NOVOMATIC Lottery Solutions: Ready to be Future Ready

For decades, lottery technology has followed innovation trends. But personal use of technology in our global society has significantly outpaced the lottery/player connection in many areas, in part due to regulatory restrictions, but also as a consequence of reactive vs. proactive innovation management.



From Gartner: 
“Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.”

FACT: For most lotteries 85%+ of sales happen in retail.

Global management consulting firm Kurt Salmon points out:
“The growth of e-commerce has progressed unabated in recent years. Since 2011 it has in fact accelerated further compared with previous years to an average of 14% a year.1 However, total retail turnover in Germany has stagnated, with average annual growth of just 1% over the same period. What are the consequences of this for physical retailers?”

Most people in technology thought that retail would eventually disappear, with all acquisitions made online. This clearly has not been, and will not be, the case. Retail will always continue to exist, but it must evolve. It is widely accepted that attractive, personalized offerings coupled with independent advice (ratings) enhance the supplier/customer relationship. Retail has to harness this power of digital services in combination with ubiquitous access to high quality mobile internet to deliver new and exciting opportunities that improve sales while keeping a solid eye on responsible and socially acceptable levels of gambling.

But how far forward could we go if we were to truly embed a visionary culture of change in our industry that anticipates market demands by starting with the intent to exceed the expected?

NLS’ Technical Visionary, Ólafur Andri Ragnarsson, answers the question this way: “Too many industries fall into the infamous “Prevailing Technology Trap” in which current and dominant technology restricts new innovations. A competitive edge is only realized when entrepreneurial thinking and imagination are valued as fundamental assets in every product development and/or project implementation. Then, and only then, will you elude the ‘Prevailing Technology Trap’ and revolutionize an industry.”

Mr. Ragnarsson’s title was very purposely selected: Technical Visionary.

His words describe the philosophy and attitude needed to embrace the power of change that is happening at digital speed in our global society. We know our lottery product is an entertainment product and that our competition is the full range of entertainment options; video, casino, movies, concert, sports events, etc.… But have we earnestly embraced a forward-looking attitude that propels us to ask “Why not?” at every opportunity to leverage change? Or do we simply target the next incremental improvement to the existing model of lottery entertainment?

The magnitude of the public/government accountability of the lottery product and lottery operations weighs very heavy on every industry stakeholder, and so we diligently ask “Why?” is it best to make a system, or a game, or a service change. This reality has always played a significant part in the operator/vendor relationship, in product development, in business expansion. Conservative, incremental change, often dependent on enabling legislation, has been the law of our land, with very good reason.

The message NLS would like to bring to our industry is—asking “Why not?” run, even leap, ahead of change to revive and reinvent lottery? The key is to balance the indisputable need for integrity and security with the passion and energy to innovate beyond the expected. Such is the modus operandi at NLS.

bammWe introduced this philosophy, which we have branded “BAMM!”, at the European Lotteries 2016 Industry Days conference to explain the NLS corporate culture and the impact of that culture for lottery operators. Akin to the Google management model of inclusion, collaboration, and shared ownership, NLS team members are encouraged to embrace every opportunity to harness the force of cultural, technological, or societal change to leap ahead of the status quo —BAMM!, the force of moving, of running, forward. Collectively, each segment of NLS operations comes together to discuss case studies, research, and innovations to ask “Why not?” and “Are we ready?” The culture of collaborative innovation is thriving, to the benefit of the industry.

 

Adapt or die

In what has become a technologically stagnant market, some suppliers are racing to rebuild their existing systems to emulate the technological currency of today’s fast moving and technologically advanced players. The following question needs to be answered:

“Are you working to catch up with a technology that is already out of date?”

As cloud computing takes over, new architectures emerge such as microservices. Microservices have transformed the way developers are building and deploying applications in the era of modern cloud infrastructure. Microservices architectures are designed to separate components into discrete functional elements or individual services, thereby reducing complexity and increasing scalability.

What once was not possible becomes possible with cloud technologies. Instead of having a monolith software that requires big deployments, software is split up into small services in which each service is a single updatable unit. To add a feature, just add a microservice and deploy. The services are like Lego bricks and can be put together to create an application. The key to this are Application Programming Interfaces (APIs), the language of the internet today. With APIs and microservices, truly customized, truly Omni-channel solutions are quickly and reliably deployed and fully supported by NLS.

