The tags in the Altierre system are wireless LCD display devices that can be placed on shelves like normal price tags. Since the Altierre system is fully networked, pricing and promotion data can be generated for all stores at the retail headquarters and downloaded to each store. At the local store, the Altierre system takes over and automatically sends the data ‘over the last mile,’ so to speak, over its wireless platform to the RF Display Tags. The system makes dynamic pricing and promotion a reality, giving the flexibility to change the price of any product in one or all of the stores in a chain, based on store traffic, season and competitive strategies. As an example, the tags let retailers launch promotions such as ‘Buy One, Get One Free’ almost instantly. At the local store level, with the click of a mouse, a grocery store manager could drop prices for a happy hour sale, and just as easily with another click return prices back to normal just in time for the dinner rush.

According to the article, the foundation of the company’s solution is its mixed-signal chip technology interacting with its RF Systems platform. Its software technology platform is built on top of its custom RF technology stack, which allows for a massively scalable ultra-low-power network of display tags, sensory tags and active and passive RF tags to coexist in an integrated fashion within its long-range RF network.

The Altierre server appliance sits as a local node in a distributed computing network to provide control and communications via its RF network. It provides integration with other local appliances, contains system-monitoring functionality, and enables applications such as electronic pricing solutions, inventory, store operations, sensor networks, supply chain, and asset tracking. It also has built-in support for future RFID applications when individual-item RFID finally becomes cost-effective.

With the system, a store can update the product information displayed on 10,000 labels in less than an hour. The stores piloting the system have typically installed two Wireless Access Points – high volume transports that control 25,000 shelf tags deployed across a sales floor measuring 50,000 square feet.

For those of us in the digital signage industry the question to be asked is why isn’t this connected to the in-store digital signage network and therefore supporting the application by driving customers to the products in the store. This seems to be a logical addition to the technology. Consider, when all of those product tags are being updated for promotions, seasonal sales or just price changes the in-store promotions are also updated to reflect the changes made to the prices.

IDC has estimated the total global spending on retail software, in all sub-segments and across all retailer revenue levels, to grow to $20.1 billion in 2010. With most major players like IBM, SAP, and Oracle trying to take a bite off this pie, Altierre has a promising road ahead with its innovative end-to-end solutions addressing the everyday problems of retailers.

The food retail vertical (supermarkets, grocery, and convenience stores) in the U.S. alone offers a $10 billion market to Altierre. Addressing a major pain point within the $3 trillion U.S. retail industry, Altierre is effectively attacking the ‘next big thing’.

The paper talks about the concept of “value for the money corridor” – the best hardware solution for the various customers employing digital signage. On a chart that maps cost vs. platform capability the lowest cost and lowest capability is the photo frame. Scala is using the IAdea Photo Frame.

The photo frame is suitable for large deployments. It can be centrally managed using a compatible digital signage content manager. While the hardware is inexpensive and easy to install linking it to your digital signage content manager provides a new layer of complexity to the network. According to the paper the best application for the typical 10″ wireless technology is in small to mid-sized business, such as retail chains and restaurants. However, because of the size and resolution limitations, the screens cannot be viewed from a distance or where a customer may need advanced graphics or video. It may also not be suitable for harsh working environments.

Next up the “value for the money corridor” is a Standard Definition (SD) Appliance. Scala is using the IAdea SD Appliance.  The SD appliance is a media appliance capable of playing DVD quality video and sound. The SD Appliance is essentially a MPEG -1, MPEG – 2, or MPEG – 4 ASP device. Much like the photo frame the device can be centrally managed from a digital signage content manager.

Next up the “value for the money corridor” is a High Definition (HD) Appliance. Scala is using the IAdea HD Appliance. The HD Appliance supports high definition video and audio for a reasonably small price. The device supports a myriad of formats and is very well suited for high-end retail and corporate communications as well as national restaurant chains and information networks.

