| Paul's Blog SMART-Tech 2010 Power to the Player |
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SMART-Tech 2010 Power to the Player
Sheraton Hotel and Towers 811 7th Ave. (at 53rd Street), New York City
Join us in New York City, in the heart of mid-town, for a conference that is shaping up to be a truly exciting event. The specific program and agenda is being determined over the next few weeks and we will keep you apprised. Please come – I promise you will find it to be a most rewarding experience!
“We look at the present through a rear-view mirror.” It’s been over half a century since Marshall McLuhan introduced us to his post-industrial world-view. Describing how and why electronic media would transform society, the world did indeed become the “global village” of interconnectedness that Professor McLuhan envisioned 50 years ago. But now, as we look at the present in our rear-view mirror, we can see even the post-information age zipping past us, and with it the McLuhanesque vision of a homogenized culture shaped by a monolithic mass-media. Instead of vanquishing individuality, the consumer has more power than ever before. Liberated from mass-culture by the Internet, the consumer coalesced into the “micro-markets” described by Chris Anderson in “The Long Tail”. That model would seem to still have some legs on it. But to invoke our intrepid seer Prof McLuhan once again, “If it works, it’s obsolete”. A model that may still work for many practical purposes may soon be obsolete.
What’s next? It is peculiar, isn’t it, that the “age” that we are currently in does not to ever seem to be identified until after we’re no longer in it. It’s always a “post” age, a “post-fill-in-the-blank” age. What will the “age” we are currently in be called five or ten years from now? I think it’s not an idle philosophical question. We want to stop focusing on the rear-view mirror. Not only is that not the future, it’s not even the present.
Power to the Player Markets, also known as customers, are telling us what the future will be like. That’s our main theme and following are the topics for discussion at SMART-Tech 2010.
-- Electronic games, VLT’s (Video Lottery Terminals), are huge profit generators. Casino gaming is within a half-hour drive of over half the people in the U.S. The trend towards making everything more accessible to the customer is driving the gaming industry. States are moving to capture those profits for the benefit of the public and good causes, and are in the ideal position to do just that. What model will work best for the future? Large destination casinos? Distributed venues? What will the games be like? How will manufacturers and operators appeal to the new age customer who is looking for more entertainment, more excitement, and for social and skill elements to be integrated into the games?
-- New Media is the future of gaming, especially for lottery operators. Wireless and Internet are not just distribution channels. They have reshaped the way we communicate with each other, get the information that forms our world-view, and enjoy recreational and leisure time. Regulatory constraints may have dampened the migration of the gaming industry to these new platforms. But there are lots of ways for lotteries to move aggressively into these spaces, in ways that yield a short term ROI and position the lottery for the explosive change that will happen as the market forces regulatory modernization.
-- Integration of new games and channels. Trust and integrity will be key assets to binding the relationship between operator and player. Lottery organizations are rich with that most critical asset. The customer wants to do all their gaming with their trusted source, the lottery operator. Let them. Now is the time for lotteries to integrate as many new games and distribution channels as possible.
-- The US lotteries have just taken a giant leap forward. The opening of the markets to selling the second super jackpot game (i.e. both Powerball and MegaMillions being sold in all participating jurisdictions. That’s 36 and counting) promises to be one of the most important industry innovations since the introduction of Powerball back in 1992. The direct impact on sales will be significant. What’s the next step? How can lotteries truly optimize the results of this cross-selling initiative?
-- The true impact of the US lotteries’ cross-selling of multi-state jackpot games will extend far beyond the increase in sales attributable to those specific games. The collaborative framework that was created for this groundbreaking initiative should form the basis for all manner of innovative strategies to compete in an industry that is poised to change at warp speed. A collaborative framework that harnesses the collective power of US lotteries is unstoppable and promises to make Team Lottery the most formidable player in the gaming industry. How else can lotteries capitalize on their ability work together and operate as a team?
-- Modernizing the Lottery Business model. Government Lottery operators have always been required to comply with a more demanding set of regulatory and political constraints than others in the industry. Now the competitive marketplace demands world class performance in every aspect of operations. How do businesses create a culture of maximum entrepreneurial creativity, drive, and innovation?
-- Nobody has the direct connection with as big a customer base as lotteries do. Nobody even comes close. Not Harrah’s or MGM or Indian gaming casinos, not Sony or even Apple, not Electronic Arts, Atari, Microsoft, and other publishers of video games, and certainly not the innumerable internet gaming operators waiting in the wings. Lotteries are truly in the catbird seat, ideally positioned to consolidate the incredible power of this special relationship it has with its customers. But enemy armies are gathering at our borders and preparing to invade. Slow growth strategies are a recipe for extinction when everyone around you is poised for expansion. Now is the time for lotteries to expand their product offering, consolidate their special relationship with the customer, and take the lead position in the gaming and wagering industry. What are the success strategies that will take them there?
Best wishes for a most fabulous 2010. See you in NYC! |
