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Global Amusement Company: Navigating Technological Changes and Digital Transformation


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Role: Chief Strategy Officer
Industry: Amusement, Global


Situation:

Our global amusement company operates theme parks and entertainment resorts worldwide. The industry is experiencing unprecedented changes due to technological advancements, changing consumer tastes, and the after-effects of the global health crisis, which has accelerated the shift towards digital entertainment options. Despite these challenges, our brand remains strong, respected for our immersive experiences and customer service. Internally, we face challenges related to aging infrastructure in some parks and resistance to change, particularly in adopting digital technologies to enhance the customer experience. Strategically, we are considering investing in digital transformation to modernize attractions and operations, developing new, more flexible business models, and expanding into digital entertainment to complement our physical experiences.


Question to Marcus:


How should we prioritize our investments in digital transformation, develop new business models, and potentially expand into digital entertainment to ensure our long-term competitiveness in the evolving landscape of global amusement and entertainment?


Based on your specific organizational details captured above, Marcus recommends the following areas for evaluation (in roughly decreasing priority). If you need any further clarification or details on the specific frameworks and concepts described below, please contact us: support@flevy.com.

Digital Transformation

Investing in Digital Transformation is paramount for Amusement, Global to stay competitive. Transitioning to digital ride and attraction management systems can greatly enhance the visitor experience by reducing wait times and personalizing interactions using Analytics target=_blank>Data Analytics.

Implementing IoT devices can also streamline park operations through real-time monitoring of infrastructure, predicting maintenance needs before breakdowns occur. Furthermore, leveraging AI for Customer Service, such as chatbots for inquiries and personalized recommendations, can enhance visitor satisfaction. A phased approach to digital adoption, beginning with high-impact areas, will enable the organization to manage resistance to change and ensure smooth implementation.

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Customer Experience Management

Amusement, Global must place a strong focus on Customer Experience Management (CEM) to adapt to changing consumer preferences. Beyond just the rides, consider the end-to-end experience of the visitor, from ticket purchase to post-visit engagement.

Utilize data analytics to understand visitor behaviors and preferences, allowing for more personalized and memorable experiences. For example, Mobile Apps can offer guests tailored itineraries, real-time updates, and Augmented Reality (AR) enhancements. Additionally, collecting and acting on customer Feedback in real-time through digital platforms can help continuously refine and improve the guest experience.

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Innovation Management

To stay ahead in the rapidly evolving amusement industry, fostering a culture of Innovation is essential. Encourage cross-functional teams to ideate and pilot new concepts, such as immersive digital attractions or hybrid virtual-physical experiences.

Establish an innovation lab dedicated to exploring cutting-edge technologies like VR/AR and AI to create new attractions that can capture the evolving tastes of consumers. Experimentation with flexible business models, such as subscription services or dynamic pricing, can also drive growth and engagement. By embedding innovation into the company’s fabric, Amusement, Global can better navigate industry shifts.

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Change Management

Successfully navigating digital transformation and modernization efforts requires robust Change Management strategies. Develop a clear vision and communicate the benefits of digital technologies to all stakeholders to gain buy-in and reduce resistance.

Provide comprehensive training programs to equip employees with the necessary skills and knowledge to adapt to new systems and processes. Foster a culture of openness where feedback is encouraged, and employees feel empowered to contribute to the change process. Regularly monitor and measure the effectiveness of change initiatives, making adjustments as needed to ensure smooth transitions and sustained improvements.

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Digital Business Models

Exploring and developing new digital business models is crucial for Amusement, Global. Consider diversifying revenue streams through virtual experiences and digital content that can engage customers beyond their physical visits.

For instance, virtual reality (VR) experiences of theme park attractions can be offered as standalone products. Subscription-based access to digital content and exclusive behind-the-scenes tours can create additional value. Moreover, integrating digital payment solutions and personalized loyalty programs can enhance customer convenience and retention. Embracing these models not only complements physical experiences but also opens new growth avenues.

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Technology Adoption Strategy

Developing a well-defined technology adoption strategy is essential to ensure investments are aligned with the company’s strategic goals. Conduct a thorough assessment of current technological capabilities and identify gaps that need addressing.

Prioritize initiatives based on their potential impact on customer experience and operational efficiency. Engage with technology partners and vendors to stay abreast of the latest advancements and Best Practices. Piloting new technologies on a smaller scale before full-scale implementation can help mitigate risks and refine the approach. A roadmap with clear milestones and KPIs will facilitate organized and effective technology adoption.

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Employee Engagement

Engaging employees in the digital transformation journey is critical for its success. Communicate the vision and importance of modernization efforts transparently to build trust and reduce resistance.

Recognize and reward employees who embrace new technologies and processes. Create opportunities for employees to participate in innovation initiatives, allowing them to contribute ideas and solutions. Ongoing training and development programs will ensure employees are equipped to handle new digital tools and systems. A motivated and well-informed workforce is essential for driving and sustaining digital transformation efforts.

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Market Analysis

Conducting continuous Market Analysis will help Amusement, Global stay ahead of industry trends and consumer preferences. Utilize data analytics to track market dynamics, competitor activities, and emerging technologies.

Regularly gather Customer Insights through surveys, social media listening, and direct feedback to understand evolving needs and expectations. This information can guide the development of new attractions, digital offerings, and business models. Keeping a pulse on the market will enable proactive strategy adjustments and ensure the company remains relevant in a rapidly changing landscape.

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