Electronic Ink Project

Prof. L.G. Cooper

Product Management in The Digital Economy

Anderson School March 2002

Group #1
Judith Marcelo Toms Nez Joaquim Lizondo Alex Balcells Cristian Lueg Fernando Lpez Jorge Romn

Agenda
Electronic Ink Overview The Company. Gyricon Media Inc. The Market: Retail Signage Market Bayesian Network Sensitivity Analysis Recommendation

Q&A

Electronic Ink Overview

Conceptualized in the 70s. Revived in the early 90s. Material that is processed into a film for integration into electronic displays - e.g. sign labels, PDA, cellular phone, e-book reader.

Electronic Ink Overview

Beads

Film

E-paper

Voltage

The Company - Gyricon

Group that started the concept at Xerox PARC. Spinned off from Xerox in 2000 Headquartered at Palo Alto, California with office in Massachusetts; same backyard of its only competitor - E-Ink Corporation.

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 for violations of the state's item-pricing laws.

The Retail Signage Market

The Projected Key Benefits

Cost savings in labor, materials, logistics and price accuracy fines Price Integrity Positive Customer Response More effective promotions Dynamic pricing

The Retail Signage Market

Bowling Strategy
Airports, train stations..
Energy c. + Flexibility ++ Price ++ Legibility ++ Color Video --

Cell phone Wireless

PDA

Traffic Signage
Energy c. + Flexibility = Price + Legibility ++ Color Video --

E-book reader
Energy c. +++ Flexibility ++ Price ++ Legibility ++ Color + Video --

Retail Signage
Energy c. + Flexibility = Price ++ Legibility ++ Color Video --

Bayesian Network

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

Bayesian Networks Major Parts

E n d U s e r A c c e p ta n c e S tr a te g i c P a r tn e r s h i p

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

T e c h n o lo g y T h re a t

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

Va lu e

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

Strategic Partnership

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

End User Acceptance

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

Technology Threat

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

Company Threat

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

Results
Success of Ink in RSM State Big Win Small Win Loss Probability 48% 27% 23%

Results
Strategic Partnership State Design Win Small Win Probability 65% 35%

End User Acceptance State Win Likely Win Unlikely Probability 78% 22%

Technology Threat State Low High Probability 78% 22%

Company Threat State Low High Probability 82% 18%

Sensitivity Analysis
Best Scenarios Original Strategic End User Technology Company Scenario Partnership Acceptance Threat Threat 48% 75% 62% 50% 50% 27% 17% 21% 28% 28% 23% 8% 17% 22% 22%

Big Win Little Win Loss

Sensitivity Analysis

Big Win Little Win Loss

50/50 Scenario Original Strategic End User Technology Company Scenario Partnership Acceptance Threat Threat 48% 38% 32% 47% 47% 27% 31% 35% 26% 26% 23% 31% 33% 27% 27%

Recommendation
Speed up the development of the electronic ink technology 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.

Thank You!