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Eoo\osoxE(Ibpc(!NNooopfoUSI NGOPERATIONS TOCREATE VALUECharacters perform at Cinderella's Castle in Magic Kingdom,0rlando, Florida, USA.Disneyisney Corporation is an internationally diversified entertainment andmedia enterprise comprising of f ive business segments of media net-works (e.g., ABC, ESPN networks), parks and resorts (e.9., Disneylandand Disneyworld), studio entertainment (e.9., Pixar and [Varvel studios), con-sumer products (e.9., toys, apparel, and books), and interactive media (e.g.,Disney.com). lt is one of the 30 companies that has been a part of the DowJones lndustrial Average since 1991. With annual revenues of $45 billionin 2013, Disney is particularly well known for its theme parks that had a17 percent increase in operating income to $2.2 billion in the last f iscal yearalone. lts largest park, Walt Disney World Resort opened in Orlando, Florida,in 1971 and includes the lVlagic Kingdom, Epcot Center, Disney Studios,and Animal Kingdom.Disney constantly evaluates and improves its processes to enhancecustomer experience. One of its recent innovations is a $1 billion compre-hensive reservation and ride-planning system that can allow guests to bookrides months in advance through a website or a smartphone app. Dubbed asIVlylVagic+, it works through a radio-frequency identification (RFID) chip em-bedded inside electronic wristbands or bracelets that guests wear once theycheck into a Disney theme park, Called MagicBands, they link electronicallyto centralized databases and can be used as admission tickets, credit or debitcards, or hotel room keys. Just by tapping them against electronic sensors,these lVagicBands also become a form of payment for food, entertainment,21
22 CI.IAPTER 1 USING OPERATIONS TO CREATE VALUEand merchandise. Data from these wristbands can help Disney determinewhen to add more staff to which rides, decide how many employees in cos-tumes should roam around at which locations in the park, determine restaurantmenus and which souvenirs should be stocked based on customer prefer-ences, and even send e-mail or text message alerts to guests when spaceopens up in an expedited queue at that guest's favorite ride such as Space[Vlountain or Pirates of the Caribbean. Apart from facilitating crowd controland data collection, this wearable technology helps Disney seamlessly person-alize each guest's experience and change how they play and spend at theoft-advertised "[Vost [Vagical Place on Earth."Despite some privacy concerns surrounding the use of RFID chtps thatcan track a guest's identity and location within the theme parks, the newlVyVlagic+ system has multiple advantages. First, when visitors have well-planned schedules and forward visibility on what they are going to do on a givenday on an hourly basis, they are less likely to jump ship to other theme parks inthe area such as the Sea World or the popular Wizarding World of Harry Potterby Universal Studios.