DIGITAL TRANSFORMATION FOR THE CUSTOMER
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TRANSFORMING CUSTOMER INTERACTION THROUGH DIGITAL INNOVATION
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S K Y C I T Y E N T E R TA I N M E N T G R O U P
Until recently, the gaming and hospitality industry has been slow in fully utilising technology. New Zealand-based SkyCity Entertainment Group is a showcase for the digital transformation of the industry, as CIO Glen McLatchie explains
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kyCity Entertainment Group is one of Australasia’s leading gaming and entertainment businesses, currently operating
five casinos, two hotels, and a host of bars and restaurants across four locations in New Zealand and Australia. Its leadership has seen a shift in the past few years, with a new and dynamic executive team. CIO Glen McLatchie joined in 2016, and CEO Graeme Stephens took the helm in 2017, while COO Michael Ahearn and CMO Liza McNally joined in Dec 17 and Jan 18 respectively – all bring new and innovative ideas to the digital future of the business. The company’s digital transformation coincides with three new projects: the New Zealand International Convention Centre (NZICC) in Auckland, plus two luxury hotels in Auckland and Adelaide.
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S K Y C I T Y E N T E R TA I N M E N T G R O U P
“ We have replaced or upgraded just about every single key application across the group” — Glen McLatchie, CIO, SKYCITY Entertainment Group
McLatchie’s responsibility as CIO is, in short, to “lift the digital capability of the organisation to be able to respond to future innovation initiatives and growth strategies”. This has meant a complete overhaul of SkyCity’s systems, from upgrading the aged technology infrastructure, to renewing the core transactional systems all the way out to point of sale and web and mobile interactions with customers. “The casino industry is not what I would describe as ‘tech-savvy’ in terms of
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transactional systems and digital customer interactions,” McLatchie explains. “There is some really smart technology in the gaming sector, but when it comes to digital interactions with customers it’s been lagging.” When McLatchie joined SkyCity in 2016, there was little infrastructure in place to deal with digital growth. “In two years, we have done a phenomenal amount of work, progressing from a handful of heroes holding the whole thing together to scalable tech that creates a digitised platform for the future” he praises. It is this new improved technology that will make the company’s latest projects stand out.
CLICK TO WATCH : ‘SKYCITY GAME PLAN 2019’ 07 The NZICC and two luxury hotels
through a dedicated team of IT special-
represent NZ$1bn worth of capital
ists. “We have replaced or upgraded
works, and will boast technologies
just about every single key application
such as keyless room entry, in-room
across the group,” he explains, includ-
tablets allowing control from one
ing an overhaul of the supply chain
central point, broadcast quality
and financial system with Microsoft,
networks for conferences, and
and a redevelopment of point-of-sale
advanced audio-visual systems
systems through new partner, TASK
for the best possible service.
Technologies.
Partnerships with companies such
McLatchie knows that SkyCity’s
as HP, Microsoft, Palo Alto and Cisco
point-of-sale is “the main area where
have been key to improving technology
customers connect directly with us,
in SkyCity’s casinos and hotels, but
so it’s really important that we get it
McLatchie emphasises how a lot of
right”. Using TASK’s state of the art
the work has been carried out in-house
POS interface, SkyCity can learn w w w.sk yc i t ye nte r t a i nme ntgrou p . com
S K Y C I T Y E N T E R TA I N M E N T G R O U P
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more about its customer base, providing
Yet how does a company as estab-
them with a better service. With every-
lished as SkyCity strike the balance
thing from menu flows that allow staff
between the legacy of its foundations
to cross sell or suggest substitution,
and a thriving digital transformation?
to promotional screens and ease of
A change in company culture is
reward redemption, through to cleaner
“absolutely critical,” McLatchie
and more accurate reporting, thereby
elucidates. “We have people in the
automating old manual processes.
organisation who have been doing
Customer habits, mobile terminals,
things the same way for many years,
and payment flexibility are all accessible
so we have had to go through a cultural
through professional and versatile
change to get people to understand
interfaces, and the partnership has
that technology is actually an enabler.”
been crucial to enhancing the way
McLatchie found that the best way
SkyCity now interacts with its customers.
to start was by describing “what good
looks like,” providing a frame of refer-
and as importantly a communication
ence through other successful compa-
component tied to the overall trans-
nies and sectors, and make sure
formation – all to make sure it lands
strategies are “well-articulated and
really well.
well-understood from the board down.”
