mind the gap: blog

Making a Difference One Trail at a Time

Purpose. Everyone thinks about what their purpose is whether for themselves or for their business.

I just read Roy Spence’s book It’s Not What You Sell, It’s What You Stand For and why businesses should be driven by purpose. When that purpose is strongly believed by the leader of a business and believed and supported by employees that purpose is manifested in one’s life in and out of work.


So the book got me thinking. Here at gap intelligence, we are a values-led company. We care about our clients, gappers, and our community. It is through my involvement with our 3Ts (Time, Talent, and Treasure) committee that I am able to live and breathe purpose; the purpose to help those in our community. gap intelligence’s involvement with the Emilio Nares Foundation (ENF), a local San Diego non-profit,  is the perfect partnership of two San Diego based entities driven to do good.2014-10-26_2048

As I was reading Mr. Spence’s book, I was inspired to join the Hike for ENF 2014 with the purpose of not only supporting the foundation and their mission but to put my own purpose into action; the need to help others. Plus, I missed hiking after a long sabbatical. So I dusted off my hiking boots and hit the trails to fundraise for a worthy cause.


Hike for ENF 2014 takes place on Catalina Island on November 15, 2014. The 27 mile hike is a fundraising event for the Emilio Nares Foundation that assists families with children battling cancer by providing much needed transportation for chemotherapy and hospital visits.


Each week with a dedicated group of training volunteers and hikers, we train and fundraise for two months and two weeks. These aren’t leisurely nature hikes and they don’t call it a challenge hike for nothing. The hikes gradually get more and more difficult as we head closer to the date. The support and encouragement of the trainers and the other hikers has made the experience a memorable one.


So my purpose here today is not only to tell you about the challenge hike and the great work ENF does, but also to inspire others to make a difference. For me, each trail is another step closer to getting kids battling cancer to their medical appointments and that’s a purpose worth trekking for.


If you are interested in supporting me in my challenge, please feel free to visit: https://www.classy.org/fundraise?fcid=343677 and to learn more about ENF, please visit www.enfhope.org

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We Bought Quixel Research

Occasionally I’ll get spam emails that I actually enjoy.  Today, for example, “Acquisition International” emailed me that our recent acquisition of Quixel Research was named “Deal of the Year.”  Acquisition International offered to broadcast our award on its website and send us a crystal trophy for as little as $5,000.  While the award is extremely flattering, I’ll simply notify readers of this blog about our award and post this picture:

Deal of the Year

We won “Deal of the Year”!

For the past 11 years, Quixel Research has been a market leader within the television, projector, and sound bar industries and focused its research on market sizing and forecasting.

We love Quixel Research for two reasons:


Forecasting & Market Sizing

gap intelligence loves data and we love explaining the “why” behind the data.  With Quixel, we are able to add another subject in our conversation with clients: what will happen in the future?  As we apply Quixel’s forecasting methodologies, we think that we can talk about the future in new and powerful ways.  We want to combine our advertising data with shipment information to help our clients understand the effectiveness of their promotion investments.  We want to predict retail shelf placements and how they impact future product shipments.  We want to forecast promotional incentives and tell you not only where the market is going, but how much it will cost to get there.

We have a lot of data to play with.

Similarly, we think that we can apply Quixel’s forecasting and market sizing methodologies to every category that we track at gap intelligence.  We see a bright future in delivering Quixel forecasts about the notebook & tablet markets, in addition to our printers, supplies, imaging, and home appliance categories.

I love the idea that gap intelligence will one day predict the future of the refrigerator industry.

Bit_Size_InsightsBite size Insights

We at gap intelligence love data.  Great Fantastic Data (GFD) is also very hard to collect, clean, prepare, and present on a daily and weekly basis.  Because of the pride that we take in our GFD, we want to make sure that our clients are presented with every bit of it in a single report.

While working with Quixel, we learned that massive amounts of data can be overwhelming to our clients, who are already time crunched and stressed out.  Quixel’s reports are simple Power Point decks that provide readers with “bite size” chunks of information and insights that are easy to digest.  A graph, three bullet point, and we’re done.

Some day in the not too distant future, you’ll see similar reports that cover gap intelligence’s traditional data and services.  We’ll add new summary reports, presented in a Power Point deck that provides bite size insights that are easy to consume, share, and take action on.


