  {"id":17984,"date":"2016-11-18T14:44:28","date_gmt":"2016-11-18T19:44:28","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/where-has-the-magic-gone-disneys-response-to-digitization\/"},"modified":"2016-11-18T14:44:28","modified_gmt":"2016-11-18T19:44:28","slug":"where-has-the-magic-gone-disneys-response-to-digitization","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/where-has-the-magic-gone-disneys-response-to-digitization\/","title":{"rendered":"Where Has the \u2018Magic\u2019 Gone? Disney\u2019s Response to Digitization"},"content":{"rendered":"<p>We all have our favorite Disney memory. Whether it was meeting Mickey Mouse for the first time, screaming as we dropped 13-stories on the <em>Tower of Terror<\/em>, or gazing at the evening firework display \u2013 the nostalgia and desire to relive the experience are what have kept customers coming back for the past 60 years. Now, as Disney faces\u00a0generational change and digitization trends, one thing is certain: Disney must\u00a0reinvent its guest experience through\u00a0interactive technology to remain the \u201cHappiest Place on Earth\u201d.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-18022\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World-300x167.jpg\" alt=\"disney-tour-walt-disney-world\" width=\"300\" height=\"167\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World-300x167.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World-768x428.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World-600x334.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Tour-Walt-Disney-World.jpg 1003w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a> <a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18021\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050-300x199.jpg\" alt=\"05disney5-master1050\" width=\"253\" height=\"168\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050-300x199.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050-768x510.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050-1024x680.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050-600x398.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/05DISNEY5-master1050.jpg 1050w\" sizes=\"auto, (max-width: 253px) 100vw, 253px\" \/><\/a> <a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/disney-6.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18035\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/disney-6-300x240.jpg\" alt=\"disney\" width=\"208\" height=\"166\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/disney-6-300x240.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/disney-6.jpg 415w\" sizes=\"auto, (max-width: 208px) 100vw, 208px\" \/><\/a>\u00a0<a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18014\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM-300x200.jpg\" alt=\"towerofterror_mgm\" width=\"249\" height=\"167\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM-768x512.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM-1024x682.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM-600x400.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TowerOfTerror_MGM.jpg 1027w\" sizes=\"auto, (max-width: 249px) 100vw, 249px\" \/><\/a><\/p>\n<p><strong>Situational context\u00a0 <\/strong><\/p>\n<p>Starting in the mid-2000s, performance at Disney\u2019s theme parks declined. Guests complained of long lines, high prices, and lack of innovation; in fact, over 50% of first-time visitors at Disney World indicated they would not return.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> Simultaneously, digitization trends in form of social media and smart phones posed a significant threat to the relevance of parks going forward.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> Disney needed to respond.<\/p>\n<p><strong>Disney\u2019s response: MyMagic+<\/strong><\/p>\n<p>Challenged to improve its guest experience, Disney developed and introduced a comprehensive $1 billion platform known as MyMagic+ in 2014. The platform, which includes a website and mobile application (i.e., My Disney Experience) and wristband (i.e., MagicBand), collectively allows visitors to customize their experience at a Disney park. Embedded with a RFID chip, the MagicBand interfaces with the guest\u2019s My Disney Experience account, and can be read\u00a0at various RFID sensors\u00a0(i.e., encircled with Mickey Mouse symbol) across the park, Disney hotels, restaurants, and stores.<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/My-Magic.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18046 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/My-Magic-300x111.png\" alt=\"my-magic\" width=\"742\" height=\"275\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/My-Magic-300x111.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/My-Magic-600x221.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/My-Magic.png 811w\" sizes=\"auto, (max-width: 742px) 100vw, 742px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Functionality of MyMagic+<\/strong><\/p>\n<p>The following describes core\u00a0benefits that\u00a0MyMagic+ provides to\u00a0consumers:<\/p>\n<ul>\n<li><em>Convenience<\/em>: Guests no longer need to carry around cash\/credit cards or wait in lines to buy tickets. By touching their MagicBand against designated RFID sensors, guests can avoid lines on rides and admission and replace the clutter: tickets, fast passes, and hotel room keys.