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hange occurs in any environment. A meteor strikes. Ice caps

recede. Inventions are created that change our everyday

world. And then change comes again, and again, and with

every change new parameters for survival are set. Adding to the chal-

lenge to survive in this century is the fact that change now happens at

digital speed. It is not enough to keep up with the pace of innovation,

it is necessary to run ahead of it with big, strong and capable strides

—boldly, assertively …Bamm…Bamm…Bamm… running to be

the agent of change rather than becoming a casualty of change.

This force has been abundantly evident in the retail environment

for years. We don’t buy record albums or video tape movies anymore,

we stream music and click on Netflix. The mobile phone and tablet

have become the current retail hub for ecommerce. But even though

as much as 85% of lottery revenue is still associated with the retail

channel, lottery at retail is not ahead of the force of change. For years

we have been watching lottery become marginalized in the retail en-

vironment as fewer people are playing in less retail locations. And yet,

the change to our retail-based operational paradigm has been minimal

while we simultaneously acknowledge the need to revolutionize our

customer connectivity in the retail environment.

We have been offering the same thing in the same place in the same

way knowing we need different results.

Up until now!

It’s A New World

To state the obvious, the retail environment has changed, dramati-

cally. As consumers, we all enjoy that change every time we place an

online order from our mobile phone or stream music through our

tablet. Yet lottery at retail, which represents as much as 85% of lot-

tery sales, continues to require unique points of presence, separate and

costly hardware and software, and significant processing.

We must accept that as the retail environment changes, the pa-

rameters of survival change. Such a disruption to the status quo

requires assertive, inventive, and courageous action to survive. The

force of this type of inevitable disruptive change is the catalyst of

progress, but only if it is used to sharply break from the past and

adapt to a new present.

The Power to Say NO!

The one sure way to anticipate and successfully triumph over the

force of disruptive change is to say NO to the status quo. To identify

what must change in order to succeed in protecting the most impor-

tant dynamic in any business; connectivity with the customer.

While consumerism continues to move away from the physi-

cal toward the more personal, “noline” experience that directly

connects to the customer, lottery operators are largely still a step

Let the Force of Disruption



By Frank Cecchini, CEO and Managing Director NLS

There is a cause and affect force in the universe that has driven

human progress since the beginning of time.

Disruptive Change—Adaptation to Survive.

BAMM! A powerful force.

It is not the strongest

species that survive, nor the most

intelligent, but the ones

most responsive to change.

—Charles Darwin