The Xerox magazine for real business results

Summer 2012

Welcome To Flushing MeadowsPage 4

10 and Under Tennis takes center courtSue HuntChief Marketing Officer United States Tennis Association

Page 8

McGill University prints smarter, saves money todayPage 6

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Welcome to the US Open edition of RealBusiness magazine.

While nearly a million fans will be rooting for their favorite pros at the 2012 US Open, the United States Tennis Association and Xerox are already cheering for the tennis stars of tomorrow.

As you will read in this special issue of RealBusiness magazine, Xerox is honored to team up this year with the USTA to promote 10 and Under Tennis, an exciting new program to introduce tennis to kids at an early age—and help grow the game for future generations.

10 and Under Tennis is all about kids picking up a racquet, hitting the ball with friends and learning a sport that can be part of their lives for many years to come. The USTA has made promoting 10 and Under Tennis a top priority, and Xerox is helping to get the word out with our people and technology.

Using a multichannel marketing approach incorporating our one-to-one print technology supported by data analytics, the USTA is helping private and public tennis clubs across the country promote 10 and Under Tennis while offering them the flexibility to customize events as well as supporting materials for their members. In short, individual clubs can promote the program their way, with their own special themes, events and messaging.

I encourage you to read the entire story on page 8.

We’re ready to be your partner, too. Whether it’s a challenge for today or thinking about tomorrow, Xerox can serve up smart solutions that help you focus on what you do best—your real business.

Enjoy the tennis!

Sincerely,

Ursula M. Burns Chairman and Chief Executive Officer Xerox Corporation

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Features

04 Serious Fun at the US Open By Lori Francis

06 Green and Read All Over Campus Printing at McGill University By Ann Davidson

08 Wave your racket if you love tennis! Personalization and the 10 and Under USTA program By Karin Stroh

10 Coming Together to Make Work Simpler A dream team of business professionals recently met to discuss how to make getting things done faster, simpler—and more satisfying. By Denise McLaughlin

12 Ai reduces costs with automation. By Beth Ann Kliberg-Walsh

14 Direct Marketing That Makes Women Feel Better About Themselves By Judy Berlin

Table of Contents

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Finding Innovative Ways to Enhance the Fan Experience Beyond the Tennis CourtsThe Open is a draw to 700,000 people over two weeks. Of course, they come for world-class tennis. But there’s much, much more. Fashionistas elbow their way to the latest styles on court. Edibles span the globe from NYC Deli glatt kosher to that day’s celebrity chef tour de force—nobody goes home hungry. Arching over the whole experience is the excitement of being a part of a vibrant, unique event.

Deanne Pownall of the United States Tennis Association (USTA) is just one of thousands of the people working to make the US Open just such a fantastic experience. As the managing director of partnership marketing, she has a particular perspective on the Open. “My team makes sure that corporate sponsorships are managed on all fronts—from tickets and signage to on-campus activities,” she said. “Plus, we partner with our sponsors to make a great event even greater.”

Winning the Entertainment Game“The US Open is the USTA’s main revenue generator,” said Pownall. “We need to keep fans and sponsors—remember, sponsors are people, too—engaged and happy, so they’ll keep coming back to buy tickets and support the US Open. So we’re always on the hunt for innovations that will enhance their experience as our guests.”

Innovations such as an on-site radio program, an interactive official vehicle program and a locavore initiative that features fresh local organic foods provide surprising focal points.

Snap and Tweet: @usopen @XeroxCorp“Xerox continues to work behind the scenes,” said Pownall, “managing millions of documents and publishing our daily draw sheets as part of its sponsorship. And now it’s going face-to-face with our fans by enabling a guest to take a photo with their mobile phone, tweet it to the Xerox photo booth and go pick up a print, right on the grounds.

“So if I’m on the promenade, I can pose with the world-famous Unisphere in the background and take home a unique personal memory of my day,” said Pownall. “I expect a lot of activity in front of our landmark draw board located between the Arthur Ashe and Louis Armstrong Stadiums. Xerox is also running a drawing for 2013 US Open tickets based on incoming tweets.”

