A recent report by KPMG Consulting identified the gaming industry as a laggard in the purchase, use and understanding of computers and technology. The excellent report cites a number of statistics to back this up, such as the lower compensation for executives in the computer field in the gaming industry and it also addresses the resulting lack of system integration in the industry. Many of these challenges are known by managers that deal with incompatible systems and fall back on pre-computer age methods to manage their businesses. This article is going to look at why the gaming industry now has this challenge, and how it can be addressed — particular by the small to medium size operations that do not have the resources of a large IT ("Information Technology") staff available.

HOW WE GOT HERE

Remember how this industry developed and continues to hire and promote people, and the reasons for the lack of technology become clear. Originally, slot machines with on-line systems did not exist, and the managers came up through the ranks of the work force, rising through experience on the gaming floor. The qualifications for promotion have never been linked to the ability to deal with technology in anyway. Promotion depended on loyalty, the ability to "case" the floor, know the games, and interact with customers.

Conversely, IT staff members have been hired for specific technical skills, promoted at lower pay and in many cases lack the ability to communicate with executives and understand the business requirements particular to the gaming industry. Small to medium organizations predominately don’t have higher level positions such as Chief Information Officer, and have the small IT staffs reporting to the Finance department. Typically Finance looks at IT as support and maintenance, leaving the department in the compromising position of trying to support an infrastructure with no direction or even worse, direction that is driven solely by a financial perspectives, not operational requirements.

While slot departments have required technical expertise, these skills are primarily specific in nature, using custom built slot management systems. On the table games side, managers learn how to use the rating systems, and marketing managers learn how to use the marketing modules. Generally they gain this knowledge from scratch, with no previous experience in computers. Each person learns only the tasks they need to fulfill issuing complimentaries, or reviewing ratings. Even today, if one walks into the executive offices of many large gaming companies, one will see executive desks with computers available to access data, but they draft memos by hand for an assistant to type! When was the last time a candidate for pit manager or above was asked to demonstrate an ability with Word or Excel? It never happened to us at anytime, and has never been a required job skill.

These people later become the decision makers in the business. The casino is where the money is, and it will drive the requirements for integration of technology to improve job performance and operations. If the decision makers have only a rudimentary understanding of the power of computers and their application in the work environment, then they do not know what to ask the technology managers for. Compounding this sea of ignorance is the natural tendency of not wanting to investigate an area where lack of knowledge by executives will be come readily apparent. Everyone continues to do things the "way they have always been done" because, "this is what works".

So, decision makers without computer skills do not demand those skills of the people they hire to join them, unless they are in a supporting role — essentially to assist the decision makers in the areas that they are deficient in. As a result, there is no culture of trying to get technology to make the guest experience easier. The KPMG study points out that the top tier of guests in casinos get first class service, but the lesser customers do not. The reason for this is simple, casinos can afford to devote manpower to the top tier customers, but cannot do it at lower levels. The only way the lower tier customers can be given the same attention, is by the use of technology to provide front line employees the tools that will automate the decision making efforts for the guest.

On the technology side, current inadequate infrastructures have evolved, again because people in general management fear that they don’t know what to expect from IT. As a result IT is viewed as a costly support department that lacks the management backing needed to hire and promote experienced staff.

ACTION PLAN

Now that you understand the challenge, what can be done about it? Clearly replacing all of your managers with computer savvy people is not practical, although, that is what you need to end up achieving. So there needs to be plan of action.

1. New Hires and Promotions above a certain level must have the basic e-mail, word processing and spread sheet skills — even for positions in the casino pit and on the slot floor. Marketing, famous everywhere for getting exemptions to rules of this kind must not be exempted, they should if anything have a higher standard of skills. It is marketing that will shape your ability to use computers to increase revenue. Every weekly marketing meeting should have the top IT person present. You should find this particularly rewarding, it will help IT understand the goals and determine the infrastructure to support them.
   
   
2. IT management in charge of technology should be required to have a skill set that reflects knowledge of the gaming industry as well as technical expertise. The leader should report to general management.
   
   
3. Your existing managers must be required to upgrade their computer skills. This requirement comes with responsibility on both sides. You the employer must give the managers the tools and infrastructure to learn the skills, and the time to do it. This may require outsourcing the training for many smaller properties, or in-house if there are enough managers to justify it. It also should be made clear to the managers that failure to achieve a certain standard will have a negative impact on their career with your property. This skill training must also be available to those who are seeking to be promoted from within.
   
   
4. E-mail should be a mandatory form of communication for many tasks. For example, the handwritten shift reports that appear to be a custom from the Jurassic age should all be prepared and e-mailed to the relevant parties. They can then be filed and accessed in an efficient manner. Many managers are afraid of e-mail in the workplace, preferring verbal communication, as e-mail memorializes all actions and "conversations" about the workplace. More importantly, it makes everyone responsible for their actions, and it requires discipline. You should also ensure that you have consumer magazines dealing with software and computers in break areas and in offices.
   
   
5. The technology department, whether it is a one person operation, or a 50 person operation also will have some new responsibilities. They have to rise above the day to day maintenance of the systems and understand what their customers (the managers and front line employees) want and need to achieve company objectives.

Believe it or not, that is the easy part of the plan! You set the new hiring and training standards, arrange the training policy, promote the implementation of a solid well planned infrastructure, and sit back and wait for everything to fall into place — and for your newly skilled managers to start using computers. Well, it will not happen unless you create a culture of using computers and technology. This is a process that requires many parts and constant attention.

It is essential that you create an environment where your managers think of computers and technology as a constant resource to enhance the customer experience and help the business grow. To succeed, your technology staff will need to be involved in the day to day operations and planning of the company.

Commitment will be required to put a structure in place that will support the demands you are creating. Software currently available specific to the Gaming industry is somewhat limited. Consideration for in-house development staffs or outsourcing to achieve specific business requirements will be needed. The IT foundation, built properly can accomplish a user friendly, seamless infrastructure that will pay for itself in short order.

If you want your company to be able to compete effectively for that most valued entity… the customer, you must build the infrastructure, and require the participation of everyone to bring your company into the present. Time is short, each year your customers learn and understand more about what technology can do for them, and what it should be doing for you. Your choice is simple — adapt to using technology correctly or become irrelevant in your marketplace!