“Effective change management is
Equally important is an effective
critical. Getting the operating model
change management programme,
right, ahead of implementing the
to which SkyCity has assigned a whole
technology, is key. When it’s not done
team. “Every single project has a training
well or is completely missed, projects
component, a testing component,
fail to get the take-up they need to
an operational change component,
drive benefits. It’s vital in a change
a benefits realisation component
programme that is as full as ours.”
E XE CU T I VE PRO FI LE
Glen McLatchie Glen joined SKYCITY in 2016 as the Chief Information Officer (CIO) and is responsible for lifting the digital capability of the organisation to be able to respond to future innovation initiatives and growth strategies. Previous to SKYCITY he was the General Manager ICT (CIO) with Meridian Energy for 6 years, where he successfully transformed and modernised their aging technology footprint and digital capability. Glen has over 25 years of experience working in and around technology, heading both Business and IT functions in executive positions across several industries. He has held multiple senior management roles with a global focus based in Australia, the United Kingdom and France over a 13 year period with BP Oil International, and has successfully run a technology company exporting products into China, Malaysia, India and the Middle east, winning both exporter and Hi-Tech corporate of the year. He holds a Master’s of Information Systems from Swinburne University of Technology, Australia, and a Bachelor of Business studies from Massey University, New Zealand. Glen is a Board member of the Auckland charity Big Brother Big Sister.
w w w.sk yc i t ye nte r t a i nme ntgrou p . com
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S K Y C I T Y E N T E R TA I N M E N T G R O U P
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NZ$831mn Approximate revenue
1996 Year founded 5,031
Approximate number of employees 11
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“ I n two years, we have done a phenomenal amount of work, progressing from a handful of heroes holding the whole thing together to tech that is best-inclass, from what I’ve seen” — Glen McLatchie, CIO, SKYCITY Entertainment Group
According to McLatchie, the coming year is the ‘year of data management and analytics and customer experience management’, which he says will deliver the real benefits behind the digital transformation. “We have worked very closely with Deloitte and Accenture respectively to ensure that we start with an operating model design before we even embark on technology choices for these critical areas of the transformation. For example, we have a great team of people from Deloitte working with us to design the operating model for data management and analytics, including a COE structure for data management to implementing an Azure platform. These partnerships become critical to the success of what we are doing.”
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S K Y C I T Y E N T E R TA I N M E N T G R O U P
Digital transformation is evidently of paramount importance to SkyCity’s growth with McLatchie as CIO. It is, however, integral to strike a balance between digital transformation and sustainability, a feat the company has accomplished with no compromise on either part. “Our approach to being a responsible citizen is quite detailed, in terms of our corporate and social responsibility. Being a responsible host is really important to us; we do a lot of work around ensuring our players 14
are looked after, including using facial recognition technology and mobile location tracking.”
“ E ffective change management is critical. If you don’t have that in place, that’s the number one reason projects fail” — Glen McLatchie, CIO, SKYCITY Entertainment Group
SkyCity is also dedicated to environmental sustainability, pledging to be carbon neutral by 2020, with the entire leadership team already so. It insists on ethical sourcing, low emissions, reducing waste and minimising environmental impact, as “if we don’t start doing it as corporations, nothing will change”. Putting money back into the communities in which it operates is also essential for the company, with an investment total of more than NZ$4 million across four NZ SkyCity
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trusts, and over NZ$1.6 million
a digital transformation, so I’m incred-
in sponsorships.
ibly proud of the team we’ve got here.”
The ambition of McLatchie and his
As the company embarks on its latest
team at SkyCity is evident, and their
ventures, it is this pride in driving
legacy will be that great digital
forward technology in the entertain-
transformation does not need to come
ment industry while being socially
at the expense of the heritage of
and environmentally sustainable that will
a company’s establishment, or have
ensure the continuation of its success.
a big environmental impact. McLatchie praises the dedicated team that has driven the company’s aspirations: “New Zealand is a small market, and everyone is trying to go through w w w.sk yc i t ye nte r t a i nme ntgrou p . com
SKYCITY Entertainment Group ALevel 13 99 Albert Street PO Box 6443 Wellesley Street Auckland New Zealand T +64 9 363 6000 www.skycityentertainmentgroup.com