Graph: Best Buy’s Digital Camera Shelf Share Month-over-Month
Bullet Point One: Big Insight
Bullet Point Two: Another Big Insight
Bullet Point Three: What to expect in future

Next slide.

We are thrilled to have Quixel Research be part of the gap intelligence team and we are excited about what the future holds.   We can’t wait to have new conversations with you and use our data in even more powerful ways.

Stay tuned, because there is a lot of fun stuff on the way.

Acquisition International: Deal of the Year


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The Aftermarket Takes a Stand… Together

OEMs have long been active at protecting the intellectual property of their laser cartridges, but the one that we’ve been hearing the most from recently is Canon. Just in the past two years, the vendor has initiated two cartridge-related lawsuits in both the U.S. ITC and U.S District Court for the Southern District of New York against more than 60 aftermarket cartridge supplies vendors and manufacturers. Last year, Canon came out of the lawsuit victorious, having successfully acquired a GEO, thus barring these companies from making, importing into, and selling the involved cartridges in the U.S. So far this year, less than half of the over 30 defendants involved in this year’s case have settled in either the ITC or district court case (or some in both), meaning that the conclusion of this year’s litigation will likely not be seen until 2015. It is believed that the result may be another GEO, as was indicated by the ITC earlier this year.

This year however, the ongoing litigation against third party cartridge vendors has resulted in a very notable reaction from the aftermarket. Several months ago, Canon announced that 9 defendants had defaulted in the 2014 U.S. ITC case, meaning they failed to respond to Canon’s initial complaints in the allotted amount of time. However, many of these defendants had already settled in the U.S. District Court case. Interestingly, a group of the remaining defendants (that have not yet settled and were not named as defaulting) banded together and responded to Canon’s allegations, asking the vendor to issue a statement explaining why the defendants that had already settled at the district court should not be found in default the U.S. ITC case. The group is reasoning that because of the vendor’s action, these companies are being presented as unresponsive and/or uncooperative, even though they have already reached settlements on one side of the case. This action is at least notable in that a group of companies that are direct competitors came together for a common cause in an effort to protect their reputations and industry.


Printer makers spend millions of dollars developing their technology and securing their patents and will put forth the resources to protect them. Supplies are a crucial part, and the most profitable part, of OEM revenues and when other companies start infringing their patents or introducing low quality clones for a fraction of the price of a legitimate cartridge, it can have negative implications. OEMs will, and should, protect themselves. Notably, Canon is on the lowest end of the spectrum with regard to the volume of third party cartridges available in the IT channel as tracked by gap intelligence. It is expected that this has a lot to do with the fact that Canon is one of the top patent holders, but also because the company very actively protects what is covered by those patents.

While settlements are good for both parties, it should be noted that when the defendants take this action, it’s difficult to know whether or not they had been infringing on patent rights, as they are essentially just agreeing that won’t do it moving forward. To make a case for any that haven’t infringed, these lawsuits are damaging to their reputations, because whether or not the infringement claims are true, they will be associated with the negative side of a patent infringement lawsuit. This in particular is causing a lot of concern among third party manufacturers because it can give a negative connotation to their industry as a whole. And although many of the companies named in these lawsuits are by no means small companies, they also don’t have the same amount of capital or legal resources that large OEMs have to endure a multi- year fight to clear their names.

To my knowledge, this is one of the first times that third party competitors have banded together to fight for the reputations of other competitors involved in the same case. Over the past year or so, there has been an increasing level of talk and response from the aftermarket, especially since the influx of non-infringing alternatives that hit the market shortly after Canon’s GEO was awarded last summer. The more companies that are engaged in patent infringement lawsuits, the more damaging effect it can have on their industry as a whole, so like the OEMs protecting their technology, the legitimate aftermarket is protecting its right to compete.


Recycling Times Media was set to launch its PatentSmart website this week, providing remanufacturers with a centralized collection of OEM cartridge patents that they can use to stay on top of what is patented by the OEMs. With this, it seems that remanufacturers will have a much better and faster way to ensure that they won’t be infringing. Details about the site remain limited, but it could have the potential to change the way third party companies approach the development of new components and technologies, even if the effects aren’t immediate. At the very least, the recent actions from the aftermarket have demonstrated a shift in attitude from reactive to proactive, and I don’t think this is the last we’ve heard from this side of the industry.

