Simplification as a Strategy for Survival

Druckversion

We discuss some of the latest hardware and software solutions for digital signage which are pushing ahead through simplification rather than technological innovation.
 
In tough times, there are a variety of strategies for survival. Some companies will cut back, some companies will innovate to stay ahead of the game, some companies will merge with other companies for financial stability and some will pull the metaphorical duvet over their ears. In the past year or so, the digital signage industry has seen its fair share of mergers and acquisitions: think NCR and Netkey, and more recently Avnet and Bell Micro, Barco and dZine, Scala and SignChannel.
 
Scala’s acquisition of Thinking Screen Media’s SignChannel highlights a particularly interesting trend for digital signage, as I found out at Scala’s recent Connected Signage Conference in Amsterdam. Normally, when attending such in-house company events, editors expect to be presented with new innovations and steps forward in the latest technology.
 
Soft Focus
 
The main focus of Scala’s event, then, was somewhat different. Yes, they were demonstrating Scala Release 5.1 software which includes a number of new features: it supports Windows 7, makes calculating value against static and digital reservations easier, gives users more control over subcontract designs and media sets, has enhanced mapping for proximity charting of digital subcontracts, and much more. The only problem with this software, one could argue, is that it is rather too complicated. It would need a reseller or system integrator to install the system, a graphic designer to create content and an IT person to manage the network.
 
SignChannel is at the other end of the spectrum. It is a much more basic software offering for digital signage; a do-it-yourself SaaS solution for small- and medium-sized businesses which is Scala’s first subscription-based service. It is an advertising-free service which enables subscribers to supplement their own content with interesting commercial content such as weather, news, sport etc. In this acquisition, Scala is able to take advantage of their huge stock of templates for digital signage installations and combine this with SignChannel’s media content.
 
Gerard Bucas, CEO, Scala, explained why the acquisition is a good growth opportunity for Scala: “No one today has a digital signage offering for small business owners to deploy and manage themselves. SignChannel is the first. By leveraging low-cost media players, such as wireless photo frames, and Scala’s template capability, a small to medium business owner can easily set up their own digital signage network, create compelling content and manage their playlists through a simple Web interface. Coupled with SignChannel’s built-in media content, it is so innovative that we feel it truly presents a new paradigm in our industry.”
 
A number of years ago, there were numerous predictions about how the digital signage market would take off with epic roll-outs. The reality has been some large roll-outs, but also a lot of smaller installations. SignChannel enables Scala to address the needs of these smaller installations.
 
Jeff Porter, Executive Vice President, Scala, explained: “SignChannel gives us very strong growth potential for 2010 and beyond. It enables us to target a whole new part of the market that nobody is serving today, as it addresses the digital signage requirements of small businesses with a product that is easy to use and affordable.”
 
“If you think of the digital signage market, it’s like a pyramid: there are a few large scale roll-outs and sophisticated users at the peak of the pyramid, but the base of the pyramid is made up of numerous smaller, more straightforward deployments. We can now address the needs of the whole digital signage market.”
 
While at the Scala Connected Signage Conference, I also attended several of the presentations. One, in particular, highlighted the need for digital signage software to simplify. Libris, a national bookstore chain in Norway with 127 stores, has recently installed digital signage. Most stores simply have one screen behind the payment desk to provide customers with information on events, special offers and advertisements.
 
Kari Andreassen discussed the roll-out in detail and discussed how the digital signage has enabled Libris to present a more up-market image and better integrate in-store promotions. In fact, one of their promotions was so successful that the book being advertised on the digital signage sold out in one store. Ms Andreassen explained how she then took down this advertisement on all the screens across their network, so that this one store wouldn’t have the embarrassment of advertising a book they didn’t have in stock. Of course, one of the benefits of more complicated digital signage software is that users can tailor specific content to specific outlets, but whether through lack of IT knowledge or lack of time, the simplest option in this case was to take all the advertisements down.
 
Hard Facts
 
It’s not just Scala who have decided to take a step back this year. In response to the number of digital signage installations which, to the horror of professional LCD manufacturers, are carried out with consumer TVs, Sony has released a new range of professional digital signage which has the functionality of a professional display with the usability, and lower cost, of a television screen. The new Bravia range draws on Sony’s experience in the television market to allow Sony Professional to offer similar high quality products to the digital signage market.
 
Enhancements to the new Bravia B2B range include an RS232 control which enables the screen to perform self-diagnosis and timed power saving. Commands can be sent over distance and the range is compatible with other AV products. The range is available in 32”, 40”, 46” and 55” and, to cater for the hotel industry, the range has a hotel mode which enables users to select a default channel, show the time and limit the sound volume.
 
Maxime Clairet, Public Display Product Specialist at Sony Professional, explained: “Our new range of Bravia screens broadens our product portfolio by allowing us to bring our expertise and experience with consumer television’s into the digital signage market. Strong demand for out-of-home digital signage is driven by the need to reach consumers closer to the point of purchase, and for organisations to communicate with their customers more effectively.”
 
Some research suggests that in 2012, 60% of the digital signage market will be covered by television products: it’s a good chunk of the market which Sony can get their teeth into with this range. And in countries such as Italy, where any digital signage installation that is made with a television rather than a professional display has to pay a TV licensing fee, such a solution could well prove popular.