Swot Ds-dooh Industry Nov 2009

8/13/2019 Swot Ds-dooh Industry Nov 2009

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SWOT Analysis: North American Digital Signage / DigitalOut-of-Home (DS /DOOH) Inustry

Relevance is at the pivotal point of industry Strengths,Weaknesses, Opportunities and Threats

By Lyle Bunn

November 2009

The status and indicated directions of North Americas Digital Signage and Digital ut!of!"ome #ndustry are outlined$ Si% &rimary categories are addressed 'ith the (eyStrength) *ea(ness) &&ortunity and Threat described for each category$ Through these

++ individual items the changing landsca&e of the industry) macro!trends and

o&&ortunities are identified along 'ith the (ey trends that are influencing and im&acting

the success of the industry ecosystem) initiatives and organi,ations$

As North Americas Digital Signage and Digital Out-of-Home industry continues to growat a double-digit, compound annual growth rate, the status and directions in six primaryareas are most significantly impacting the industry !hese areas include"

A Application Demand# #usiness $odels% &inancingD !echnology' Human (esources& 'fficiencies

'ach of these con)erges and intersects at a pi)otal point defined as *(ele)ance+ ndeli)ering the presentation of contentin the conte%tof location and timing whenmeasurableobecti)es can be achie)ed, Digital Signage and Digital Out-of-Homedistinguishes itself as one of the most powerful tools a)ailable to communicators

!echni.ues such as playlist strategy, content composition, display configuration andplacement, supply models, outsourcing, etc are tactical elements of each networ/, whichsupport the operational success of indi)idual networ/s and their users


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2

The !i"otal #on"ergence

A$$lication Deman

%inancing&usiness 'oels

Technology Efficiencies

Human Resources

As the mar/etplace for DS0DOOH continues to grow, successful proects and networ/operators sit at the con)ergence of a number of elements, which, when indi)iduallymanaged, play significantly into assuring the sustained growth and success of indi)idualdeployments and the industry at large !hese three primary areas include applicationdemand, business model and financing

!he industry at large is characteri1ed by the following"

Strengths 2to be reinforced3 offer a strong foundation for gro'th$ 4ea/nesses 2to be minimi1ed3 are &roving not to be -sho'!sto&&ers$.

Opportunities 2to be exploited3&osition DS/D" for ongoing) sustainablegro'th$

!hreats 2to be neutrali1ed3 are addressable by the strengths of the sector$

Although called by many names, the term Digital Signage 2DS3 ser)es as an umbrellaterm to describe centrally-controlled and remotely managed electronic displays forinformation presentation in out-of-home en)ironments DS is applied to networ/s that aretypically funded by internal communications or operational budgets for patron, )isitor,staff, student or community communications 5677 respondents to a fall 6778 industrysur)ey conducted by the Digital Signage Association reflected that 97: of displays ha)eno ;rdparty ad)ertising, with 68: ha)ing less than half the airtime and only 57: of

networ/s ha)ing ideo Ad)ertising #ureau 2O>A#3 membership accounts for more than ?77,777dynamic, location-based )ideo0digital displays, which present content and ad)ertising

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!he following chart summari1es the /ey Strengths, 4ea/nesses, Opportunities and!hreat 2S4O!3 to o)er)iew the status of North Americas Digital Signage0Digital Out-of-Home industry 2!he letter at the front of each item corresponds to one of the sixcategories noted abo)e3 Additional commentary follows the chart

Area Strengths (to be reinforced)

A *%ritical mass+ of displays has beendeployedA @ositi)e results ha)e been achie)ed# #usiness models are stable% %A@'x can be accurately established% O@'x can be adusted to scaleD !he technology wor/s' 'xpertise exists in each area of business2technology, sales, legal, etc3& New infrastructure for efficienciesimpro)es the )alue proposition andpositioning of the entire industry

Area Opportunities (to be exploited)

