Introduction to Competitive Advantage in Information Systems

Data Asset in Action: Caesars' Solid Gold CRM for the Service Sector

Learning Objectives

  1. Understand how Caesars has used IT to move from an also-ran chain of casinos to become the largest gaming company based on revenue.
  2. Name some of the technology innovations that Caesars is using to help it gather more data, and help push service quality and marketing program success.

Caesars Entertainment (formerly known by the name of its acquirerer, Harrah's) provides an example of exceptional data asset leverage in the service sector, focusing on how this technology enables world-class service through customer relationship management. And as you read this case, keep in mind that the firm's CEO, Gary Loveman, claims that what he did at Caesars he could have done at most firms in most other industries.

Gary Loveman is a sort of management major trifecta. The CEO of Caesars Entertainment is a former operations professor who has leveraged information technology to create what may be the most effective marketing organization in the service industry. If you ever needed an incentive to motivate you for cross-disciplinary thinking, Loveman provides it.

Caesars has leveraged its data-powered prowess to move from an also-ran chain of casinos to become the largest gaming company by revenue. The firm operates some fifty-three casinos, employing more than eighty-five thousand workers on five continents. Brands include Harrah's, Caesars Palace, Bally's, Horseshoe, and Paris Las Vegas. Under Loveman's leadership, the firm formerly known as Harrah's aggressively swallowed competitors, with the firm's $9.4 billion buyout of Caesars Entertainment being its largest deal to date (while as separate firms, Harrah's under Loveman trounced Caesars in financial performance, the Caesars name was seen as a stronger brand).