A whole new ball game

Navigating digital change

in the sports industry
A whole new ball game

There is no question that technology has transformed, and will Sports organizations need to strategically leverage digital media
continue to transform, businesses across all industries, radically to build direct connections with fans. One way is to partner with
altering both the customer experience and the inner workings broadcasters to master content across multiple channels, which
of organizations. The sports industry, in particular, is undergoing also allows for a wealth of real-time marketing opportunities.
rapid upheaval, and digital technology is unlocking unprecedented Ultimately, digital optimization of content across platforms will help
opportunities for growth. In order to fully capitalize on those broaden content reach for sports organization.
opportunities, however, sports organizations will likely need a
digital overhaul. “Doing digital” is not enough: They will have to
embed digital in every aspect of the business, transforming people, Defining your “digital ambition”
processes, and technology. Becoming truly digital starts with defining your digital
ambition. Consider the following:
Why undertake a digital transformation?
Going through any kind of organizational transformation is not to 1. What are the goals of your organization?
be taken lightly. But given the significant opportunities that exist The company as a whole should agree on goals and
for sports organizations, the undertaking is well-worth considering. objectives from the outset. It is crucial to have these in
These opportunities fall into four categories. place before developing a digital strategy, as the digital
strategy should support the entire business – not just
Broaden content reach individual parts.
Technology is playing a larger role than ever in the lives of fans,
opening the way for sports organizations to create new, innovative 2. What are your digital goals?
customer experiences. Partnering with broadcasters and new Setting specific digital goals will help your organization
distribution platforms can give fans the experiences they want, and narrow its focus and better define strategies and tactics
capture viewership across multiple devices, including mobile. that can be used to accomplish those goals.

The rise of the smartphone and the tablet may have contributed 3. What is your digital investment strategy?
to an erosion in live game attendance, as more people switch to Success is dependent on acknowledging how much of
live streaming. Attendance for the National Football League (NFL) digital investment you want to make and understanding
and Major League Baseball (MLB) is below 2007 levels, while both what is possible with a given dollar amount.
National Hockey League (NHL) and National Basketball Association
(NBA) attendance has declined since the 2012-2013 season.1 At the
same time, over-the-top (OTT) platforms are emerging as the new
engine for growth: While the NFL has seen a drop in TV ratings,
fans streaming NFL games increased 25% in 2017.2

NFL attendance: 2010-2017

70
69
(thousands)

69
Attendance

68
68
67
67
66
66

010 011 012 013 014 015 016 017

2 2 2 2 2 2 2 2

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 Navigating digital change in the sports industry

Drive the fan experience Generate new revenue

Many sports fans are no longer interested in the game alone – they In a world where big data predominates, sports organizations can
crave the kind of exclusive and shareable experiences that can be mine fans’ data to better understand their habits, preferences,
amplified by technology. Sports organizations could grow stadium and demographics, ultimately unlocking new revenue streams
attendance by using immersive technologies such as augmented by reaching fans in innovative ways—for example, by adding new
and virtual reality to create an intensely exciting viewing services to existing offerings. They can also use data to improve
experience. They can also increase engagement by leveraging core business operations, build and solidify partner relationships,
loyalty and customer relationship management data to tailor and even develop entirely new business models.
experiences to individual fan preferences.
But perhaps even more compelling is the direct monetization of
Engage sponsors anonymized data through external products and solutions. In fact,
Fans are interacting with media more than ever before – between today, one third of all companies are commercializing or sharing
2014 and 2016, audio consumption, TV viewership, and application their data to create new revenue streams.5 Ways that sports
usage increased across the board.3 Couple this with the fact that organizations can enter the game include:
sports fans are increasingly receptive to personalized engagement,
and therein lies a world of opportunity. Targeted advertisements
•• Selling raw data through an established exchange
are reported to be twice as effective on average as non-targeted
ads: 60% of millennials would willingly share their data for coupons •• Trading information/pooling data into a shared utility
or promotions, and 71% of consumers would rather see ads
•• Selling persona and device ID data on ad exchanges
focused on their interests.4
•• Media activation based on customer contextual data (in-home/
Digital analytics allow for a better understanding of what out-of-home)
excites fans, giving sponsors insight into what types of ads and
engagement models work for individual audiences. Digital tools can
also provide sponsors with more information about fans so that
they can tailor the timing, content, and delivery of messaging for
greater effectiveness.