Fans without mobile capabilities can still get in the fun. “They can go to the Xerox photo booth and get a poster portrait in front of their choice of background,” explained Pownall. “A personalized photographic memory of the day is just one more point of contact to help us engage fans, involve our sponsors and advance the USTA mission to keep tennis the living, growing sport it is today.” Fans can also download their photo from the gallery and tweet about it.

“ This year, we’ve partnered with Xerox to create an all-new attraction that weaves in personal memories, social media and photography.”

Deanne Pownall Managing Director of Partnership Marketing, USTA

Serious Fun at the US Open ...by Lori Francis

Green Screen MagicFans can capture their US Open Moment at the Xerox booth on the South Plaza and receive unique takeaways and printed photos from fan tweets.

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©2012 XEROX CORPORATION. All rights reserved. XEROX®, XEROX and Design® and Ready For Real Business® are trademarks of Xerox Corporation in the United States and/or other countries. All other logos, trademarks, registered trademarks or service marks used herein are the property of their respective holders.

Xerox designed and manages Virgin America’s call center operations, handling everything from employee staffing and training, to quality monitoring and systems development. As a result, productivity has already increased by 10%, and quality has improved year over year. All of which gives Virgin America more time to focus on running America’s coolest airline.

RealBusiness.com

We focus on managing Virgin America’s call centers. So they don’t have to.

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The need to print, duplicate and email documents is an inescapable part of academic life. In Montreal, Quebec, McGill University’s uPrint System and standardized multifunction printers let students, faculty and administrators spend more time on learning and research rather than looking for change refilling copy cards or struggling with chargeback logs or maintaining 600 different types of devices.

What does undergrad Sabina Roan like best about uPrint? “It’s so convenient. You can print from anywhere to anywhere. So if I have an assignment due in the Bronfman Building, but I’m in Red Path [Hall], I can just press ‘Print’ and pick it up four hours later in Bronfman. It’s really cool.”

“And also you know that no one else is going to be looking [at your output] because it only comes up when you scan your ID card.”

In contrast, Daniel Feucher, the manager of campus printing, enjoys the visibility uPrint gives him into usage, maintenance and supplies. “Because we have a lot of reporting now, we know what’s going on. And we know where to put our effort… For us, it’s absolutely great and makes our life easier.”

Located in Montreal, Quebec, Canada, McGill University with 170 facilities is home to more than 45,000 students and faculty.

Green and Read All OverCampus Printing at McGill University...by Ann Davidson

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Making the complicated simple and keeping it safe.Conventional networked printing requires the end users to select a printer and then pick up their output from that local queue. If the printer is jammed, out of toner or backed up, the user is out of luck. Faculty run the risk of unauthorized eyes peering at exams or proprietary research.

With uPrint, the print queues are held in McGill’s secure Cloud. Users can release their encrypted job at any of the 500 or so Xerox® multifunction printers (MFPs) across campus. The security of student ID cards and faculty codes can be enhanced through the use of an optional password. Behind the scenes, uPrint tracks user impressions and monitors the health of the MFPs while erasing print jobs from MFP hard drives to prevent the possibility of hacking.

Reducing McGill’s carbon footprint.Associate Vice Principal for University Services, Jim Nicell, has a special interest in uPrint. “I also happen to be a professor, and my expertise is environmental engineering,” he said. “When you look at the whole University and its scale, we’re a city—a microcosm of the whole world. We’ve got roughly 50,000 people going in and out of our gates on any given day. Think of all the activities here, and all the choices that are made every day that have an impact on the environment.”

“The environmental impact associated with printing goes way beyond the paper,” says Nicell. “It goes into the supplies and all those delivery trucks going to units located across the campus. The use of multifunction devices removes a lot of energy consumption. And, there’s no need for students to purchase printers, cartridges or paper. By using these single multifunction devices distributed across the university, the collective reduction in environmental impact is going to be very, very significant.”

“ The use of multifunction devices removes a lot of energy consumption. And, there’s no need for students to purchase printers, cartridges or paper. By using these single multifunction devices distributed across the university, the collective reduction in environmental impact is going to be very, very significant.”

