Helen Fletcher speaks with Adam Steinberg, founder of Embed, to find out what the future holds for the world of debit card systems and this ever-expanding company
Embed is part of the LAI Group, which has a 50-year history of involvement with the amusement industry. The debit card system, which is at the heart of Embed’s product line was first conceived and developed back in the mid 90s to fill a need within LAI Group’s Timezone arcade operations division, which at the time was under the direction of Adam Steinberg.
Following the development of the initial system it proved so successful that it was decided in 2001 to establish Embed as a separate company and to take the product to a new level and market it for sale around the world.
Embed commenced independent operations in November 2001 with just four members of staff, including founder Adam Steinberg, and set about the task of redeveloping and repackaging the product to appeal to international operators. The company now has 35 members of staff as well as growing offices in Australia, the US and more recently the Middle East.
“The initial debit card system product was very much driven by the requirements of the LAI Group’s Timezone operations which meant that it was developed from the inside out,” said Steinberg.
“At the time the user screens didn’t look so pretty but the functionality and reliability was there. The system was truly one built for operators by operators.”
With the decision to form Embed and market the system internationally, significant redevelopment work was undertaken to add additional features and functionality required in different markets plus to present the package in a professional way.
“The Embed system was initially developed and tested in Australia and then installed in locations in New Zealand and a number of Asian countries including Singapore, Indonesia and the Philippines,” said Steinberg.
“The US was the next big market for us and in 2005 we opened our US office in Dallas, Texas. From this base we have built a position of market leadership in the US under the direction of general manager Mark Easte and in April this year celebrated the installation of the 100th Embed system in the US – a particular highlight for us.”
Now, in 2008, there are over 300 Embed systems operating worldwide across the Americas, Asia, Europe and the Middle East and the company has recently established an Embed Middle East Office in Dubai (see Asia news for further information).
“The Middle East is a fast growing market for entertainment services and Embed sees great opportunity in this region,” continued Steinberg. “Embed’s reputation for professional delivery of its product and support services is as important as the product itself and we are committed to continuing to build on this.
“As the company continues to rapidly expand we will enter a number of new markets in the next few months including Canada, South America, Kuwait, Kazakhstan and Egypt.”
Entering new markets is by no means an easy task and it is imperative any manufacturer knows a market’s requirements if it is to succeed – luckily for Embed this appears to be something it has a grasp on.
“There are certainly differences from country to country in terms of styles of operation, games used, technical compliances and player preferences,” said Steinberg. “For example, in the US there is a strong self service philosophy and most locations will have the Embed Full Service Kiosk where customers can purchase and reload cards from an ATM style kiosk. In other markets like Asia and the Middle East the customer wants more human interaction and cards are generally purchased from cashier-attended stations.
“However, regardless of these differences the fundamentals are very much the same with the end goal being to control the business, track customer behaviour and provide the ability to drive sales through great value offers in terms of pricing and packaging.”
To ensure that the product is best matched to the operator’s requirements Embed, as a rule, does not sell its system through distributors but forms a direct relationship with the operator meaning ongoing support services can be delivered directly without having to deal with an intermediary.
That said, Embed has developed a great network of strategic industry partnerships that have been critical to the company’s success. A large number of Embed’s sales are due to referrals received from existing customers and other key industry players who have come to work with Embed on projects and have seen the quality of service delivery on offer.
Before Embed entered the market, debit card systems were considered as only the domain of the very top end amusement facilities. They were unreliable, expensive to install and even more expensive to operate and maintain. High-end locations would install a debit card system more for the hi-tech image rather than any operating benefits.
So how has the Embed system changed as a product and has it developed the industry in any way since it was introduced onto the international amusement market? According to Steinberg, over the last seven years the company has seen a dramatic change where systems have become more reliable and the costs to own and operate can now be feasible for the average location.
“However, buyers of a system should be very careful to look at the ongoing costs of cards and system maintenance when considering a system,” added Steinberg. “As this cost can often overshadow what may look to be a bargain cost of installation.”
With regard to the Embed system itself, according to Steinberg, in the early days the drive for the system very much came from a desire to create efficiencies, control cash and reduce operating costs. With the introduction of the system all these things were achieved but the greatest benefit of all was in the marketing capabilities that the system now offered.
“The ‘amusement service’ could now be offered and sold in so many different ways,” he said. “Pricing was no longer fixed to coin denominations and could be varied at any time and for any player. Special sales packages and reward systems could also be created allowing up-selling and rewards for increased visit frequency.”
When asked where he sees the future of the coin-op industry and Embed’s place within it, Steinberg told InterGame: “Our aim to is to provide a total management and marketing solution and we continually look for opportunities to make the operation of an entertainment centre more efficient and cost effective.
"In addition to the traditional game based entertainment centre Embed is also looking at opportunities in other types of entertainment facilities and attractions so in the future you will see Embed systems being used in other types of facilities also.
“The future of the coin-op industry will very much be driven by the creativity and innovation of the game products themselves and their ability to compete with other forms of entertainment,” he continued.
“Providing that competitive product is available then the ability of operators to compete effectively in the market will very much come down to how well they run their business, how well they know their customers and how well they market their service.
"The Embed System is a great tool to help operators do all of those things and there is a clear trend internationally for the industry to invest in systems. We think this trend will continue as without this kind of tool an operator will find it hard to survive in the future. Maybe one day we will have to start calling it the ‘card-op’ industry.”
