{"id":18402,"date":"2016-11-18T15:00:47","date_gmt":"2016-11-18T20:00:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/wearables-and-big-data-make-it-a-small-world-after-all-at-disney-theme-parks\/"},"modified":"2016-11-18T15:00:47","modified_gmt":"2016-11-18T20:00:47","slug":"wearables-and-big-data-make-it-a-small-world-after-all-at-disney-theme-parks","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wearables-and-big-data-make-it-a-small-world-after-all-at-disney-theme-parks\/","title":{"rendered":"Wearables and Big Data Make It a Small World After All at Disney Theme Parks"},"content":{"rendered":"

Disney theme parks are heralded for creating perfection.\u00a0 The parks pride themselves on cleanliness, customer experience, and making transportation as well as access easy.\u00a0 In 2011 Disney made a massive, billion dollar bet on technology to help facilitate this mission with the creation of the MagicBand, which debuted in 2013 [1].\u00a0 A MagicBand is a rubber wristband that contains RFID technology and links to your MyMagic+ account Disney offers to make reservations for everything from food to rides.\u00a0 Through their use of the MagicBand, park attendees are able to make their experience personalized and seamless (MagicBands function as your passport to the park, i.e. room key, payment method, etc.).\u00a0 In return for this investment in technology, Disney is able to gain access to a wealth of information to improve customer service as well as park operations.\u00a0 But is access to this information being converted into quantifiable returns for Disney to justify its investment and does access to this data warrant the risk of potentially infringing on customer privacy?<\/p>\n

\"jp07disney2-jumbo\"<\/a><\/p>\n

When Disney first introduced the MagicBand, it was met with a certain amount of caution from the general public.\u00a0 The level of concern was actually high enough that Senator Ed Markey felt compelled to write a letter to Disney Chairman and CEO, Robert Iger, to request information about the MagicBand [2].\u00a0 In his letter, Representative Markey stated that, \u201cAlthough kids should have the chance to meet Mickey Mouse, this memorable meeting should not be manipulated through surreptitious use of a child\u2019s personal information\u201d [3].\u00a0 Robert Iger\u2019s retort stated that Disney was \u201coffended by the ludicrous and utterly ill-informed assertion\u2026that [Disney] would in any way haphazardly or recklessly introduce a program that manipulates children, or wantonly puts their safety at risk.\u201d [4] Mic drop<\/a> [5]. But this statement represents how serious Disney has been in its efforts to deliver its customer promise of using the MagicBand to \u201c[provide] an even more immersive, personalized and seamless Walt Disney World Resort experience than ever before.\u201d [6]<\/p>\n

So how does Disney leverage this data to drive top or bottom line growth for the business?\u00a0 The application of the MagicBand seems to be mostly towards crowd\/line management.\u00a0 For example, visitors are able to pre-book access to rides and various attractions.\u00a0 This advanced planning is also seen as a way to keep guests within the confines of the Disney property as opposed to visiting other nearby theme parks [7].\u00a0 Furthermore, Disney uses the data collected to manage its workforce more efficiently.\u00a0 Finally, it appears that Disney has turned the MagicBands into its own business by introducing collector sets [8].<\/p>\n

Although Thomas Staggs, Chairman of Disney Parks and Resorts, views MyMagic+ as being \u201ctransformational\u201d to Disney\u2019s business, it seems like Disney is relying more on fluffy returns as it tries to show ROI for the investment.\u00a0 It\u2019s evident that the implementation of this device can help save costs in areas such as food preparation, staffing, etc. But how does Disney prove that because an animatronic bird addressed me by name, I ultimately spent more at the park than I otherwise would have?\u00a0 Yes, Disneyland theme park in California has experienced increases in attendance since the MagicBand was introduced, but there is little available data to prove attribution to the implementation of the device [9].<\/p>\n

\"stats\"<\/a><\/p>\n

Regardless of financial impact, by starting down this road of technology and personalization, Disney has thrown the theme park business headlong into an arms race.\u00a0 Universal Orlando plans to reveal its new wearable technology, TapuTapu at the opening of its Volcano Bay park this summer [10].\u00a0 The technology is aimed at making MagicBands obsolete through the addition of new features like the ability to virtually wait in line [11].\u00a0 Extreme convenience and personalization appear to be becoming table stakes in the theme park business.<\/p>\n

Given this trend, it seems like Disney is best served by expanding its use of this data towards more operational applications.\u00a0 One use case is optimizing refuse disposal [12].\u00a0 These types of utilizations will have a more direct impact on Disney\u2019s operating costs as the company continues to subsidize its massive spend in the name of personalization.\u00a0 Taking the operational approach might also help to limit the expansion of personally identifiable information linked to the MagicBands and curtail enhanced data security risks.\u00a0 An additional avenue that Disney could pursue would be to take its learnings from the MagicBand implementation and become a service provider for other guest experience focused industries.\u00a0 For example, former US Senator Bob Kerrey recently suggested that Disney help TSA fix the line length problem in US airports [13].<\/p>\n

