Electronic Ink Project
Prof. L.G. Cooper
Product Management in The Digital Economy
Anderson School
March 2002
Group #1
Judith Marcelo
Tomás Núñez
Joaquim Lizondo
Alex Balcells
Cristian Lueg
Fernando López
Jorge Román
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,
train stations..
Energy c. +
Flexibility ++
Price ++
Legibility ++
Color Video --
Cell phone
Wireless
Traffic Signage
Energy c. +
Flexibility =
Price +
Legibility ++
Color Video --
PDA
E-book reader
Retail Signage
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
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 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
Big Win
Small Win
Loss
Probability
48%
27%
23%
Results
Strategic Partnership
End User Acceptance
State
Design Win
Small Win
State
Win Likely
Win Unlikely
Probability
65%
35%
Technology Threat
Company Threat
State
Low
High
State
Low
High
Probability
78%
22%
Probability
78%
22%
Probability
82%
18%
Sensitivity Analysis
Big Win
Little Win
Loss
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%
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!