1. State Lotteries as Your Business
Partner: Revamping the Business
Process
Wednesday, November 16, 2005
11:00 AM – 12:15 PM
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State Lotteries as Your Business Partner:
Revamping the Business Process
• Moderator: John Hervey, Executive Director & CEO, PCATS
• Speaker #1: Clint Harris, Executive Director,
Minnesota State Lottery
• Speaker #2 : Andrew White, NSI Project Manager, NASPL
• Speaker #3: Richard Wilkinson, Lottery Sales Representative,
Kentucky Lottery Corporation
• Speaker #4: Art Whetstone, Chief Financial Officer,
Calfee Companies, Favorite Markets, Inc.
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2. State Lotteries as Your Business Partner:
Revamping the Business Process
Clint Harris
Executive Director
Minnesota State Lottery
1st Vice President & NASPL Standards Initiative Chair
The North American Association of State & Provincial Lotteries
History of Lotteries
• Book of Numbers, Chapter 26
• Founding Fathers and Lotteries
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3. The “Mountain Road” Lottery of 1768
Boston’s Faneuil Hall Lottery of 1767
Continental Congress Lottery - 1776
Harvard College Lottery - 1811
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4. History of Lotteries
• Prohibition of Lotteries
• 1964 and the Modern Lottery
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5. NASPL History
The North American Association of State &
Provincial Lotteries (NASPL) was founded in
1971.
The Association evolved from an informal
exchange of information among three pioneering
lottery directors.
The organization has now grown into an active
association of state and provincial lotteries
representing 50 lottery organizations.
NASPL Objectives
• Provide a central source of information.
• Facilitate communication among lottery organizations.
• Offer educational opportunities to the lottery industry.
• Initiate a vehicle for professional and industry research
and development.
• Establish a public, united voice on common causes
and issues.
• Maintain the development and implementation of
standards within the lottery industry.
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6. The Lottery Industry
• In 1970, there were only 4 U.S. and Canadian
lottery organizations in existence.
The Lottery Industry
• Today, there are 50, with two more on the way
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7. Background: NSI
NASPL establishes Industry Standards Task Force to investigate
and make recommendations for way forward – Aug., 2001
Chair of NASPL Task Force Appointed – Sept., 2001
NASPL contracts with The Open Group for Business Scenario and
Recommendations – Oct., 2001
The Open Group conducts Business Scenario Workshop with
NASPL Task Force at IT Sub-Committee meeting in Minneapolis,
MN – Nov., 2001
The Open Group supplies final Scenario and Recommendation
Document – March, 2002
Background: NSI Continued
• NASPL Industry Standards Task Force approves the
Recommendations - Apr., 2002
• NASPL and The Open Group conduct several regional lottery
meetings to obtain buy-in for financial and resource support from
Lottery Directors - May through Aug., 2002
• NASPL and The Open Group conduct personal Vendor meetings to
gain support and funding commitment – May through Aug., 2002
• NASPL Approves Recommendations and Funding for initial 2-yr.
Project – Sept., 2002
• NASPL Standards Initiative Project Begins – Oct., 2002
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8. State Lotteries as Your Business Partner:
Revamping the Business Process
Andrew White
NSI Project Manager
The North American Association of
State & Provincial Lotteries
The
NASPL
Standards
Initiative
What is NSI?
