designed to bring the

power of digital printing – the ability to

personalize and customize printed materials

and print them on demand – to customers

with lower-volume requirements, and/or

space and budget constraints. (see p. 8)

Of course, the goal isn’t necessarily to

have the biggest product portfolio.

According to Mr. Thoman, “More and more

organizations are looking for a vendor that

functions as a strategic partner. One that can

assess, advise and then implement cohesive,

integrated solutions across the enterprise.

When it comes to sharing knowledge in

the form of documents, no one can provide

more expertise, technology, service and

support than Xerox.”

Through Documents

The Knowledge

Age Has Arrived

Knowledge – The New

Business Imperative. . . . . . . . . . . .

p. 2

Inventing the Future –

Xerox New Enterprises . . . . . . . . . .

p. 3

Color Means Business . . . . . . . . . .

p. 4

Digital Solutions for SOHO . . . . . .

p. 5

Xerox in the

Networked Office . . . . . . . . . . . . . .

pp. 6-7

Marketing One-to-One with

Digital Production Printing. . . . . .

pp. 8-9

Industry-Focused Document

Services and Solutions . . . . . . . . . .

p. 10

The Brand of Choice for Supplies .

p. 11

The Document Solutions Gallery. .

pp. 12-15

What’s

Inside

S P E C I A L E V E N T E D I T I O N

G. Richard Thoman

Xerox President and COO

Paul A. Allaire

Xerox Chairman and CEO

©1998 Xerox Corporation. XEROX®, The Document Company®, the stylized X, and all Xerox product

names and numbers mentioned in this publication are trademarks of XEROX CORPORATION.

Trademarks of other companies mentioned in this publication are hereby recognized and acknowledged.

---

Most businesses have spent the 1990s

getting themselves in shape for a new style

of competition -- one that’s played across a

global field, where the players, the oppo-

nents, the equipment, the information, even

the rules, move and change at breathtaking

speed.

These companies have adopted quality.

They’ve re-engineered. They’ve downsized.

They’ve increased their time to market and

lowered their costs of producing, distribut-

ing and selling their products and services.

They’ve become lean and mean.

Success in the 21st century will be built

upon these achievements, but the compa-

nies that stand out will do so on the

strength of something else: knowledge.

The Strategic Importance of

Knowledge

At Xerox, we’ve been observing and

investing in knowledge, especially knowl-

edge sharing, seeing beyond its current

hype as a fashionable management trend

and into its major strategic importance. In

fact, we see knowledge sharing as a business

imperative for the new century.

We’ve made long-term investments in

knowledge-sharing tools, technologies,

processes and services based on decades of

experience as a company in the information

sharing and distribution business -- one that

has always stressed the marriage of innova-

tive technology to an understanding of

work practices and work cultures.

Why? Because creating systematic ways

to share existing knowledge will make the

biggest initial contribution to knowledge-

worker productivity, competitiveness and

growth. Much of companies’ existing knowl-

edge is ripe for sharing and a good portion

of the technological infrastructure is in

place for people to share it – if they have the

proper environment and tools to do so.

A study conducted by Delphi Consulting Group indicated

that only 12 percent of the organizational knowledge in

any one company is in some sort of knowledge base where

it can be accessed by others who need it. And 42% is

experience and knowhow trapped inside the minds of

the employees. Yet another 46 percent lies in paper and

electronic documents, which can and should be made

Documents: the DNA of

Knowledge

Documents are the most pervasive vehi-

cle that people use to share knowledge with

each other. The strategic importance of doc-

uments is so high, that we have staked our

company’s strategy on them.

The knowledge that’s embedded in doc-

uments represents what a company knows

but, to date, has had difficulty sharing,

growing or putting into action. Capturing

this knowledge and making it widely

accessible is the low-hanging fruit in the

knowledge-management process.

Using today’s technology and networks,

we can make this knowledge shareable,

but doing it properly requires a unique

approach that couples technology with a

cultural or sociological awareness – and

puts the ultimate importance on the value

and contribution of people. Thus, manag-

ing for knowledge requires a different

approach than that used for managing infor-

mation; it needs a strong human dimension.

We’ve recognized that the gulfs and bar-

riers between paper and digital documents

represent serious inhibitors to knowledge

sharing. So, too, does a natural human

resistance to sharing valuable knowledge in

traditional business environments – where

knowledge is power and hoarding is com-

mon practice.

For these reasons, we’ve invested in

products that bridge the paper and digital

worlds of documents; in software that

makes it easy for people to view, find and

share knowledge in digital form; and in ser-

vices that help clients address both the tech-

nological and cultural aspects of knowledge

sharing.

We’ve tested our ideas and new prod-

ucts on ourselves, and have been steadily

engaging the market with them.

Knowledge Sharing at Xerox

Within Xerox, we’ve established

two very successful knowledge-sharing

environments. One involves DocuShare,

which evolved from a grass-roots

collaborative work space into a software

product that we now offer customers.

DocuShare uses the intranet to store and

share electronic files; more than 25,000

Xerox people currently use it and it’s the

heart of knowledge-sharing environments

for many Xerox customers.

