Nuance Analyst Meeting02_18_10

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Industry Analyst Briefing

February 18, 2010

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Introducing …

• Brian Gertler, LDI VP of Marketing

• Jerry Blaine, LDI CEO, President and Founder

• Gregory Ryan, CUSA Dir. Alliance & Services

• Dennis Amorosano, CUSA Sr. Dir. Solutions Marketing

• Robert Weideman, Nuance SVP and General Manager

• Chris Strammiello, Nuance VP of Mkt. & Product Strategy

• Allan Stratton, Nuance Dir. of OEM Integration

• Ellen Bzomowski, Nuance Global Account Manager

• Jan Daley-Austin, AR Advisors, Executive Director

• Larry Vogel, AR Advisors, Executive Director

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Thursday, February 18th

9:00 am Registration & Continental Breakfast

10:00 am Welcome & Introductions Bill Brikiatis

» Review Agenda

10:10 am Nuance Presentation Robert Weideman

» Winter 2010 Update

10:40 am Canon Presentation Dennis Amorosano

» Expanding from Print to Productivity

11:10 am Nuance Presentation Robert Weideman

» Document Solutions for the Office Worker

11:40 am Lunch

12:00 pm Luncheon Presentation:

LDI Color ToolBox Welcome Jerry Blaine

Industry Analyst Briefing Agenda

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Thursday, February 18th

1:00 pm Nuance Technology Leadership Chris Strammiello

» Technologies to Watch Allan Stratton

2:30 pm Meeting Wrap-up Robert Weideman

2:45 pm Meeting Ends

Industry Analyst Briefing Agenda

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Nuance Document Imaging Division

Winter 2010 Analyst Briefing

Robert Weideman

General Manager and Senior Vice President

February 2010

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Mobile Solutions in Over3 billion Phones, Cars &

Navigation Systems

4,000 HealthcareInstitutions

More than 8 billionCustomer Care

InteractionsAnnually

Over 21MRegistered Desktop

Users & 100,000MFP Solutions

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Mobile Devices

• T9 Predictive text messaging input

• Voice name and number dialing

• Song selection, feature access

• Dictation

• Search web, Web navigation

• TTS: caller ID, messaging, screen reader

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Automotive Solutions

• Main applications

– Voice dialing

– Control: climate, stereo,MP3

– Destination entry,directions

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Healthcare Solutions

Automated transcription processing and workflow, nearly 50% cloud-based

Patient data for EMR and specialties

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Nuance By the Numbers

• Nuance Communications

– Global company with over6,000 employees

– NASDAQ: NUAN

• Leadership

– World leader in Document ImagingApplications

• Leading OCR SDK, Desktop &MFP Solutions

– World leader in Speech Solutions

• Network Speech

• Embedded Speech

• Dictation and Transcription

Rapidly Growing and Profitable(In $Millions)

2001 2002 2003 2004 2005 2006 2007 2008 2009

62.7 106.6 135.4 177.7232.4

388.6

602

868.5

1000

Share Estimates from PC Data, Strategy Partners, Primary Research

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1Q 2010 Nuance Document Imaging Division

• Nuance Document Imaging Division

– 1Q non-GAAP revenue $35.8 million, up 111%

– Nuance achieved key first quarter design wins with Caixa, Canon, Corel,IKON, and Visioneer

• eCopy Integration On Track with a Solid 1Q

– Strong results, especially with Canon solutions and partnership worldwide

– Best revenue quarter in a year and best shipping/sell-through quarter in ayear

– Best PaperWorks Desktop quarter in history

– Sales, technical support, R&D, marketing organizations integrated

– New point releases delivered

• PaperWorks – Up to 50% OCR accuracy improvement and morerobust PDF support

• ShareScan – Up to 50% OCR accuracy improvement for searchablePDF, added “Convert to Word/Excel” Features

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Nuance + eCopy = Winning Combination

• Increasing the Solution Value of MFP Scanning– Scanning still not mainstream – productivity and cost savings benefits are not yet universal

– Nuance and eCopy will turbo-charge MFP industry by filling gaps to deliver universal benefitvia MFP solutions

• Combines Best of the Best– Puts most accurate core technology, superior ease-of-use and user experience, best desktop

and server, and most connectors under one solution partner

• Unrivaled Resources for MFP Channel Partners– Largest dedicated team for MFP OEM and channels for solutions sales, pre/post sales support,

professional services and customer service – North America, EMEA and Asia!

