The Stadium As A Platform - Deloitte US Audit .
The stadium as a platform: A new model for integrating venue technology into sports businessThe stadium as a platformA new model for integrating venuetechnology into sports business1
The stadium as a platform: A new model for integrating venue technology into sports businessThe ancient Greeks built the world’s first known stadium at Olympia in the 8thcentury BC. It consisted of a simple track surrounded by mud-formed seats anda single stone stand for judges to observe the games dedicated to Zeus. Thelargest surviving ancient Greek stadium, the Panathenaic Stadium, today holds45,000 in its all-marble seats surrounding a narrow track. By the time the firstpurpose-built stadiums for today’s most popular sports were constructed, littlehad changed—the first stadiums were simple ballfields with grandstands (nowmade from wood) on the side.Much has changed in the years since, such as expansion of seating capacity,the rise and fall of multi-purpose “concrete donuts,” and new stadiumconstruction moving to relatively cheap land in the American suburbs. Butmost sports venues still offer the same basic design, an analog experiencewith the game as the single focus of attention.Today a new dominant model is emerging. Geographically, new venues aremoving back to the city, anchoring larger mixed-use real estate developmentsand creating “arena districts” that reshape commercial activity in theneighborhood. Meanwhile, fans are playing an increasingly important rolein shaping and directing the experience—interacting with teams and playersin new ways on the field, in the concourses, and outside the stadium.Concurrent to these trends in stadium construction, over the past fifty years,transformative advances in consumer technology have occurred. Increasesin computing power and the shift to mobile and cloud computing as thedominant paradigm have fundamentally reshaped commerce. Today’ssmartphone owner carries a device with processing power that would haverequired a computer the size of a stadium fifty years ago.These trends are increasingly converging. With bits and atoms comingtogether, the sports industry is moving toward a new model in which thestadium is a technological and commercial platform. This change subverts thetraditional way of thinking about the stadium experience. It is no longer enoughto only consider the role of sightlines, seat width, and the price of beer. Teamsneed to engage their fans and event-goers to encourage them to shape theirown experience. While the platform concept requires an organizational andoperational mindset shift for teams and stadium operators, teams thatembrace it in stadium design, construction, and operation will be on thevanguard of offering their fans the best experience in the stadium of the future.2
The stadium as a platform: A new model for integrating venue technology into sports businessThree layers of the stadium technology “stack”The concept of the stadium as a platform comprises three “layers” of infrastructure,resources, and activities that work together to enable stadium operators and teamsto create new experiences for all visitors, regardless of the event.Customers(Fans, event-goers, tenants)Experience layerA combination of team-createdand third-party experiences thatare built on top of the platformDevelopersDataThird-party experience Largecorporations Startups SponsorsEnabling technology layerTools, protocols, and data thatthe team gives to fans, partners,and sponsors to accesscore infrastructureTeam-owned experienceTechnology servicesTechnology infrastructure layerTeam-owned set of physical hardware,networking equipment, and softwarethat powers arena and enablesin-arena experiencesTechnology infrastructure3
The stadium as a platform: A new model for integrating venue technology into sports businessTechnology infrastructureThe modern stadium is a technological marvel, withthousands of access points and hundreds of milesof networking cable installed in a large and complexbuilding footprint. The technology infrastructure layercomprises the full set of physical hardware, networkingequipment, and operational software that serves asthe venue’s foundation. This is the layer that requiressignificant investment–often tens of millions ofdollars–by the stadium owner and team to installand maintain. Included in this layer are elements like: Wi-Fi access points and distributed antennasystems to provide fans connectivity on theirmobile devices Networked hardware / beacon technologyto enable location-based service to fans andstadium operations staff Connected, immersive display hardware that canturn all parts of the arena into interactive screens Venue-wide enterprise resource planning systemsto integrate in-stadium functions like operations/ facilities, retail point of sale, customer service,ticketing, and social media Data ingestion, processing, output, andvisualization systems that can integrate stadiumand game data, package it into fan-friendlyformats, and display across a