Another successful knowledge-sharing

system at Xerox, called Eureka, was devel-

oped in partnership with our technologists

and anthropologists at the Xerox Palo Alto

Research Center (PARC) in California. It

leverages social systems and community

computing to give Xerox service technicians

the ability – along with an incentive and a

process – to share machine-repair tips with

each other. In France, where we began the

project, technicians now use Eureka to

access 5,000 tips a month. Eureka has con-

tributed to a five-percent drop in parts

usage and labor costs in Xerox France since

the system was installed in 1995.

Meanwhile, Xerox has added new

knowledge-sharing initiatives to our R&D

agenda. Knowledge is one of five main

research themes at PARC, for example,

crossing several technological, scientific

and sociological disciplines under the name

Knowledge Ecologies.

Knowledge sharing is the focus of the

Xerox European Research Centre in

Grenoble, France. There, researchers are

developing tools that help organizations

exploit and mine existing knowledge bases,

map communities of experts, and share

knowledge and best practices. Pilot versions

of Grenoble-developed software to support

“push” and “pull” methods of sharing

knowledge are in some customer sites in

Europe; they’ll reach the general market

soon.

Some technologies developed at PARC,

Grenoble and in other Xerox laboratories

are available today from the Xerox New

Enterprise Companies.

Xerox and Knowledge:

A Long-Term Commitment

To stay in touch with the knowledge-

management movement as it evolves, Xerox

has assembled a panel of more than 100

knowledge managers in large organizations

in eight countries. We survey them several

times a year to understand their needs, to

track their successes and failures, and to

help them be more effective in their work.

And to remain at the forefront of acade-

mic thinking on the subject, Xerox and Fuji

Xerox recently created a first-of-its-kind

professorship in knowledge at the

University of California in Berkeley.

Our commitment to knowledge is a

deep one and covers many fronts. But

what’s common to all of our efforts is that

they are designed to help our customers, as

well as ourselves, use technology and work-

place understanding to generate and share

knowledge, and compete more effectively

in the century to come.

DocuShare

and

Document

Centre

Bring Paper

and Digital

Worlds

Together

Anyone who has tried to work on a

distributed team with remote contributors

knows how difficult it is to share informa-

tion and build knowledge. The team often

works with numerous documents in both

paper and electronic formats and relies on a

variety of technologies such as email, physi-

cal mail, faxes and file drawers to distribute

them among the group. Invariably, some-

one doesn’t get the message: they didn’t get

the email, they have the wrong version,

they can’t read the fax, they don’t have

access to the file drawer. The Document

Company, Xerox now offers a way to easily

share knowledge, from both digital and

paper sources, across an entire organization

with a product called DocuShare.

DocuShare is a web-based software tool

for sharing knowledge. It is unique in that it

is specifically designed for the web rather

than adapted to it, and in that most of its

capabilities do not need to be centrally

administered. Its web-based design allows

people to easily use their existing web

browsers to store, organize, protect, access

and manage their documents with no client

software distribution and minimal training.

Its ability to be community maintained gives

teams tremendous flexibility and agility in

how they organize and control access to

knowledge collections. Not only can all

team members share documents, they can

also add new members to the team by sim-

ply adding them to a group list and sending

them a URL. All this can be done imme-

diately; without waiting for a system

administrator, without shipping and

installing client software, and without

lengthy learning curves.

The newest version, DocuShare 1.5SE,

now links with the scanning capabilities of

the Document Centre multifunction

machines to let groups share paper as well

as electronic documents. Now all the docu-

ments a team needs to use can be shared

across the web, in the same folder, with the

appropriate access permissions, and with

version control. Perhaps now, everyone

really will be on the same page.

46%

42%

12%

Corporate Knowledge: Untapped Reservoirs

2

You Need to Know What you

Paper & Electronic

Documents

Electronic Knowledge Base

Employee Experience &

Knowhow

Knowledge Sharing:

Business Imperative

for a New Century

---

Exciting things happen when visionary

solutions combine with technological and

financial resources.

That’s essentially the driving force

behind Xerox New Enterprises (XNE), a

group of start-up technology firms who

operate independently of Xerox Corpor-

ation, even though Xerox owns a controlling

share of stock in each of the companies.

These independent companies have

privileged access to Xerox Corporate

research, engineering, professional services

and support, brand equity, and global

marketing as well as ready access to much-

needed capital, through Xerox’ purchase

of stock — resources unavailable to most

software start-ups.

Tapping into the Knowledge

Base: Inxight Software

Software from Inxight provides millions

of Internet users improved access to knowl-

edge on the World Wide Web. Inxight’s

LinguistX™ Platform relies on a class of

information it calls “meta data” to enable

the software to find, summarize and deliver

precise types of information in global

searches of large databases, such as the

World Wide Web.

In essence, software that identifies and

displays “meta data” can offer a thumbnail

profile, a mini-picture of any document

located by a search engine, speeding up the

process of getting and using the most perti-

nent information in a data search.