• Expanded Reach for Desktop Solutions– Adds valuable Nuance PDF Converter Professional, OmniPage and PaperPort desktop

products to enhance the solution offerings for MFP OEM and channels

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Nuance - Global Reach 6,000 Strong

NORTH AMERICANORTH AMERICAPAN-EUROPEANPAN-EUROPEAN

ASIA-PACIFICASIA-PACIFIC

500 + ImagingSoftware Professionals

in 12 Countries

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The #1 Partner Program

• Industry's most extensive program for connecting MFPs tobusiness applications and workflows

• ShareScan and ShareScan SDK enhanced to supportDocument Imaging Services

• SDKs available for both MFP-based and desktopapplications

• NEW - OmniPage SDK #1 OCR/Scanning Toolkit

– Includes PDF, LFR Forms & TTS SDK

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BusinessProblemBusinessProblem

ResultsResults

eCopy Professional Services

• Incubator and Back-up

– Customization Scoping

• Functional Design

• Cost Estimates

• Statements of Work

– Custom Development

• Connectors

• Workflows

• Database integration

– Enhanced Value

• Document Services

• ID Services

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Design• Data Interface Design• Systems Architecture• Test Plan Document

Requirements• Weekly Status Reports (Project Duration)• Updated Project Plan (Each Phase)

Optimization• Call Detail Record• Tuning Reports• Post Tuning Analysis• Customer Approved

Changes

Deployment• Production Build• Deployment Guide

Testing• QA Builds• QA Testing Results• Installation Guide & Release Notes

Implementation• Code• Usability Study Report

• Test Data Request Document• Test Cases

• Sample Dialog Document• Persona Design Document• Skeletal UI and Full UI• Codeless Prototyping

• Requirements Specifications Document• High Level Call Flows• Persona Requirements Document

Nuance Professional Services

• Account Manager

• Project Manager

• Vertical SME

• UI Lead (Designer)

• Technical Lead (Architect)

• QA Lead

• QA Testers

• Developers

• Speech Engineer (Tuning)

• Build Manager

Typical Project Team

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Unique Partnerships

• Microsoft Gold CertifiedPartnership Level

– Nuance on Windows 7, Office 2010and SharePoint Design ReviewGroup

• Microsoft Joint Development– MODI

– Office 2007 XML Formats

– PDF to OmniForm

– PDF for Office

• Unmatched SharePointConnectivity

– Microsoft Porting Lab andResources

– SharePoint 2-Way connectivity forServer and Desktop

Nuance and Microsoft Collaborate to Bring PDF to WordConversion Capabilities to Millions of Microsoft Office

System Users

Microsoft Develops Office 2007 XML Export Connectorsfor Nuance Products

Microsoft Licenses OmniPage OCR for Office andSharePoint

Nuance First to Support Vista and Windows 7 withDesktop PDF

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Unique Nuance Position – Everything Under One Roof

Store/Search

Core Technologies Desktop Applications ISV Penetration MFP Platform

OmniPage SDK-OCR, IMR, OMR- LFR, Barcode- PDF/MRC, PDF Normal- Conversion, XPS- SET

eCopy SDK- Connectors

- Document Services- MFP GUI

- <Speech/TTS>

NLP SDK- Unstructured

- Document Classification- Healthcare Records

Speech/TTS SDK’sPredictive Text SDK’s

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eCopy MFP Solutions Portfolio from Nuance

• eCopy ShareScan Suite– Enables document scanning and workflow from the built-in touch screens on multifuntion printers (MFP)

• eCopy ScanStation– Complete scanning station that is added to network scanning devices that lack touch-screen capabilities

• eCopy PaperWorks Desktop– Robust electronic paper desktop application for document assembly and document workflow to enterprise

applications

eCopy ShareScanEmbedded MFP

eCopy PaperWorksDesktop

eCopy ScanStationfor Scanners & MFP

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Ready for Acceleration

• Nuance has the scale and leverage needed to supportglobal MFP solutions

• eCopy succeeded in establishing a leading position

• Nuance acquired eCopy at an opportune time

– MFP’s are ready for document automation solutions

– Enterprises are ready for document automation solutions

– Nuance is uniquely tooled and able to drive document automationsolutions with our MFP partners

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Canon-Nuance Partnership for Success

Dennis AmorosanoCanon USA

Senior Director

Solutions Marketing & Business Support

February 2010

Expanding from Print to Productivity[Thinking Beyond Scan to Email]

Dennis AmorosanoSr. Director

Solutions Marketing & Business SupportProduction Systems Divisions

Information Tasks: Time Spent in Enterprise per worker

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8.8

8.1

6.4

6.2

6.0

5.2

4.4

4.0

3.7

Source: IDC. Hidden Costs of Information Work: A Progress Report. May, 2009. Doc # 217936

Cost of Information TasksAvg, hour per

worker per week

Knowledge workersspend a lot of time

communicating/collaborating

Information withteam or customerusing PC network

rather than thinking ormaking

their business decisions.