– Jim Nicell Associate Vice Principal for University Services

Improved service for all.Still another perspective is offered by Gary Bernstein, the Director of Network and communications services. “uPrint is part of the University’s mission. Our Principal and Vice Chancellor, Heather Monroe Bloom, set forth a challenge to us all to make students’ lives less bureaucratic. Get them out of the lines. Don’t force them to fill out forms. Just make life easy for them so they could pursue their studies without worrying about all of the bureaucracy and red tape. And that‘s one of the things this project really did accomplish.”

For Sabina Roan, life is easier. “I really like that I can print from my laptop at home as long as I’m connected to the McGill VPN and then the next day, I can just come to school and go up to any uPrint device in any building and release my job,” she said. “Awesome.”

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Wave your racket if you love tennis!...by Karin Stroh

Personalized email

2012 realbusiness · 9

“The US Open may be a media magnet, but it’s only the tip of the iceberg when you consider all we are doing to grow the game of tennis,” said Sue Hunt, USTA’s Chief Marketing Officer. “Our key initiative focuses on all the changes to youth tennis and how we’re introducing the game to our next generation of players through our 10 and Under Tennis program.”

10 and Under Tennis features tennis sized right, with smaller courts, kid-sized rackets and slower bouncing tennis balls to make the game more fun for kids from four to 10 years of age. Sizing the sport right lets kids feel competent from day one, which means they will enjoy the game from the start.”

The USTA and the entire tennis industry have been focused on promoting 10 and Under Tennis. “We were delighted when Xerox came to us with a proposal to test a one-to-one, multichannel tennis event marketing campaign as part of its USTA sponsorship,” said Hunt.

A Personal Appeal with a Local FlavorExtensive customization is at the heart of the data-driven campaign. “We accommodate the varying needs of a diverse set of tennis facilities,” said Xerox’s Megan Steenburgh, who’s managing the program. “Some are private, and others are public or community run. Although the personalized campaigns have a similar look and feel, the facilities can promote their own unique type of event. One facility is hosting a Tennis Jamboree, while others are calling it a Tennis Festival or a Tennis, Pizza and a Movie Night. Each facility’s marketing goals are driven by its demographics and its experience with children’s programs.”

The campaign’s execution provides the economy of scale that comes with the marriage of variable data to one set of templates. The theme is integrated through creative pieces that range from personalized email invitations with registration PURLs to a memento magnet bearing the child’s name. A marketing intelligence portal reports pre- and post- event analytics.

A Turnkey Strategy for Future GrowthFor 2012, 10 facilities across the U.S. are participating in the 10 and Under Tennis event program. “The key is to get kids in and hitting balls,” said Sue Hunt. “Xerox designed the campaign and manages it so that the USTA and the tennis facilities can focus on tennis rather than reinventing the marketing wheel. It’s a great 1:1 marketing solution that provides flexibility with consistent branding and messaging.

“ Who knows? Today’s invitation might lead to a Flushing Meadow championship court in September 2032.”

– Sue Hunt CMO, United States Tennis Association

Personalized magnet with child’s name and facility information

Personalized direct mail postcard Program t-shirt and tennis ball

Poster with facility’s information

“Miranda, Get in the Game!”Welcome to the personalized face of one-to-one marketing. The solution Xerox created for the USTA provides a host of ways to get closer to customers. XMPie software enables tennis centers to target their appeal down to the level of household and child. USTA’s promotion automatically inserts each center’s identity, hours and other specific information into a standardized design. While not used for the 10 and Under Tennis program, the system provides the ability to customize graphics and imagery down to the individual level in print with multichannel Web components to help ace the serve and generate a response.

10 · realbusiness 2012

A dream team of business professionals recently met to discuss how to make getting things done faster, simpler—and more satisfying.

Coming Together to Make Work Simpler... by Denise McLaughlin

How can we simplify the way we work? There’s no question that unraveling the answers to this dilemma would have a large and positive impact upon businesses and their workers around the world. After all, our workplaces have grown increasingly complex. They depend on fast-evolving technologies that must be constantly mastered and remastered. Work is now routinely performed in multiple locations, making connectivity a front-burner issue. The always-on 24/7 global work schedule is a reality for millions; home and work are increasingly intertwined. And, perhaps most compelling, there are huge challenges as workers struggle to access and share ever-increasing torrents of information.

