Electronic Ink Project

Prof. L.G. Cooper

Product Management in The Digital Economy
Anderson School
March 2002

Group #1
Judith Marcelo Alex Balcells Fernando López
Tomás Núñez Cristian Lueg Jorge Román
Joaquim Lizondo
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 company’s production center
 Spends $250,000 per week on changing signs
 Home Depot carries 5 million sku’s; 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, Cell phone

PDA
train stations.. Wireless
Energy c. +
Flexibility ++
Price ++
Legibility ++ Traffic Signage E-book reader
Color -
Video --
Energy c. + Energy c. +++
Flexibility = Flexibility ++
Price + Price ++
Legibility ++
Retail Signage
Legibility ++
Color - Color +
Video -- Energy c. +
Flexibility = Video --
Price ++
Legibility ++
Color -
Video --
 Bayesian Network

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

 Bayesian Network’s Major Parts
End User Acceptance
Strategic Partnership

Success E-ink for RSM

Technology Threat Company Threat (Gyricon)

Value

Bayesian Network’s 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 Probability
Big Win 48%
Small Win 27%
Loss 23%
 Results
Strategic Partnership End User Acceptance

State Probability State Probability

Design Win 65% Win Likely 78%
Small Win 35% Win Unlikely 22%

Technology Threat Company Threat

State Probability State Probability

Low 78% Low 82%
High 22% High 18%
 Sensitivity Analysis

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

50/50 Scenario
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%
 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!