NEVER MISS A WORD

Thinking on Writing: Digital Writing and Innovation

Jim MarggraffChairman and Founder

12/6/11

2009 © Livescribe, Inc., Confidential

Overview

• Recent developments in digital writing?• smartpens, tablet styli, note and writing apps• demo: pencasting, cloud connectivity, teaching, innovation

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• How to think about future advancements?• models: real-time / non real-time communication; self & others• history: oral society literate society• future: literate society ‘connected’ society

• How to improve personal productivity and accelerate innovation?• enhance the capture, access, & sharing of writing and speech• use writing and speech to facilitate innovation

2009 © Livescribe, Inc., Confidential

Recent Developments in Digital Writing

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2009 © Livescribe, Inc., Confidential

Notetaking(10+ total apps) Price

AllDownloads

Aug. 2011Downloads

AnnualizedDownloads

Total Revenue

Aug. 2011Revenue

2011Revenue

NotesPlus 4.99$ 495,000 67,700 812,400 2,470,050$ 337,823$ 4,053,876$ Notetaker HD 4.99$ 351,000 93,700 1,124,400 1,751,490$ 467,563$ 5,610,756$ Ghostwriter Notes 4.99$ 174,000 38,100 457,200 868,260$ 190,119$ 2,281,428$ Noteshelf (w/in app upgrade) 0.99$ 395,000 144,000 1,728,000 391,050$ 142,560$ 1,710,720$ Penultimate (w/in app upgrade) 4.99$ 945,000 87,400 1,048,800 4,715,550$ 436,126$ 5,233,512$ Soundnote 5.74$ 88,600 5,520 66,240 508,564$ 31,685$ 380,218$ Notability 4.99$ 100,000 11,300 135,600 499,000$ 56,387$ 676,644$ eNote Taker 3.32$ 147,000 32,800 393,600 488,040$ 108,896$ 1,306,752$ Bamboo Paper free 1,530,000 161,000 1,932,000 -$ -$ -$ Total 4,225,600 641,520 7,698,240 11,692,004$ 1,771,159$ 21,253,906$

PDF Readers/Markup(10+ total apps) Price

AllDownloads

Aug. 2011Downloads

AnnualizedDownloads

Total Revenue

Aug. 2011Revenue

2011Revenue

PDF Expert 9.99$ 479,000 95,400 1,144,800 4,785,210$ 953,046$ 11,436,552$ GoodReader for iPad 4.99$ 3,520,000 492,000 5,904,000 17,564,800$ 2,455,080$ 29,460,960$ iAnnotate PDF 9.99$ 637,000 91,400 1,096,800 6,363,630$ 913,086$ 10,957,032$ Total 4,636,000 678,800 8,145,600 28,713,640$ 4,321,212$ 51,854,544$

Grand Total 15,843,840 73,108,450$

Trends in tablet-based digital writingiPad Notetaking Apps as of August 2011*

~27% of iPad users have purchased stylii**LS polling indicates low satisfaction with tablet note-taking apps Reasons cited: palm-rejection issues, low resolution, latency, parallax

* www.xyologic.com** PCWorld Survey

2009 © Livescribe, Inc., Confidential

How does digital writing work?

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2009 © Livescribe, Inc., Confidential

How should we think about future advancements? Look to history: shift from Oral society to Literate society

• Response of illiterate (oral) 25 year old subject:

“They’re all alike. The saw will saw the log and the hatchet will chop it into small pieces. If one of these has to go, I’d throw out the hatchet. It doesn’t do as good a job as a saw.”

•Told that the saw, hammer, and hatchet are all tools, still discounts ‘categorical class’ and persists in ‘situational thinking’

“Yes, but even if we have tools, we still need wood – otherwise we can’t build anything.”

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* “Orality and Literacy: The Technologizing of the Word”, Walter J. Ong, 2002** Subjects were illiterate (oral) persons in remote Uzbekistan and Kirghizia, 1931-32

Illiterate (oral) subjects** presented with 4 objects, and asked to group 3 similar items:

2009 © Livescribe, Inc., Confidential

Oral society Literate societyLiterate society …more ‘connected’ society

“Writing restructures consciousness” Walter Ong

•What does digital-writing with audio and pencasting do?

–Consider an oral society “understanding” what it means to be literate…

–Consider today’s literate society’s ability to understand what’s next…

– Will continue to be based on R, W, S, L… …pending BMI, implants

– Digital writing and digital speech are growing in importance and will become ubiquitous

– We will see expanded and enhanced services around digital writing and speech:

Search Writing: Vision Objects Speech: Nuance Transcription “ “ “ “ Dialogue & Action Writing: Livescribe* Speech: Siri

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* Currently simple syntax & semantics: commands, parameters, “prompt & believe Future includes smartnotes, mutual disambiguation, context and personalization

2009 © Livescribe, Inc., Confidential

How can digital writing improve productivity & innovation?Occupations of ~1 million smartpen owners

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12 occupations comprise 90% of users

Smartpen Users by Occupation

2009 © Livescribe, Inc., Confidential

How can digital writing improve productivity & innovation? Uses – business productivity, communication, learning

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“What is your primary use for your smartpen?”

Most frequent words used in response to above question in Buyer Survey 7, 3/11 #1 Word: Note(s) Count : 3,467#2 Word: Meeting(s) Count: 2,126

Learning 29%

Business 44%

Either 27%

2009 © Livescribe, Inc., Confidential

Accelerating Innovation with Solo Pencast BrainstormingVoice-annotated solo brainstorming session

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Static Solo-Brainstorm Notes Pencast Solo-Brainstorm Notes

• Self-documenting (re-animate with audio)

• Facilitates non-linear thinking

• Emotionally energizing to create

• Advances meta – cognition of thought patterns

• Great for patent capture, designing, freeform thinking, and innovation

2009 © Livescribe, Inc., Confidential

Review

• Recent developments in digital writing?• smartpens, tablet styli, note and writing apps• demo: pencasting, cloud connectivity, teaching, innovation

11

• How to think about future advancements?• models: real-time / non real-time communication; self & others• history: oral society literate society• future: literate society ‘connected’ society

• How to improve personal productivity and accelerate innovation?• enhance the capture, access, & sharing of writing and speech• use writing and speech to facilitate innovation