The team convenes.As part of our search for solutions to these issues, Xerox recently assembled a group of technologists, futurists, business leaders and students during the Xerox Rochester International Jazz Festival to discuss the choices and demands that are changing our daily work lives. Called a Dreaming Session Event, this gathering included participants from companies such as McAfee, Cisco, Xerox, ACS, Zebra Technologies, InnoSpa and even a few RIT gaming students. Among many notable attendees were Bill Taylor, cofounder of Fast Company, Steve Hoover, Chief Technologist of the Palo Alto Research Center (PARC), and Angèle Boyd, Group VP, General Manager, Imaging/Output Document Solutions at IDC.

2012 realbusiness · 11

Experience adds an intriguing perspective.To gain generational insights into these rapidly evolving issues, participants were divided into two teams —the first made up of millennials and futurists, and the second including many seasoned, senior-level executives and business leaders. Each group was asked to describe the current workplace environment and to reveal their own personal frustrations in getting work done.

The first group quickly drew consensus around the need for work to be personally meaningful. “Offices and processes are designed with the corporation in mind,” said one millennial. That is an outside-in approach versus looking at the individual and designing an inside-out approach. Some spoke to the idea that the work-place should set people’s imagination on fire. There was also discussion around the belief that if pleasure is taken out of work, people will simply lose interest. All of these points of view may have been summarized best by Bill Taylor, who stated simply, “I am the workplace.”

The second group, perhaps not surprisingly, offered a somewhat different perspective. Their concerns centered not so much around the individual worker’s needs as much as about freeing workers to better serve the needs of customers and to more effectively balance work and life demands. To this end, participants discussed the need for technology to become more effective and not so overwhelming in terms of the choices it offers. The crux of the problem is that lots of data are available but not nearly enough knowledge or wisdom to help prioritize and assimilate it. Remarked Angèle Boyd, “It is not just enough to provide information. Are we providing context?”

Despite the differing challenges, all agreed on the need for better solutions and technologies to help simplify the way work gets done in the years ahead.

Intriguing insights, solid recommendations.After much discussion, participants proposed a variety of solutions to remedy the most acute pain points that they encounter on a daily basis in business. Ideas centered around these key worker “demands”:

• Make personalization a priority. All persons should be able to interface with technology in the way that suits them best based upon their own preferences and experiences.

• Make access to knowledge smarter. Get workers what they want and need, when and how they want it.

• Make access to knowledge seamless. With work and life so interconnected and happening in so many locations, information needs to be easy and convenient to access in any environment with a variety of devices.

• Make achievement more visible. All persons in the organization need timely updates about their personal progress toward achieving key goals. This would give them the information they need to make better decisions and bring sharper focus to their work…and show how their work connects with that of others.

• Make process less visible. Businesses today run the risk of being too process heavy and too hierarchical. Standardization makes sense if it removes complexity for work activity that is easily automated, or can deliver more intelligent information to people.

But process and governance rarely allow for serendipity, flexibility or collaborative thinking. A flexible, network approach to workplace design can drive better outcomes and attract a new generation of innovative workers.

It is encouraging that the solutions proposed by the dream team manage to address the divergent perspectives of all participants, aligning the needs of each into single ideas. These recommendations and other insights from the Dreaming Session Event will help provide a deeper understanding of the workplace today and tomorrow, shaping initiatives from Xerox and our partners. They’re how Xerox will continue to simplify the way work gets done.

“I am the workplace.”

Artists and participants captured a flurry of challenges and solutions in real time, so the discussions could be visual and engaging.

12 · realbusiness 2012

RealBusiness Magazine (RB): What was your goal five years

ago when Ai was facing tough competition?

Dave Zamorski (DZ): Well, one of our goals, maybe the biggest, was to become more price competitive out in the market. That meant reducing costs without sacrificing custom service and quality.

RB: How did you get started?

DZ: We took a different approach from our competition. We went through value stream mapping. That process pointed out all of the areas where we had excess touches, such as in estimating, prepress and proofing. It really opened our eyes to how many non-value-add touches we had to manufacture a print job.

RB: What were some results of your mapping process?

DZ: Imagine this. It’s 2:00 a.m. and completely dark in here. Then, all of a sudden the iGen4s start running on their own and producing work. There’s no one in the shop—it’s completely unmanned. You don’t get any more profitable work than that.