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gap Babies (Part II) – There Must Be Something In the Water…and it’s traveled all the way to Uzbekistan

A little over a month ago, I wrote a blog about all of the gappers in gap’s San Diego office that have recently had babies, which was so much fun.   Now I am writing part II, to feature the two babies of our Uzbekistan counterparts!

gapper parent: Timur
Baby’s Full Name: Amaliya Gabdrakipova
DOB: October 27th, 2012
Age: 2 years
Weight at Birth: 7.2lbs
Favorite Toy: iPad
Fun Fact and/or Funny Story: Amaliya always says “No” and doesn’t know the word “Yes”.   However, if she wants to communicate “Yes”, she nods her head up and down and says “No”.
Recently Reached Milestone: Abstract Watercolor Art (scribbles :) )
On average, how many diapers does baby go through per day: 0!  But used to be 8










gapper parent: Shavkat
Baby’s Full Name: Timur Samatov
DOB: February 8th, 2014
Age: 8 months
Weight at Birth: 9lb 1.7oz
Favorite Toy: Anything that has buttons (remotes, phone, laundry machine, fridge)
Fun Fact and/or Funny Story: Timur will stop doing whatever he is doing every time he hears the Kiesza – Hideaway song and will stand up and hold onto anything so he can dance.
Recently Reached Milestone: First tooth!
On average, how many diapers does baby go through per day: 8+
Anything else you’d like to share: Timur loves to make eyes at nurses, haha!










Thanks to Timur and Shavkat for sharing this information about their babies with us.  Hopefully someday before too long we will get the opportunity to meet Amaliya and Timur!

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Shelf Share: A Revealing Research Tool

Whenever someone asks me to describe my job as an industry analyst, I tell them that what I essentially do is market research.  Market research is used as a tool for a variety of purposes, but the kind of market research that I do involves the “Four P’s” of marketing: products, placements, prices, and promotions.  One trend that I return to time and again in my day-to-day work analyzing the Television market is shelf share, or the percentage of a store’s shelf that is owned by a particular segment.  A quick example of shelf share is demonstrated in the first chart, which shows the retail shelf share of TVs by brand.  You can clearly see that Samsung dominates the retail space with 35% of all TVs placed in retail, followed by LG and Vizio with 16% and 10%, respectively.

Shelf_Brand_20140922This post originally appeared on the website of TWICE magazine.  To read the full article, please follow this link to visit the website.

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HP: Waiting for Big Wednesday

HP_webos_OSSI loved WebOS.

When former HP CEO Mark Hurd bought Palm’s mobile operating system in 2010, I thought that the company had struck gold. Everything about HP and WebOS was dreamy. WebOS was one of four mobile platforms in the marketplace, but with HP’s business model WebOS was a legitimate contender.

HP’s advantage was that it could potentially install its WebOS platform in everything it made – inkjet & laser printers, desktop & notebook PCs, monitors, scanners, tablets, and smartphones. Through its wide swath of products, HP could quickly grow its WebOS installation base to tens of millions of users that touched both the living room and the board room. WebOS had the potential to be a single platform that spanned both the consumer and enterprise markets, linking our home and work in powerful ways.
Oh man….it would have been awesome.

LG-WebOS-LogoBut nothing ever happened with WebOS. In 2012, HP decided to put the operating system “out to pasture” and today LG owns the WebOS technology that powers the company’s SmartTV” platforms currently sold in stores.

Well before Mark Hurd purchased Palm and WebOS in 2010, HP’s long term vision was to evolve beyond the PC and printer business and eventually become a global power in IT infrastructure consulting. Who could blame HP’s leadership? Companies like IBM and Oracle were cruising through the blue ocean of Enterprise Services and making billions along the way.

In 2002, HP started purchasing consulting and software companies with the fervor of a start-up with a limitless credit card:

  • Peregrine Systems for $425 million in 2005.
  • Mercury Interactive for $4.5 billion in 2006.
  • Electric Data Systems for $13.9 billion in 2008.
  • 3Com for $2.7 billion in 2010.
  • 3Par for $2.35 billion in 2010.
  • ArcSight for $1.5 billion in 2010.
  • Autonomy for $11 billion in 2011.

