EL Congress Krakow – Day 2: Vision for the Future

How the entire consumer gaming landscape is changing and new ways to understand consumer behavior … “things will never move this slowly again”.


Games of the Future

Jens Nielsen, Danske Spil described the impact that digitization of Retail will have on Lottery.  Danske Spil has one of the most advanced online businesses, yet Jens insists that Retail will continue to be the most important channel for distribution for many years.  Retail’s importance as medium for communication and connection to the consumer will also continue for many years to come.

David Sargeant, igamingideas.com, emphasized that there is no lack of innovation … there is only a lack of capital and the will to implement innovation.  David talked about the huge expanse of uncharted territory when it comes to iGaming.  It’s not only about the games.  It’s about the user interface, getting consumer attention, and gamifying the whole player experience – or at least making it easy and fun for the audience to engage with the operator.

Julia Krysztofiak-Szopa, Startup Poland: Invest in start-ups because they are changing the world.  Get ready for Blockchain which is about so much more than the one application known as cyber-currency and Bitcoin.  Distributed ledgers technology is introducing a whole new framework for executing international trade and commerce.

Katarzyna Młynarczyk, Socjomania: The next frontier is integration of media, driving mutually reinforcing synergy between the explosion of new media channels.  Integrating the incredible diversity of digital, online, and traditional media is creating a more user-friendly consumer experience as well as a more impactful result for purveyors of information.

The Young Lions presentations showed us the rich potential for Lottery to be fun and exciting for the modern consumer who expects to be entertained.  Lots of fresh ideas for how traditional lottery games can be “gamified” with innovative gaming design elements, integration with social media, and other new concepts.

Agata Grabowska, “The Thrill of Transgression”:  Agata differentiates between a consumer trend and the manifestation of a trend.   The trend is what actually drives human behavior.  What we see and think of as a “trend” is usually just a manifestation of a trend and not really the driver of human behavior.  Example: the proliferation of tattoos is a manifestation of deeper trends which have more to do with feelings of insecurity and powerlessness in a world where people have lost faith in the promise of ongoing progress towards a better life, safety etc.  Agata describes different personal sources of angst, concerns, hopes, fears, desires, that give rise to the outward expression or manifestation of a state-of-mind.  The goal of marketers is to not be distracted by the manifestation but to drill down, understand the underlying trends and states-of-mind, and appeal to our audience on the basis of what they are really thinking and feeling deep down inside.

Keynote Speaker David Rowan emphasizes three things:

  • Twenty years ago, big markets were shared by a large number of companies. No more.  The trend towards a winner-takes-all dynamic in which competitive advantage yields overwhelming market dominance to a very small number of companies will increase.  Amazon, Facebook, Google, totally dominate their space.  There is no room for second-best.  This trend will only accelerate over the coming years and extend to many other industries.
  • The application of Algorithmic Thinking will turn Big Data and Machine Learning into the most powerful tools to understand and predict human behavior and trends, and to personalize/individualize messaging. The competitive differentiator of the future will be all about AI, Big Data, and Machine Learning.  As Larry Page said about Google:  they are not in the “search” business.  They are in the AI business.  Amazon is not an online merchant.  They are in the Big Data, Machine Learning, and CRM business.   “Data combined with AI, machine learning and advanced algorithmic thinking gives you superpowers.”
  • We may think we have seen rapid change over the last ten years. In fact, we are just at the beginning of the post-information age (term coined by founder of the MIT Media Lab Nicholas Negroponte to differentiate the production of information from the intelligent applications that will derive from AI, Machine Learning, and the digitalization tools yet to be invented).  David compared our current stage of evolution to the time when the steam-engine and cotton spinning machine were just invented but the transformative impact of industrialization hadn’t hardly begun.  That’s where we are in the continuum of change – we are just entering the post-information age and the transformative impacts have not even begun – “Things will never move this slowly again.”

David predicts that gamification will apply to every commercial environment and every walk of life.  In fact, the ability to “create addiction” will become an issue that needs to be controlled or regulated.

George Vassilaras, INTRALOT: The future is not about migration to or from different distribution channels and communications media.  It will be about the integration of all channels to deliver a seamless, transparent, intuitive user experience.  Our mission is to facilitate that evolution and application to a commercial environment that merges everything such that the consumer thinks of their interaction with the merchant or Lottery as one seamless, integrated, intuitive experience.   George spoke of how the  “chatbots” and “voice interfaces” and other technologies are driving the consumer towards a dependence on each other for guidance as opposed to information provided by advertising and promotion.  Consumer behavior will be shaped by their conversations with each other which will be conducted in much more efficient ways than it is now.

