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Introducing A Genuine Turnkey Digital Signage Solution for the SMB Market. Vernon R. Slack Office: 801 623 8252 vernonslack@aopen.com. TODAYS AGENDA What is a Genuine Turnkey Digital Signage Solution? A brief Market Update How do we address the C ustomer’s P ain Points?

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introducing a genuine turnkey digital signage solution for the smb market

Introducing A Genuine Turnkey Digital Signage Solution for the SMB Market

Vernon R. Slack

Office: 801 623 8252

vernonslack@aopen.com

slide2

TODAYS AGENDA

  • What is a GenuineTurnkey Digital Signage Solution?
  • A brief Market Update
  • How do we address the Customer’s Pain Points?
    • Current Market Constraints
    • The Optimal Digital Signage Solution for the SMB Market
    • The Solution Ecosystem
    • The ‘Services’ Overview
  • What is our SolutionMethodology?
  • What’s our Value Proposition?
  • Who is your Solution Support Team?
  • What does your collateral look like?
slide3
Offers the customer strategic consulting services to help plan, select, evaluate and deploy the optimal digital signage solution

Includes all of the required hardware, software and infrastructure to meet the customer’s business and communications requirements over the life of the network

Is easy to use, highly reliable and scalable built around a certified software stack and commercial grade components to meet the special needs of unattended systems

Seamlessly integrates components, software and infrastructure with existing systems to insure minimal disruption to the customer's business continuity

Offers a suite of cost effective ‘Managed Services’ for Help Desk support, remote monitoring & repair, mobile & social engagement services and viewer analytics

Delivers to the audience relevant and timely digital media

Provides the customer with asingle point of contact during the planning, evaluation and deployment phases and a single service provider over the life of the network through strategic partnerships

A Genuine Turnkey Digital Signage Solution …

us digital signage market update
US Digital Signage Market Update
  • There were 1,250,000digital display systems installedin the US at the end of 2010; a 25% unit growth over 2009
  • Over50% were in the SMB Market
  • The ‘average’ Digital Signage Network is 75 to 100 displays
  • 62% of the 2010 shipments were networked
  • 300,000+ Displays inRetail &100,000+ Workplace Communications Displays
  • 425,000+ Ad Network Displays with 2010 Ad Revenue of $2.1 Billion on 200 Ad Networks
  • Still a very fragmented market
three types of digital signage networks
Three Types of Digital Signage Networks

Point of

Wait

Point of

Transit

Point of

Sale

three digital signage business models
Three Digital Signage Business Models

Merchandising/Ad-Supported Networks

Retailers, restaurants, hotels,

Return on Investment

Increase Sales and Lower Costs

Enhanced Customer Experience

Return on Objectives

Better informed audience, more efficient communications,

Information - Entertainment Networks

Schools, workplaces,

Digital Out of Home (DOOH) Advertising Networks

Malls, airports, train stations, doctor’s waiting rooms, clinics,

Return on Investment

Advertising Revenue

slide8

The Six Businesses of Digital Signage

(US Total Available Market)

$2,500M

Digital Content Production

$1,4500M

Technology

$2,150M

Operations

$150M

Deployment

New Market Measurement

$2,100M

Ad Networks

The 2010 Total Available US SMB Market - $3.1 Billion

slide9

The Market Constraints

  • The market is extremely fragmented and the supply chain is overly complex
  • There is little experience among users and vendors on how to plan, select,evaluate, deploy and operate digital signage networks … for every 12 digital signage projects announced, only 1 is ever fully deployed
  • There is little capability among users to cost effectively produce timely and relevant digital media
  • 2010 Average CAPEX at $3,720 per systemis down 50% from 2005 (hardware, software & installation) … but the ‘Total Cost of Ownership’ is only down 15% from 2005at $5,900/system ($16.15/day)
the overly complex supply chain
The Overly Complex Supply Chain

Schedule

Mgt.

Reporting/

Analytics

Video

Cabling

Standard

Mounts

Network

Monitoring

Managed

Services

Display

Installation

Video

Walls

Onsite

Service/

Repair

Outdoor

Enclosures

Custom

Enclosures

LCD

Displays

Fixtures/

Enclosures

Large

LEDs

Deployment

Services

Mounting

Hardware

Displays

Application

Hosting

Outdoor

Kitting/

Distribution

TVs

Corp.

Enterprise

Network

Hardware

Configuration

Display

Tiles

Player

Imaging

Ultra Thin

Displays

Internet

ISP

System

Integrators

Network

Services

Digital

Signage

Project

Commercial

PCs

Satellite

PC

Players

Cellular

Commodity

PCs

WiMax

Distributors

& VARs

Work-

stations

Agencies

Servers

Aggregators

Ad

Creative

Industry

Standard

Servers

Content

Management

Software

Content

Services

SaaS

Non-PC

Players

Brand

Strategy

For

Ad Networks

Work-

stations

Picture Frames

Video/

Flash

Data

Feeds

Networked

Streaming

Players

Premise-

based

Standalone

MPEG

Players

Templates

slide11

Services - 80% of the ‘Total Cost Of Ownership’

CAPEX 1

$3,720

$1,740

3 Year

Amortization $1,240

$2,030

Total Cost of Ownership = $5,900 per system per annum

1 30” display systems to video walls (excludes <30” displays and LED systems)

slide12
Content Management SaaS

Meets the functional requirements of each targeted vertical market

Easy to use media management, playlist scheduling and placement

Supports digital media from standard graphic packages - Photoshop, Illustrator, Flash, Adobe After Effects, MS PowerPoint, Quark,

Triggers media from inputs such as viewer proximity and Anonymous Viewer Analytics

Local input and control of a predefined area to present content relevant to the location

Easily integrated with existing systems (PLU pricing, inventory, etc.)