Listed above are $36.5 billion in acquisitions and represent just a handful of the companies HP acquired within the last decade to bolster its Enterprise Services business, all of which were paid for by ink and toner profits the company had stockpiled during the previous 30 years. If HP’s Enterprise Services effort was a start-up, then the company’s printing business was the angel investor.

And therein lies the rub, HP’s overall strategy was to grow its printing business and use those profits to expand the company’s Enterprise Services business. HP’s two pronged strategic plan was simply not sustainable. It has been proven time and again that no company can succeed with multiple visions and strategic initiatives. IBM admitted as much when it sold its PC business to Lenovo. Concurrently, HP’s PC and printer business could not sustain its position as leader in its respective industries without extremely healthy R&D and sales budgets. Ultimately, HP’s Enterprise Services business grew at the sacrifice of the company’s PC and printing business.

HP should have split up 10 years ago.

Last week, HP CEO, Meg Whitman, announced that the company will cut itself in two. HP’s Enterprise Services business, poised to duke it out with IBM and Oracle, is now called “HP Enterprise”. The remaining $60 billion PC and printer business will continue to carry the original “HP” corporate name.

HP Enterprise Services

The split comes as no surprise and is long overdue. For observers such as myself, it will be interesting to see how HP Enterprise will survive without the endless backing of ink and toner dollars to support it. Similarly, I am equally intrigued to see what will become of the new/old HP, now that it has a fresh supply of R&D dollars to “re-Invent” itself.

With absolutely zero evidence to support my theory, I believe that HP Enterprise is for sale. During her announcement, Meg Whitman, indicated that she will remain CEO of HP Enterprise, while Dion Weisler will assume the helm at the plain ‘ole HP, which is a curious move. When Whitman took on the role of HP’s CEO, her biggest critics pointed out her clear lack of experience and acumen in the enterprise market. Meg’s background is selling to Joe Consumer through her time at eBay and her run for California’s Governor. Why would Meg, who clearly has strengths in the consumer market, insist on staying on as CEO of HP Enterprise? My thought: that’s where payout will be. Meg will get paid handsomely at the time of sale and ride off into the retirement sunset.

For plain ‘ole HP, last week’s split is a wonderful opportunity to re-Invent itself (again). It’s a chance for HP to return to its engineering roots, which were driven by the backyard garage, entrepreneurial spirt of Bill Hewlett and David Packard. Refreshed with R&D funds and re-invigorated by its new CEO, the “re-Invented” HP could return to its former glory as the industry’s original innovator.


And that’s what HP’s new CEO, Dion Weisler, has to do – find the old HP. So far, Mr. Weisler has promised to protect HP’s R&D budgets and restore relations with channel partners both new and old.

An avid ocean goer, Mr. Weisler used a surfing analogy in a recent interview with analysts.
“When I look at the ocean, I think about it as a dynamic environment. Waves are always rolling by.” Mr. Weisler said.

Mr. Weisler then described rows of surfers; the first two rows catching the easy waves to ride on the inside, but the third row of surfers sitting outside the breakers and staring deep at the horizon.

“The really astute ones are looking out for Big Wednesday — that massive wave,” he said. “When you think of the business in this way, you can think about how you can play for today and also the future.”

And that’s where HP is today: sitting on the outside and waiting for the waves to come in. Meg Whitman will ride the money wave to retirement. Dion Weisler hopes to catch a wave out of HP’s Garage with an ocean of ink money to hold him up.

I just can’t help but think that WebOS was a “Big Wednesday” moment.

What if HP had spent a fourth of that $36.5 billion to catch it……

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It’s the MOST Wonderful Time of the Year

gappers take data very seriously.  We comb through it with a fine toothed comb.  We analyze and agonize.  This passion for getting it right spills into all that we do.  This of course includes the MOST wonderful time of the year: gappy holiday card time!  Every year our clients wait (not so patiently) by their mailboxes for the best mail ever.  gap intelligence’s gappy holiday cards are so cool they are collected like rare baseball cards and proudly displayed year round.  Here is a look at evolution of gap’s holiday cards…

The gappy Bunch

The office was still tini tiny so this card was the perfect fit.  Preppy wear was the look.  It was simple yet fitting with smiles for miles.


