Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Igt powerpoint final
1. IGT
Robert Castriota, Maria Deastis, David Engelmann, Linda Huang,
Huixian Liao, Kenneth Lloyd, Ashley Rottkamp, Halle Speregen,
ColeTobias, Ian Ustanik, Chenxi Wang, and RebeccaWolken
2. Company Background
International GameTechnology designs,
manufactures, and markets electronic
gaming equipment, software and network
systems
Provides solutions for on land casinos and
online wagering
Contracted to provide lottery services to
state and national governments all across
the world
3. Company Background
IGT is an industry leader
headquartered in London
that employs over 12,000
people worldwide.
Was created in it’s current
form in 2015 when GTECH
acquired IGT and took its
name
Market cap of over 4.6 billion dollars
6. New Mission Statement
IGT's mission is to focus on the four E’s of success:
Evolution, Empathy, Efficiency, and Excellence. We strive
to evolve to the constantly changing gaming industry. We
will be empathetic to your every need.We pledge to use
the most efficient technology available. We promise to be
excellent in all that we do.We are the global innovation
leader.
IGT
It’s Good To
Be Bad
8. • Reach more customers in emerging markets
• Build new casinos in South Africa
• Establish partnerships with casinos in Macau
• Change our target demographic group
• Enhance gameplay
• Create the casino floors of tomorrow
• Immersive casino experience
• E-Sports
Initiatives
9. • Emerging Market
• Member country of BRICS
• 1994: Legalized gambling
• Development ofTourism
• Increasing foreign travelers
• 2001: 6 M to 2015: 15 M
• Integrated capacity management
• Know customers’ needs
• Better plan for production
• Cohesive connection between
different departments
Build New Casinos in South
Africa
10. • Macau
• One of the largest gambling cities
• Gambling industries - 40% of GDP
• Tourism
• Opening of new hotel casinos
• China’s easing of travel restrictions
• Establish strategic partnership with
large casinos
• Existing cooperation with LT Game in
Macau
• Be a key supplier to large casinos
• Promote online gaming service to
customers
Establish Strategic
Partnerships in Macau
11. • Shifting our Demographic focus
• Designing gaming experience around younger
populations
• Embracing shorter attention spans
• Incorporating technology
• A competitive social aspect of gambling
Enhanced Gameplay
12. • Combating the “Millennial
Problem”
Scaling back slot machines
Increasing competitive table
games
Focusing on skill-based
gambling machines
Leaderboards
Simple challenging games
The Casino Floors of
Tomorrow
13. • Technology to Increasing Efficiency
• Reducing downtime between games
• Reducing payment times
• Link to Apple Pay/ Android Pay
• Accounts and Rewards Programs
• Suggested games
• Creates repeat customers
• Ability to post scores, winnings, and updates to social media
Immersive Casino Experience
14. E-Sports
• Incredible growth of last few years
• Emerging as a leader in the E-Sport industry
• First MoverAdvantages
• Processing bets on E-Sports games
• Partnering and hosting with E-Sports
tournament
• Untapped potential in embracingVideo Game
culture
17. Value Proposition
Value
• Efficiency, eliminate
wait time, personalized
experience
• Less down time
• Appeal to wider
audience
Problem
Solving
• Support responsible
gaming
• Create long-term value
• Monitor energy
(healthy planet)
• Increase locations
Products &
Services
• Slot machines, lottery
cards, handheld gaming
Satisfying
Needs
• Customer first mindset
• Gaming on the go
• “Execution, execution,
execution”
• Engagement, entertaining
content, a winning
experience
18. IGT creates value for customers in three different business segments:
The firm is also organized into four different operating segments:
Business to
Consumer
Business to
Business
Business to
Government
Customer Segments
19. Since the 1980s, IGT has collaborated with governments to grow
their lottery business
Our most important customers are the U.S. state governments of
Illinois, Indiana, New Jersey and the Italian national government
Casinos all across the world are also an important customer
IGT is continuously competing with other MachineGaming
providers for space on the casino floor
CustomerSegments
20. Customer Relationships
Established Relationships
• Direct relationships with consumers through electronic gaming
• Relationships with the casinos that its consoles are in
• Contracts with state governments around lotteries
• Business partnerships in more than 100 countries
Associated Costs
• Loyalty program
• Support services and maintenance contracts
• Costs associated with regulations and licenses
• R&D costs for continuous innovation
21. Customer Relationships
B2G
•Abide by rules and
regulations
•Be ethical
•Practice corporate
responsibility
B2C
Fair games
Enjoyable experience
Cultural modifications
B2B
Accurate data
Quality machines
Support services
26. Key Partners
LT Game
• IGT distributes live and
electronic games in
America and Canada
• LT distributes slot
machines in Macau
Carnival Cruise Line
• Partnership between
leading cruise line and
leading game provider
• Also includes a partnership
to bringWheel of Fortune