A %ommunicators see/ media that can bettertarget and engage audiences, and demonstratepro)en resultsA DS0DOOH fits into a communicationscontinuum# DS0DOOH le)erages, and is le)eraged byother media% %A@'x and O@'x are declining as newsuppliers emerge 2ie ND3% %A@'x can be financed easilyD !he cost0effecti)eness and range ofapplicable technologies are increasing' !echnology and business ecosystempartners ser)e as *extended staff+' A pool of unemployed or under-employedhuman resources is a)ailable& Approaches that bring business efficienciesare welcomed& rowth of the industry at large increases the)iability of new elements0approaches thatimpro)e efficiencies

Area Weaknesses (to be minimized)

A DS0DOOH is a new0emerging media# All elements must be paid for by the

communicator 2unli/e !>, mobile3% $any networ/s ha)e little corporate

history and go)ernance0businessinfrastructure

D New suppliers lac/ applicationexpertise

' @ersonnel re.uire applicationawareness in order to apply coreprofessional competencies

& !he potential of future impro)ementsmay deter in)estment decisions

& 'fficiency impro)ements may challenge

Area Threats (to be neutralized)

A Other communications wish tosustain0build their use and re)enues

A Agents for ad placement on DS0DOOH arehighly dispersed and may be shrin/ing witho)erall ad spendingA Ad)ertisers lac/ the resources to exploitthe metrics that DS0DOOH can pro)ide# (e)enue and pace forecasting ha)e manyexternal dependencies% Scalability and success are concomitantD Supply options are increasing design andsourcing complexityD A broadening supply pool is dispersingre)enues and challenging margins

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existing practices on which in)estments ha)ebeen based

' Boss of employees minimi1es training (Oand may ha)e opportunity costs& !he more broad the potential for efficiencyimpro)ement, the more challenging itsreali1ation

Application Demand

Strength*%ritical mass+ of displays has been deployed, which allows ad)ertisers toreach targeted audiences based on demographic profile, Designated $ar/et Area 2D$A3,geography and e)en the acti)ity in which they are in)ol)ed 2shopping, transit, cafC,wor/out, attending a game, etc3 O)er 57 ad-based networ/s exist with ?E of these 2asOut-of-Home >ideo Ad)ertising #ureau - O>A# members3 accounting for almost

?77,777 displays DisplaySearch reflects that almost 5 million displays ha)e beendeployed in North America for dynamic media presentation to shoppers, patrons, staffand students A %ompound Annual rowth (ate 2%A(3 in display deployment of 6;:= is forecast !his growing critical mass substantiates the )alue of mar/eters and othercommunicators to consider, plan and use DS0DOOH

67: of the 5677 firms that responded to the fall 6778 industry sur)ey conducted by theDigital Signage Association indicate they will spend between F677G and F5$ per yearon DS0DOOH !his represents 6?7 firms of the sur)ey respondents themsel)es expectingto spend a total of F? to F6?7 million &orecasts by industry analysts place industryproections in excess of F56# annually

Suppliers can expect to enoy ongoing high demand as"

New networ/ deployments proceed

'xisting networ/s expand

!echnology elements are refreshed and upgraded

New functionality such as audience measurements 2ie %ogno>ision3, ;D 2ie

@ro)ision3, and interfaces with point-of-sale, mass notification, loss pre)entionand other enterprise applications are made

Strength !hrough the application of DS0DOOH positi)e results ha)e been achie)ed

such as sales lift, increased engagement, message awareness and recall, reducedpercei)ed waiting times mpro)ement to the *location experience+ is regularly cited asachie)ed through DS0DOOH !he industry has de)eloped to the point of presenting o)era million uni.ue ads in North American Digital Out-of-Home networ/s in 6778Ad)ertisers, communicators, location pro)iders 2ie retailers, S(, stadiums, etc3 andnetwor/ operators ha)e consistently found that DS0DOOH networ/s achie)e )erypositi)e results when the medium presents suitable content to targeted audiences%onsiderable impact0results assessments ha)e been completed gi)en that DS0DOOH

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medium has been re.uired to, and can, establish its measured )alue n its 6778 DigitalOut-of-Home >ideo Display (eport, Arbitron reports that the medium reaches 9E: ofAmerican and that in a gi)en month, E9: of these recall seeing displays in multiplelocations Displays in retail locations alone reach o)er @, Director Sunao,$oxie nteracti)e says *the *passi)e intercept+model does ha)e its place, and DS0DOOH can deli)er this, but media exploitation is moreabout customer engagement DS0DOOH can /eep the spiral of brand awareness andengagement growing and expanding %onsumer media consumption has changed+