Next up the food chain are the popular Netbooks or Ultra Low Cost PCs (ULCPC). The devices can be most effectively used in any networked situation where dependence on high-end graphics is not required. The device which typically runs in the $200’s is most appropriate for universities, hotels, corporate environments or anywhere where a low cost appliance is required.

Of course for digital signage customers who require high-end HD graphics, full networking capability, a live link to any third-party database and be centrally managed, the current fully configured PC is the answer.

After reading the paper I came to two conclusions: First, the paper is a sale’s collateral that displays Scala’s effort to expand to the widest extents of their market potential. Scala has always had a reputation for high cost and high functionality with a “one size fits all” approach. Now they appear to be trying to fill in the blanks for market segments previously not available to them.

Second and more important, if you read between the lines, it is easy to see that the digital signage market is not a heterogeneous environment. Different customers require different solutions and digital signage providers who are selling a “one size fits all” approach are missing the nuances of the customer potential in the marketplace. This is the real message that underlies this paper. I believe the companies that realize this and plan their product solutions around the concept will be more successful than the “one size fits all” approach.

I remember going through this discussion several years ago when the technology was referred to by a myriad of names including: narrowcasting, captured audience, digital posters, corporate TV, etc. Back then POPAI took on the chore of developing some guidelines and specifications on the naming characteristics of the technology. These standards and more can be found on the POPAI Digital Signage website.

I think what has happened is that so many people have been writing about the term digital signage for the last 6+ years that the term has become ubiquitous in the industry – like referring to facial tissues as Kleenex. Because of this the term digital signage has represented the technology well. It allows the industry to focus on one term to describe the technology and how it impacts our world. However the debate goes on!

According to Lyle Bunn of the Bunn Company and a recognized industry consultant, “a myriad of descriptors are still being used, though the term digital out-of-home (DOOH) has gained broad acceptance in use to describe networks that are primarily supported by advertising revenues, since advertising has typically been assigned from the “out-of-home” budget. Such networks operate on a for-profit basis and are typically owned by the location provider or investors. The Out-of-Home Video Advertising Bureau (OVAB) membership accounts for more than 400,000 dynamic, location-based video displays, which are available to present messages paid for by advertisers. The term “in-store TV” has been used to help tap into TV budget allocations and “the outernet” also has been used to help DOOH networks access online ad spending. The term digital signage serves as an umbrella term or is applied to networks that are typically funded by internal communications or operational budgets for patron, visitor, staff, student or community communications.”

According to Bill Collins of Decision Point Media Insights and a respected industry consultant, “for the purpose of this definition, the terms ‘digital signage’ networks and ‘digital out-of-home’ networks can be used interchangeably, but with one exception. The exception: when screen networks are deployed inside corporate buildings largely for human-resource and corporate-communication purposes, this is digital signage, but it cannot be accurately referred to as digital out-of-home.

Digital signage is comprised of networked electronic displays (such as LCD, LED, plasma or projection technology) that show information, advertising and other messages that are relevant to the specific venue or geographic location where the displays are visible to viewers. Digital signage can be found in public and private environments — both indoors and outdoors — alongside roadsides and at other venues such as retail stores, hotels, hospitals, shopping malls, motion-picture theaters and inside corporate buildings. Messages on digital signage networks always include visual images (sometimes moving images, sometimes a succession of static images). These messages may also include audio. Although most digital signage networks are connected across distances via the Internet or satellite communication and are controlled technically from one central network operations center, for the purposes of this definition of digital signage, we also will include the so-called “sneaker-net” networks. For these “sneaker nets,” the operator of the digital signage network drives the content to the screens from DVDs, memory chips or other memory devices that are physically connected to the electronic displays on-site.”

I suspect the debate will go on but I think the discussion is health for the industry. If we use ‘digital signage’ as an umbrella term and refine our description to other relevant terms for specific applications, I think this advances the understanding of digital signage and allows people to associate relevant terms to the specific applications that are important to them.