Paul Riley, IGT: Progressive retailers are implementing the modernized tools, technologies, and methods that lead the way to meet the expectations of the modern consumer for easy, convenient, and seamlessly integrated online and off-line omni-channel experience.  Progressive Lotteries are doing the same to modernize the player experience and position themselves for the future of consumer/shopping behavior.  Macro-trends are changing the commercial world such that the Lottery-specific roadmap must adapt.  The most impactful solutions will be less about product innovation and more about retailing as it adapts to changes in consumer and shopping behavior.

Joni Hovi, Kambi spoke about the Importance of Sports betting as a customer acquisition tool and why Lottery needs to offer the whole range of gaming products to its customers.  Sports betting is the fastest growing sector, especially with millennials, and needs to be in the portfolio if for no other reason than to gain access to that player sector.

Pall Palsson and Agnieszka Rylska, Novomatic presented on how to nurture a “culture of Innovation”.  Their company session is call “Heavy Mental” to encourage out-of-the-box thinking.  “If you are not part of the steamroller, you are part of the road.”

Peter Zäll, Z-INSPIRED AB:  We must know our customers and that means we must master all aspects of capturing customer data, and then turning it into actionable business intelligence.  That requires an advanced data-analytics and predictive analytics platform that forms the basis for a Customer Relationship Management (CRM) program that enables the operator to deliver the right message to the right customer at the right time.   We need to focus on driving traffic as opposed to an over-focus on driving sales.  Consumer traffic leads to engagement and engagement leads to more interaction and understanding of our customers.  And it is CRM that will drive sales because it is the guidepost that ensures the relevance and positive impact of the services, entertainment, promotions and game content.