*!he brand must tra)el where consumer are mo)ing+ says Alan Schulman, %hairman and%hief %reati)e Officer of 1D#-!he Digital nno)ations roup

*Ad agencies are saying *3#NALL4I+ says $atthew Stoudt, %'O of Outcast, which hasad)ertisers such as >H5, Sony, #uic/, (ed #ull, !$J, %>S @harmacy and others usingits gas station pump-top DOOH networ/

*ea(nessDS0DOOH continues to be an emerging media which see/s ad)ertising budgetallocation at a time when long-standing approaches are entrenched and approachesoutside of the status .uo, although they are pro)ing effecti)e, are often shown to bebeyond the organi1ational capacity of maor agencies to adapt to new methods of ser)ingbrand growth needs#eth Ann Gamin/ow, @resident K %OO)!racyBoc/e 2an Omnicom company3 suggeststhat changes are happening, noting to delegates of 6778 DS0DOOH n)estor %onferenceby Strategy nstitute e that *the bad economy has allowed us to disrupt approaches infa)or of more effecti)e ways of doing things !he cement is still *wet+ in thistransformati)e economy+

&&ortunity%ommunicators see/ media that can better target and engage audiences, anddemonstrate pro)en results !he economic benefits of using DS0DOOH as a more costeffecti)e approach will pre)ail as the installed base of DS0DOOH displays continuesbeyond a *tipping point+

&&ortunityDS0DOOH fits into a *communications continuum+ offering both audience*reach+ and *engagement+ !he DS0DOOH media platform can dri)e traffic to web sitesand moti)ate mobile sessions such as recorded message access, texting, downloads,mobile browsing, mobile commerce and opt-in


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DS/DOOH on the communications continuum

Audience >>< ngage!ent

Cellular Internet Digital Signage Billboard Newspaper Radio T

!igital "ut#of#Home

In#$tore T

The %"uterNet&

'ocation#based (edia

Narrowcasting

DS0DOOH is not a *!roan Horse+ media scenario whereby sponsor and ad)ertisermessages are presented before0after entertainment or social content Ad)ertisers using!>, newspapers and internet for example, see/ to target )iewer demographics based onthe possible attracti)eness of the content to )iewers %onsumers agree to acceptad)ertising in return for free content Howe)er they become easily disgruntled when adsare presented with *pay for )iew+ experiences such as subscriber !>, mobile, etc or ifthe proportion of ads o)er desired content becomes to great relati)e to what the consumer

is paying for the media consumption

Leff #ell, %hairman of DOmedia noted this consumer acceptance while addressing theDS0DOOH n)estor %onference, saying *Studies consistently show that people do notmind M in fact, *in)ite+ media in out-of-home en)ironments that stimulate thememotionally and intellectually+

n addressing the 6778 DOOH n)estors %onference, Dr Beo Giuiai) of @ $ediareflected that *DS0DOOH is not an *appointment media,+ as is the case with !>programs, newspapers and maga1ines *?


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ThreatOther communications )ehicles wish to sustain0build their use and re)enuesncumbent approaches for ad)ertising such as !>, print, etc which ha)e generated aclient base of ad)ertisers and fostered relationship in the ad)ertising supply chain as away to minimi1e ongoing sales costs, are reluctant to surrender a)ailable re)enues @ricereductions, special offers, bundling and *a)eraging down+ are used to assure ongoing

re)enues and sustain the supply relationships

Threat Agents for ad placement on DS0DOOH are highly dispersed and mediaplanning0buying organi1ations appear to be shrin/ing with reductions in o)erall adspending %hallenges in the economy ha)e resulted in cutbac/s within ad)ertisingagencies as they ha)e responded to declining le)els of ad)ertising commerce !his hasmeant a delay in in)estment into new areas of ser)ices to their clients, includingimpro)ed methods to reach consumers ')en as DS0DOOH has achie)ed a critical massof deployment as the fourth screen 2with !>, internet and mobile3, the *mar/etingindustrial complex+ is inclined to re)ert to methods of business on 'hich their billing andrevenue models have been based$

