Electronic Ink Project

Group #1Judith MarceloJudith Marcelo Alex BalcellsAlex Balcells Fernando LópezFernando López

Tomás NúñezTomás Núñez Cristian LuegCristian Lueg Jorge RománJorge Román

Joaquim LizondoJoaquim Lizondo

Prof. L.G. CooperProduct Management in The Digital Economy

Anderson SchoolAnderson School

March 2002March 2002

Agenda Electronic Ink Overview

The Company. Gyricon Media Inc.

The Market: Retail Signage Market

Bayesian Network

Sensitivity Analysis

Recommendation

Q & A

Electronic Ink OverviewConceptualized 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.

Beads Film

VoltageE-paper

Electronic Ink Overview

The Company - GyriconGroup that started the concept at Xerox PARC.Spinned off from Xerox in 2000Headquartered 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 IntegrityPositive Customer ResponseMore effective promotionsDynamic pricing

The Retail Signage MarketBowling Strategy

Cell phoneWireless

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 --

Bayesian Network

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

Bayesian Network’s Major Parts

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

Success E-ink for RSM

Strategic PartnershipEnd User Acceptance

Technology Threat

Value

Company Threat (Gyricon)

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 ProbabilityBig Win 48%Small Win 27%Loss 23%

Results

Strategic Partnership

State ProbabilityDesign Win 65%Small Win 35%

End User Acceptance

State ProbabilityWin Likely 78%Win Unlikely 22%

Technology Threat

State ProbabilityLow 78%High 22%

Company Threat

State ProbabilityLow 82%High 18%

Sensitivity Analysis

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%

Best Scenarios

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

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!