Baseball & Jumps

gap stepped it up this year and hired a fancy photographer to follow them around downtown San Diego.  The crew wore baseball themed gear since many photos were taken on a balcony of the San Diego skyline and Petco Park.  Handmade props were held while gappers jumped in the air.  Little did they know but they had started a new tradition that we would see year and year over.  It’s a running joke in the office when we are looking for a new hire to have them take a jumping picture during their interview to see if they would be a good gapper.


gappy Road

The creativity of this shoot was on point.  Our CEO asked the office to submit their ideas for the theme and Christine Abuyen’s suggestion of recreating the Beetle’s Abbey Road won by a landslide.  We all headed over to Balboa Park midday and recreated the cover.  We of course jumped and jumped and jumped some more.  The end product was legit.


Top gap

Top Gun was filmed in San Diego so our next theme was a natural fit.  Top gap was shot on the flight deck of the USS Midway.  As you can imagine, this back drop was incredible.  We had so much fun running around the deck and climbing inside of the jets.  Highway to the gappy Zone took our breath away.  Pun intended.



Our CEO is a huge fan of Caddyshack so this theme was a dream come true.  Care was taken to recreate many scenes from the movie so the card would tell a story with pictures.  My favorite part of this shoot was seeing my boss dressed up as a gopher.


gap Olympics

As the holiday’s rolled around this year everyone was feeling the ‘Merica spirit thanks to the Olympics.  Each gapper was asked to show their pride and bring their best talent to the table for this gappy holiday card shoot.  We had everything from weight lifting to karate.


You Stay gappy San Diego

This theme was so perfect the office unanimously agreed on it.  The Legend of Ron Burgundy was set in San Diego so we happily embraced recreating a gapified version of it for our cards.  We roamed around Liberty Station and made our neighbors think we were crazy dressed up in ridiculous costumes.  The recreation of the fight scene as offices looked down was my favorite moment in particular.


This Year’s Theme

It’s that time of year again.  We are working hard and gearing up to shoot this year’s card.  It’s going to be gaptastic!  We will be delivered to your mailboxes very very soon.  We like the theme to be a surprise so stay tuned.



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Fantasy Football: An Unpredictable Statistical Fiasco

In my blog post this week, I will show my findings from a regression analysis done on the correlation between Rushing Yards in a given game vs Defensive Rushing Yards Allowed.


Contrary to popular belief, Fantasy Football is not a game of complicated stats, but a game of simple choices made in your initial draft and the subsequent lack of “tinkering” with your line-up throughout the season.  It is not about playing the lesser player vs the weaker defense, or benching the better player vs the stronger defense.  It is simply about always playing the better player in all but extreme cases.
Using data pulled from 2011 on Running Back (RB) rushing yards in a given game and average Defensive Rush Yards Allowed, an initial simple regression analysis indicates that there is little correlation between the two.

The results:
Intercept: 29.36
Slope (Rush Yards/Game): 0.44
Equation (ŷ = b0 + b1x): ŷ = 29.36 + (0.44)x
R-squared: 5.7%
Significance F: 0.00000013
p-values: 0.003 (intercept), 0.00000013 (Rush Yards/Game)

The combination of a low R-squared and sub-0.005 F and p-values suggests that basing your decision simply upon Defensive Rush Yards Allowed is unlikely to result in a successful play. This is simply just for predicting rush yards, though, and not a predictor of points by any other means (Receiving Yards, Touchdowns, etc).

As of right now, the data suggests that you’re best option will always be to play your best player in all but extreme cases, and not a lesser player facing a weaker defense. So if you’re thinking about starting Matt Asiata vs ATL (27 yards/game vs 124 yards/game allowed), Donald Brown vs JAX (27 yards/game vs 160 yards/game allowed), or Stevan Ridley vs KC (58 yards/game vs 130 yards/game allowed), DON’T DO IT. Though the matchups look sweet, these players have a low Yards Per Carry and have not proven to be reliable RBs. If you’re afraid to start guys like Demarco Murray vs NO (128 yards/game vs 101 yards/game allowed), or Arian Foster (if healthy) vs BUF (120 yards/game vs 83 yards/game allowed), don’t be. Though their matchups look tough, the best players tend to find running room in any game.


