Lexmark: Unlocking true value from the cloud to enhance business capabilities, continuous innovation, and decision-making
Explore Lexmark’s journey with SAP
When Lexmark International Inc., a global leader in imaging and IoT solutions, formulated a strategy to move its mission-critical operations and applications to the cloud, it maximized value by investing in the RISE with SAP offering. Now real-time insights, efficiency gains, and faster decision-making promote value-added innovation.
| Industry | Region | Company Size | Partner |
| High tech | Lexington, Kentucky | 5,000+ employees | Tata Consultancy Services Limited |
efficiency gains expected by accounts receivables team.
of data virtualized on Microsoft Azure.
more efficiency expected in material requirements planning.
IT Director, Enterprise Business Applications (Back Office), Lexmark International Inc.
| Industry | Region | Company Size | Partner |
| High tech | Lexington, Kentucky | 5,000+ employees | Tata Consultancy Services Limited |
efficiency gains expected by accounts receivables team.
of data virtualized on Microsoft Azure.
more efficiency expected in material requirements planning.
IT Director, Enterprise Business Applications (Back Office), Lexmark International Inc.
Reshaping complex on-premise workloads in a private cloud
A global leader in print hardware, services, solutions, and security, Lexmark International Inc. creates cloud-enabled imaging and IoT technologies that help customers across the globe. Spun out of IBM in 1991, this privately held company serves customers in more than 170 countries across sectors including manufacturing, retail, financial services, healthcare, education, government, and more.
Through a powerful combination of proven technologies and deep industry expertise, the company helps its customers achieve their business goals, turning information into insights, data into decisions, and analytics into action.
When the time came to shape its own digital transformation, Lexmark reached for the cloud. Having established its business infrastructure on a single global instance of the SAP ERP application, Lexmark’s strategic cloud-first transformation involved migrating its complex on-premise workloads to a private cloud. This included the entirety of its order-to-cash, consume-to-cash, source-to-deliver, and record-to-report operations.
IT Director, Enterprise Business Applications (Back Office), Lexmark International Inc.
Transforming mission-critical systems while mitigating business risk
With a focus on its global business services operations, supply chain, and finance and accounting function, Lexmark wanted to modernize business operations and elevate the user experience. As part of this transformation, the company set out to establish a business technology foundation that could support its evolution, simplify business processes, and underpin a finance transformation. Specifically, for its operations team, Lexmark wanted to improve visibility through greater automation and standardization. For its finance function, it needed to streamline and automate processes. And for its supply chain team, it wanted more visibility so component planners could react in real time to variations and changes, helping the company better meet customer expectations.
Lexmark chose to take a brownfield approach to its conversion to the cloud, first moving key business processes to SAP HANA Enterprise Cloud in preparation for the migration to the advanced cloud ERP.
Lexmark migrated to the SAP S/4HANA Cloud Private Edition solution with infrastructure managed by the SAP Enterprise Cloud Services team and hosted on Microsoft Azure. With advanced ERP software, industry best practices, and outcome-driven services, the RISE with SAP offering mitigates risk and maximizes strategic cloud benefits.
Use of the SAP Early Adopter Care program from SAP Enterprise Support services empowered the team and allayed migration concerns, while SAP partner Tata Consultancy Services Limited (TCS) managed the implementation. With a long history managing Lexmark’s SAP landscape, TCS’ deep contextual knowledge of legacy applications and integrations helped it deftly guide this massive transformation project on time and on budget with minimal business disruption.
IT Director, Enterprise Business Applications (Back Office), Lexmark International Inc.
Unlocking the value of data and automation in real-time decision-making
Having successfully gone live with SAP S/4HANA Cloud Private Edition, Lexmark can now take advantage of real-time data throughout its operations for more-informed decision-making. There are automated intercompany matching and reconciliation processes with visibility into universal allocations. And with the adoption of 70 new SAP Fiori apps on SAP S/4HANA Cloud Private Edition, Lexmark is expecting process improvements to flow throughout its operations. For plan-to-report processes in its global business services operations, the automated intercompany matching and reconciliation workflows have replaced its 18-step matching process that was previously performed on spreadsheets, virtually eliminating manual workloads.
There’s also transparency around document flows to manage journal entries and visibility into fixed asset reporting and goods and invoice receipts, maximizing efficiency and mitigating risk. And by streamlining its order-to-cash process, accounts receivable specialists are liberated from manual tasks, allowing them to spend more time on value-adding initiatives.
Elsewhere, the company now has automated banking operations to manage checks and payments, along with better visibility around corporate accounting and revenue accounting. And in its source-to-deliver operations, Lexmark can maximize international trade compliance tools. What’s more, integrated material requirements planning processes allow for faster planning decisions, which ultimately improve the company’s response to customers.
Likewise, its accounts receivable specialists expect to see a 47% efficiency gain in process collection, while there’s the potential for a 55% efficiency boost in processing goods receipts and invoice receipts for the accounts payable team.
IT Director, Enterprise Business Applications (Back Office), Lexmark International Inc.
Adopting more advanced capabilities from SAP
Following its move to SAP S/4HANA Cloud Private Edition, the team at Lexmark is exploring the use of the SAP Document and Reporting Compliance service on SAP Business Technology Platform. This service is designed to help the company fulfill local compliance mandates, from electronic business documents to statutory reporting, and automates compliance processes worldwide.
Lexmark is also planning to use the subscription order management component of the SAP Billing and Revenue Innovation Management solution to support the high volume of invoices generated by its cloud and subscription businesses. Meanwhile, the company also wants to take advantage of the SAP S/4HANA suite for convergent invoicing to orchestrate billing for customers who are billed based on the number of pages they are printing.
Featured partner
Tata Consultancy Services Limited is an IT services, consulting, and business solutions organization that has partnered with many of the world’s largest businesses in their transformation journeys for over 55 years. Its consultants guided Lexmark on its cloud journey, building a new future-ready digital foundation on SAP S/4HANA Cloud Private Edition.