Remote Managed Services

Help Desk support

Hardware, software & network monitoring for remote problem detection

Remote hardware and software repair using Intel’s vPro

Software upgrades and changes to system’s configuration

Optional ad placement and playlist delivery services

Digital Content Managed Services

Media production automation using our ‘Media Mapping’ methodology

Integration with external data sources & feeds

On-going creative services, digital media repurposing & Flash Template development

Local digital media creation capability with centrally controlled processes to drive re-use

What Services Are Offered?

slide13
Mobile and Social Engagement Services

Near Field Communication (NFC)

Mobile e-wallet and QSR Codes for transactional business

Facebook connection for mobile latent conversations

Coupon downloads for immediate and future discounts

Viewer Analytics and Customer Engagement Services

Digital content Proof-of-Play data collection and analysis

Anonymous Video Analytics (AVA) data synchronized with Proof-of-Play data

Interactive usage data analysis for audience engagement measurement (touchscreen, mobile device, NFC,)

Sales by product promotion from the retailers POS and/or Trade Promotion Management systems

Digital Signage Consulting Services

Requirements Discovery Module – Identify the client’s optimal usage model, business and communications goals and digital media requirements

Qualification Module – How to cost effectively address the client’s key Business, Marketing and Communications goals

Strategic Media ‘Blueprint’ Module – A roadmap for relevant and cost effective media production

Evaluation & Production Deployment Modules - Program Management support

What Services Are Offered?

slide14
Retail

Regional Grocery, Convenience, Specialty, Apparel, Home Centers, Card/Gift/Novelty, Auto Aftermarket, Sporting Goods, General Merchandising, Home Furnishing, Office Products,

Financial

Regional Banks, Credit Unions,

Internal Communications

Corporate Campuses, Hospitals, Back Office

Restaurants (Menu Boards)

QSR & Casual Dining (privately owned or franchises)

Hospitality

Hotels (privately owned or franchises), Casino’s

What Vertical Markets will be Served?

smb bundled solutions
SMB Bundled Solutions
  • iCompel
  • Player appliance with software included
  • Controlled with a server
  • Advanced Player (Core2): $2,995

SuperSign

  • Basic Content Management functionality plus newsfeeds from CNN
  • 3 year agreement with PC Player + 47” Display + SaaS: $149/mo
  • Scala
  • QuickStart
  • HP PC Media Player: $1,120
  • 47” LCD Monitor
  • SaaS: $45/mo
  • Vukunet
  • PC Media Player
  • No Cost Content Manager
  • Very basic functionality

Our Genuine Turnkey Solution’s ‘Total Cost of Ownership’ is a third lower than the leading Digital Signage Bundled Solutions

slide16
AOpen America – The largest supplier of commercial PC media players in North America

AOpen’s ‘Open Services’ – Contracts with the customer for the required ‘Managed Services’ – Offers Content Management SaaS, Remote Monitoring & Repair, Automated Media Production, Mobile/Social Engagement, Audience Analytics and Strategic Consulting Services

Content Management ISV’s – ‘Best of Breed’ Content Management software for each of the 5 vertical markets

Certified System Builders – Build AOpen PC media players configured to meet customer’s specific hardware requirements and imaged with the software stack needed to insure seamless integration

Partners – ‘The single point of contact for the prospect’ for coordinating the planning, evaluation and deployment a Turnkey Digital Signage Network … Open Services does all the rest over the life of the network

Our Solution Ecosystem

slide17

Turnkey Solution Deployment Model

Hardware

Distributors

Ingram Micro,

Avnet, Arrow,

Bluestar, …

System

Builders

Seneca, Micro

Industries, M&A

Technology, …

AOpen

America

Certified

Reseller’s

AOpen

Imaged

PC Players

Sprint

Intel

AOpen

PC Media Player

Commissioning

Client

Partners

Digital Displays

&

Other Hardware

Site Surveys &

Hardware Installation

slide19
Using our ‘Remote Managed Services’ reduces operational labor costs at least 60% and maintenance costs by 75%

Customers are able to display relevant and timely high-impact digital media using our automated ‘Media Production Services’ at 40% to 70% lower than the industry average

Our ‘Consulting Services’ will reduce the time required to plan, evaluate and deploy a digital signage solution by up to 50%

Our Turnkey Solution with ‘Managed Services’ significantly improves overall ROI by reducing the ‘Total Cost of Ownership’ at least 33% saving $2,000 per system per annum

These savings recover all the CAPEX in 22 months

The Customer Value Proposition

slide20

What’s In It for YOU?

  • CLOSE DEALS FASTER - Accelerates the decision process by simplifying the planning, selection, evaluate and deployment
  • WIN MORE DEALS – The only Genuine ‘Turnkey Digital Signage Solution’ available for the SMB market with a simplified ‘Sales Engagement Model’
  • MAKE HIGHER GROSS MARGINS – Focuses on the Total Cost of Ownership which shifts the customer away from obsessing over finding the ‘lowest cost’ hardware/software solution
  • CREATE A HIGH MARGIN RECURRING REVENUE STREAM – Creates recurring commissions for YOU from all contracted consulting and ‘Managed Services’ over the life of each digital signage network
slide22

QUESTIONS?

Call Vernon Slack

801 623 8252