CIO THINK TANK | DECEMBER 5, 2012: LEVERAGING THE CLOUD AS AN AGENT FOR CHANGE: AN INSIDE LOOK AT THE BOSTON RED SOX

Presented by:

Heidi Labritz, Sr. Director of IT / Business Applications – Boston Red Sox

Matt Griffin, President - Performant Systems Group

“STICKY NOTES TO FULLY INTEGRATED SYSTEMS…IN AND OUT OF THE CLOUD”

The Sports Industry Has Matured at An Accelerating Pace, as Has the Technology Required to Support This More Sophisticated Business Model

• Gate Revenues for Live Sporting Events

• Broadcast Rights Fees • Merchandising • Sponsorships • Basic Ballgame Concessions

• Diversified Revenue Streams including Non-Baseball Events, Fan Experiences, Travel and Destinations, Affinity Relationships, Tours and Camps

• High Value, Interactive and Personal Relationships with Fans, Sponsors and Business Partners

• Multi-Channel Fan Experiences (Live, Internet, Broadcast)

• Diverse and Expanded Concessions • Focus on Operational Efficiencies to Improve

Margins

Traditional Business Model

New Business Model

Accounting Systems

Ticketing Systems

Budgeting and

Forecasting Systems

HR and Payroll

Systems

Event and Facility

Booking and

Management

Systems

Customer Care

Systems

Customer

Relationship

Management

Systems

Business

Intelligence

Systems

Access Control

Systems

Event Management

Systems

Marketing and

Campaign

Management

Systems

Software as a

Service / Cloud

Expanded Voice and

Data Services

Collaboration and

Social Media

Document Management

Systems

2

A Technology Assessment Was Conducted by the Office of the Commissioner of Baseball in January 2011 and Provided a Foundation for the IT Roadmap / Plan

IT Assessment Focus Areas: • Governance and Strategic Alignment • IT Spending • Applications and Infrastructure Effectiveness • IT Customer Service Management • Core IT Functions

• High-Performing as Compared to Other Clubs and Customer Satisfaction Quite High • Knowledge and Toolsets Regarding Security and Privacy are Excellent but Require More Formal Processes • Department is Focused Too Heavily Towards Operational Support and Break/Fix Activity • Baseball and Business Operations are Segmented from an IT Perspective Leading to Sub Optimal Use of the

Organizations Technology Capabilities • Immature Processes and Lack of Formality Limiting the Ability to Prioritize Work Efforts • Absence of a Formal Feedback Loop • Project Management is Immature • High Level of Resource Constraints and Organizational Risk Associated with Resource Dependency • Prioritization and Funding is Allocated on a Reactive and Ad hoc Basis

Observations, Risks and Opportunities

3

A Grass Roots Effort Developing a Technology Roadmap for the Boston Red Sox

MLB Technology Assessment

Red Sox Stakeholder Interviews

MLB Surveys and Sports/

Technology Conferences

IT Organizational Assessment

External Research

Inputs

Result: Roadmap

4

The Outcome Yielded Five Core Needs Aligned with the Club’s Stated Business Goals and Objectives

Timely, Reliable and Accurate Financial Processing

Single View of Patrons, Partners and Donors

Analyze the Business to Drive Revenue and Control Costs

• Accounting • Budgeting / Forecasting • Expense

• Customer Relationship Management • Partner/Sponsor Relationship Management • Donor Management

• Business Intelligence and Dashboards • Predictive Analytics

Facility, Booking, Event and Process Management

• Fenway Enterprises • Tours • Premium Sales

Deliver Core IT Services with Quality

• Communications (DAS and Phone) • Establish and Meet Network and Infrastructure SLAs • Help Desk

5

Michelle and her family are partial season ticket holders. She does not have tickets for tonight’s Red Sox game. Red Sox analyze Michelle’s attendance and realize she likes to attend Wednesday afternoon games.

Results

• Seats that would otherwise remain empty are filled

• Partial season ticket holders feel as though they are more valued customers because they are presented with special offers

• Brings season ticket holders to the website where there is the opportunity to provide additional information and display other marketing information

• Provides opportunity for fans to either watch the game from better seats for a game they would have otherwise not attended

Helping the Executives Understand the Power of Technology - Specific customer segments selected and matched to games/events to fill otherwise empty seats

A phone call, e-mail, text message or Twitter message is sent to Michelle and all other partial season ticket holders giving them a special offer to buy unique tickets to the Red Sox game.

Michelle accepts the offer and goes to the game with her family.

There are seats available to Wednesday afternoon’s game. The Red Sox CRM system identifies those partial season ticket holders that attend Wednesday afternoon games and that do not have tickets to tonight’s game.

8

Targeted CRM Campaign Overview

Ticket Services/Marketing sets sales and goal to sell

more of Sox Packs

Sox Pak Campaign Premise: People who bought Sox

Packs in 2011, but not this year are targets with a high

likelihood to purchase in 2012

CRM creates patron list, with email addresses based on

previous purchase history and other metrics, where possible.

Previous purchase history metrics include, day of week,

time of game, weather, opponent, advance purchase time, time of year, success of

club, dollars spent, type of ticket, and more.