The result: When the first employees come in at 7 a.m., there are jobs already produced and ready for finishing and/or delivery to the customer.

RB: Wow, weren’t you worried about quality?

DZ: Yes, of course quality is very much a big concern of ours. That’s why, before the operator leaves his shift, he does a maintenance program to ensure that the iGen4 is at the top level it can be. We also utilize CGS Oris software, to make sure that the color is in check.

Plus, with the upgrade we just did on the iGen4 to the 26-inch EXP, we are able to keep the developer at its highest level at all times. So, where in the past we had to worry about the developer starting to degrade a little bit, it doesn’t do that anymore. It keeps it at its highest level, which allows us to keep our quality level up.

RB: Tell us more about the automation you’ve created.

Dave Zamorski, (left) chief operating officer at Ai in Delaware, shows how his Xerox® iGen4® “wakes up” and starts printing on its own every morning at 2 a.m. That and other forms of automation have cut costs by 35 percent over three years.

When Ai was looking for ways to cut costs, it knew automation would be the answer. RealBusiness magazine visited Dave Zamorski, chief operating officer, to learn how Ai made it happen.

What’s the best way to reduce costs?

Automation!...by Beth Ann Kilberg-Walsh

2012 realbusiness · 13

DZ: We’ve created a web-to-print system that enables our customers to order their own materials from a pre-established menu of approximately 160 forms. That’s a pretty big menu, but since it’s all preprogrammed and established, we have virtually no operator involvement. The JDF information about the job follows it through the printing and finishing process. Everything flows quicker. There’s no need for operators to run new setups for every new order. It’s very intelligent… and pretty cool when you think about how the software and the machines are talking and getting the jobs done.

This process has allowed us to break into the financial services and pharmaceuticals markets in a big way.

RB: How long ago did you develop this workflow… and is it off-the-shelf software or something that you developed here yourself?

DZ: We started building this in 2006 and built it through 2007 with one specific vertical market and customer in mind. We took it to that customer, and a beautiful thing happened: the customer estimated—on their own—that we saved them $500,000 a year in costs. Not in printing costs—but in their way of doing business, in their processes to get their order in to a printer.

We did it to reduce costs on our end, but it ended up saving the customer money, too.

RB: Any other thoughts about how your colleagues can cut costs?

DZ: One of the other ways to cut costs involves paper. The paper manufacturers don’t like me saying it, but paper is one of our big costs. What we’ve been able to do is put our papers on consignment. We eliminated the broad scope of papers we had, which allowed us to go to a consignment program with the paper manufacturers. So now we can run a job on the first of the month, but I don’t have to pay the invoice for 60 days. It allows me to get my money in first and then pay them, not vice versa.

To do that, though, you have to manage your papers. You really have to start controlling how many papers you’re offering to your customer base.

RB: How are the results of this cost cutting?

DZ: Excellent. Automation has enabled us to reduce 28 steps down to four. And with all the technology we’ve added and all of the capabilities, our labor costs are down from 35–38 percent to an 18–22 percent range in the digital operation now. And sales are up 28 percent. Through automation, all of our costs are down, so cash flow has really improved. There are a lot of great ways to cut costs out there.

Automation has enabled Ai to reduce 28 steps down to four. Labor costs are down from 35 percent to about 20 percent.

Ai uses value stream mapping to identify opportunities for automation. These posters hang throughout the print shop, reminding employees of the mapping process.

14 · realbusiness 2012

Direct Marketing That Makes Women Feel Better About ThemselvesStrategies Marketing leads Maybelline New York “B2Me” campaign that combines content marketing with deep personalization to recommend personal makeup regimens...by Judy Berlin

When was the last time a direct mail piece made you feel better about yourself? It’s probably been a while—if it ever happened. But that’s precisely the surprising impact the Maybelline New York Beauty Guide had on subscribers who completed a 12-question sign-up form on the MNY Beauty Guide microsite. These consumers were expecting personalized makeup tips and recommendations, but what they received was so much more.

The recommendations—delivered in a series of three personalized booklets—have been big hits with consumers, according to Mark Morin, president Strategies Relationship Marketing, Laval, Quebec, which developed the campaign. “Customers have written to us saying that Maybelline has improved their lives by changing the way they feel about their personal appearance,” he said.

