Diamonds in the Data Mine

1
Diamonds in the Data Mine

• 119B
• Fall 2007
• Roldan

2
Harrahs DVD

• Competition -- Harrahs vs. Steve Wynn
• Introduction
• Science of Marketing
• Results

3
Bricks and Clicks Value Chain

• Harrahs Bricks
• Harrahs Clicks
• Technology Impact through
• Reduced Costs
• Differentiation

4
The Value Chain for Harrah's Entertainment
Inbound Logistics obtaining raw materials and
labor
Operations transforming raw materials into
products and services
Outbound Logistics delivering the products and
services to customers
Marketing Sales promoting the products and
services
After-Sales Service service after the sale of
products and services
Gaming machines Casino personnel
Machine placement, Maintenance Customer Service
Total Rewards
Total Rewards
Casinos
Card levels determine service levels Create/feed
customer aspiration for higher card levels
Track Customer behavior in response
to experiments with casino layout Track
customer service quality provided by employees
Track customer loyalty, visits, activity
across all properties Track same-store revenue
growth
Test Customer price sensitivity to achieve price
differentiation Differentiate offerings based on
customer behavior/ preferences
Track gaming equipment as they arrive
for placement
5
Business Intelligence Technologies

• Microsoft Analysis tools

6
VDP

• Examples -- MMs, Wired,Harrahs
• MS Word
• DirectSmile and InDesign

7
In Class

• Build the bricks and clicks value chain for your
  company
• Identify cost reduction and/or differentiation
  enabled by technologies like BI, DP, your teams
  choice
• 5 minute report-backs at 515