- Digital is the new normal. COVID-19 was the volatile breaking point that forced change in the industry on an IT, business, and customer level.
- The gaming and hospitality industry is focused on keeping the lights on. The industry must be agile to support the business to suit shifting customer preferences and expectations. To do this, IT needs to be “digital” – able to innovate, support exceptional online and on-property experiences, provide insight-creating data tools, and keep the operations secure especially in a highly regulated environment.
- Unfortunately, IT organizations fall short when it comes to digitally enabled or transformed business and IT capabilities.
Our Advice
Critical Insight
Based on the results, gaming and hospitality IT departments are currently co-leaders of digital, an insupportable position for bridging the digital transformation gap. IT must gain total digital ownership by improving the business executive perception of IT and evaluating pressing processes to enable digital transformation.
Impact and Result
Use Info-Tech’s data-driven IT diagnostics as a baseline to determine IT’s capability to digitally transform the business.
Break down digital into five growth categories to devise improvement initiatives: Digital Strategy, New Customer Frontiers, Continuous Innovation, Workforce of the Future, and Resilient Operations.
Analyze from the three perspectives to see where your IT department stands:
- Do you have support from your business users to transform their departments?
- Do you have the mandate from executives to innovate?
- Can IT execute digital?
Fuel Digital Enablement and Value in Gaming & Hospitality
2022 IT Benchmark Report
Executive Summary
Your Challenge
- Digital is the new normal. COVID-19 was the volatile breaking point that forced change in the industry on an IT, business, and customer level.
- The industry deals with a high level of digital threats, disruptions, and new entrants within the space. Organizations must determine how they will sustain and differentiate themselves in this competitive environment.
- There is an accelerated pace and direction for digital transformation. Organizations are now trying to understand its implication on their own businesses: What are the opportunities? What are the risks? Where does focus need to be placed?
Common Obstacles
- The gaming and hospitality industry is focused on keeping the lights on. The industry must be agile to support the business to suit shifting customer preferences and expectations. To do this, IT needs to be "digital"; able to innovate, support exceptional online and on-property experiences, provide insight-creating data tools, and keep the operations secure – especially in a highly regulated environment.
- Unfortunately, IT organizations fall short when it comes to digitally enabled or transformed business and IT capabilities.
- The industry has the perception of being infrastructure-heavy. Organizations will need to push past "keep the lights on" operations to digitally transform and innovate the business.
Info-Tech's Approach
- Use Info-Tech's data-driven IT diagnostics as a baseline to determine IT's capability to digitally transform the business.
- Break down digital into five growth categories to devise improvement initiatives: Digital Strategy, New Customer Frontiers, Continuous Innovation, Workforce of the Future, and Resilient Operations.
- Analyze from the three perspectives to see where your IT department stands:
- Do you have support from your business users to transform their departments?
- Do you have the mandate from executives to innovate?
- Can IT execute digital?
Info-Tech Overarching Insight
Based on the results, gaming and hospitality IT departments are in an unsupportable position to bridge the digital transformation gap. IT must gain total digital ownership by educating the business departments to transform, improving the business executive perception of IT to innovate, and evaluating pressing processes to enable.
COVID-19 was the volatile breaking point that forced gaming organizations to reassess their digital priorities and strategies
Digital Shift |
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Old Paradigm |
New Paradigm |
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New business models define the digital transformation – not technology
Industry 4.0 |
Organizational Growth |
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Disruptions driving digital transformation in the gaming industry
The Addition of online products
- iGaming has become a lucrative product, earning $3.71 billion among 6 states alone (American Gaming Association, 2022).
- Online sports betting has expanded drastically in North America since the pandemic with 87% of states gaining legislative approval after 2019.
The Acceleration of Platform Provision
Platform provision consists of:
- Being asset light: Operators leverage REITs to unload assets and focus on the brand. For example, GLPI owns 35 Penn Entertainment properties.
- Digital acquisitions and spin-outs: Operators look to acquire digital assets and/or build digital units to focus and succeed in the online market. For example, in 2015, PENN Entertainment formed its digital entity, Penn Interactive Ventures.
The budding future of web 3.0
- Crypto and NFTs are becoming value creators for all industries. Experts predict crypto gambling will reach a value of $93 million by the end of 2023 (Yahoo, 2022).
- The potential for casino involvement in the metaverse is staggering. Decentral Games' ICE Poker Virtual Casino has made over $7.5 million from November 2021 to February 2022 (Business Insider, 2022).
