Dreams that Transform Lives

Sorteos Tec

4. Quality Education 5. Gender Equality 9. Industry, Innovation and Infrastructure 10. Reduced Inequalities 13. Climate Action

Overview

Through a solution as simple as the use of draws, dating from ancient times, presumably in China, 2nd century BC, where it is said that the draws were used for the construction of the Great Wall, part of the city's drainage of Rome in old times and for some fortifications in castles in Europe. "The lotteries has been used throughout history as a way to generate funds." The founders of Sorteos Tec found a viable financing solution, to achieve their objectives in a sustainable way, with honesty and transparency in the process of the draws, as well as in its results.

This simplistic solution in concept has evolved from 1947, where a Lincoln Continental car was raffled, to the present where regularly there is a jackpot of a luxury house in Monterrey, Nuevo León valued at several millions of pesos, in addition to a long list of complementary awards. However, to continue supporting education and research, it was not possible to maintain this pattern, raffling a car and granting a student scholarship, Sorteos Tec need to innovate their business model if they want to make a important impact in Mexico. Along with the growth and innovation of the business, the complexity of the operation, sale and distribution of tickets escalated.

Through the use of technology in all the processes of its value chain, Sorteos Tec has managed to implement a more “LEAN” and digital process, which allows it to contribute to the environment through a reduction in the printing of checkbooks for delivery of tickets, minimizing employee mobility for book distribution and delivery to the more than 200,000 volunteer vendors and purchase and distribution sites, as well as enable the purchase and delivery of electronic tickets to buyers. In addition to growing their portfolio of giveaways. Both internal innovations have contributed to obtaining more funds and constant funding to award more scholarships while reducing the carbon footprint.

Authors

Karen Patricia Rodríguez Bú

Karen Patricia Rodríguez Bú

Mariana Cortés Viayra

Mariana Cortés Viayra

Rodolfo Javier Campero Gracia

Rodolfo Javier Campero Gracia

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

MARTIN H BREMER

MARTIN H BREMER

Innovation

Sell tickets and hold raffles in compliance with the Laws of Games and Raffles (Law of 1949), once the raffle is carried out, the prizes are awarded to the winners, generating a positive social impact through research, education, and acting as environmentally friendly way through the implementation of completely digital giveaways.

Sorteos Tec has transformed and is innovating in three fundamental aspects that mainly support education, research and reduction of its carbon footprint:

As for the business concept, it has been diversified, so that the raffles are much more frequent and the types of prizes and ticket values are affordable to more sectors of the population, thus increasing the raising of funds that are destined to the scholarships for students and research. Currently, innovative options have been incorporated through raffles that give you money, tuition fees, smart and environmentally friendly homes, under the brands of "Sorteo Tec Dinero De X Vida", "Aventurat", "La Casa de tus Sueños”, among several other raffles.

The innovation and use of technologies, with the implementation of solutions that allow it to be friendly with the environment around the country. Through the use of APPS on cell phones and digital portals, Sorteos Tec has found a way to solve the entire process from the generation of tickets to the purchase and delivery of a digital ticket to the buyer, to minimize the production of paper checkbooks, avoid displacement of motorcyclists and checkbook distributors, thereby reducing pollution and the use of fossil fuels, while facilitating the process for those who buy tickets, allowing the purchase from anywhere in the world. Thus they have achieved the "modernization and digitization of all the Tec Sorteos processes".

Offering society a premium version of an innovative lottery platform for free (up to a certain amount). Sorteos Tec seeks to become the most innovative lottery for social purposes in the world, for which it has expanded its distribution channels through: new e-commerce models, B2B marketing and sales networks. Among its latest advances in innovation is the promotion of its products and infrastructure through a “White Label” scheme, creating alliances with other institutions such as the Red Cross, even other universities such as Tecmilenio, that take advantage of the technology, knowledge and infrastructure of Raffles to offer similar solutions in your own products and services. Tecmilenio, for example, has already launched its first “Giveaway with Purpose” in this year 2021, where among prize numbers the possibility of a prize of 245,000 mexican pesos was offered, which could be given to the winner, or he could donate it again through of a full tuition. All the remainder of "Sorteo con Propósito" is in turn allocated to scholarships for students in Mexico, thereby expanding the positive impact of Sorteos Tec in education.


