This article will discuss digital transformation for Integrated resorts, where Melco Resorts & Entertainment will add digital transformation into their integrated international resorts. Avery Palos, Senior Vice President, and Global Chief Information Officer, said that the concept behind integrated resorts is a combination of hospitality, food, beverage, retail shopping, casino, entertainment, and transportation. Melco Resorts & Entertainment have operations in Macau, the Philippines, and Cyprus with physical operating licenses that operate and manage casino facilities. Then they have offices in Japan and the headquarters in Hong Kong.
As a company, Melco Resorts & Entertainment is only around 20 years of age. Because of such a “young age,” the company retains a positive dynamism. Avery Palos believes that this makes the business more receptive to changes. The company is relatively new, and so is the management, which helped deliver the goals needed for digital transformation.
Changing The Guest Experience
Emerging technologies help the modern hospitality industry to build innovative guest-centric experiences. The change starts from comprehensive smart room solutions to data solutions to artificial intelligence. The digitalization journey consists in:
- Transformative mobile applications.
- Cloud & Hybrid infrastructure.
- Internet of Things and smart rooms.
- Intelligent online bookings & self-check-in.
- AI-driven customer experience.
- Indoor positioning, beacons, GPS, Wi-Fi tracking, etc.
For example, a smart hotel room will be equipped with Smart TV, Smart Shades, Motion Sensors, Air Conditioning, Smoke Detectors, Water Leak Detector, Smart Lock, and Mobile Keyless Entry. With the smartphone’s help, a guest can access the Contactless Check-in/Check-out and the Smart Room System with IoT (Internet of Things).
Today, hospitality leaders should allow technology to help them predict precision and attune the guest experience on-the-go to fit personal demands. Melco Resorts & Entertainment’s goal was to empower the hospitality business to accelerate the adoption of new technologies, untangle complex issues, and create ongoing innovation.
One of Melco’s most significant achievements was to work with one of the notable Melco Resort from Macau, where they applied a full spectrum of unique assets for developing a single-platform solution. After many tryings, they managed to use serverless, cloud-based, and edge technologies to create a unique ecosystem.
The Benefits of Digital Transformation
Chang Lim, Vice President at Melco, said that they are lucky to see exciting stuff and develop a cross-functional view of the company. Besides, it is beneficial to have a digital transformation in the integrated resort industry. However, it can be tricky to add the digital transformation to a wide range of services. Melco Resorts have to manage casinos, hotels, restaurants, malls, transportation and support the company’s back office in Macau, Manila, and Cyprus. Because of such a wide range of services, it is a lot harder to bring everything together. There is a lot of coordination effort.
Melco’s digital transformation project is ambitious, and because of this, there is also a need to focus on culture. Avery Palos says that there is always a bit of a tendency to stay with what you know and stay in the comfort zone to some degree. And asking people to do things that are new or different can be challenging. A grassroots approach was required to overcome this challenge, where they tried to get people excited about the latest technology. The new technology can make their lives easier, either from the products and services they give to the guests or its consumption. For example, Melco’s employees have an employee mobile that allows them to use their guests’ services.
Chang Lim emphasizes the support given by the senior management for the digital initiatives. The digital initiatives are many, and they span on a multitude of systems and also business areas. Lim also adds that the company operates on the cloud. Over 80% of their services are on it. Besides, in some places like Cyprus, the cloud services are at even 100%. Emerging technologies play a significant role in the Melco organization. They are also maybe one of the first casino operators that have adopted blockchain technology as part of their production environment.
Melco’s Transformation Through the Cloud
Amazon Web Services is the company that operates the cloud transformation for Melco Resorts & Entertainment. Amazon has the most comprehensive and widely utilized cloud platforms in the world. The reason is that Amazon is known for building and running a massive eCommerce platform for over a decade. They realized that they had developed a core competency in operating large-scale technology infrastructure. Because of that, Amazon Web Services were created with the mission of serving a new customer set.
In short AWB, they are at the forefront of cloud computing which has revolutionized the world. Eva Wong, Senior Business Development Manager, said that cloud computing means on-demand delivery of IT resources via the Internet. AWS manages and operates a technology infrastructure in a secure environment. Companies can access these resources through the Internet, where they can develop and run their applications. The cloud capacity can either grow or shrink. It is all up to what other businesses use. Eva Wong sees more and more enterprises that adopt cloud platforms for their purpose.
That type of spirit was seen even in collaboration with Melco Resorts & Entertainment, where Melco started to use the AWS platforms to build their applications four years ago. Because of the agility, scalability, and global presence of AWS, Melco could expand its applications globally in weeks, compared to months in traditional on-premise data centers. Aside from the platform scale, Melco can also deliver a bespoke customer experience to guests via the MelSuite, a Smart-in-Room-Management-System built on AWS.
On the AWS platform, Melco has over 175 fully-featured services that can be experimental and innovative because they can test and try new ideas with minimal costs. They can also compute resources that will be readily available to them as they require. Eva Wong collaborates with Melco as a resilient one that will go into the future, evolving alongside critical trends such as know-your-customer initiatives.
The customer experience is extended, where guests can interact digitally with the resort. Besides, there is also more interest in interactive video services where live streaming solutions that are quick and easy to set up are ideal for creating interactive experiences with customers.