<\/li>\n<\/ul>\n<ul>\n<li><em>Interactive Experiences<\/em>: MyMagic+\u2019s interactive potential is best demonstrated at Epcot\u2019s <em>Test Track<\/em>, where guests customize their own car (color, shape, engine, aerodynamics, etc.) while waiting in line. During the ride, MagicBand integrates the guest\u2019s personal vehicle into the ride, allowing the guest to see its performance capabilities in real-time. In addition to the rave reviews, studies show that guest perceived wait time has been reduced by over 60%.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/li>\n<li><em>Customization<\/em>: Visitors can book three FastPass+ tickets in advance of their visit, resulting not only in reduced waiting times, but a greater ability to plan and customize their itinerary.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a><\/li>\n<\/ul>\n<ul>\n<li><em>Personalization<\/em>: By using the data provided by MyMagic+, Disney enables animatronics to interact with specific guests and individually recognize guests celebrating birthdays. At Be Our Guest restaurant, for example, sensors permit staff to greet customers by name and understand preferences. Additionally, guests who pre-ordered food online, sit down and have their meal arrive automatically because of RFID sensors.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a><\/li>\n<\/ul>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Writs-band.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18083 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Writs-band-300x200.jpg\" alt=\"writs-band\" width=\"422\" height=\"282\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Writs-band-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Writs-band-600x399.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Writs-band.jpg 660w\" sizes=\"auto, (max-width: 422px) 100vw, 422px\" \/><\/a><\/p>\n<p><strong>Operational benefits to Disney<\/strong><\/p>\n<p>Not only is MyMagic+ helping to deliver on Disney\u2019s customer promise, but it is also provides significant operational benefits to Disney, resulting in greater efficiency and profitability:<\/p>\n<ul>\n<li><em>Increased capacity<\/em>: At the Magic Kingdom alone, the implementation of MyMagic+ has allowed an additional 5,000 people into the park per day, roughly a 10% increase in daily capacity. Specifically, the platform enables Disney to shift crowds from long lines to shorter lines elsewhere in the park.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a><\/li>\n<\/ul>\n<ul>\n<li><em>Data opportunities<\/em>: Disney collects data from guests that enables the company\u00a0to design ride enhancements, better forecast demand, and target customers based on preferences.<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a><\/li>\n<\/ul>\n<ul>\n<li><em>Revenue enhancements<\/em>: The PhotoPass service, for example, has extended revenue generation beyond the park. By linking to MagicBands, photos are automatically updated to the My Disney Experience website, enabling guests to purchase anytime.<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a><\/li>\n<\/ul>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Ditigal-Goals.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-18105 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Ditigal-Goals-300x254.png\" alt=\"disney-ditigal-goals\" width=\"432\" height=\"365\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Ditigal-Goals-300x254.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Disney-Ditigal-Goals.png 467w\" sizes=\"auto, (max-width: 432px) 100vw, 432px\" \/><\/a><\/p>\n<p><strong>Where should Disney go from here? <\/strong><\/p>\n<p>While Disney has invested over $1 billion and is off to a strong start, the work is not yet done. In order to ensure that Disney maintains its magic, Disney must continue to improve\u00a0MyMagic+ functionality to enhance its interactive experience. As such, the following are some recommendations Disney should consider:<\/p>\n<ul>\n<li><em>More interactive rides<\/em> \u2013 Only 2% of rides at Disney World are truly interactive with MagicBand.<a href=\"#_ftn10\" name=\"_ftnref10\">[10]<\/a> This is a missed opportunity. <em>Test Track<\/em>, for example, has been received well; so why not expand to other rides, creating a differentiated and memorable experience for future generations?<\/li>\n<\/ul>\n<ul>\n<li><em>Use more data<\/em> \u2013 Through MyMagic+ Disney is collecting valuable data on its guests that is currently underutilized. In addition to its current efforts, Disney can present customized\u00a0marketing opportunities such as cold drink coupons after someone waited in a long line; this is no longer a one size fits all experience.<\/li>\n<\/ul>\n<ul>\n<li><em>Communicate in real-time<\/em> \u2013 Disney should communicate with guests via smartphone app to better manage variability. This can better distribute demand, improve the park\u2019s capacity, decrease wait times, and increase satisfaction.