#ut Gen Sonenclar, $anaging Director of DeSil)a=@hillips said during his 6778 DSn)estor conference presentation that *n)estment dollars are mo)ing toward )iewertarget-ability+ He adds *f tele)ision was in)ented today, there is no way that it wouldgenerate the ad)ertising rates or re)enues that it gets+

ThreatAd)ertisers lac/ the resources to exploit the metrics that DS0DOOH can pro)ideDS0DOOH has had to pro)e its )alue, 2as does e)ery new media3 through metrics, andwhile such metrics pro)ide e)idence of the strong achie)ement of communications goals,audience and demographic targeting capability, the time for data analysis re.uired toma/e and fine tune mar/eting decisions is stretched in brand management, ad)ertisingand mar/eting organi1ations t is fortunate and opportune that the e)idence ofperformance by DS0DOOH is strong and consistent in fa)or of the use of the medium,which typically is suitable to trigger in)estment

Business odels

Strength #usiness models are stable !he /inds of resources and processes that arere.uired to pro)ide )alue to communicators are well /nown, and as the industry hasmatured the costs associated with networ/ deployment and operations ha)e become fairlywell /nown '.ually, the types of funding and their sourcing are generally /nown, so thebusiness models are /nown and stable, allowing for ongoing refinement to increase)aluation

An area of inno)ation is in the blendingof internal and external capabilities forproprietary digital signage networ/ design and ongoing operations A 677 D Awardrecogni1ed Digital Display K %ommunications nc 2DD%3 M wwwthefullpicturecomfortheir inno)ation in pro)iding networ/ planning, integration and deployment as well ascontent strategy, creation and administration in compliment to internal end usercapabilities

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@aul Straub,5rinci&al)%laremont %ree/ >entures said to delegates of the Oct 6778 DSn)estor %onference in New or/ that *DOOH in)estment decisions are based on sol)inga big problem, deli)ering an audience and capitali1ing on emerging beha)iors+ He added*Successful networ/s ha)e absolute clarity on why they are deli)ering high )alue to

communicators+

*ea(nessAll elements must be paid for by the communicator 2unli/e !>, mobile3Ad)ertising is typically an *opt-in+ scenario with messages accepted by the consumer ona de)ice that they purchase0own from a myriad of options n examples such as !>,nternet, mobile de)ices, print publications, etc the cost of the presentation de)ice ispaid by the consumer and ad)ertisers are one of many, many communicators )ying forattention at a gi)en time and place

DS0DOOH networ/ operators incur the costs of all presentation elements 2ie networ/,displays, etc3, as would apply to billboards, direct mail, circulars or alternati)e out-of-

home media n a fair *exchange+ with consumers, DS0DOOH is not an opt-in media$otion images presented at a point of purchase, waiting, transit or gathering locationcompel attention to inform and influence

n fact, this *platform payment+ scenario is a strength through which DS0DOOH enoys)iewer acceptance

&&ortunityDS0DOOH le)erages, and is le)eraged by other media DS0DOOH is acompletely *digital+ media supply chain including digital content creation, management,distribution, presentation and display reporting As such, messages intended forpresentation on other media can be easily reconfigured for effecti)e use on DS0DOOHi)en the lower costs of content production and presentation, and the ability to assessmessage impacts with targeted demographics, DS0DOOH is well suited for messagetesting prior to campaign placement using other media 2in particular !>3

!he tighter audience targeting and dayparting that is easily possible and an inherentstrength of DS0DOOH allows it to moti)ate engagement with other communications)ehicles and pro)ide high return on mar/eting in)estment in situations where consumeraction is intended

Threat(e)enue and pace forecasting ha)e many external dependencies 4hile businesscosts can be accurately estimated, re)enue forecasting is challenging, which can deterin)estment and build-out decisions

!inancing

Strength" %A@'x can be accurately established !he technology infrastructure and capitalexpenditures related to DS0DOOH deployment are well understood with the numeroussupply options ser)ing to )alidate re.uired in)estment le)els 4hile the le)els of


