Caesars: Gambling Big on Technology

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Caesars—Gambling Big on Technology
This case illustrates how database technologies can support an organization's business strategy. The large investment made by Caesars Entertainment Corporation, formerly Harrah's, in its information technology strategy has been tremendously successful. The results of Caesars investment at the time include: * 10 percent annual increase in customer visits.

* 33 percent increase in gross market revenue.
* Yearly profits of over US$208 million.
* Highest three-year ROI in the industry.
* A network that links over 42,000 gaming machines in 26 casinos across 12 states in the U.S. * Rated number six on the 100 best places to work in IT by ComputerWorld magazine. * Recipient of a Leadership in Data Warehousing Award from the Data Warehousing Institute (TDWI), the premier association for data warehousing. The casino industry is highly competitive—rivalry among existing competitors is fierce. Bill Harrah was a man ahead of his time when he opened his first bingo parlour in 1937 with the commitment of getting to know each one of his customers. In 1984, Phil Satre, president and CEO of Harrah's, continued that. In search of its competitive advantage, Harrah's invested in an enterprise-wide technology infrastructure to maintain Bill Harrah's original conviction: “Serve your customers well and they will be loyal.” Caesars' Commitment to Customers

When Harrah's implemented its patented Total RewardsTM program it was resigned to help build strong relationships with its customers. The program rewarded customers for their loyalty by tracking their gaming habits across its then 26 properties and currently maintains information on over 19 million customers, information the company uses to analyze, predict, and maximize each customer's value. At Caesars the program continues to be a success because of its implementation of a service-oriented strategy. Total Rewards allows Caesars to give every customer the appropriate...
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