The Frictionless & Convenient world
Mobile app strategies are converging with contactless and digital strategies to provide a seamless and easily accessible customer experience.
- Omnichannel: Grosvenor Casino experienced a 12% increase in revenue from omnichannel efforts (Rank Group PLC, 2021).
- Hyper-personalization: 90% of customers find personalized advertising appealing (Deloitte, 2020).
The gaming CEO views digital as promising
2022 Top Board Priorities for Information Technology
Thomas R. Reeg – Caesars Entertainment q2 2022 earnings call
"When we started digital, we didn't have the ability to segment customers … so you, in effect, underinvest in your best customers and overinvest in your worst. That's no longer the case. And we see the fruits of that every day as results come in and it's great to see."
60 million
Number of Caesars Rewards loyalty members
Jay Snowden – Penn National Gaming q2 2022 earnings call
"Over the past few years, PENN has transformed our business through a highly differentiated strategy, focused on organic cross-sell opportunities, which is reinforced by our investments in our market-leading retail casinos, sports media assets, owned technology, including a state-of-the-art, fully integrated digital sports and online casino betting platform and an in-house iCasino content studio."
$1.6 billion
PENN's 2022 fourth quarter revenues
Raymond Pineault – Mohegan Gaming & Entertainment q3 2022 earnings call
"We're exceptionally pleased with the results that our digital is performing. And we anticipate, as we've said all along, that we will continue to run a profitable Digital Gaming business."
28.7%
Mohegan Gaming's increase in revenue for 3 months ending March 31, 2022
William Hornbuckle – MGM Resorts International q2 2022 earnings call
"Our investment in BetMGM is an important enabler to our omnichannel strategy and a key competitive advantage that allows us to drive incremental earnings between our brick-and-mortar and online channels."
29%
MGM's iGaming market share in the industry
The shift has redefined the pace and direction of digital transformation across the gaming industry
Understanding the implications for your industry is key for gaming CIOs to support the digital aspirations of their organizations and to help steer their transformation.
The speed and pace of industry change is at an all-time high…
…posing risks to incumbents and opportunities for all.
- What are the implications for my gaming IT department?
- Which IT initiatives will make the greatest impact for digital?
- How do I drive innovation?
- What are my peers doing in digital?
- What are the IT risks and considerations if I don't act now?
Our data is sourced from five analytical diagnostics
CIO Business Vision Diagnostic
Take Info-Tech's CIO Business Vision Diagnostic to learn what the business sees as important as well as their satisfaction with various core IT services.
CEO/CIO ALIGNMENT DIAGNOSTIC
Take Info-Tech's CEO/CIO Alignment Diagnostic to determine the vision of business executives and whether IT is aligned.
Management & Governance Diagnostic
Take Info-Tech's Management & Governance Diagnostic to gain real insight into which processes your IT staff thinks are important and effective.
IT Staffing Diagnostic
Take Info-Tech's IT Staffing Diagnostic to gain real insight into where your IT staff are spending their time, perceived effectiveness, and barriers to success.
Security Governance Diagnostic
Take Info-Tech's Security Governance Diagnostic to understand strengths and weaknesses of IT security governance and management.
Your gaming organization has the opportunity to enable a digital business
Digital Business Growth Opportunities | |
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Digital Strategy |
Organizations must meet new digital threats ahead, simultaneously focusing on operational responsiveness and resilience. |
Continuous Innovation |
Skills to support technological innovation will be necessary to develop internally and procure through partnerships. |
Workforce of the Future |
Digital transformation is not necessarily about headcount reduction. The workforce and culture are integral to the future of the organization. |
New Customer Frontiers |
The global pandemic has unlocked new needs and opportunities for gaming and hospitality organizations to create value for their guests and players. |
Determine where IT stands based on three perspectives
Mandate from executives to innovate
IT needs to be viewed by executives as an "innovator" for the business. Therefore, IT must be able to make the case for the mandate of digital evolvement in the organization.
Support from business departments to transform
Support is required from business end users since their departments will be impacted by the enterprise-wide, cross-functional digital transformation.
IT's Ability to Execute
Succeeding in digital transformation will depend on IT's maturity level. IT must determine how effective their processes are on many levels: staffing, technology, skills, processes and procedures, etc.
Fuel digital enablement and value in gaming
Drill down to understand your IT department's strengths, weaknesses, and opportunities.