Inxight licenses the use of its software

components to application developers and

Internet services providers such as:

Infoseek, Microsoft, VIT, Excite, Inktomi and

Verity. Yet the software is also being used

within corporations that want to get the

most from their existing digital knowledge

base through data mining. Online news

providers also use the software to display,

for customers, instant summaries of select-

ed news reports.

Compaq’s Alta Vista Discovery, an

Internet and desktop search product, uses

Inxight software to deliver web-page

documents, as well as documents on a

computer desktop, with summaries

attached to each document.

Because it can find and assess the

relevance of information in an organiza-

tion’s digital document library, it’s easy

to see how Inxight Software plays an

integral role supporting Xerox’ move into

knowledge sharing.

Integrating Business

Processes, Sharing

Knowledge: InConcert

Before deregulation, telecommunica-

tions companies concentrated their efforts

on the technical side of their product offer-

ings, making certain that the network that

provides the “dial tone” to customers was

capable of handling any and all requests for

service. However, in the new, deregulated

and highly competitive marketplace, the

greatest concern is now customer acquisi-

tion and retention. Unfortunately, the IT

systems of this highly complex and technical

industry were not aligned with these new

corporate objectives. Instead of having the

ability to share information across depart-

mental boundaries, each department acted

as an “island of information.”

Teoss™, from InConcert, Inc™, an XNE

company, integrates these islands of infor-

mation by linking and streamlining the

business processes that cross departmental

boundaries. The ability to have an integrat-

ed IT infrastructure helps telecommunica-

tions companies communicate throughout

the entire organization, run their business

more competitively, bring products to

market faster and increase customer

satisfaction.

Ignited by the company’s transition in

1996 from a division of the Xerox Corpor-

ation to an independent, Xerox New

Enterprise company, InConcert has dedicat-

ed itself to solving the complex, high-value,

mission-critical processes that support the

knowledge worker. “Our customers are

growth-oriented, Fortune 500 companies

that demand excellence in the processes

that are critical to meeting their business

goals and objectives. We provide them with

a means to achieve their goals with a solu-

tion that is robust, adaptable, and scalable,”

said Jeremy Davis, President and CEO,

InConcert, Inc.

Keys to the Vault:

Chrystal Software

Chrystal Software,

formerly XSoft, specializes

in content management,

enabling organizations to leverage the

content within high-value documents for

real business benefits. The company offers

two primary products: Astoria, a flexible,

extensible, industrial-strength component

system for mixed-format environments,

including XML, SGML, and other graphic

and text files; and Canterbury, the ideal

solution for managing Adobe

®

FrameMaker

® documents.

Astoria is content management

client/server software for companies that

produce technical documentation and other

types of business-critical publications.

Unlike conventional document manage-

ment systems, Astoria can deconstruct

document files into their component parts

(paragraphs, footnotes, captions, part num-

bers, etc.) and manage these independently.

Documents that have a predictable struc-

ture, such as user documentation, training

materials, and technical specifications,

easily can be turned into a library of

reusable pieces. For high-value, long-lived

documents with a potential for reuse,

Astoria can add significant value.

Canterbury is an out-of-the-box product

that manages Adobe FrameMaker docu-

ments at the component level. FrameMaker

users need only to import existing

documents into the repository to immedi-

ately transform their work group to a

collaborative authoring enterprise. This

new, advanced technology extends

FrameMaker’s functionality, allowing

publishing organizations to better store and

manage the components of information that

comprise FrameMaker documents.

DocuShare

Changes the Way

Businesses Work

The flexibility and affordability of the

DocuShare web-based knowledge-sharing

product enables a wide range of businesses

to utilize its capabilities in a number of

creative and innovative ways.

Xerox was its first user. DocuShare was

initially developed at the Xerox Wilson

Center for Research as an internal solution

for the need to share critical and time-

sensitive information. It has been quickly

adopted by other workgroups including

marketing, sales, research and development.

Today there are over 25,000 enthusiastic

internal Xerox users.

The Wayne-Finger Lakes BOCES, an

education cooperative in upstate New York,

is deploying DocuShare throughout the

organization for a variety of uses.

“DocuShare represents a breakthrough

technology for us and the 47 school districts

and 80,000 students we serve throughout

our educational technology division.” says

John McCabe, Assistant Superintendent for

Curriculum and Technology. “ The beauty of

DocuShare is in its simplicity and the

amount of control and creativity it puts in

the hands of the user. This combination is

making technology users of staff members

who before have not been able to find pur-

pose in other more glitzy, buy unwieldy

technologies.”

Canada Communication Group, Inc., an

integrated communications company from

Hull, Quebec is using DocuShare to share

knowledge between their 70 locations and

numerous home offices throughout Canada.

“Having bulletins across the country weekly,

sharing on a daily basis and being on-line

five minutes after you have authored a doc-

ument,” says Michael Monette, Vice

President of Strategic Planning and

Development, “has a major impact on the

company.”

Government agencies, universities and

others have also found unique and valuable

uses for this technology which allows all

forms of documents to be shared quickly,

and easily over the web.

The Best of Both

Worlds: Xerox New

Enterprises (XNE)

3