range of devices Purpose-built handheld equipment for stadiumoperations staff Systems integration solutions that enable stadiumtechnology to integrate with its surroundingenvironment, including broadcast systems, nearbyretail / dining, and municipal transit systems Retail point of sale equipment and othercommerce engine infrastructure that can handlea wide range of transactions, payment types, andprocessing systems4PRECURSOR: Avaya Stadium(San Jose Earthquakes)The San Jose Earthquakes, together with stadiumsponsor Avaya, created a “fan engagement wall,”a permanently-installed digital, interactive screenthat displays fans’ social media posts andstatistics throughout the game.The team and stadium have also adopted asocial media analytics tool that allows themto understand fan sentiment about the team,the game, the stadium experience, and displaycontent relevant to what is happening onthe field.Fans’ social media posts are captured andanalyzed using social listening technologies andsocial media analytics platforms to get a moreaccurate and real-time gauge on the fanexperience and identify any operational issuesquickly for resolution by venue employees.Future applications How can teams engage with their fans’ socialmedia without massive new technologyimplementation through use of existinginfrastructure? What do fans want to see? Highlights,commentary, player comments or opinionsand / or, takes as action unfolds on the field
The stadium as a platform: A new model for integrating venue technology into sports businessEnabling technologiesWhile a strong technology foundation is criticalto providing the fan service that is expected inmodern stadiums, the potential for transformativevalue creation lies in opening up the stadium toallow fans and other partners to build on top of thetechnology and sport infrastructure of the stadium.Moving up the stack, enabling technologies includethe tools, protocols, and data that teams and venuesprovide to fans, partners, and sponsors to accessthe core infrastructure. Included in this layer areelements like: Application programming interfaces (APIs) thatallow developers to build apps and other solutionsusing stadium information, such as game / eventschedules, seating maps, amenity locations, andticket prices Identity management tools to give each fan aunified credential for use in every transaction andtouchpoint including arena entry as well as thepurchase of tickets, concessions, and merchandise Audio and video feeds that capture fan-createdcontent for integration into social media,in-stadium promotions, and game broadcasts Social listening / analytics solutions that giveteams and venues the immediate “voice of thefan” regarding the stadium experience and anyoperational problems that may arise, forimmediate resolutionPRECURSOR: Amazon EchoThe Echo, a wireless speaker and voicecommand device, is a hub that allows usersto access Alexa, Amazon’s virtual assistant thatresponds to commands including placingAmazon orders, maintaining wish lists, searchingfor information, and streaming music.The Echo’s ecosystem is connected to Amazon’smedia services (like Prime Music), hardware(Kindle), and e-commerce storefront for aseamless user experience.Open sourced Amazon “skills” give users anddevelopers an open API to program new actionsand settings for the Echo to incorporate, rangingfrom home temperature control to controllinglights to health and hospital integration (e.g.,asking Alexa “My child has a 101 degree fever,should I be concerned?).Future applications Build out additional hardware compatibilityto create a truly connected home, store,or venue; all devices connected through aunified cloud Provide in-store to customers via virtualassistants that “live” on shop floors and cananswer questions and provide services5
The stadium as a platform: A new model for integrating venue technology into sports businessPRECURSOR: Disney WorldPRECURSOR: US Bank Stadium(Minnesota Vikings)Guests are provided RFID enabled “MagicBands”containing all Disney information from hotelroom keys to park admission to fastpassesMagicBands are linked to customer credit cardsso that they may use bands to purchaseconcessions, souvenirs, and photos throughoutthe park.The stadium’s app will provide traffic conditionsand parking alerts that direct fans to the leastcongested stadium entrances as well asup-to-the-minute statuses on the least crowdedbathrooms and concessions.Specific kiosks will allow users to utilize theirphones for entry and then receive turn-by-turndirections to their seat.Guests receive custom tailored offers based on alinked Disney Experience Profile containing pastpurchase information as well as user selectedpreferences.Push notifications will deliver in-game dealsand promotions.Future applications Big data accumulates through the use ofthe band providing numerous opportunitiesfor vendors to further increase the level ofpersonalization utilized for in-stadium offersand promotions Mobile integration offers possibility to reduceoverhead