Dreams that Transform Lives

Sorteos Tec Mission and EGADE Team in front of the Sorteo´s actual House (May 2021)

Inspiration

As we have mentioned before, almost together with Tec de Monterrey, Sorteos Tec initiative was born. The purpose was to transcend by bringing education to more segments of the population. There were antecedents that indicated that it was a viable path for this model, since the United States, for example, lotteries had been used to finance the construction of important universities such as Yale, Harvard and Brown.

"The original idea becomes from the need to find funds to build the Tec de Monterrey library that opened its doors in 1945. With the background described above, they took the idea and began the history of Sorteos Tec by holding the first draw in 1947. This raffle had as a prize a car: American, large, beautiful and very inspirational for that time. And from there, an organization was built so that Sorteos Tec, became the largest university lottery with social purposes in Latin America, and why not, the largest in the world. "

Throughout its history it has funded large Tec de Monterrey projects, in addition to the first library, it has financed university campuses, gyms, and other university projects. Since 2013, the remnants are sent directly to the Leaders of Tomorrow program, which is the program that gives the opportunity to very talented young people ("the forgotten talent of Mexico"), so that they can study a career at Tec de Monterrey, with a 100% scholarship. The program formally begins with the arrival of Salvador Alba to the Presidency of Tec de Monterrey and continues to the present.

The inspiration was driven by the goal of supporting Mexico through education as the engine of development. Inspiration that has evolved to date, to become: "Leadership, innovation and entrepreneurship for human flourishing". In addition, its founders wanted to make the community aware of this need and participate in the challenge together with Don Eugenio Garza Sada and his family.

Currently, Sorteos Tec, is already on the way to transcend borders with its latest technological and commercial innovations, seeking to change the world through the "Leaders of Tomorrow" program, with honest professionals, entrepreneurs, with a strong social conscience, committed to society and the planet.

This is already demonstrated in the creation of the "From Leader to Leader" program, where students who have benefited from scholarships are now correspondents to raise funds and grant scholarships to other students in similar economic and social situations. This program was created on the initiative of the former scholarship students themselves who try from an early stage to give back to society what they already had and that is transforming their lives. Its objective, in addition to award scholarships to two more leaders, is to impact the community through different projects: "My team developed Cormeum Technologies, a system for cytotoxicity testing, used by pharmaceutical companies. Our system is based on a innovative technology called microfluidics. It works with various cells from different human tissues that make up organs such as the heart, liver, stomach and lungs. " (Ricardo De Blass Nuño, 2nd generation of the Leaders of Tomorrow Program).

The purpose that inspires them is "to make Sorteos Tec one of the most transparent, dynamic, innovative and socially meaningful lotteries in the world, in order to sustainably finance the Leaders of Tomorrow program and research in Mexico."


Overall impact

Currently, Sorteos Tec, has more than 200,000 volunteer collaborators and 900 full-time employees. Through innovation in new business models and omnichannel experiences, in addition to alliances with institutions such as Universidad Tecmilenio, Bomberos de Monterrey, Universidad Veracruzana, Cruz Roja, among several, the inclusion and the use of digital platforms in their operation has allowed continuity remote operation of all the workforce involved, in addition to 400 telemarketing sales agents, and 80 field executives.

The use of its “Colaboro +” APP allowed digital sales, closing 2020 with $ 12.3 million in sales and $ 84.6 million in income from balance payments. Having strengthened the multi-channel through web portals, generated an increase in net sales of 28%. As of May 2020, with the authorization of payments through alliances through the OXXO chain, $ 26 million pesos were charged.

The use of recent technological innovations launched, enabled in a few weeks the emergence of new raffles, such as the student program: "From Leader to Leader", allowing the sale of 25,000 tickets in record time.

The productivity of the sales force was strengthened thanks to the use of technologies such as Salesforce, the platform for managing opportunities and sales, used to innovate in business processes and outsourcing services, generating savings of about $ 96 million against the operating plan, and $ 70 million purchased against the previous year .

Business benefit

Sorteos Tec, has now more than 200,000 volunteer collaborators and 900 full-time employees. Through innovation in new business models and omnichannel experiences, in addition to alliances with institutions such as Universidad Tecmilenio, Bomberos de Monterrey, Universidad Veracruzana, Cruz Roja, among several, the inclusion and the use of digital platforms in its operation has allowed continuity remote operation of all the workforce involved, in addition to 400 telemarketing sales agents, and 80 field executives.