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9. NSI APPROVAL TIMETABLE
Quality Assurance of Product Development
Approved: April 2004
Instant Ticket Barcode Technical Standard
Approved: September 2004
Standard for XML Retailer Accounting
Approved: June 2005
Web Based Retailer Applications
Scheduled To Be Approved: February 2006
Global Best Practice for RFP Process
Joint NSI/WLA Scheduled to be Approved: June 2006
NSI CERTIFICATION TIMETABLE
Quality Assurance Best Practice
Launched: January 2005
Currently Available
Bar Code Technical Standard
Scheduled To be Launched: December 2005
Retailer Accounting (XML) Standard
To Be Launched: January 2006
Web-Based Retail Applications
Scheduled To Be Launched: September 2006
Global RFP Best Practice
Scheduled To Be Launched: January 2007
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10. XML Retail Accounting Reporting
• Based on PCATS Standard
• NSI provides common definition for lottery
retail-reporting data in XML format
•Enables common reporting format
Q1= Jan - Mar
Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2 = Apr - May
IR FR FA Q3 = July - Sept
DC IC LC Q4 = Oct - Dec
IR: Informal Review of Standard/Best Practice
FR: Formal Review of Standard/Best Practice
FA: Final Approval of Standard/Best Practice
DC: Define Certification Program
IC: Implement Certification Program
LC: Launch Certification Program
Lottery/Retailer Web Based Applications
•Best Practice Component
•Technical Standard Component
Q1= Jan - Mar
Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q2 = Apr - May
DV DV IR FA Q3 = July - Sept
FR DC IC LC Q4 = Oct - Dec
DV: Develop and Document Best Practice
IR: Informal Review of Standard/Best Practice
FR: Formal Review of Standard/Best Practice
FA: Final Approval of Standard/Best Practice
DC: Define Certification Program
IC: Implement Certification Program
LC: Launch Certification Program
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11. Lottery/Retailer Web Based Applications
Concept
This effort will:
Identify business areas between a Lottery and Retailer
Utilize web based technologies
Ultimately provide better service, communication, and
will build better business relationships.
Specific Areas of the Web-Based Applications
Financial Data
Inventory Data
Reporting
Retailer Life Cycle Management
Surveys
News, General Information
Security (Retailer Focused)
Web-Based Applications:
Benefits to Retailers
Retailers can utilize a more robust technology without having to
utilize the sales terminal.
Remote managers or financial controllers can directly access the
business functions without requiring remote stores to forward
terminal reports.
Larger Retailers benefit by having consistent communications with
Lotteries across jurisdictions.
Smaller Retailers will have more information available to help them
effectively control their inventories and meet the financial
requirements of the Lottery.
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12. Web-Based Applications:
Benefits to Lotteries
Lotteries can provide state-of-the-art web based communications to
their Retailers.
Web-Based Sales information and accounting allows Sales
terminals to stay focused on sales while this technology handles the
back office relationship between Lotteries and Retailers
Lotteries can evaluate Vendor offerings with a clear benchmark of
best practices and standards
Lotteries can provide information in a wider variety of formats than
the standard ticket stock reports available through the terminal.
2, 4, 6, 8...
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13. How Do You Participate?
Best Practice Working Group:
Retail Web Based Applications
• Process focus: Lottery-Retail Operations, Sales and
Marketing, Reporting etc.
TSWG
Retail Web Based Applications
• Technical focus: Lottery-Retail Operations (web-site
development and information exchange)
Retail Council
Retailers
• Serves as Advisors to NSI
What Are You Volunteering For?
Choose the one that best meets the current priorities of your
organization and where your staff could most benefit from or
add to a learning experience.
Web Based Lottery/Retailer Applications
Technical Standard and Best Practice Development
Technical Standard Telecon Calls Wednesdays at 11:30 AM EDT.
Best Practice Telecon Calls Thursdays at 3:00 PM EDT.
NSI Retail Council
Telecon Calls Every 3rd Thursday of the Month at 2:00 PM EDT.
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14. State Lotteries as Your Business Partner:
NAXML Will Enhance The Security of Selling
Lottery Products
Rich Wilkinson
Kentucky Lottery Corporation
Wednesday November 16, 2005
11:00 a.m. – 12:15 p.m.