and allow customers to accessinformation outside of the park from thecomfort of their own devicesExperience layerThe top layer of the stack is where fans live: the fanexperience layer comprises all of the devices, apps,activities, and commercial transactions that fansbring to the stadium and use before, during, andafter the game. Venues and teams—particularly theirmarketing and fan engagement groups—continuouslyseek to develop and improve in this domain. Teamshave recently created a host of new touchpoints toimprove the fan experience on mobile devices. Theseinclude elements like: Team and stadium mobile apps that give fanscritical information about the venue and the gamesuch as the location of seats, concessions, andother stadium amenities6Future applications How can additional API’s (Google Maps,Uber, social media feeds) be integratedinto apps to create a more seamlessmobile experience? Mobile apps open several revenue streamsincluding paid targeted marketing andteam-directed ecommerce There is opportunity for league-wide appsto leverage common protocols and increaseapplication and stadium adoption Mobile commerce and payment solutions forfood and beverage ordering / delivery andin-stadium retailMobile ticketing that allows fans to scan theirphone for entry and creates “virtual ticket stubs”or a digital journal of their attendance historyFan loyalty and rewards programs that offerrepeat visitors special offers and unique accessIntegration with social media to make it simplefor fans to share content with one another in thearena and with friends at home
The stadium as a platform: A new model for integrating venue technology into sports businessIn-stadiumspecialpromotionsOpen contentsharingUnique digitalticket stubsEnhance in-gamereplays andanalysisLoyalty and fanpoint party experienceEnablingtechnologylayerTeam-owned experienceOpen stadiuminformation APIsSocial listeningand analyticsWidespreadconnectivityInteractive touchscreen displaysMobile A / VstreamingUnified ermissioning /licensingLoyalty pointsblockchainUbiquitous POSand Mobile AccessSystemsBroadcastintegration offan contentTechnology servicesTechnology infrastructureTransactionautomation andunificationStadium specificmobile appIn-stadiumanalyticsintegrationEphemeral socialnetworkFan controlledstadium erThe transformative potential of a stadium platform,however, rests in opening up the stadium and itshardware / software infrastructure to developers,sponsors, and users to build upon. The result is a setof third-party experiences that complement what theteam can deliver. While a team is focused on deliveringthe best possible game experience to its fans, it can’tbe all things to all people. Giving developers access tostadium infrastructure allows the team to benefit fromthe creativity of many. Examples of third-partyexperiences could include: Recreating the stadium in virtual reality to expandthe in-game fan experience beyond the walls ofthe venue Visualizing player and game data over the fieldthrough augmented reality displays Creating a “game within the game” system wherefans bet virtual currency (or, using bitcoin /blockchain, real currency) on in-game events,or use stadium-provided technology for othermicro-transactions ile devicesfor event staffAugmentedreality / virtualrealityDistributedantenna systemConnected,immersive displayhardwareLeague-wide fanbased dataanalyticsEnterprise-wideplanningDual band Wi-FiCommerceengineSystemsintegrated withpublic transitSingularapplicationintegrationDemocratizing in-stadium content by givingcontrol over stadium elements (in-game signage,music, video messages) to the fansIncluding ephemeral social networks thatstrengthen the temporary connections betweenfans in the stadium based on their shared in-gameexperiencePutting advanced analytics in the stands byintegrating in-game data into the fan experiencethrough data visualizationBuilding a platform to bring the latest advances inconsumer technology into the stadium can soundincredibly appealing, especially as a way for thestadium to compete with fans’ watching the game athome. After all, these technologies can be used just aseasily outside of the stadium. Stadium operators,however, need to be conscious of what it takes tobuild a platform and the changes in operating mindsetand organizational behavior it entails.7