Leverage Info-Tech diagnostics
Capture your organization's current state, using the diagnostics as a baseline to determine IT's capability to digitally transform the business.
Distribute results into five digital growth categories
By breaking down digital transformation and plotting results into five digital growth opportunities, your organization can establish requirements and foundational elements necessary to thrive in a digital economy.
Determine IT department standing by analyzing through three perspectives
Recognizing IT's readiness relies on perspective. Do your diagnostic results illustrate business support, revenue-generating innovation, and IT effectiveness? All are required to enable digital enablement and value.
How to read this report
In this report, we…
Compare PRE-COVID-19 DATA vs. During/Post-COVID-19 Data
Determine if the pandemic stalled or accelerated the improvement of processes and services by analyzing diagnostic results before 2020 against results after 2020.
Compare by hotel star rating
Analyze diagnostic results based on hotel star rating to determine benchmarking alignment:
- 2-Star: Offers basic necessities and may offer some limited amenities
- 3-Star: Offers a balance between affordability and amenities
- 4-Star: An upscale hotel that offers amenities, activities, and extras
- 5-Star: A luxurious hotel that offers high-end accommodations
Compare by size of Gaming & Hospitality (G&H) Organization
Determine digital maturity based on size of organization by analyzing diagnostic results by the following levels:
- Small ($0 - $99 million)
- Medium/Large ($100 million - $1 billion)
- Enterprise ($1 billion - $10 billion)
Compare 2021 Report results vs. 2022 report results
Determine if IT has improved or worsened in the past year by analyzing overall diagnostic results in the published 2021 benchmarking report against results in 2022.
Compare against adjacent industries
Analyze diagnostic results of adjacent industries against results of G&H organizations to determine benchmarking alignment. Adjacent industries have similar characteristics to gaming and hospitality:
- Healthcare: High compliance
- Banking: Highly regulated (KYC [know your customer], AML [anti-money laundering])
- Retail: Sales transaction and customer experience characteristic
Digital Strategy
Section 01
- Annual benchmarking report
Digital transformation is not simply about technology. Your digital strategy efforts must capture how your organization creates value in a digital era.
Info-Tech resources
Gaming and hospitality organizations have support from business end users
CIOs must Continue to climb the maturity ladder to help the business drive Digital growth.
Stakeholder satisfaction is IT's key metric. G&H's maturity is rated as a "business partner" on Info-Tech's maturity ladder. CIOs at this level can play a role in digital transformation by improving customer-facing products and services. Operators should aim for a higher mandate by achieving the "innovator" level where IT can help to fundamentally change the business by becoming a revenue center over a cost center and a leader vs. an order taker. Additionally, organizations below 80% must prioritize initiatives to increase business stakeholder satisfaction to improve the perception of IT.
G&H's Business Stakeholder IT Satisfaction
The Landscape of Overall IT Satisfaction in G&H Organizations
Satisfaction varies depending on size of organization and star rating
Satisfaction by Size of Organization
Satisfaction by Hotel/Resort Star Rating
Medium/Large organizations have the highest satisfaction, especially when you consider the challenges that small and enterprise organizations naturally experience. Small organizations often experience resource constraint on a budget and staffing level that impacts capacity. Enterprise organizations experience complexity such as M&A, decentralized organizational structures, and multi-properties (in various geographic locations).
As stars increase, satisfaction decreases. 5-star organizations have higher demands, especially when you consider customer expectations, which further translates to the expectations of executives and end users. 5-star organizations need to be prepared for customization to reach and exceed customer satisfaction.
IT must see at least 80% satisfaction for all business departments
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Marketing – 79.6% 2022 Satisfaction
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Being a digital business is contingent on achieving a high degree of executive satisfaction (which they don't have)
G&H's Business Executive IT Satisfaction
CIOs must climb the maturity ladder to gain an increasingly innovative perception of IT from business executives (CXOs) to drive digital growth. At the moment, IT is successful at keeping costs low and the business happy, at most. Your digital strategy must capture how the organization creates value in a digital era. With 60% of organizations being firefighters or unstable, IT is not able to capture how the organization creates value, and therefore, has not reached the level to be viewed as helping to increase revenue or assisting in the penetration of new markets.
IT is effective in "keep the lights on" operations but must improve core digitally transformative processes
Effectiveness in KLO operations is not enough to enable digital transformation. IT departments must consider improving processes that are pivotal for digital transformation. Bordered processes with low importance are especially concerning and must be evaluated immediately because it means that coordinated efforts, staffing, and resources to improve those areas are lacking.