Hours of media consumption per week

35
30
25
20
15
10
5
0
Audio TV Applications
2014 2015 2016

04
A whole new ball game

Undertaking the transformation Transforming how people work

Sports enterprises undergoing a digital transformation should In order to build digital capabilities, sports organizations need to
think through what digital capabilities they need and how to use not only integrate digital talent but also give their employees digital
them effectively to change the three organizational cornerstones— skillsets through ongoing training. This will help them view problem
people, process, and technology. solving through a digital lens.

Many roles,
Blue-Chip Talent Elite training Ownership
One team

•• Blue-Chip Talent •• Invest in training •• Clearly defined roles and •• Determine clear
programs to help responsibilities for digital ownership of digital
•• Assess digital capabilities
resources grow skillsets in properties properties among teams
of entire sports
areas of future need
organization •• Communicate •• Consolidate ownership for
•• Update trainings based on expectations on proper the new digital operating
•• Identify gaps based on
upcoming technology and hand-offs between model
future digital needs and
methodologies in sports divisions
seek skills from existing
industry
talent or hire externally
•• Provide opportunities
for resources to apply
training

Challenges of digital transformations

Despite the opportunities, sports
organizations often run into a number
of stumbling blocks in each of the
transformation areas.

•• People
–– Lack of vision from leadership
–– Stubborn culture
–– Aging workforce not fluent with new
digital tools
–– Unwillingness to change behaviors

•• Process
–– Lack of updated processes to match
new digital vision, products, and/or
platforms
–– Process driven by tradition versus data

•• Technology
–– Complex legacy systems
–– Multiple digital ecosystems
–– Disconnected IT architecture

05
 Navigating digital change in the sports industry

Bringing business processes into the digital age

Digital transformation involves the reexamination of traditional business processes and realigning them to support the digital capabilities
needed to achieve efficiencies and unlock value.

Ushering in new digital technology

Enterprise technology must enable operational efficiencies and help the organization engage more closely with fans and customers.
Transformative digital technologies range from predictive modeling that can forecast consumer trends to e-commerce platforms that can
open up new revenue streams.

Key Digital Technology Concepts

Microservices Centralized Digital Digital

Architecture Content Commerce

Reusable microservices leverage data across Coordination, control, and centralization of Digital commerce is impacted by traffic,
the enterprise content creates a customer data control conversion, average order size, and loyalty
• Develop flexible services to adapt center • Use the right tactics to enhance the fan
technology for future use • Responsive design can leverage content in experience and influence buying decisions
• Allow third parties to access, analyze, and all environments
utilize enterprise data • Develop customized and actionable
analytics
• Single sign on and social log-ins help log
fan activities and monitor their accounts

Standardized Customer Data Omni-Channel

Customer Data Model Platform Analytics Marketing

A 360 degree view of the customer CDPs can house large datasets for An omni-channel marketing strategy
empowers the organization to improve the segmentation and campaign execution coordinates the fan experience across
fan experience • Build behind the firewall, allowing access channels
• Eliminate cumbersome data silos by and ownership of data immediately • Simplifies all journey touchpoints through
centralizing, maintaining, and cleansing • Modify data sources on the fly a unified campaign marketing hub
fan data • Streamlines access to data and information
• Deploy predictive analytics and machine
learning to capture value from fan
behavior