Interactive Extravagance

Mobile solutions are built using the principles of Responsive Web Design, delivering a single solution that dynamically adapts to the player‘s device. The player experience remains constant and coherent, no matter where or how he connects to the lottery. Can mobile based applications store favorite numbers, warn of big jackpots and eliminate the risk of ‘forgotten’ wins? Of course they can! Could native apps keep track of loyalty points, drive promotions and even promote socially responsible co-operative play? Yes of course, as NLS can demonstrate.

Be Future Ready!

Finger about to press future button with blue light over black and grey background. Concept image for illustration of change or strategic vision.As we continually examine the intersection of consumerism, technology, and personal experience through the lens of empowered, passionate lottery professionals, we will inevitably continue to find new possibilities for energizing and exciting tomorrow’s players. Boundaries grow as you explore them. And, when we all work this way, BAMM! we propel our industry.

This content is offered by NOVOMATIC Lottery Solutions. For more information visit www.novomaticls.com.

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Synopsis

Français
Prêt à être paré pour l’avenir. Dans les points de vente, les jeux de hasard sont désormais technologiquement dépassés. Bien que 85 % des ventes de jeux de hasard proviennent toujours de ce secteur, ils ne répondent plus à l’engouement technologique que ressentent les joueurs d’aujourd’hui, eux-mêmes à la pointe de la technologie. Pour faire avancer les choses, il est temps d’entamer la numérisation des jeux de hasard. Comme le dit Gartner, « La numérisation consiste à utiliser des technologies numériques dans le but de modifier un modèle économique, de générer de nouveaux revenus et d’offrir des opportunités valorisantes. » Cependant, les opérateurs de jeu doivent s’assurer que les plans d’innovation ne se contentent pas de rattraper le retard technologique qui sera, à son tour, bientôt dépassé. Au contraire, la véritable numérisation surpasse la technologie contemporaine afin d’imposer un changement plutôt que de simplement l’opérer. Pour cela, les actionnaires doivent s’engager pleinement pour embrasser la puissance du changement mondial qui s’opère dans la société à la vitesse du numérique. Telle est notre philosophie et notre ligne de conduite chez NOVOMATIC Lottery Solutions. Nous avons adopté un modèle économique avant-gardiste, avec la marque BAMM!, qui nous pousse à répondre « Pourquoi pas ? » à chaque opportunité de générer du changement qui se présente. Nous nous opposons ainsi au simple ciblage de la prochaine amélioration à apporter au modèle existant de divertissement proposé par les jeux de hasard. La solution consiste à répondre à l’indéniable besoin d’intégrité et de sécurité, tout en faisant preuve de passion et d’énergie nécessaires à une innovation surpassant les attentes. Ces éléments sont visibles dans notre plan d’action technologique qui met en avant les micro-services, les APIs et les serveurs dématérialisés :
  • Les micro-services ont transformé la manière qu’ont les développeurs de construire et de mettre en place les applications à l’ère des infrastructures modernes dématérialisées.
  • Les APIs sont aujourd’hui le langage d’Internet. Avec les APIs et les-micro services, complètement personnalisés, des solutions d’omnicanalité, prises en charge par le système en ligne, sont mises en place rapidement et de manière fiable.
  • Des solutions mobiles sont établies selon les principes de conception de sites Internet adaptatifs. Elles permettent la mise en place d’une solution unique qui s’adapte de manière dynamique à l’appareil de l’utilisateur.
Español