The ability to lead digital transformation relies on the evaluation of strategy and governance
IT Strategy is a key indicator for the future performance of a digital strategy
IT Strategy is a key indicator for the future performance of a digital strategy ![]() |
IT Strategy Classification: Improve immediately High Importance. 8.56 Low Effectiveness. 6.42 |
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Poor IT Governance means inconsistency in business-aligned strategies and Objectives ![]() |
IT Governance Classification: Evaluate Process Low Importance. 8.50 Low Effectiveness. 6.49 |
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Customer Frontiers
Section 02
- | ANNUAL BENCHMARKING REPORT
Make sure you have the structure that enables continuous exploration by developing digital-first business models and delivering connected experiences.
Info-Tech resources
Client-facing technology is the competitive differentiator in the industry
The pandemic has unlocked new needs and opportunities for gaming and hospitality organizations to create value for their guests and players. The gaming and hospitality industry lives and dies on its ability to understand customer behaviors. As jurisdictions around the world legalize parts of the online portfolio, we expect these percentages to increase over time. The implementation of these digital products and services will not be enough. We are starting to see the convergence of various strategies (mobile, cashless, contactless, etc.) to reduce data silos and provide seamless, hyper-personalized, and omnichannel customer experiences.
G&H Share of digital products and services by organization size
Satisfaction is improving, but the business needs to be educated on the importance of client-facing tech in a digital world
G&H's increase in Client-Facing Tech Business satisfaction
- The mediocre importance ranking of client-facing technology is a cause for concern. In gaming and hospitality, the guest experience online and offline is everything, especially in the post-pandemic era where digital preferences and expectations have been high in demand.
- Importance of client-facing technology should be higher for the sake of the customer. Expectations of IT should be higher, as anything that affects this experience will heavily influence customer perception of the brand.
- On the bright side, business satisfaction is improving. Ensure the continual improvement of this service as customer experience is paramount in this highly competitive and evolving industry. Improving satisfaction here remains a priority.
- The business needs to prioritize the optimal delivery of client-facing technology. Delivery relies on project management and requirements gathering. With a low ranking of importance for both, the technology's experiential and engagement value will be hard to realize.
2022
Business end users' ranking of the 13 core services
13 Core Services | Importance Ranking | Satisfaction Rating |
---|---|---|
Network & Comm. Infrastructure | 1 | 82.60% |
Service Desk | 2 | 86.00% |
IT Security | 3 | 87.80% |
Data Quality | 4 | 77.60% |
Business Applications | 5 | 78.70% |
Devices | 6 | 73.80% |
Client-Facing Technology | 7 | 74.70% |
Work Orders | 8 | 83.70% |
Analytical Capability | 9 | 79.60% |
IT Innovation Leadership | 10 | 78.50% |
Projects | 11 | 79.20% |
IT Policies | 12 | 84.00% |
Requirements Gathering | 13 | 78.10% |
The ability to deliver digital products and services via client-facing technology relies on the evaluation of PPM and projects
It must be capable of initiating, planning, controlling, and executing digital projects | Project mgmt. Classification:Improve immediately High Importance. 8.52 Low Effectiveness. 6.39 |
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To create digital solutions, IT must be effective in managing the collection of business requirements | Requirements Gathering Classification:Improve Immediately High Importance. 8.68 Low Effectiveness. 6.31 |
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Continuous Innovation
Section 03
- | Annual benchmarking report
Engage in open innovation, accelerate process automation, simulate your environment, design for emerging needs, and build an AI advantage.
Info-Tech resources
The business view of "innovation" must improve
Business Executives' ranking of IT innovation contributions
How strongly should IT innovation contribute to the business in the following areas? | Score out of 10 | Ranking |
Improved Business Processes | 6.2 | 1 |
Core Product & Service Improvements | 5.8 | 2 |
Reduced Costs | 5.4 | 3 |
Increased Revenues | 4.6 | 4 |
Penetration Into New Markets | 4.5 | 5 |
- External, future-forward innovative priorities are ranked low by business executives, specifically, increased revenues and penetration into new markets. With the CXO view of innovation being largely internal, culture must be improved for IT to be viewed as a true innovator for an increasingly digital and customer-facing environment.
- Business end users have ranked the priority of "IT Innovation Leadership" more conservatively. Since it's the business that will be undergoing these digital changes, it's important that they view IT as an innovative leader so that gaining buy-in for initiatives is effortless.