The use of its “Colaboro +” APP allowed digital sales, closing 2020 with $ 12.3 million in sales and $ 84.6 million in income from balance payments. Having strengthened the multi-channel through web portals, generated an increase in net sales of 28%. As of May 2020, with the authorization of payments through alliances through the OXXO chain, $ 26 million pesos were charged.

"In the last 10 years, online sales grew from being less than 1%, to 20% of its total sales in 2021, compared to lotteries in the United States that oscillate between 4% and 5% maximum, in their online sales. But it is not only the sale, but the entire process, the ticketing is completely digital, it is not sent to the press."

It is not only to sell physical products online, but to sell 100% digital products online (first lottery in Mexico to do this), a 100% digital ticket where its issuance has not been through a printing company, otherwise, it is issued, it is paid and raffled digitally. The reuse of recent technological innovations launched, enabled in a few weeks the emergence of new raffles, such as the student program: "From Leader to Leader", allowing the sale of 25,000 tickets in record time.

The productivity of the sales force was strengthened thanks to the use of technologies used to innovate in business processes and outsourcing services, generating savings of about $ 96 million against the operating plan, and $ 70 million purchased against the previous year.

NOTE: The figures mentioned are in Mexican Pesos.

Social and environmental benefit

Mexico has been favored with 247 ExATec's committed to human flourishing and continuity through their actions in different areas of the communities where they work. In addition to the 1,345 students who will enjoy quality higher education. These students who are not only brilliant, but also have a social conscience and have already been active social actors in their communities, this is even one of the requirements of the selection process for scholarship allocation.

The raffle promoted and carried out by the current "Leaders of Tomorrow" under the "From Leader to Leader" campaign, managed to raise 2.5 million pesos that were concluded before the draw deadline and at the height of the pandemic created by the virus of COVID-19. In this way we see how the impact on society has already transcended the walls of the Tec Sorteo institution itself, there are “students educating other students”. They are not the leaders of tomorrow, they have already become "Leaders of the Present".

Regarding the environment, only the “From Leader to Leader” program sold 25,000 digital tickets, avoiding printing them on paper. There has also been an optimization in the processes, which has generated a reduction of 50% in terms of personnel mobilized in cars and motorcycles for the sale of tickets.

However, the program still requires greater participation and social commitment. In 2014, 2,500 young people applied to this benefit, for the seventh generation in 2020, the number rose 14,608 applicants.

Sorteos Tec, in an attempt to generate an expansive impact, is already delivering its knowledge and digital infrastructure to other institutions under a “White Label” scheme, among them: the Veracruzana University, Tecmilenio University, Monterrey Firefighters, Mexican Red Cross, allowing then to run their own lotteries. Tecmilenio already held its first draw in 2021, and name it "Draw with Purpose." The "Leaders of Tomorrow" got together and through the Sorteos Tec infrastructure, they made their first draw, which they called "From Leader To Leader", with complete success, achieving a 100% scholarship for two more students!

Interviews

Farid Aouragh, CEO, General Director Sorteos Tec

Gerardo Arturo Villarreal Galván, CIO, Information Technology Director

Photo of interviewee

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Sorteos Tec

Sorteos Tec

monterrey, nuevo leon, MX

Business Website: https://www.sorteostec.org

Year Founded: 1947

Number of Employees: 501 to 1000

The company "Sorteos Tec" is one of the institutions of the Instituto Tecnológico y de Estudios Superiores de Monterrey (Tec de Monterrey), a leading university in Latin America in the private education sector in Mexico.

Sorteos Tec, is almost 75 years old, emerged almost immediately with Tec de Monterrey, carrying out its first draw in 1947. The idea was to find a business model that was self-financed and that would contribute to promote the development of the country through quality education and research, with social improvement through society as a main goal.

The company raises funds through different types of raffles, generating at the same time sources of formal employment for almost 1000 people in Mexico. The proceeds go to these activities:

a) Allocation of full scholarships for university-level students, through the "Leaders of Tomorrow" program.

b) Research is supported by enabling the necessary infrastructure and resources.