Listos para estar “listos para el futuro”“. La lotería se ha estancado tecnológicamente en el mercado minorista. Aunque el 85 % de las ventas de lotería se siguen generando en este canal, la lotería en el comercio minorista aún no llega a emular la sofisticada moneda tecnológica de los rápidamente cambiantes y tecnológicamente avanzados jugadores actuales. Para cambiar esta realidad, es hora de comprometerse con la digitalización de la lotería. Según define Gartner, “la digitalización es la utilización de tecnologías digitales para cambiar un modelo comercial y proporcionar nuevos ingresos y oportunidades de producir valor”. Los operadores de loterías, no obstante, deben asegurarse de que los planes de innovación no se limitan a poner al día una tecnología que dentro de poco puede estar desfasada. La auténtica digitalización salta por delante de la tecnología actual para dictar el cambio, en vez de reaccionar cuando este ocurre. Para tener éxito, las partes interesadas deben tener un compromiso universal para adoptar el poder del cambio que está teniendo lugar a velocidades digitales en nuestra sociedad global Tales son la actitud y filosofía de NOVOMATIC Lottery Solutions. ¡Hemos adoptado un modelo de funcionamiento denominado BAMM!, que mira hacia el futuro y que nos hace preguntarnos “¿Por qué no?” ante cualquier oportunidad de aprovechar el cambio, en vez de tener como único objetivo la siguiente mejora gradual para ponerse al día con el modelo actual de entretenimiento con loterías. La clave está en equilibrar la indiscutible necesidad de integridad y seguridad con la pasión y energía necesarias para innovar más allá de lo que se espera. Esto resulta evidente en nuestro mapa de ruta tecnológico que saca partido de los microservicios, las API y los servidores en la nube:
  • los microservicios han transformado la forma en que los desarrolladores elaboran y despliegan aplicaciones en la era de la moderna infraestructura en la nube.
  • API es el idioma del Internet actual. Con los microservicios y las API, realmente personalizados, se pueden desplegar de forma rápida y fiable auténticas soluciones omnicanal y con el completo respaldo de NLS.
  • Las soluciones móviles se desarrollan utilizando los principios de Diseño Responsable de la Red, y proporcionan una única solución que se adapta de forma dinámica al dispositivo del jugador.
Deutsch
FUTURE READY – gerüstet für die Zukunft. Die Lotterie im Einzelhandel ist ein technisch stagnierendes Produkt. Trotz der Tatsache, dass 85 % des Lotterieumsatzes weiterhin über diesen Kanal erwirtschaftet wird, versucht der Lotteriebetrieb im Einzelhandel noch nicht mit der intelligenten technischen Währung der heutigen schnelllebigen und technisch fortgeschrittenen Spieler Schritt zu halten. Um das zu ändern, ist es höchste Zeit für die Digitalisierung der Lotteriebranche. Im Sinne von Gartner ist „Digitalisierung der Einsatz digitaler Technologien, um ein Geschäftsmodell zu ändern und neue Einnahmequellen und wertschöpfende Möglichkeiten zu schaffen.“ Lotteriebetreiber müssen jedoch sicherstellen, dass Innovationsvorhaben nicht einfach versuchen, einen Rückschritt aufzuholen und eine Technologie nachzuahmen, die bald schon nicht mehr zeitgemäß ist. Wahre Digitalisierung geht über gegenwärtige Technologien hinaus und treibt den Wandel voran, statt nur darauf zu reagieren. Um erfolgreich zu sein, muss man sich allumfassend dazu verpflichten, die Kraft der Veränderungen, die in digitalem Tempo in unserer globalen Gesellschaft auftreten, anzunehmen. Dies ist der Leitgedanke und die Einstellung von NOVOMATIC Lottery Solutions. Wir haben ein zukunftsorientiertes Betriebsmodell mit dem Namen BAMM!, das uns dazu bewegt, uns bei jeder Gelegenheit zu fragen: „Warum nicht?“, statt nur die nächste Verbesserung des bisher existierenden Lotteriemodells zu suchen. Der Schlüssel liegt in einem Gleichgewicht zwischen dem unbestreitbaren Bedarf an Integrität und Sicherheit sowie der Leidenschaft und Energie, die benötigt wird, um über das Erwartete hinaus Innovationen zu schaffen. Dies zeigt sich in unserer Technologie-Roadmap, die Micro-Services, Programmierschnittstellen (Application Programming Infrastructure, API) und Cloud-Server nutzt:
  • Micro-Services haben die Art und Weise verändert, in der Entwickler in Zeiten der modernen Cloud-Infrastruktur Anwendungen erstellen und einsetzen.
  • API ist die gegenwärtige Sprache des Internets. Mit APIs und Mikro-Services können wahrhaftig maßgeschneiderte, mehrere Kanäle umfassende Lösungen schnell und zuverlässig eingesetzt und von NLS voll unterstützt werden.
  • Mobile Lösungen basieren auf der Anwendung der Prinzipien des Responsiven Webdesigns und bieten eine einzige Lösung, die sich dynamisch an das Gerät des Spielers anpasst.

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