13 Core Services | Ranking |
Network & Comm. Infrastructure | 1 |
Service Desk | 2 |
IT Security | 3 |
Data Quality | 4 |
Business Applications | 5 |
Devices | 6 |
Client-Facing Technology | 7 |
Work Orders | 8 |
Analytical Capability | 9 |
IT Innovation Leadership | 10 |
Projects | 11 |
IT Policies | 12 |
Requirements Gathering | 13 |
The ability to drive design and innovation relies on the evaluation of strategy and governance
Digital transformation requires business innovation | IT Strategy Classification: Evaluate PROCESS Low Effectiveness. 8.20 Low Importance. 5.96 |
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IT needs to view the importance of organizational design for a customer-centric digital operating model | Org. Design Classification: Maintain Process Low Importance. 8.48 High Effectiveness. 6.70 |
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Being data-driven is a top priority for business executives
Business Executives' ranking of disruptive technology
A data-driven mindset is considered a foundational requirement to enable innovation. Gaming and hospitality organizations are seeing the importance of big data collection and analysis for data-driven decision making. In the end, good data and analytical capabilities are needed for initiatives like hyper-personalization, AI/ML, and omnichannel. Ensure IT is effective in this area. For those experiencing low business satisfaction, consider if your organization has implemented the necessary big data technologies.
The ability to enable data-driven decision making relies on the evaluation of data and BI
IT must provide the business with reliable and accurate data ![]() |
Data Quality Classification: Evaluate PROCESS Low Importance. 8.43 Low Effectiveness. 6.25 |
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Provide end users with the self-sufficiency to analyze data ![]() |
BI & Reporting Classification: Evaluate PROCESS Low Importance. 8.43 Low Effectiveness. 6.23 |
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Workforce of the Future
SECTION 04
- | ANNUAL BENCHMARKING REPORT
Gaming organizations must strive to learn and grow in diverse ways by enabling a distributed workforce, future-proofing practices, and building diverse teams.
Info-Tech resources
A digital workforce is necessary for any-size organizations
Formalized digital entity or role by G&H organization size
*Formalized Digital Entity / Role refers to a position, department, or spin-out entity that clearly lays out the objective of digitizing, digitalizing, or digitally transforming the business.
- A formalized digital entity/role is common among enterprise organizations. Larger gaming and hospitality companies are ahead of the curve in this initiative. This is expected as formalizing digital is accelerating in larger companies of other industries as well.
- Although a formalized digital entity/role is unconventional among small and medium organizations, digital does exist. Size of organization should not matter. Digital should be based on the current state of digital development on both a company and industry level.
Balance is key in a post-COVID-19 digital era
Insufficient IT resources, inadequate skills, dissatisfaction, and burnout are major pain points to look out for.
G&H IT DEPARTMENT SENIORITY SPREAD
14.3
Average Years of IT experience
- Low effectiveness should be further analyzed based on five key drivers: skills, staffing, absence of organizational barriers, processes and procedures, and technology. If IT processes are experiencing dissatisfaction from end users and the IT team, delve deeper into the pain points based on the drivers.
- Ensure the optimal number of managers to avoid suffering a top- or bottom-heavy structure. You should always see more front-line staff than managers and more managers than senior managers. If this pattern is not reflected in your IT organization and your span of control ratio isn't in the 4:1 to 7:1 range, you're top-heavy.
- Successful IT departments have employees with a range of experience. Each experience level brings different degrees of dynamism, stability, skills, and perspective to the mix. Be mindful of the number of staff with more than ten years of experience. When it comes to staff experience, a balanced blend of institutional veterans and those who've experienced a more diverse set of employers can offset the risk of aging skills, status quo thinking, and absence of innovation.
FTE count varies depending on size of org. and star rating
Although benchmarking FTE count is insightfully used to determine optimal staffing levels, each organization is unique, and outcomes can vary.
Where your team's time is spent just as important as FTE count and allocation. Consider where your staff spends their time when it comes to maintenance, administration, improvement, and people. People and resources and improvement are considered more productive areas to spend time.