06
A whole new ball game

Principles for success Avoid a big bang implementation

A successful digital transformation relies on several design Don’t try to do everything at once. A digital transformation
principles that can be used to guide decision-making. is an iterative process and is continually evolving. A phased
implementation allows employees, corporate partners, and fans
Be digital everywhere to gradually embrace offerings as the enterprise becomes more
Today’s consumers are in a constant state of connectivity. In digitally mature. The key is to lay the groundwork so that digital
response, organizations must think of ways to leverage that initiatives can scale up and the business can quickly launch, learn,
connectivity to deliver a seamless brand experience. For example, and iterate.
as customers increasingly opt for on-line engagement, digital
marketing is gaining ascendancy as the context for all marketing.6 Start small, then scale
Digital enterprises use their copious streams of data to map where Start with a minimal viable product (MVP) or smaller-scale digital
consumers will be on every step of their purchasing path, learn initiatives to show proof of concept and secure buy-in throughout
what appeals to them, and finally design marketing touchpoints the organization. As people in the organization see the success
throughout the customer journey. from these initiatives begin to scale, it will be easier to get everyone
on board for larger initiatives.
Becoming a digital enterprise also means harnessing technology
to simplify operations, identify process bottlenecks, and minimize The path to success
manual work.7 Furthermore, using software as a replacement for Embarking on the digital transformation journey requires a deep
manual processes allows business to automatically collect data understanding of current capabilities, as well a vision for the future
that can be used to better understand performance, cost drivers, that will determine how capabilities, processes, organizational
and sources of risk.8 structure, and technology will need to change. As sports
organizations become comfortable with life as digital enterprises,
Allow customers to dictate their digital experiences they will not only draw closer to their fans, but may also find it
The customer sits at the center of the digital enterprise. easier to create innovative and customized experiences that will
Perhaps nowhere is this more important than in sports, where both broaden and strengthen their customer base.
the customer’s desire to own their experience unlocks myriad
opportunities for value creation. Using digital technology to hand
customers the reins will help drive long-term loyalty and spread
awareness through word of mouth.

Letting the customer drive

Map user journeys: Understand how fans experience

your content so you can make improvements.
Establish fan personas: Analyze transaction,
social media, and profile data to understand fans’
preferences and habits. Then tailor each fan’s
experience to their specific persona.
Assess touchpoint value from the fan’s point of
view: Learn how and when fans prefer to experience
content in an omni-channel environment.
Keep fans engaged and connected: Build
connections and immerse fans in the action regardless
of where they are. Allow them to view and participate
in in-venue content, as well as to post and share video
clips in real time from outside the stadium.

07
 Navigating digital change in the sports industry

Endnotes
1
“MLB Attendance Report – 2018,” ESPN, 2018, http://www.espn.com/mlb/attendance; “NFL Attendance – 2017”, ESPN, 2017, http://www.
espn.com/nfl/attendance/_/year/2017; “NHL Attendance Report – 2017-18”, ESPN, 2018, http://www.espn.com/nhl/attendance; “NBA
Attendance Report – 2018,” ESPN, 2018, http://www.espn.com/nba/attendance

2
Capon, Gareth. “How social and OTT platforms are changing sport consumption,” Digital Sport, 5 December 2017, https://digitalsport.co/
how-social-and-ott-platforms-are-changing-sports-consumption

3
Sikowitz, Sarah. “Media consumption increase,” Forrester, 6 October 2016, https://www.forrester.com/report/Vendor+Landscape+Media
+Buying+Agencies/-/E-RES135576

4
Abramovich, Giselle. “Ad Targeting,“ CMO, 16 July 2014, https://www.cmo.com/features/articles/2014/7/15/mind_blowing_stats_ad_
targeting.html#gs.StEChvY

5
Belissent, Jennifer.“Data Commercialization” Forrester, 7 June 2017, https://www.forrester.com/report/Data+Commercialization+A+CIOs+
Guide+To+Taking+Data+To+Market/-/E-RES138131

6
“CMO Spend Survey 2016-2017,” Gartner, 2017, http://gartnerformarketers.com/CMOspend

7
Kerschberg, Ben. “How Digital Disrupts Operations, Business Processes And Customer Experience,” Forbes, 1 March 2017, https://
www.forbes.com/sites/benkerschberg/2017/03/01/how-digital-disrupts-operations-and-business-processes-as-well-as-customer-
experience/#7756614a5466

8
Fernandes, Louella and Rob Bamforth. “Digital Transformation,” Quocirca, 2016, https://www.konicaminolta.eu/fileadmin/content/eu/
Business_Solutions/Business_Services/Konica_Minolta_Quocirca_Document_Workflow_April_2016_Final_Summary_Report.pdf

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A whole new ball game

Contact us
Pete Giorgio Lokesh Ohri Kenneth Marzin
Principal, US Sports Consulting Leader Principal, Deloitte Consulting LLP Senior Manager, Deloitte Consulting LLP
Tel: + 1 (617) 437-3459 Tel: + 1 (212) 618-4184 Tel: + 1 (212) 618-4653
E-mail: [email protected] E-mail: [email protected] E-mail: [email protected]

The authors would like to thank Connor Sage, Kat Harwood, George Ward, and Zarah Mohamed for their insights and invaluable
contributions to this research.

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