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technology functionality continue to rise across the technology ecosystem, theprice0performance of indi)idual elements is trending fa)orablyStrength" O@'x can be adusted to scale Operating expenses such as networ/ operations,playlist administration, etc can be contained during deployment start up and growth,

expanding only as the si1e and complexity of the networ/ is warranted

*ea(ness$any networ/s ha)e little corporate history and go)ernance0businessinfrastructure !his lac/ of credit history can impair capitali1ation, howe)er in manycases this is o)ercome by sound business planning, a strong management and ad)isoryteam, and the early achie)ement of location and ad)ertising commitments

&&ortunity%A@'x and O@'x are declining as new suppliers emerge rowth ofDS0DOOH has included industry entry by larger technology and ser)ices pro)iders Aseach brings its supply strengths and capacities to DS0DOOH, the costs of infrastructureand operations will decline

An excellent illustration of this is in the pro)isioning of digital datacast connecti)ity byNational Datacast nc, 2ND3 as an alternati)e to DSB, satellite or cellular connecti)ity!his national digital connecti)ity can be installed .uic/ly and inexpensi)ely withmonthly connecti)ity being pro)ided at under F;7 per month per location for largedeployments

n an October 6778 sur)ey underta/en by the Digital Signage Association, ?


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Technolog"

Strength" !he technology wor/s !he *technology ecosystem+, which is a supply chainfor digital media presentation has been a strength of DS0DOOH and is attested in thereliability of a broadly deployed range of networ/s

!he *leading edge+ is common ')ery supplier offers leading edge technology and so thereal issue is in selecting enough functionality to allow the networ/ to be increasingly)aluable in meeting changing, better refined and more challenging communicationsobecti)es

*ea(nessNew suppliers lac/ application expertise !he successful planning, design,deployment and operations of DS0DOOH is based on /nowledge of digital technologies,business management and communications practices 4hile strengths in one or moreareas may instill confidence for a supplier or end user to mo)e forward with initiati)es,wea/nesses in other /nowledge areas will .uic/ly emerge as the technologies are

expected to meet e)er increasing communications needs n the interest of re)enueachie)ement or proect ad)ancement, proect planning is at times inade.uate

A further concern is in the abilities of suppliers to design and architect systems that usedigital technologies based on nternet @rotocols DS0DOOH can be complex compared to*closed,+ one-location audio0)isual systems, yet digital signage appears to be a naturalextension of other )isual presentation media and systems&&ortunity!he cost0effecti)eness and range of applicable technologies are increasing'lements of the DS0DOOH technology ecosystem are increasingly *bundled+ and pre-configured to enable easier deployment !his pro)ides an excellent opportunity forsuppliers and end users to deploy smaller systems, which may ser)e as *proof-of-)alue+and *process refinement+ initiati)es

n a Digital Signage Association sur)ey of 5677 respondents, a third of respondentsexpressed that they would add functionality such as audience measurement, ;D, interfaceto @OS, etc $any belie)e that interacti)ity with mobility, touch screens and socialnetwor/ing will impact DS significantly o)er the next 6 years !hese suggest an a)ailable*after mar/et+ or upgrade path for suppliers

t also bears noting that displays and media players that are nearing *end-of-life+ offers aready opportunity to upgrade technology platforms and elements that allow DS to betterser)e communications obecti)es

ThreatSupply options are increasing design and sourcing complexity As new supplierssee/ DS0DOOH industry re)enues, new options for technology, ser)ices, pricingstructures and supply sourcing are made a)ailable !he in)estigation of these can delayfunding commitments

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ThreatA broadening supply pool is dispersing re)enues and challenging margins !hebroader based of suppliers can result in the dispersion of re)enues across the widersupply base and the erosion of .uality as pricing is reduced in response to competiti)epressures

#uman $esources

Strength" 'xpertise exists in each area of business, technology, ad sales, legal, etc andthe growth of DS0DOOH is attracting talent !he excitement and opportunities aroundDS0DOOH ma/e it attracti)e as a professional choice, ser)ice area and target mar/et

nformation and education program are readily a)ailable to accelerate supply andmanagement capabilities ndustry publications offer insights and news on a daily basis,with *best practices+ being readily shared by end users, networ/ operators and suppliers