1 Year +1,000 Employees =

$6M Lossdue to cost of

Information Tasks

24 eCopy Confidential 2/19/2010

A Long-Term Partnership

USA

Canada

1996 2000 2003 2004 2005 2007

Europe Japan

Australia

Singapore

Hong KongIndia

CanonElectronics

2008

South

America

Malaysia

Indonesia

* * *

A Valued Relationship

• Nuance is #1 selling software product worldwide for Canon

• Premier capture combination for businesses looking to movebeyond scan to email and optimize repeatable business processes

• 100,000+ Nuance / Canon customer installations

• Strong working relationship with all Canon entities worldwide

• Pioneered software and services sources of revenue for Canon’sdistribution channels

• Educated channel on scanning and solution selling

• Recognized by analysts as the ‘BEST’ partnership in the industry

• Continue to establish “Best Practices” in distributed scanning anddocument workflow

Canon & eCopy CustomersNorth America

Canon & eCopy CustomersEurope

Products

• Broadest external and embedded scanningsolution across MFPs and scanners

• Rapid end-user adoption, due to ease-of-use

• Broadest library of applications connectivity

• Award winning combination

• Established the defacto standard for MFPbased document distribution

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Robust Compatible Product Line

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Scanning’s Historical Use Case

Personalizationand

Business ProcessAutomation

What is the Future of Scanning?

Next GenerationSecurity

andConnectors

Second GenerationeMailScan to File

First Generation

Canon and Nuance are ahead of the curve

Certain information such asvendor name or invoice numberneed to be searchable uponimport.

How can I do this?

I need to import medical supplierinvoices that were sent via fax orby mail into our system to submitpayment.

The Value of Personalization

Benefits

• Increased Accuracy and Payment Timeliness

• Convert Paper-based documents into useful information

• Streamline account payable process

• Instant access to information for collaboration

• Improved search and retrieval of documents

Server

MedicalSupplierInvoice

PatientAdmit

InsuranceForms

Process & StoreAnnotate, Merge,Index & Integrate

Capture & Route

Enhancing Capture at the Desktop

• Complementary desktop application for scanning hardware

• Enables users to work with scanned output prior to or after storagewithin a back-end system

• Allows “2-way” document entry (with indexing) into elite back-endsystems via eCopy solutions

Personalization for any Industry

GeneralBusiness

Healthcare/ Medical

FinancialServices

Education Legal Manu-facturing

InvoiceProcessing

PatientAdmittance

NewCustomerSign Up

EnrollmentApplications

CaseManagement

EngineeringChangeOrders

ExpenseReport

Processing

PatientRecords

Management

MortgageProcessing

Financial AidPackages

ClientRecords

Management

ProjectCollaboration

ResumeManagement

InsurancePayment

Processing

LoanProcessing

StudentRecords

Management

ContractManagement

SupplierManagement

…. And more ….

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Nuance Connectors

• Native integrationbetween ShareScanand back-endapplications

• Scan and send paperdocuments to businessapplications in one step

• Authenticate users tocreate audit trails andcustomized viewsbased on credentials

• Configure to meetbusiness needs

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Nuance Services

• Services modify, enhance orclassify a document image– OCR, file naming, file type,

encryption, activity tracking,Bates Stamping, etc.

– Document accountingcodesfor cost recovery

• Define services based onspecific document workflow(s)

• Deliver automated workflowprocesses – personalized tothe end user and organization

Database,Workflow,

or EnterpriseApplication

NetworkStorage

E-Mailor Fax

Services

CONNECTOR

Re-defining the Value of Scanning

Standard Services

• Scan to E-mail

• Scan to Folder

• Scan to Desktop

• Scan toRepository

Advanced Services• Personalized Device

Access• Simplified Single

Click Operation• Advanced Image

Processing at theDevice

• Document TypeDrive Workflows

• Improved EmployeeEffectiveness

Driving a New Standard

Personalized Access

Knowledge Worker Effectiveness

Upstream Image Processing

Simplified Workflow

THANK YOU

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The Network MFP 2010:

Document Solutions for Every Office, Every Office Worker

February 2010

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Accounting Dept

Ad-hocScanning

Front-officeScanning

ProductionScanning

HR Dept

Legal Dept

Today - Document Distribution #1 Rationale

Enterprise environment

•Secure Distribution/Audit

•Scan to Desktop

•Scan to Repository

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Accounting Dept


Sales Dept

Today - Department Workflow Solutions

Small business environment

•Specialty workflows

•Custom Forms Processing

•Custom Connectors

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What has Limited “eCopy”-type Solutions?