TECHNICAL ASPECTS OF XML
• Foundation of XML and NAXML
• XML is based on Standard Generalized Markup
Language (SGML
• XML will act as a Bridge between SQL and Web
Applications
• The NAXML Schema
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15. NAXML WILL SPEED UP
THE FLOW OF INFORMATION
LOTTERY STANDARDIZED
TICKETS INFORMATION
ORDERED SENT TO
CHAIN HEAD
AUTOMATED
AUTOMATED
TRANSACTION
TRANSACTION
VERIFICATION
VARIANCE
PROCESS
AUDIT
NAXML STANDARDS
A NEW PARADIGM FOR
TRANSACTION INFORMATION
EXCHANGE
• THE NAXML STANDARD WILL IMPROVE
MANAGEMENT CONTROLS
• HELP REDUCE LABOR COST
• HELP REDUCE LOSSES
• ULTIMATELY IMPROVE PROFITABILITY
OF SELLING LOTTERY
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16. Automating Reconciliations
Using PCATS Standards
Art Whetstone
Chief Financial Officer
Calfee Companies, Favorite Markets, Inc.
Wednesday, November 16, 2005
11 AM – 12:15 PM
Standards in Use at Favorite Markets
• Lottery Invoice
• Credit Cards PreDraft
• Bill Reader Safe Interface
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17. Standards in Use at Favorite Markets
• Lottery Invoice
• Credit Cards PreDraft
• Bill Reader Safe Interface
Lottery Invoice
• aka the Chain Summary Statement
• only XML file available from Georgia
• Weekly program
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18. Benefit #1 -Timeliness and Accuracy
• File is ready when you are
• No procrastination
• Eliminate manual extraction
Benefit #2 - Expansion of Processes
• Automate postings to ledger
• Activation and Confirmation
function added
• New state with 58 stores
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19. Benefit #3 - Clerical Workload
• Large reduction of clerical time
• Released all clerical employees
• Freed up for other tasks
The Business Process
• External Source (XML file)
• Downloaded file
• No changes necessary
• Database
• Access, SQL, etc.
• Internal Data Source
• Your accounting System
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20. Stylesheet
• Extracts needed data
• Coded in notepad or word
processor
Stylesheet Example
<?xml version=quot;1.0quot;?>
<!-- File Name: Lottery.xsl -->
<xsl:stylesheet
version=quot;1.0quot;
xmlns:xsl=quot;http://www.w3.org/1999/XSL/Transformquot;>
<xsl:output method=quot;htmlquot; />
<xsl:template match=quot;/quot;>
<table>
<th>Store#</th>
<th>Pack#</th>
<th>Game#</th>
<th>DateSettled</th>
<th>AllowAmt</th>
<th>Type</th>
<th>GameDescription</th>
<th>Line#</th>
20

21. Stylesheet Example (cont’d)
<xsl:for-each select=quot;//AllowanceOrCharge/AllowanceOrChargeReason[@identType='Promotions']quot;>
<tr>
<td><xsl:value-of select=quot;ancestor::Invoice/Location/OrganizationIdquot; /></td>
<td><xsl:text> </xsl:text></td>
<td><xsl:text> </xsl:text></td>
<td><xsl:text> </xsl:text></td>
<td><xsl:value-of select=quot;parent::AllowanceOrCharge/AllowanceAmtquot; /></td>
<td><xsl:value-of select=quot;@identTypequot; /></td>
<td><xsl:value-of select=quot;ancestor::InvoiceUnit/GameDescriptionquot; /></td>
<td><xsl:value-of select=quot;ancestor::LineItem/@countquot; /></td>
</tr>
</xsl:for-each>
</table>
</xsl:template>
</xsl:stylesheet>
Html File Example
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22. Inside the Database
• The code for the extraction
• Linking output file and other tables
• Querying the results
• Files you need from
– PCATS
• NAXML-datadictionary.dtd
• NAXML-LotDoc.dtd
– Other
• msxsl.exe
Database tables
22

23. Database queries
Database Macros
23

24. Database Modules
Final Thoughts
• One Size Fits All
– One standard, many states
• Extra Cooks in the Kitchen
– Simplified process, fewer people
• The Paper Chase
– Who needs it
• Focus on exceptions
• Access shines
24

25. So Let’s Review
(TheNow Look!
Before Picture)
Thanks To!
Thank You!
• Email awhetstone@favmkt.com
• Ph 706-226-4834 x 260
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26. For more information, please contact PCATS!
901 King Street, Suite 300
Alexandria, VA 22314
Phone: 703-836-0919
www.PCATS.org
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