Lessons from the Dutch national lottery.
October 30, 2023
Illustration by Alex Eben Meyer
Digital transformation can be a tool for doing both well and good. The authors look to the example of the Dutch Lottery, or Nederlandse Loterij (NLO), which faced a wave of digital disruptors that operated in a legal gray zone offering pure online products. In response, the company proposed implementing a “KPI butterfly” to balance doing well (making money) against doing good (protecting society) as part of its digital transformation process. Its success offers other legacy companies lessons in how to navigate this process.
A recent debate in a controversial industry — gambling — illustrates a common dilemma faced by many companies: An incumbent faces a wave of digital disruptors who operate in a legal gray zone offering pure online gambling products like live betting and casino games. In 2021, liberalization of the online gambling market brought new competitors into the market. How could a company with legacy and regulation compete?
Nathan Furr is a Professor of Strategy at INSEAD and a coauthor of five best-selling books, including The Upside of Uncertainty, The Innovator’s Method, Leading Transformation, Innovation Capital, and Nail It then Scale It.
Steven Koolen is a partner at the digital strategy consulting firm SparkOptimus. He has a background in technology and 15 years in business and organizational transformation.
Arjan Blok is CFO at Nederlandse Loterij with an international background in various markets (energy, public sector, financial institutions) and extensive experience in digital and finance transformation, business integration, acquisitions, and operational excellence.