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/MY-MAG-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18084 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/MY-MAG-2-300x169.jpg\" alt=\"my-mag-2\" width=\"485\" height=\"273\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/MY-MAG-2-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/MY-MAG-2-600x338.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/MY-MAG-2.jpg 720w\" sizes=\"auto, (max-width: 485px) 100vw, 485px\" \/><\/a><\/p>\n<p>Disney is on to something with its MyMagic+ platform, but it needs to go all-in now, ensuring that it satisfies its changing customer base, beats its competition, and preserves its distinction as the \u201cHappiest Place on Earth.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>References:<\/strong><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Carr, Austin (April 15, 2015). \u201cThe Messy Business of Reinventing Happiness\u201d.\u00a0<em><a href=\"https:\/\/en.wikipedia.org\/wiki\/Fast_Company_(magazine)\">Fast Company<\/a><\/em>. Retrieved\u00a015 November, 2016. &lt;https:\/\/www.fastcompany.com\/3044283\/the-messy-business-of-reinventing-happiness&gt;.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Kuang, Cliff (March 10, 2015). \u201cDisney\u2019s $1 Billion Bet on a Magical Wristband\u201d.\u00a0<em><a href=\"https:\/\/en.wikipedia.org\/wiki\/Wired_(magazine)\">Wired<\/a><\/em>. Retrieved\u00a027 August\u00a02015. &lt; <a href=\"https:\/\/www.wired.com\/2015\/03\/disney-magicband\">https:\/\/www.wired.com\/2015\/03\/disney-magicband<\/a>&gt;.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> CapGemini Consulting, N. &#8220;Disney: Making Magic Through Digital Innovation.&#8221; (2014): n. pag. Web. 14 Nov. 2016. &lt;https:\/\/www.capgemini-consulting.com\/resource-file-access\/resource\/pdf\/disney_0.pdf&gt;.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> Barnes, Brooks. &#8220;At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales).&#8221;\u00a0<em>The New York Times<\/em>. The New York Times, 06 Jan. 2013. Web. 18 Nov. 2016. &lt;http:\/\/www.nytimes.com\/2013\/01\/07\/business\/media\/at-disney-parks-a-bracelet-meant-to-build-loyalty-and-sales.html&gt;.<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> @thedisneyblog. &#8220;FastPass+ and MyMagic+ Takeover Disney World &#8211; Part 3: The Marketing Push Begins | The Disney Blog.&#8221;\u00a0<em>The Disney Blog<\/em>. N.p., 03 Apr. 2014. Web. 18 Nov. 2016. &lt;http:\/\/thedisneyblog.com\/2014\/01\/21\/fastpass-and-mymagic-takeover-disney-world-part-3-the-marketing-push-begins\/&gt;.<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> Disney. &#8220;Disney&#8217;s MyMagic+ Honored with &#8216;Innovation by Design&#8217; Award.&#8221;\u00a0<em>Disney Parks Blog<\/em>. N.p., n.d. Web. 18 Nov. 2016. &lt;https:\/\/disneyparks.disney.go.com\/blog\/2014\/10\/disneys-mymagic-honored-with-innovation-by-design-award\/&gt;.<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> \u00a0Santo Domingo, Joel (July 31, 2015). \u201cHands On: Disney MagicBands, MyMagic+ Web Service\u201d. PC Magazine<em>, http:\/\/www.pcmag.com\/article2\/0,2817,2483861,00.asp<\/em><\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> Understanding Disney&#8217;s MyMagic+, and How to Use Fastpass+ to Your Advantage at Walt Disney World.&#8221;\u00a0<em>Theme Park Insider<\/em>. N.p., n.d. Web. 18 Nov. 2016. &lt;http:\/\/www.themeparkinsider.com\/flume\/201405\/4009\/&gt;.<\/p>\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> \u00a0Pedicini, Sandra (November 3, 2014). \u201cDisney adds new photo features to MyMagic+\u201d. Orlando Sentinel.<em> Retrieved<\/em><em>\u00a0<\/em><em>17 November <\/em><em>2016<\/em>.<\/p>\n<p><a href=\"#_ftnref10\" name=\"_ftn10\">[10]<\/a> Carr, Austin (April 15, 2015).\u00a0\u201cThe Messy Business of Reinventing Happiness\u201d.\u00a0<em><a href=\"https:\/\/en.wikipedia.org\/wiki\/Fast_Company_(magazine)\">Fast Company<\/a><\/em>. Retrieved\u00a015 November, 2016. &lt;https:\/\/www.fastcompany.com\/3044283\/the-messy-business-of-reinventing-happiness&gt;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MyMagic+, Disney\u2019s $1 billion answer to digitization, has created a more interactive, customized, and convenient experience for guests. And it\u2019s just getting started.<\/p>\n","protected":false},"author":2005,"featured_media":18174,"comment_status":"open","ping_status":"closed","template":"","categories":[1392,2029,295,307,1312],"class_list":["post-17984","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-amusement-parks","category-digitization","category-disney","category-hospitality","category-theme-park"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Where Has the \u2018Magic\u2019 Gone? Disney\u2019s Response to Digitization - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/where-has-the-magic-gone-disneys-response-to-digitization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where Has the \u2018Magic\u2019 Gone? Disney\u2019s Response to Digitization - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"MyMagic+, Disney\u2019s $1 billion answer to digitization, has created a more interactive, customized, and convenient experience for guests. 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