themed games to the cruise
ships
The Lottery
• Partnership withTennessee
Education Lottery
Corporation
• Partnership creates a
$17000 computer lab
• Extension of longstanding
partnership with Michigan
Lottery
27. Value Proposition
• Research and Development
• Service and Maintenance
• Environmental
Responsibility
Distribution
Channel
• Partnership with Suppliers
• Partnership with Casinos
• Partnership with Customers
(Customer Service)
Key Resources
29. Cost Structure
• Research and Development (R&D)
• Investing in product development
• Platform hardware, software; Online service; Game design
• Multiple engineering discipline
• Hardware, electrical, online social, online real-money
application
• Game development
• Design, math, graphics, audio
• Creative employees
• Designers, engineers, artists, and third-party content creators
Most important costs in our business model
30. Cost Structure
• Cost of service
• Around 2.468 billion in human resource development
• Recruiting employees, training knowledge workers
• Developing game program
• Customer service: 24 hour help line, player service, payment service
Most expensive key resources
• Customer relationship
• FMC - Facilities Management Contracts (5-10 years)
• Tracking customer wants and needs in order to keep customer
satisfaction.
Most expensive key activities
Our vision to enhance and build our capabilities; deliver content, technology, and expertise that drive customer and player demand; continue to grow leadership in the lottery and gaming space, and become a leader in the interactive and skill based gaming space; and use the power of our understanding of central systems and connectivity to define the future of gaming.
Evolved to the newest technology. Excellent at our craft.
To be a global innovation leader in the constantly evolving gaming industry
Policies: Emerging market, legalized gambling
Millenials and younger population
Tourism will help econ growth
Know customers’ desire, target customers’ need
Efficient production
Talk to people in other division, know common mission
LT Game is an intermediary between IGT and Macau casinos
Change to sell slot machines directly to casinos, reduce risk and improve coordination with local casinos, increase product revenue
Young people love technology, promote online gaming service to young people
Changing Demographics - dying b/c they old, traveling less b/c they old, spending less cause they old
focusing on the younger populations mainly millennials
Leverage the new demographics need for instant results and shorter attention spans to improve the efficiency of the gaming experience
Use technology such as cell phones and Facebook accounts to a holistic approach to the casino, improve the experience and speed up the process of paying and lower down time between games
Millennial problem- it appears millennials don’t gamble in todays casino, prefer to stay home and play their gaming consoles and app
Scaling back slot machines- reducing the number of luck-based slot machines offered by IGT , "The technologically savvy generation has no interest in games of chance."
this frees up resources and space for new younger demographic focused on skill-based gaming machines
this makes millennials feel like they have influence over the results and makes them feel important
Simple challenging games- similar to flappy birds where you are always trying to break your record, your friends record, and the world record. Similar to the video games they grew up on
"They are quickly bored by the randomness of slots, and seek games of skill over chance, as well as interactive, reward-oriented experiences.“
The primary hurdle for casinos is to find games that are challenging and fun enough to keep the gambler playing, but also hard enough to prevent them from winning too often.
Younger people are quickly bored with the randomness, and the bells and whistles of slot machines
-we can utilizes this and technology to improve the efficiency
Automatic payment from phones and igt account instead of the time consuming penny, nickels, dimes, and quarters
Able to buy more lives or continue where left of for money, reduces time between playing
Accounts leaked to igt account and facebook and other social media
can suggest games of past games played, facebook games, and mobile app games, and just everything about you.
IGT accounts and rewards programs encourages repeat customers which is the bread and butter of the IGT
Sticking with our shifting core demographics focus
Over the last years we seen exponential growth in the e-sports industry
Partner with video game companies and e-sport tournaments to hold the tournaments in our casino.
IGT bids on government contracts in their lotto segment. IGT also supplies casinos with machines and gaming technology. In addition, in recent years, IGT focuses on research and development of new award-winning interactive gaming products, platforms and services. Much of this development creates value for consumers directly through their Cardless Connect and other mobile systems.
Italy generated the most revenue in 2014 and 2015. IGT has many customers in the gaming segment, though the three largest gaming customers account for only 3% of total revenue.
