Abstract
So far, the market structure of the digital out-of-home (DOOH) advertising industry has been very fragmented due to the fact that the DOOH media is localized in nature. The study is aimed to overcome the fragmentation. First, “service experience engineering (SEE)”is used to identify innovation opportunies.The so-called“trend-based foresight” and “context-based foreight” were employed to find potential challenges.To solve the challenges, the proposed system has three characteristics: location-based, file sharing and decentralized management. Secondly, we use the concept of “open services innovation” to design two business models for the DOOH industry: “The franchise model”is based on the concepts of“changing target customers”and “redesigning supply chain”; “the independent platform model” is based on the concept of“leveraging a larger ecosystem”. In conclusion,“backend system globalization”and “frond-end localization”will be critical to create competitive advantages for DOOH players.