IM@GINE 1 – CONSULTING

WATSON CHALLENGE

ENRIQUE MARCILIO ∙ DANIEL AMELI ∙ TIRSO PINA ∙ CHRISTINA CHEN ∙ MORIE LIANI ∙ IMEN AMEUR

START SMART!

VALUE PROPOSITION

Channel the amazing capabilities of WATSON to help children in their development process. Use this technology to establish

a new toy that utilize WATSON to record child engagement, analyze and provide insight for parents. Take the concept of

cognitive toys to a new level.

COMPETITIVE LANDSCAPE

• IBM has partial competitors for the Watson AI Technology:  IBM GOOGLE SAFFRON

TECHCLOUDERA

SIZE LARGE LARGE SMALL SMALL 

PLATFORM WATSON NOW/DEEPMIND

Saffron Streamline

Cloudera Enterprise

WORD-BASED AI YES 

YES NO NO

FINANCIAL RESOURCES LARGE VERY LARGE SMALL SMALLLIKELIHOOD TO COMPETE WITH IBM

- HIGH LOW LOW

COMPETITIVE THREAT - HIGH MEDIUM MEDIUM

MARKET SIZE

• Initially we would just focus in the USA market.• Target: Kids under 5 years of age. • Variables to consider: • Population of children under 5 years of age• Average number of children per family• Education level

MARKET SIZE

Total number of households than can targeted

𝑀𝑎𝑟𝑘𝑒𝑡 𝑆𝑖𝑧𝑒=[ ( 𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 h𝐶 𝑖𝑙𝑑𝑟𝑒𝑛𝑢𝑛𝑑𝑒𝑟 h𝑡 𝑒𝑎𝑔𝑒𝑜𝑓 5 )𝐴𝑣𝑒𝑟𝑎𝑔𝑒𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 h𝑐 𝑖𝑙𝑑𝑟𝑒𝑛𝑝𝑒𝑟 𝑓𝑎𝑚𝑙𝑖𝑦 ]∗ (𝐸𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛 𝑙𝑒𝑣𝑒𝑙 )

Proxy of income level

• By doing this we found an estimated number of households who are potential buyers of the toy.

3.15 MILLION

Number of kids

per househ

old

Amount of

children under 5

(Total Population

in the USA)* (% of

Americans with BA degree)

ECONOMIC MODEL

• The economic model was based on the past annual income statements 2009-2013 of Hasbro, Mattel and Lego (companies we believe might be interested in developing this sort of toy) and marginal revenue.• Average Net Margins:

• Since Lego is an outlier we decided to remove it from the sample. The average: 10%• Two way income:

• License revenue from Watson technology• 9.10% minimum margin for every sale

HASBRO

MATTEL

LEGO

8.68% 11.95% 22.5%

PROCESS FLOW IBM

Watson Technology

Cognitive ToysEnd Users

Children and Parents

ToyData

Management

System

The work flow Process

ToyCompany/Industry

TOY DESIGN

• Toy will follow traditional, friendly aesthetics of conventional toys• The cognitive toy technology could be placed inside a normal,

soft teddy bear, integrating a lithium ion battery, microphone, speaker, and wireless communications• A standard teddy bear is 14 inches tall, 6 inches deep, and 9

inches wide• Further details and versions will be determined by the toy

companies licensing the technology

BRANDING STRATEGY

Brand Target audience

Key Message

Behavior Objective

Channels/Vehicles

Materials Tactics

IBM Watson • Toy manufactures

• Toy industry associations

• Analyzers Consultants

•Big Data•Cognitive solutions

•Recognize Watson’s leading position in providing cognitive solutions•Willingly to develop Watson embedded toy

• Toy industry expos/seminars /exhibitions

• Toy industry magazines

• Toy industry related websites /platforms

• Social media

• Posters • Leaflets • Flyers • Videos• PPTs

• Advertisement• Research

Center visit

“IBM Promise” +• Toy end

users (Children and parents)

•Smart toy, smart life •Childhood partner •Help children learn faster

•Very aware of “IBM Promise” •Willingly to buy the toy with “IBM Promise”

+• Children

business related Website /platforms

• Airport video Ad.

• Videos• Small

souvenir • Posters • Leaflets • Flyers

• Sponsorship activities on some children events

Co – Branding Strategy - “IBM Promise” • IBM actions: Build band awareness – “IBM Promise” / Build BIS for “IBM

Promise” • Customer benefit: Toy producers are allowed to put “IBM Promise” logo on the

product as endorsement Communication Strategy

GIVE YOUR CHILDREN THE CHANCE TO… START

SMART

THANK YOU!