If anyone would like further information on where the data was pulled from, or requests for the raw data itself, please let me know.

In my next blog post, I’ll look to measure increased/decreased rush yards above personal averages vs Defensive Rush Yards Allowed.

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Haaave you met Charlie?

Hey All!  My name is Danielle Regello, I have been working at gap for a few months now in the Laundry and Home Appliances categories, and I am loving it!

Outside of work, I enjoy cooking, snuggling my adorable dog and practicing yoga. Most nights you will find me at home, glass of wine in hand, trying out recipes and testing them on my guinea pig/boyfriend. Lucky for me, Brian is always willing to try anything and enjoys his role as head taste-tester.

Brian's favorite dinner, buffalo chicken wraps and spicy sweet potatoes

Brian’s favorite dinner, buffalo chicken wraps and spicy sweet potatoes

Our adorable dog, Charlie, is usually lurking around, drooling, waiting for a snack or a snuggle. Both of which I am happy to indulge him in as often as possible. He has an impossibly smooshy face and the sweetest disposition, even if he’s not all that smart.

Sweet Charlie Dog (also pictured: Toby the tortoise)

Sweet Charlie Dog (also pictured: Toby the tortoise)

Outside of the home (sometimes in the home if I’m feeling ambitious), I try to practice yoga several times a week. I fall over pretty often, but it has not deterred me or diminished my love of the practice. All in all, I couldn’t be happier to be living in America’s Finest City and am so very excited to continue this new journey with gap intelligence.

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gap intelligence adds forecasting to its services with Quixel Research acquisition

For Immediate Release
Contact: Elizabeth Ireland
Stalwart Communications
(858) 922-9983

gap intelligence adds forecasting to its services with Quixel Research acquisition
- Move expands clientele and reporting, adds scalability within industry -


SAN DIEGO – September 8, 2014 – 

gap intelligence, a values-led market research firm focused on the Information Technology, consumer electronics, imaging and home appliance industries, announced today that it acquired market forecasting firm Quixel Research.

The move upgrades the overall reporting services provided by gap intelligence and further expands its analysts’ expertise across nearly 25 research categories.

“Forecasting is underserved within market research. This acquisition not only enables us to dig deeper into today’s trends, but will influence our clients long-term strategies and drive multimillion dollar decisions,” said gap intelligence Founder and President Gary Peterson. “Quixel earned itself a wonderful reputation throughout the last 13 years. We’re confident that its current and new customers will be pleased with the intrinsic value, quality and consistency gap intelligence is able to bring as we rollout the enhanced service across multiple industries.” ence, a values-led market research firm focused on the Information Technology, consumer electronics, imaging and home appliance industries, announced today that it acquired market forecasting firm Quixel Research.

The move upgrades the overall reporting services provided by gap intelligence and further expands its analysts’ expertise across nearly 25 research categories.
Since 2001, Quixel has built its business around the television, projector and soundbar markets. Now named “Quixel Research – a gap intelligence company,” its leadership team will assist gap intelligence in the transition to integrate forecasting capabilities into its current suite of services.

The acquisition comes on the heels of gap intelligence’s strategic move to bring data collection and software development entirely in-house. Doing so helps the company respond to the very complex and constantly changing IT, consumer electronics, imaging and home appliance industries. gap intelligence was recently named “Emerging Business of the Year” by The San Diego Chamber of Commerce.

The terms of the acquisition between the two privately-held companies were not disclosed.

About gap intelligence

San Diego-based gap intelligence is a values-led corporation that works with manufacturers, resellers and industry players within the information technology, consumer electronics, imaging and home appliance industries to bring them up to the minute market intelligence. For more information: www.gapintelligence.com.

About Quixel Research

Quixel Research LLC. provides market intelligence services covering the consumer home entertainment TV and Audio markets. The company details the state of the current market, future trends, and pending technology shifts. For more information: www.quixelresearch.com.


© 2014 by gap intelligence. All rights reserved. 

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