27,810 Patrons identified in CRM who bought in 2011 but not in 2012 and the data is used to

create the Patron list.

Sox Pak offer emails are sent to the targeted Patrons.

Fans are contacted Then the results of the contact are

logged in CRM.

Campaign is deemed a success due to the high response rate and

number of tickets sold relative to the previous week of sales for the

Sox Paks.

(See Next Page for Results)

17.3%

34.3%

97.5%

1.2%

2.5%

99.8%

Clicked on Ticket Offer

Email Opened

Percent Delivered

Sox Pak CRM Campaign Results (Sent on January 17th)

Jan 28th Onsale - BAM Mass Marketing Sox Pax Targeted Marketing

$15,308

$17,472 $15,728

$7,488

$-

$5,000

$10,000

$15,000

$20,000

Patriot's Pack Yankee Pack Friday Pack Sunday Pack

Ticket Revenue (First 36 Hours)

Ticket Revenue

384

560

380

248

0

100

200

300

400

500

600

Patriot's Pack Yankee Pack Friday Pack Sunday Pack

Tickets Sold (First 36 Hours)

Tickets Sold

Prior 36 Hour Avg. (All Pax)

Q 3 2011 Q4 2011 Q1 2012 Q2 2012

Boston Red Sox Roadmap

Single View of Patrons, Partners

and Donors

Facility, Booking and Event

Management

Timely, Reliable and Accurate

Financial Processing

Analyze the Business to Drive

Revenue and Control Costs

Deliver Core IT Services with

Quality

Red Sox Foundation

Budgeting and Accounting System

Fenway Enterprises and Fenway Park Tours

Fan Services

Executive Dashboards

Analytics Platform, Concessions and

Turnstile

Executive Dashboards and Ticketing Analytics

Executive Dashboards and Full Barometer of Demand

and KPIs

Communications Upgrade Phone, Video Conferencing,

Collaboration

Patron Cleanup Outbound Marketing and

Communications

Operational Processes Optimization

Fort Myers

Storage, Desktop and Windows Assessments

Performance Monitoring Assessment and Enhanced Reporting

Performance Monitoring Upgrade

Help Desk Upgrade and Establish SLAs

Scoping / Sizing Enterprises and Tours

Storage, Hardware and Microsoft Upgrades

* Assumes FT Help Desk and Developer Hire 6

Q3 2012

Fixed Asset System / CIP

Financial Reporting and Analytics

Premium Client Services

Help Desk Management

By taking a “Cloud First” approach, the Boston Red Sox are able to accelerate time to market, minimize development and support costs, and deliver high quality, reliable solutions.

Business / Baseball Need Legacy Application

In House Applications

Cloud-Based Applications

Link

Accounting Solomon Microsoft Dynamics - Great Plains

Accounts Payable In-House Custom App

In-House Custom Application

Budgeting Excel Host Analytics www.hostanalytics.com

Red Sox Foundation: Donor and Event Management

Excel Salesforce.com Not for Profit

www.salesforce.com

Business Intelligence and Reporting

Excel MicroStrategy MicroStrategy – Agile Development

Travel and Expense Management

In-House Custom App

Concur www.concur.com

Agile Development None Jira / Atlassian www.atlassian.net

Scouting – Prospect Medical History Secure Collection

Snail Mail Logiforms www.logiforms.com

Customer Relationship Management

None – Ticketing System

Microsoft Dynamics CRM

Application Monitoring Whats Up Gold AppFirst www.appfirst.com

Help Desk Management In-House Custom App

Zen Desk www.zendesk.com

RAPID DELIVERY OF MICROSTRATEGY BUSINESS INTELLIGENCE AND ANALYTICS LEVERAGING THE CLOUD WITH PERFORMANT SYSTEMS GROUP

Understand

Business 1

Define

Requirements 2

Assign

Resources 3

Research 4

RFIs, RFPs

and POCs 5

Select

Providers 6

Negotiate

Agreements 7

Approvals 8

Build Purchase

Orders 9

Hire Technical

Staff 10

Receive

Equipment 11

Install and

Configure 12

Test

Environment 13

Build

Application 14

Test and

Deploy 15

Finish! 16

Time. Risk.

Challenge – Lack of Agility / Time to Market

IT Challenged To Move At Speed Of Business

Accelerate time to market. Reduce risk. Be Agile

Build

Application

Test and

Deploy

Finish!

Understand

Business

Define

Requirements

Sign Cloud

Agreement

1

2

3

5

6

7

Elastic Capacity

Production in Weeks

Changing How BI Gets Implemented

Cloud

APPENDIX: CLOUD PROVIDERS CURRENTLY LEVERAGED BY THE BOSTON RED SOX

Host Analytics: Budgeting in the Cloud

Salesforce.com for Not for Profit

Jira: Agile Software Development

Concur Travel and Expense

Digiforms: Secure Collection of Player/Prospect Medical Records

AppFirst Application Monitoring

ZenDesk: Help Desk Ticket Tracking, Management and Reporting

QUESTIONS