Client Maybelline is also pleased. Sales are multiple times greater than from previous, non-personalized campaigns. And most is new business from people who previously bought competitive brands.

The big wow, though, is that the campaign is also lifting Maybelline’s brand appreciation and improving the likelihood that consumers will recommend the Maybelline New York brand. “That’s an unusual result for a direct marketing campaign,” Morin said.

Seeking to Boost LoyaltyImproving brand loyalty in its cosmetics business was the challenge Maybelline set a few years ago for its long-time relationship-marketing agency, Strategies. The typical consumer uses multiple brands for their various makeup needs. Maybelline, however, sought to leverage its No. 1 worldwide ranking in mascara to boost business in categories where it had smaller shares, such as foundation products.

Another layer to this challenge is that many consumers are unaware of technical considerations in makeup choices, such as how foundation products behave differently based upon skin type, dry or oily.

In response, Strategies developed what Morin calls a “B2Me” campaign, which applies deep personalization and content marketing to take B2C to the next level. “In B2Me campaigns, we create relevant messaging based upon rational, emotional, physical and relational characteristics,” Morin said.

2012 realbusiness · 15

The campaign sought to educate consumers about choosing and using cosmetics, and to recommend which Maybelline products best suit them, based upon their physical characteristics and makeup personality. To learn those characteristics, the team developed a questionnaire on a Maybelline New York microsite with 12 questions about skin, hair and eye colors, eye shape, skin conditions and other qualities.

Strategies drives women to the site with email blasts, media relations campaigns and posts on Maybelline’s Facebook page. Today, Facebook and word of mouth account for the lion’s share of sign-ups, he said.

Adding PazazzThe data that consumers enter at the Maybelline website guides the content of the three personalized books, which contain cosmetics lessons, personal product recommendations

and trackable discount coupons. An astonishing 3.5 million variable options are available for each book through the XMPie uDirect Classic plug-in for Adobe InDesign.

“The number of personalization options is mind-boggling, but that’s what XMPie does—puts together all our components and makes then run right,” Morin said. Each book is 20 pages long, fully personalized and printed in a full-color 4.75" x 7" format on a Xerox® iGen4® Press by Montreal-based Pazazz. The three books are delivered to each target over the course of several months.

The campaign’s results have been consistently outstanding, Morin said. Now they are proposing to add a mobile component to future campaigns.

“To do something like this you need the right process, a good team of people, the right print provider, great data and dynamite content—and it all has to work together,” Morin said. “That’s the secret of what B2Me is all about.”

Judy Berlin is director, worldwide marketing, XMPie, A Xerox Company, judy.berlin@xmpie.com

Strategies uses and works only with printers who also have XMPie software.

“Every time we post to Facebook, we get a ton of people signing up.”

The team recognized that education was critically important to the success of the program, to help consumers understand why certain products were better for them than others.

“It took almost a year to get the first one done. It’s challenging intellectually to put it together, manage it and understand how to write articles that can vary, yet sound natural and amusing.”

“A lot of experts say 12 questions is too many, but it’s not if you give them something of value in return,” Morin said. Fully half of the microsite visitors complete the questionnaire, fueling a campaign that has been ongoing since 2009.

©2012 XEROX CORPORATION. All rights reserved. XEROX® , XEROX and Design® , and Ready For Real Business® are trademarks of Xerox Corporation in the United States and/or other countries.

Managing the US Open’s flow of information is complicated. Xerox makes serving up more efficient communications simple.Today’s Xerox is simplifying the way work gets done in ways that may surprise you. Like upgrading the US Open’s on-site communications with fully networked printing technologies to ensure that fans, players, officials and the media have the information they need when and where they need it. It’s one more way Xerox simplifies business, so the USTA can focus on what really matters—delivering the ultimate tennis experience.

Official US Open Sponsorxerox.com/usopen

©2012 Xerox Corporation. All rights reserved. XEROX®, XEROX and Design®, and Ready For Real Business® are trademarks of Xerox Corporation in the United States and/or other countries. All other logos, trademarks, registered trademarks or service marks used herein are the property of their respective holders.