The stadium as a platform: A new model for integrating venue technology into sports businessCreating and building on the stadium platformThe fundamental economic changes of “softwareeating the world”—especially exponential decreases inproduction costs and distribution costs driven by theInternet—have increased the strategic value ofplatforms in every industry, including sports andentertainment. For every attempt to create and scalea new platform, though, there may be even morecompeting definitions on just what a platform is. Inthinking of how stadium technology will change the fanexperience, we use a possibly apocryphal definitionattributed to Bill Gates—a commercial platform existswhen the economic value of everybody that uses itexceeds the value of the company that creates it.1Transforming the stadium into a platform means“opening up” the stadium to third parties, includingdevelopers, sponsors, and advertisers. Thistransformation carries with it significant changesfor the stadium business model. For example, theeconomics of a platform are very different from solelyselling a stadium experience, an event surrounded byadjacent businesses like concessions and retail, forthe price of a ticket. In this new model, the stadiumowner is not just the operator of the venue, but alsothe architect and manager of the platform. While thisshift carries risks, there is also significant opportunityto create new sources of value for fans andpartners alike.Building a platform: Lessons from AppleOne of the foremost examples of a companyadopting a platform strategy is Apple’sevolution from selling Macintosh computersto architecting a platform around iOS mobiledevices (the iPhone mobile device, iPad device,and Apple Watch wearable device). Applehas created a common “infrastructure” layerconsisting of Apple-made devices and the iOSoperating system. On top of this layer, Apple’sApp Store online store gives users access tomillions of apps that essentially individualizethe iPhone experience and functionality forevery user.1The iOS / App Store platform is supported andgrown by the tools and resources that Applegives to developers to support and encouragebuilding apps for the iPhone and iPad. While theiOS / App Store model may seem necessarilyconnected today, the first iPhone notablyincluded only Apple-made apps, allegedly atthe direction of Steve Jobs, who instructedearly mobile developers to build Web apps.Apple changed course by 2008, allowing thirdparty apps, releasing the first iPhone SoftwareDevelopment Kit, and creating the App Store,laying the groundwork for what would becomea 6 billion business in net revenue to Appleby 2015.The network effect generated by growth in thenumber of Apple users on iOS devices has madethe App Store a very desirable and profitablechannel for software developers to sell theirapps. At the same time, the presence of moreand desirable apps in the App Store increasesthe attractiveness of the iOS ecosystem to phoneusers, reinforcing the value of the platform andencouraging iPhone purchases.Apple made a critical, strategic choice inestablishing a “walled garden” approach tothe App Store: apps must comply with strictguidelines for content, design, and pricing, andare subject to Apple approval before appearing inthe store. This rigorous governance process hasa limiting effect on the quantity of apps availableon the Apple platform and has also resultedin increased security and fewer iOS malwareincidents relative to other computing operatingsystems. This approach allows Apple to maintaina unified user experience across iOS devices,consistent with the company’s overarchingproduct design script-chamath-at-strictlyvcs-insider-series/8
The stadium as a platform: A new model for integrating venue technology into sports businessThere are three primary components to architectingand maintaining the stadium platform:Implications for teams and stadium operators1.Teams that are building new venues have ablank slate to work with and are thus bestpositioned to think about creating the stadiumplatform from the ground up. From day one ofplanning for the design and construction of a newstadium, think about the technology infrastructurerequired to create the experiences you want fansto have–including what is possible today, whatcould be possible by the time the stadium opens,and the future of the experience throughout thestadium’s life.2.Existing stadiums can build platform designinto technology refresh cycles to addressfan needs that have emerged since thestadium’s opening. The competition betweennew stadiums to be the best, most technicallyadvanced venue means that each opening sets anew target for subsequent stadiums to surpass.As a result, the “honeymoon period” of a newstadium is compressing, and fans’ preferencesand expectations are changing rapidly. Even if anoperating stadium cannot design its infrastructurefrom scratch or overhaul its existing infrastructure,teams can still use the platform concept to buildtechnology into meeting their fans’ changing needs.Any system refresh or technical upgrade within thestadium (e.g., installing beacons, introducing mobileticketing / payments) should be considered throughthe lens of how the new components will integratewith other parts of the stadium and can be openedup to outside development. Additionally, advancesin cloud i
Recreating the stadium in virtual reality to expand the in-game fan experience beyond the walls of the venue Visualizing player and game data over the field through augmented reality displays Creating a “game within the game” system where fans bet virtual currency (or, using bitcoin / blockchain, real currency) on in-game events,
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