The digital age is, and will continue to be, a major driver of advancement for Disney\u2019s theme park experience regardless of the company\u2019s ability to attribute the entirety of this investment to incremental improvements in attendance or financials.<\/p>\n

(799 words)<\/p>\n

 <\/p>\n

[1] Brooks Barnes, \u201cAt Disney Parks, a Bracelet Meant to Build Loyalty (and Sales),\u201d The New York Times, January 7, 2013, http:\/\/www.nytimes.com\/2013\/01\/07\/business\/media\/at-disney-parks-a-bracelet-meant-to-build-loyalty-and-sales.html.<\/p>\n

[2] Eben Burnham-Snyder, \u201cCongressman Asks for Details on Data Collection, Targeting Advertisements to Children at Disney Theme Parks,\u201d January 24, 2013, http:\/\/www.markey.senate.gov\/news\/press-releases\/markey-to-disney-kid-tracking-bracelet-raises-privacy-questions.<\/p>\n

[3] Eben Burnham-Snyder, \u201cCongressman Asks for Details on Data Collection, Targeting Advertisements to Children at Disney Theme Parks,\u201d January 24, 2013, http:\/\/www.markey.senate.gov\/news\/press-releases\/markey-to-disney-kid-tracking-bracelet-raises-privacy-questions.<\/p>\n

[4] http:\/\/images.politico.com\/global\/2013\/01\/30\/130130_disney_markey.html, accessed November 2016.<\/p>\n

[5] http:\/\/giphy.com\/gifs\/badass-mic-drop-brian-cranston-i6TQUuiT5hjSU, accessed November 2016.<\/p>\n

[6] https:\/\/disneyworld.disney.go.com\/help\/privacy-legal\/, accessed November 2016.<\/p>\n

[7] Brooks Barnes, \u201cAt Disney Parks, a Bracelet Meant to Build Loyalty (and Sales),\u201d The New York Times, January 7, 2013, http:\/\/www.nytimes.com\/2013\/01\/07\/business\/media\/at-disney-parks-a-bracelet-meant-to-build-loyalty-and-sales.html.<\/p>\n

[8] http:\/\/www.magicbandcollectors.com\/, accessed November 2016.<\/p>\n

[9] https:\/\/www-statista-com.ezp-prod1.hul.harvard.edu\/statistics\/236154\/attendance-at-the-disneyland-theme-park-california\/, accessed November 2016.<\/p>\n

[10] https:\/\/media.universalorlando.com\/PressRelease\/detail.aspx?id=59286&ct=27752&Src=, accessed November 2016.<\/p>\n

[11] Rick Munarriz, \u201cIs Disney World’s Top Rival About to Make MagicBands Obsolete?\u201d The Motley Fool, November 5, 2016, http:\/\/www.fool.com\/investing\/2016\/11\/05\/is-disney-worlds-top-rival-about-to-make-magicband.aspx.<\/p>\n

[12] Sandra Pedicini, \u201cDisney tries high-tech system to track trash,\u201d Orlando Sentinel, November 4, 2016, http:\/\/www.orlandosentinel.com\/travel\/attractions\/the-daily-disney\/os-disney-world-tracking-employees-geolocation-20161104-story.html.<\/p>\n

[13] Matthew J. Belvedere, \u201cLet Disney fix those long TSA security lines at airports: Former Sen Bob Kerrey,\u201d CNBC, May 18, 2016, http:\/\/www.cnbc.com\/2016\/05\/18\/let-disney-fix-those-long-tsa-security-lines-at-airports-former-sen-bob-kerrey.html.<\/p>\n

 <\/p>\n

Images (in order of appearance)<\/p>\n

http:\/\/www.politico.com\/story\/2013\/01\/disney-strikes-back-at-markey-privacy-concerns-086828, accessed November 2016.<\/p>\n

Brooks Barnes, \u201cAt Disney Parks, a Bracelet Meant to Build Loyalty (and Sales),\u201d The New York Times, January 7, 2013, http:\/\/www.nytimes.com\/2013\/01\/07\/business\/media\/at-disney-parks-a-bracelet-meant-to-build-loyalty-and-sales.html.<\/p>\n

https:\/\/www-statista-com.ezp-prod1.hul.harvard.edu\/statistics\/236154\/attendance-at-the-disneyland-theme-park-california\/, accessed November 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

Disney theme parks offer visitors a way to completely personalize their experience, but does it result in improved revenues?<\/p>\n","protected":false},"author":2631,"featured_media":18455,"comment_status":"open","ping_status":"closed","template":"","categories":[295,2593,2596,970,2595,2118,2594],"class_list":["post-18402","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-disney","category-magicbands","category-mickey-mouse","category-personalization","category-pii","category-rfid","category-theme-parks"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\nWearables and Big Data Make It a Small World After All at Disney Theme Parks - 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\/wearables-and-big-data-make-it-a-small-world-after-all-at-disney-theme-parks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wearables and Big Data Make It a Small World After All at Disney Theme Parks - 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