## 3 Servitization Scenarios of Top 5 IT Enterprises
### Xerox Servitization Scenario  
(1) Changes Assessment by Business Segment  
In the analyzed period, Xerox started with four major segments, of which three were separated into customer segments and one was responsible for marketing and sales. In the last decade, these segments were combined into the document technology segment and two service segments that included business process outsourcing and document outsourcing. This process of moving from a previously service-oriented PSS towards a results-oriented PSS was the result of various acquisitions and an awareness of internal labor knowledge. Due to a diverging core business, Xerox filed for the separation of its businesses by the end of 2015.  
Our examination of Xerox's changes towards Servitization in the last decade, starting from 2005, is shown in Figure 33[39; 102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113].  
Figure 33: Own illustration after McKinsey and according to Xerox’s annual reports.  
Figure 32: Positive/Negative Effects of Servitization - Oracle.  
The expressions used in this figure are as follows: Documents Management Office (DMO), Business Process Outsourcing (BPO), Document Outsourcing (DO), Document Technology (DT) [39; 102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113].  
We examined Xerox major segments with regard to Servitization analysis (hardware, software, and services), and our results are shown in Figures 34-36 [102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113].  
adapted their business strategy to the needs of customers in the document market by implementing various services for document outsourcing, such as managed print services for large enterprises or centralized print services for small and medium-sized companies.  
(2) Revenue Distribution  
In 2005, Xerox's revenue was service-dominant, as most revenue was created by post-sales services and products (Figure 37) [102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113]. However, the organizational structure still depended on selling hardware and add-ons to the hardware. In 2015, the entire business model was diversified, and a major source of revenue began to come from delivering services and the decreasing importance of hardware related sales (Figure 38) [102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113].  
(3) Transition Analysis--Challenges  
Xerox had to be related to a changing environment in the document market as new systems, such as color and multifunctional printing systems, evolved. This challenged the research and development of the hardware and the general post-sales offer, which had to adapt to the evolving needs of customers.  
The transition towards a results-oriented PSS included two major risks. The acquisition of ACS had a huge impact on the segments delivered and the business model executed. Furthermore, the trend of outsourcing document management in the market required Xerox to adapt their organizational structure and value-generating model.  
Additionally, Xerox had to focus on the document market and on the global outsourcing market. These two markets were different in the beginning and this forced them to split their attention between two core businesses that did not complement each other.  
(4) Transition Analysis--Positive and Negative Effects  
Figure 39 [102; 103; 104; 105; 106; 107; 108; 109; 110; 111; 112; 113] outlines the advantages and disadvantages Xerox may face due to Servitization.  
Figure 37: Own illustration of Xerox Revenue 2005.  
Figure 38: Own Illustration of Xerox Revenue 2015 and later.  
As with every advanced strategy, there are positive and negative effects. The Servitization has affected Xerox both in how they do their core business and in how they attract current and potential customers.