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Synopsis

Français
Vision du Congrès EL à Cracovie pour l'avenir : La manière dont l’ensemble du paysage de jeu des consommateurs est en train de changer, les nouvelles façons de comprendre le comportement du consommateur, « le rythme du changement va s'accélérer pour de bon ».  
  • La vente au détail va encore longtemps rester le canal de distribution prédominant ainsi qu’un vecteur important de communication, et ce n'est pas prêt de s'arrêter.
  • Les innovations ne manquent pas… mais il y a un manque de capital et de volonté de mise en œuvre des innovations. L'iGaming représente un immense territoire vierge. Il ne s'agit pas seulement des jeux. Il s'agit de l'interface utilisateur et de capter l'attention du consommateur et de ludifier l'expérience dans son ensemble, ou du moins de la rendre plus accessible et plus divertissante pour que le public interagisse avec vous.
  • Le prochain territoire à conquérir est l'intégration des médias, l'exploitation d'une synergie de renforcement mutuel à la faveur de l'explosion des nouveaux canaux de médias. En intégrant l'incroyable diversité des médias numériques, en ligne et traditionnels, il est possible de créer une expérience consommateur plus ergonomique et un résultat plus puissant pour les pourvoyeurs d'informations.
  • Il y a vingt ans, les gros marchés étaient partagés par un grand nombre de sociétés. Cette époque est révolue. La tendance est à la concentration, où l'avantage concurrentiel permet à un très petit nombre de sociétés de dominer le marché de façon écrasante. Amazon, Facebook, Google dominent totalement leur écosystème. Il n'y a qu'une seule marche sur le podium. Cette tendance ne fera que s'accélérer au cours des prochaines années pour concerner l'ensemble des secteurs.
  • L'application de la Réflexion algorithmique va faire du Big Data et de l'Apprentissage automatique les outils les plus puissants pour comprendre et prédire le comportement humain, les tendances et personnaliser/individualiser les messages.
  • On pense avoir vu une évolution rapide ces dix dernières années. En réalité, nous n'en sommes qu'au début de l'ère post-information : « Le rythme du changement va s'accélérer pour de bon».
  • La ludification s'appliquera à chaque environnement commercial et à chaque domaine de la société. En fait, la capacité à « créer une dépendance » deviendra un problème qu'il faudra contrôler et réglementer.
  • « Mieux vaut être du bon côté du rouleau compresseur ».
Español
Esta es la visión de futuro del Congreso de EL de Cracovia: Plasmar la forma en que está cambiando por entero el panorama del juego de consumo, así como las nuevas formas de entender el comportamiento del consumidor, sabiendo que “las cosas nunca volverán a funcionar tan despacio”.  
  • La venta al por menor seguirá siendo, durante muchos años, el canal de distribución más importante, y tendrá también un papel relevante como medio de comunicación.
  • No hay falta de innovación, sino solamente falta de medios económicos y de voluntad para ponerla en práctica. El juego en Internet (iGaming) ofrece enormes posibilidades aún por explorar. No se trata solo de los juegos. Se trata también de la interfaz de usuario, así como de conseguir la atención del consumidor y la gamificación de la experiencia completa, o por lo menos hacer de ella algo fácil y divertido para que el público se implique.
  • La siguiente meta es integrar los medios de comunicación, impulsando sinergias que se refuercen mutuamente entre la explosión de nuevos canales de medios. Al integrar la increíble diversidad de medios digitales, en línea y tradicionales, se está creando una experiencia de consumidor más agradable, así como un resultado con un impacto mayor para los proveedores de información.
  • Hace veinte años, los grandes mercados estaban en manos de una gran cantidad de empresas. Ya no. Todo apunta a que aumentará la tendencia de sistemas en los que el ganador se lo lleva todo, con lo que un número muy pequeño de empresas que poseen una ventaja competitiva son capaces de dominar de forma abrumadora el mercado. Amazon, Facebook y Google dominan completamente sus espacios. No hay sitio para segundos. Esta tendencia no hará sino acelerarse en los próximos años, y se propagará a los demás sectores.
  • El uso del pensamiento algorítmico convertirá los macrodatos y el aprendizaje automático en las herramientas más potentes para entender y predecir el comportamiento humano y sus tendencias, así como para personalizar/individualizar los mensajes.
  • Podemos pensar que hemos visto cambios rápidos en los diez últimos años. En realidad, tan solo estamos en los albores de la era posterior a la de la información: “Las cosas nunca volverán a moverse tan despacio”.
  • La gamificación se aplicará a todos los entornos comerciales y a todo estilo de vida. De hecho, la capacidad de “crear adicción” se convertirá en un problema que habrá que controlar o regular.
  • “Si no eres parte de la apisonadora, eres parte de la carretera”.
Deutsch
Die Zukunftsvision des EL Congress Krakau: Die gesamte Glücksspielbranche befindet sich im Umbruch; neue Wege, um Verbraucherverhalten zu verstehen: „Nie wieder wird das Geschäft so langsam sein“.  
  • Der Einzelhandel wird noch auf viele Jahre der wichtigste Vertriebskanal bleiben, und auch als Kommunikationsmedium wird er seine Bedeutung behalten.
  • Es mangelt nicht an Innovation ... es mangelt höchstens an Kapital und dem Willen, Innovationen umzusetzen. Beim iGaming gibt es große, nur schwer zu erfassende Potentiale. Es geht nicht nur um die Spiele selbst. Es geht auch um die Nutzeroberfläche, die Aufmerksamkeit des Verbrauchers und eine spielerische Gestaltung der gesamten Erfahrung – mindestens muss das Glücksspiel dem Publikum leicht fallen und Spaß machen.
  • Das nächste Ziel ist die Integration von Medien, um Synergien zwischen den verschiedenen boomenden Medienkanälen auszuschöpfen. Durch die Integrierung der mannigfaltigen digitalen, Online- und traditionellen Medien entstehen eine nutzerfreundlichere Verbrauchererfahrung und effizientere Kommunikationsmethoden für Unternehmen.
  • Vor 20 Jahren wurden große Märkte noch unter vielen verschiedenen Unternehmen aufgeteilt. Dieses Prinzip gilt nicht mehr. Der Trend hin zum Winner-takes-it-all, bei dem ein Wettbewerbsvorteil zu einer überragenden Marktdominanz weniger Unternehmen führt, wird sich noch verstärken. Amazon, Facebook und Google sind unangefochtene Marktführer auf ihren jeweiligen Märkten. Es gibt keinen Platz für zweitbeste Anbieter. Dieser Trend wird sich in den kommenden Jahren beschleunigen und alle Branchen erfassen.
  • Durch die Anwendung von Algorithmic Thinking werden Big Data und Maschinenlernen zu den mächtigsten Werkzeugen, um menschliches Verhalten und Trends zu verstehen und vorherzusagen und Kommunikation entsprechend zu personalisieren/individualisieren.
  • Wir haben das Gefühl, in den letzten zehn Jahren einen rasanten Wandel beobachtet zu haben. Doch tatsächlich befinden wir uns gerade erst am Anfang des Post-Informations-Zeitalters: „Nie wieder wird das Geschäft so langsam sein“.
  • Alle kommerziellen Umgebungen und Lebensbereiche werden in Zukunft spielerisch gestaltet sein. Und der „Suchtfaktor“ wird zu einer Angelegenheit, die kontrolliert oder reguliert werden muss.
  • „Wenn du nicht auf der Dampfwalze sitzt, liegst du unter ihr“.

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