BUSINESS PROCESSING(Invoice, Data, Classification)

PRODUCTIONCapture

Ad-HocCapture

SpecialtyNiche

BatchCentralized

Personal, Ad-hocDistributedEvery Office

Worker

Measureable ROI

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eCopy as the MFP Solution Platform

BUSINESS PROCESSING(Invoice, Data, Classification)

PRODUCTIONCapture

Ad-HocCapture

SpecialtyNiche

BatchCentralized

Personal, Ad-hocDistributedEvery Office

Worker

Measureable ROI

OfficeProductivity

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Accounting Dept

Ad-hocScanning


ProductionScanning

HR Dept

Legal Dept

1) Document Distribution Drives Platform Deployment


•Secure Distribution/Audit

•Convert to Word, Excel

•Scan to Desktop

•Scan to Repository

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Accounting Dept

Ad-hocScanning


ProductionScanning

HR Dept

Legal Dept

2) Document Services Drives Department Productivity


•Turnkey Document Services

•Rapid Forms Solution Development

•eCopy as the platform for all ISV’s

•Backed by training, Pro Services

•Repeatable

•Profitable

•Low TCO

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Accounting Dept

Ad-hocScanning

CloudServices

HR Dept

Legal Dept

3) Platform Connects Front Office to Enterprise/Cloud



EnterpriseApplications

4848October 2008

MFPs Are Ready for Document Processing

• Open Touch-screen and Server Architectures

– Most offer base set of APIs to manually access device functionality

• Image acquisition

• Interface control

• Device control

–New device hardware “Ready”

• Significantly more processing capabilities

– e.g., Canon IR Advance

• Larger touch screens

• Connectivity to “anything” on network

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eCopy ShareScan – The MFP Solution Platform

eCopy Document Distribution

eCopy Connector Services & SDK

eCopy Document Conversion Services

eCopy DocumentServices SDK

eCopySolutionPack forInvoices

eCopySolutionPack forReceipts

3rd PartyDocument Services

eCopySolutionPack forHospital

Admissions

eCopySolutionPack for

Legal

3rd PartyeCopy

SolutionPacks

eC

op

yA

dm

inis

tra

tor

Dealer ServicesProfessional Services

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Document Services

February 2010

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The Network MFP 2010:

Document Solutions for Every Office, Every Office Worker

February 2010

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eCopy ShareScan MFP Scanning Platform

DISTRIBUTED

FRONT-OFFICESCANNING

eCopyShareScan®

DESKTOPDISTRIBUTION

Unique Connectivity toDesktop Workflow

Document AssemblyDocument Conversion

PDF CollaborationDesktop>>ECM>>WFlow

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DISTRIBUTED


BUSINESSENTERPRISE

CONNECTIVITY

eCopyShareScan®

DESKTOPDISTRIBUTION

Document Management

Cost Recovery

Information Management

E-Mail

Fax Server

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eCopyShareScan®

DISTRIBUTED



Document Services

AUTOMATICDOCUMENT PROCESSING

BUSINESSENTERPRISE

CONNECTIVITY

DESKTOPDISTRIBUTION SDK

Plug-In

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eCopyShareScan®

eCopy ShareScan – The MFP Scanning Platform

Document Management

Cost Recovery

Information Management

E-Mail

Fax Server

Document Services

SDKPlug-In

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MFP Document Solutions for Every Office Worker

• MFP Devices (i.e. Canon IR Advance) have set the stagefor enterprise document automation solutions

• eCopy Document Services will accelerate department andenterprise adoption

– Today – Conversion Services included; OmniPage SDKLFR/Forms

– Next 6 months – Semi-structured, Healthcare, Legal, Invoices

• Nuance is uniquely positioned to establish “The MFPSolution Platform”

– Leading core technology, desktop and eCopy solution

– Global reach, broad ISV and hardware partnerships

– A solution, partner and customer portfolio that transforms “Ad-HocCapture” into high-value document automation solutions

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THANK YOU!

