Now we're exposing ACS clients to that R&D through what we call "dream sessions." We ask clients to tell us what keeps them up at night, and with the significant capabilities that exist inside Xerox and ACS, we figure out how we can create solutions.

How have you applied Xerox's product innovation processes to services?

Kyser: We sell services, but we use software and products to deliver them. Our services are buoyed by the proprietary technology behind them. We have seen some early successes around imaging and photo capture that have really been eye opening. It's totally different from what we've focused on in past, and we're getting good early reviews.

McDermott: Take an area common both to Xeros pre-ACS and ACS pre-Xerox--the question of how you take information embedded in paper documents and put it in digital form. Xerox has extraordinary capabilities in this area. We not only can do key-wording, but we can parse that document, summarize it, put metadata headers on it, do automatic routing. A BPO health records offering from ACS [for example] would see enormous benefits from the translation of physical documents to electronic documents.

How does having an IT services company in the family benefit your Xerox IT group--beyond getting IT services at a discount?