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Electronic Ink Project

Group #1

Judith Marcelo Alex Balcells Fernando Lpez

Toms Nez Cristian Lueg Jorge Romn

Joaquim Lizondo

Prof. L.G. Cooper

Product Management in The Digital Economy

Anderson School

March 2002

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Agenda

Electronic Ink Overview

The Company. Gyricon Media Inc.

The Market: Retail Signage Market Bayesian Network

Sensitivity Analysis

Recommendation

Q & A

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Electronic Ink Overview

Conceptualized in the 70s.

Revived in the early 90s.

Material that is processed into a film forintegration into electronic displays - e.g. sign

labels, PDA, cellular phone, e-book reader.

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Beads Film

VoltageE-paper

Electronic Ink Overview

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The Company - Gyricon

Group that started the concept at Xerox PARC.

Spinned off from Xerox in 2000

Headquartered at Palo Alto, California with officein Massachusetts; same backyard of its onlycompetitor - E-Ink Corporation.

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The Retail Signage Market

Point of purchase is an integral element in the

advertising arsenal

Each week Target delivers 3 planeloads of signs

from the companys production center

Spends $250,000 per week on changing signs

Home Depot carries 5 million skus; 14,000 of

these items change prices on any given day.

Fines are served forviolations of the state's

item-pricing laws.

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The Retail Signage Market

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The Projected Key Benefits

Cost savings in labor, materials, logistics and price

accuracy fines

Price Integrity Positive Customer Response

More effective promotions

Dynamic pricing

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The Retail Signage Market

Bowling Strategy

Cell phone

Wireless

Traffic Signage E-book reader

PDA

Retail Signage

Airports,

train stations..

Energy c. +

Flexibility =

Price ++

Legibility ++

Color -Video --

Energy c. +++

Flexibility ++

Price ++Legibility ++

Color +

Video --

Energy c. +

Flexibility =

Price +

Legibility ++

Color -

Video --

Energy c. +

Flexibility ++

Price ++

Legibility ++

Color -

Video --

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Bayesian Network

Bayesian Network slide (E-INK PROJECT). UCLA, March 2002

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Bayesian Networks Major Parts

Bayesian Networks parts slide (E-INK PROJECT). UCLA, March 2002

S u c c e s s E - in k fo r R S M

S t ra t e g i c P a r tn e r s h i pE n d U s e r Ac c e p ta n c e

T e c h n o l o g y T h r e a t

V a l u e

C o m p a n y T h r e a t ( G yr ic o n )

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Strategic Partnership

Strategic Partnership slide (E-INK PROJECT). UCLA, March 2002

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End User Acceptance

End User Acceptance slide (E-INK PROJECT) E-ink Project. UCLA, March 2002

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Technology Threat

Technology Threat slide (E-INK PROJECT). UCLA, March 2002

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Company Threat

Company Threat slide (E-INK PROJECT). UCLA, March 2002

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Results

Success of Ink in RSM

State ProbabilityBig Win 48%

Small Win 27%

Loss 23%

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Results

Strategic Partnership

State Probability

Design Win 65%

Small Win 35%

End User Acceptance

State Probability

Win Likely 78%

Win Unlikely 22%

Technology Threat

State Probability

Low 78%

High 22%

Company Threat

State Probability

Low 82%

High 18%

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Sensitivity Analysis

Original Strategic End User Technology Company

Scenario Partnership Acceptance Threat ThreatBig Win 48% 75% 62% 50% 50%

Little Win 27% 17% 21% 28% 28%

Loss 23% 8% 17% 22% 22%

Best Scenarios

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Sensitivity Analysis

Original Strategic End User Technology Company

Scenario Partnership Acceptance Threat Threat

Big Win 48% 38% 32% 47% 47%

Little Win 27% 31% 35% 26% 26%

Loss 23% 31% 33% 27% 27%

50/50 Scenario

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Recommendation

Speed up the development of the electronic inktechnology together with the partners.

Move rapidly in the Retail Signage Market.

Be on the watch out for other competitors. Develop and attract more investors to the business.

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Thank You!