Page 64 - Public Gaming International September/October 2017
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Within the confines of local regula-
                                                                                  tions, lotteries must become a part of the
                                                                                  AmazonFresh, Target, and Walmart online
                                                                                  product selection menus and the NLS modu-
                                                                                  lar, service-oriented architecture allows
               The Art of                                                         for just such flexibility and inclusion. The
                                                                                  NLS open architecture speaks a common
                 Survival                                                         language, based on standard communication
                                                                                  protocols that allows lottery to easily connect
                                                                                  to any channel, service or system--to truly
                        and                                                       reinvent the relevance of the lottery by part-
                                                                                  nering with any product provider, from day
                                                                                  spas to donut shops.
                Success                                                           As a case in point of successful business evolu-

                                                                                  tion, much has been made in recent retail
                                                                                  analysis studies of Amazon’s market expan-
                                                                                  sion into the grocery segment. AmazonFresh
                                                                                  is a subsidiary of Amazon.com. AmazonFresh
                                                                                  is a grocery delivery service currently avail-
                                                                                  able in some U.S. states, London, Tokyo, and
                                                                                  Berlin.

                                                                                  The subsidiary’s service model mimics that
               he key to lottery survival is to embrace  their market share, they are not “chewing  of other large grocery store chains that are
               digital age technology and new retail  up” the competition. The lesson to learn  now supporting pre-order store pick up and
               models. This is a reality our indus-  is: without reinvention of the lottery prod-  home delivery business models.  Most retail
          Ttry has largely recognized, but there  uct and infrastructure, consumer contact  industry analysts see this market segway as
          continues to be uncertainty about how best  will decrease and product irrelevance will  a new and a targeted strategy to capture a
          to evolve.                          increase. The adaptability of the chameleon  large portion of sales from Amazon’s primary
                                              truly is a powerful behavior to mimic in  competitor, Walmart. Do you remember
          “A successful company is like a great white  business.                  when Amazon was just the online book stor
          shark. In its prime, it chews up the competi-                           “Amazon.com’s latest experiment is a clear
          tion, but if it dares to sit still for too long,                        indication of where it’s seeking a big chunk
          it dies. Some of the world’s most profitable                            of its future bread and butter: the massive
          and enduring companies have achieved their                              world of grocery retail. Groceries — a $600
          long track record of success by constantly                              billion U.S. market — are a critical nut for
          reinventing themselves., evolving their prod-                           Amazon to crack if it’s to unseat Walmart as
          uct lines and business strategies to stay one                           the world’s largest retailer” stated the Seattle
          step ahead of their customers’ needs”, and                              Times.  Analysts with Cowen & Co. have
          preferences. “In business, it’s better to be a  As much it may seem that the altered retail  called the U.S. grocery sector Amazon’s
          chameleon than a great white.”      footprint and new trade styles have simply  “biggest potential source of revenue upside.”
                                              appeared in our lives, the truth is that
          Competition from new lottery gaming  change is happening every second. Where  Here’s the kicker. Amazon began this take-
          wholesalers, decreased in-store foot traffic  we stand today in relationship to the lifestyle  over attempt over ten years ago! The headline
          with increased mobile shopping deliver-  changes that have been brought about by  on August 1, 2007 in the Seattle Post-
          ing products to the consumer’s doorstep,  21st century technology is a consequence of  Intelligencer was “Amazon starts grocery
          game styles that do not attract younger  someone at some point seeing and seizing  delivery service’beta test’ begins with Mercer
          demographics--these are but some of the  past opportunities.            Island.”
          market threats of today that began taking
          shape years and years ago. Moreover, lotter-  We at NOVOMATIC Lottery Solutions  And here is the relevance to our industry:
          ies have been limited in how agile and  understand this. Innovation and techno- while great efforts are being made to place
          adaptable their product could be because  logical foresight are the key elements to
          the industry’s continued reliance on aging,  our approach, and this is what allows us to
          inflexible technology and operating models.  keep pace with today’s fast-changing retail   Dave Roos “10 Companies That Completely Reinvented
                                                                                  Themselves” 10 January 2014.
          The consequence is that government sanc-  environment.                  HowStuffWorks.com. <http://money.howstuffworks.com/10-
          tioned lotteries are losing their players and                           companies-reinvented-themselves.htm> 17 August 2017

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