'xtensi)e information and interaction are a)ailable at industry e)ents such as the DigitalSignage Show0Gios/%om 2No) 8-55 New or/ and $ay 6757 Bas >egas3, DigitalSignage 'xpo 2&eb 6egas3 and nfo%omm 2Lune 67573 NA#, %'S,Strategy nstitute and other e)ents offer training opportunities resulting in a do1en usefuleducation forums being offered annually

An estimated ?,777 end user and supplier personnel ha)e recei)ed structured training inaspects of DS0DOOH during 6778 in North America 2O)er 5577 of these ha)eparticipated in all or parts of the *S@''D+ Digital Signage !raining @rogram as outlinedat wwwByle#unncom0S@''D3 !housands more ha)e attended a)ailable training,orientation, corporate promotion, technical and conference sessions, and tens ofthousands ha)e gained DS0DOOH perspecti)es from supplier meetings and presentationsNews items, case studies, reports and perspecti)es are widely a)ailable through onlineand print media

$any companies ha)e *unplanned downtime+ and professionals /now they must broadenand0or deepen their s/ills to assure ongoing success 'ducation is a)ailable

&re.uent webinars and )endor meetings characteristic of a robust, high growth sector are)ery useful for escalating industry capabilities

!his le)el of training bodes well for the future success of the DS0DOOH industry

*ea(ness@ersonnel re.uire application awareness in order to apply core professionalcompetencies *Application awareness+ includes an understanding of the technologycapability, business models and communications obecti)es ser)ed by DS0DOOH

&&ortunity!echnology and business ecosystem partners ser)e as *extended staff+ Nosingle company can pro)ide all aspects of a DS0DOOH system and so supply includes anumber of product and ser)ice pro)ides !hese suppliers ser)e as *external, extended

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staff+ to end users, networ/ operators and other suppliers !he pool of experience andtalent is therefore expanded with each deployment while the capacity for collaborationand solutions integration is e)er expanding

&&ortunityA pool of unemployed or under-employed human resources is a)ailable

Some networ/s and suppliers ha)e ta/en ad)antage of economic conditions to refine theirofferings and trim elements of their operations As such, talented human resources area)ailable to organi1ations wishing to impro)e their capacities

*#+ and *%+ le)el talent that may be trimmed from one company can be an *A+ le)el hirein another (elie)ed personnel can bring strong capabilities to lateral mo)es or into adifferent DS0DOOH product0ser)ice area

Human resources in related businesses such as content creation, system integration, adsales, etc may see excellent prospects in the DS0DOOH industry while bringing talentsthat can be easily integrated with the DS0DOOH business to meet its growth potential

ThreatBoss of employees minimi1es training (O and may ha)e opportunity costs !hetrimming and down-si1ing that characteri1es economic downturn reduces costs but mayalso reduce the prospects for prosperity As firms see/ to *trim the fat+ it is possible thatsome may *cut into the muscle+ which diminishes ser)ice potential while surrenderpersonnel to contribute to other situations

%fficiencies

Strength" New infrastructure for efficiencies impro)es the )alue proposition andpositioning of the entire industry Operational collaboration and corporate aggregationare pro)iding efficiencies in ad)ertising sales and networ/ operations

Ad)ertising sales collaboration has proceeded on the basis that the offer of the largerdisplay in)entory of multiple networ/s aimed at achie)ing a single, larger ad insertionorder is more compelling and better uses the time of media planners and buyers as well asad sales personnel, than the o)erlapping and duplicated efforts associated with adplacement on many indi)idual networ/s

ndi)idual networ/s are collaborating in particular in situations where each networ/offers a similar target demographic or locations 2ie doctors offices, etc3

!he suppliers of media management software and other technology elements are alsoencouraging networ/ collaboration through the introduction of similar networ/s to eachother i)en the critical importance or high )alue of ad)ertising re)enues to networ/s, itcould be expected that primary suppliers will accelerate their efforts to impro)e theefficiency of ad re)enue achie)ement

mportantly, se)eral ad sales agencies focused on DS0DOOH offer ser)ices that candramatically impro)e the efficiency of ad0campaign planning, placement and selling

