In a recent interview conducted by CFO Journal, Lexmark CFO John Gamble discussed the steps he’s taken to successfully reposition the company as a premier provider of “solutions, services and software.” During the company’s brand progression over the past seven years, Gamble’s guidance has proven beneficial.Lexmark Keeps Up with Technology
Once considered a leader in the consumer print market, Lexmark was forced to quickly adjust to changing technologies. As consumers shifted their preference to electronic devices and documents, print media – at least in Lexmark’s market – became less important. To keep up with technology and consumer demands, Gamble chose to strategically redefine the company through acquisitions and divestitures.
Gamble Reinvents the Lexmark Brand
As Gamble stated in the interview, “We are becoming a solutions, services and software company that helps customers manage their unstructured information and unmanaged imaging device environment.” Gamble went on to explain that Lexmark’s 2010 acquisition of Perceptive Software led the brand’s expansion of services. Furthermore, Gamble reports significant investment in hardware and equipment with the goal of expanding Lexmark’s managed print services to include enterprise content management.
Lexmark Acquires Multiple Companies
After obtaining Perceptive Software, Lexmark added Pallas Athena, Brainware, Acuo Technologies and Twistage to their list of acquisitions. When asked about his current strategy, Gamble stated, “We are focused on companies that can expand our content and process technology, domain expertise for instance in healthcare, and geographic reach.”
An Unexpected Benefit
Regarding his biggest lesson thus far, Gamble reported, “Recognizing this is a transition that takes a lot of endurance.” Since taking steps to transform Lexmark’s brand into one of solutions, services and software, Gamble reports significant savings. In fact, Lexmark saved over $80 million in 2013. As Gamble commented in the interview, Lexmark’s shift to cloud-based solutions has been a huge factor behind the company’s significant cost savings.
When asked about his biggest challenge, Gamble responded, “Truthfully, it is just a lot of work and therefore maintaining focus across the organization.” Gamble’s largest concern appears to be sustaining company-wide effort without missing valuable opportunities. So far, it seems Lexmark serves to benefit from CFO John Gamble’s leadership.
How do you feel about Gamble’s brand transformation strategy? Would you do anything different?