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Jerry Blaine

CEO & Founder

[email protected]

WELCOMENuance and Analysts

2010

LDI’s 10 Year

Anniversary

of Unparalleled Growth

In The Digital Office

Technology Industry

Concentration On LDI Core Strengths

• Efficient, Accessible Management

and Sales Structure

• LDI’s Independent Status

• Integration of Technology

• Color Graphic Expertise

Incorporating Print Production and

Variable Data Applications

• National Fleet Management

Programs

• Managed Print Services Platform

Including eEco Audit Team To

Promote Green & Sustainability

HOW LDI COMPETESIN A DOWN ECONOMY

• Continuing Investment in the People

and the Strategies That Have Given

LDI Double-Digit Growth For 9 Out

of the Last 10 Years

• Continued Participation with the

Strategic Manufacturer and

Technology Partners that Provide

the Digital Office Technologies

Greatest Innovation

WHAT LIES IN THEFUTURE FOR LDI

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Technologies to Watch

Chris Strammiello

Vice President, Marketing & Product Strategy

February 2010

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eCopy ShareScan – The MFP Solution Platform

eCopy Document Distribution

eCopy Connector Services & SDK

eCopy Document Conversion Services

eCopy DocumentServices SDK

eCopySolutionPack forInvoices

eCopySolutionPack forReceipts

3rd PartyDocument Services

eCopySolutionPack forHospitalAdmissions

eCopySolutionPack forLegal

3rd PartyeCopySolutionPacks

eC

op

yA

dm

inis

tra

tor

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Driving Information in New & Exciting Ways

Document Services

• Forms processing and automation

• Paper search

• Search, highlight, print

• Scan to eBooks

Improved Experiences

• “OnStar” for your MFP

• Text to speech

• Predictive input

• Sign at the device

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Document Service – Automated Forms Processing

• Rapid deployment ofautomated datacapture

• Turn-key processingfor invoices andfreeform recognition

• 50%-80% timesavings; fast ROI

• Automatic searchablePDF archive

• Connects to Intuit,SAP, Oracle

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New York City Housing Authority —Forms Processing for the Office Worker

Submit PaperChange Form

Tenant #123

Number ofDependents

Tenant #123

OCR

John Smith ?

ORACLESIEBEL

DATAAVAILABLETO HQ INREAL-TIME

Update

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Document Service - Search & “Destroy”

Automated redaction or highlighting

APPLICATIONS:

Avoid reading the entire document.Just read what’s pertinent. Find and redact a name.

SelectDestination

EnterText String

ScansDocument

Highlighted orRedacted PDF

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SelectDocuments

Document Service -- Search, Highlight, Print

• Search & print button

• Browse to repository location –SharePoint, DMS, etc.

• Type in text string

BrowseRepository Location

EnterText String

FindsDocuments

PrintsHighlighted

Search &Print Button

• Finds documents that match

• Select documents or sections for print

• Prints documents with highlightedtext string

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Document service – eBooks

• Amazon Kindle, Apple iPad, Sony Reader, Barns & Noble Nook, etc.

• Extending these devices for business documents

• Already can read PDF, but it’s really difficult

• Converted to native format for a better reading experience

• Transformed to audio through nuance text to speech

MFP to eBook

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Document Services – Cloud Gateway

• Connect MFP to point solutions or complete SaaS apps

• Nuance Cloud Services and all 3rd party cloud services

MFP Cloud

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PDF Reader Conversion Server

Nuance PDF Reader

Nuance Document Conversion Server (DCS)

With PDF file open in Reader select theView as Word option. Your file will besecurely uploaded to NuancePDF.com,the document conversion server.

Select the type of file you want your PDFconverted to. Choose from Word, Excel,RTF and WordPerfect.

Enter the email address for delivery. ClickGo. Your converted file will be delivered tothe address provided.

After clicking“Go” the user willbe presented aThank you pagewith Upgrade offerfor Pro

1

2 3

1

2

3

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Improving MFP User Experience

February 2010

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Speech – Authentication, Command & Control

• VoiceprintAuthentication

– Identify yourself to thenetwork

– Multiple authenticationinputs improve security

– Reduce data entry whenreplacing typing

• Voice command &control

– Select a connector

– Select meta data

“For e-mail press…”“Load button”

“Maria Dengrine…”“e-mail to …”“Place…”“Highlight…”

0 1 2 3 4 5 6 7 9 00 1 2 3 4 5 6 7 9 00 1 2 3 4 5 6 7 9 0

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Speech – Engagement & Distribution

• User Experience

– Accessibility

– Instructions step by step,keeping the control panel

– “Onstar for the MFP”

• Drives down servicecosts

• Scan to Audiobook

– Automates the podcast

– Extends documentdistribution andconsumption

Instructions Audiobook

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Innovative Solutions at the Key Press Level

With just a few key presses or screen touches users can…

…Input words (e-mail messages, cover pages, keywords)

…Find things fast (settings, contacts, email addresses)

…Launch applications (e-mail client, fax application, scanner…)

SMART KEYPAD: Accelerated Navigation

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