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Adcentricity, SeeSaw Networ/s, r>ue and other emerging approaches offer efficienciesand effecti)eness

$edia conflict and collision is changing e)ery media business model

%ampaign planning and placement, followed by insert order direction, compliancereporting and accounting offers to substantially increase the efficiency of ad0contentplacement across networ/s Harris %orp has de)eloped media wor/flow architecture and*@unctuate+ campaign management software to allow the same ease of ad)ertising in theDS0DOOH industry as enables the broadcast !> and cable industries

&urther, DOOH ad)ertising opportunities are being included in ad)ertising proposals forother media !hese multi-platform proposals can readily include DOOH with !>, cable,mobile, static billboards and print media

As DS0DOOH networ/s use web-browser interfaces and *Software as a Ser)ice+ 2SaaS3

the sharing of networ/ operations centre resources offers efficiencies

*ea(ness!he potential of future impro)ements may deter in)estment decisions!echnologies buyers are watchful for the suggestion of products and ser)ices that holdthe promise of substantial price0performance impro)ements or significant pricereductions An inherent wea/ness in the inno)ation life cycle is that it can cause a delayin in)estment decisions

DS0DOOH is characteri1ed by incremental impro)ements in component products andser)ices, the ease of integration, reliability and price0performance !he offer of newcapability to the industry tends to include ad)ance public information through industrymedia and pri)ate presentations to /ey industry sta/eholders 'xamples include theDigitalSignage!oday articles and whitepaper on datacasting, the un)eiling of @unctuateby Harris %orp at Digital Signage 'xpo in &eb 6778 and others*ea(ness'fficiency impro)ements may challenge existing practices on whichin)estments ha)e been based Approaches that offer enhanced functionality at a gi)enpricing le)el or reduced costs for planned purchases merit adustment to business plansand forecasts 4hile these are typically welcomed as positi)e contributions to increasedcompetiti)eness and profitability, significant changes 2such as switching suppliers3 orfre.uent changes can disrupt operations and challenge the credibility of sourcingstrategies, in)estment re.uirements, etc n short, *change+ though often merited, isdisrupti)e

&&ortunityApproaches that bring business efficiencies are welcomed As DS0DOOHhas mo)ed through its growth stages from *@ioneering+ 2588;-67753 to *Settling+ 26775-677?3 to *#uild-out+ 2677?-6773 to *#rea/out+ 26778 M onward3, continuousimpro)ements in all /ey elements of the industry ha)e occurred As the industry reachesnew plateaus of critical mass and application in ser)ing brand and enterprisecommunications goals, impro)ed approaches and industry infrastructure that can enable

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the success of networ/s will be welcomed No pro)ider in any category of the industryhas such dominant positioning as to deter in)ol)ement by others

&&ortunityrowth of the industry at large increases the )iability of new elements andapproaches that impro)e efficiencies As the installed base of networ/s and operations in

the industry grows, the sector becomes more attracti)e to supply, funding and userorgani1ations that typically re.uire

Threat!he more broad the potential for efficiency impro)ement, the more challengingits reali1ation !he saying goes that *to ma/e an omelet, you ha)e to brea/ the eggs+

About the Author:

Lyle Bunn is a highly regarded inde&endent consultant) advisor and educator to end

users) net'or( o&erators) su&&liers and investors in North Americas Digital Signage

6DS7 and Digital ut!of!"ome 6D"7 industry$

"e has contributed to the develo&ment and de&loyment of many customer) &atron)

student and staff!facing net'or(s) and to the success of (ey su&&liers to the industry$ Lylehas &ublished over 80 articles and 'hite&a&ers) and his eBoo( -Digital Signage

5lanning uide). no' in its thedition is used around the 'orld$ "e is the author and

&resenter of the &o&ular -S5::D. Digital Signage Training 5rogram$

Lyle serves as Academy 3aculty and a member of the 5:T;

Swot Ds-dooh Industry Nov 2009

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Transcript of Swot Ds-dooh Industry Nov 2009