G&H IT Allocation by Activity Type
Activity Type | % of Time | Activity Type | % of Time |
---|---|---|---|
Maintenance | 38.80% | People & Resources | 17.20% |
Maintaining existing technology | 25.40% | Planning and strategy | 7.80% |
Maintaining existing IT process | 13.40% | Managing IT team | 6.10% |
Administration | 28.60% | Managing business stakeholders | 3.30% |
11.10% | Improvement | 15.40% | |
Other administrative work | 8.80% | New technology initiatives | 8.20% |
Meetings | 8.70% | Improving IT processes | 7.20% |
G&H lacks resources, staffing, and effectiveness in Applications
Application effectiveness
Application effectiveness |
applications staffing Distribution |
Share of applications staffing levels compared to adjacent industries |
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- G&H commits a lot more staff to Infrastructure, which can be due to several reasons:
- The environment cannot tolerate any critical infrastructure downtime whatsoever.
- Gaming is a much more device-intensive industry.
- The industry tends to focus on COTS/buy vs. build, thereby requiring fewer application staff.
- Relies on vendors for application maintenance/enhancements, development, and support.
- The future of digital is applications. Organizations should improve staff allocation in this area for the sake of effective client-facing technology and business applications. The objective is to enable new digital capabilities so that your operations will have the opportunity to demonstrate more IT value and business stakeholder credibility.
Resilient Operations
Section 05
-
| Annual benchmarking report
Future-proof gaming operations by planning for flexibility, minimizing loss from disruption, and mitigating new risks.
Info-Tech resources
Cloud still needs to gain speed in the industry
To what degree do you believe the organization needs to adopt the following disruptive technologies in the next 3-5 years? | Score out of 10 | Ranking |
---|---|---|
Big data analytics (customer analytics, CRM, BI) | 590.00% | 1 |
Big data collection (tools and systems for gathering customer and market data) | 570.00% | 2 |
Social media for customer engagement/client service | 560.00% | 3 |
Mobile application for customers | 540.00% | 4 |
Mobile access for employees | 540.00% | 4 |
Social media for customer acquisition/marketing | 540.00% | 4 |
Cloud for application functionality | 520.00% | 5 |
Cloud for agile infrastructure | 5.1 | 6 |
Internal collaboration tools (social, video, content management for employees) | 4.6 | 7 |
IoT product tracking (RFID for logistics and supply chain tracking) | 3.6 | 8 |
IoT product ideas (smart monitoring built into existing offerings) | 3.4 | 9 |
IT Application maintenance staffing levels
- Analyzing application maintenance staffing levels is a key indicator for cloud applications. FTE allocation to application maintenance is relatively lower when compared to adjacent markets. Although technical debt and legacy technologies may exist, the industry is relying on cloud-based apps for initiatives like contactless check-in and checkout, sports betting, and online casinos, which could illustrate its lower staff allocation.
- Cloud for application functionality and agile infrastructure is not a disruptive technology that looks to be a priority for business executives, either because a cloud-driven mindset has already been established or because lack of cloud culture has become a limitation.
The industry has declined in IT security maturity since the pandemic
While adjacent market firms are improving in IT security maturity, G&H organizations have declined. Because we're in a customer-facing, highly regulated business, customers put a lot of trust in the industry, especially online where you lack the face-to-face interaction. The need for compliance management, risk analysis, and auditing to be improved will be heightened as your business heads online, considering AML/KYC, fraud, and digital trust and identity are prevalent online risks.
Summary & Conclusions
Section 06
| Annual benchmarking report
Summary and conclusions
Based on the results, gaming and hospitality IT departments are in an unsupportable position to bridge the digital transformation gap. IT must gain total digital ownership by educating the business departments to transform, improving the business executive perception of IT to innovate, and evaluating pressing processes to enable.
Digital Strategy
Evaluate
- 81% overall business department satisfaction.
- Marketing, Finance, Casino/Gaming Operations, and Audit & Compliance are below 80% satisfaction.
- 68% of business executives see IT as firefighters/unstable, but 44% want improvement toward trusted operator/
- G&H organizations' IT strategy and governance are ineffective, which is a key indicator for inconsistency in business-aligned digital strategies and objectives.
New Customer Frontiers
Improve
- 5.7% increase in customer-facing technology satisfaction from 2020 (70.7%) to 2022 (74.7%).
- Business does not view the delivery of optimal client-facing technology as important:
- Client-Facing Technology – 7th in importance
- Project Management – 11th in importance
- Requirements Gathering – 13th in importance
- Project Management and Requirements Gathering are considered ineffective IT processes.
Continuous Innovation
Improve
- Business executives don't see IT's place in increasing revenue and penetrating new markets (4th and 5th in importance).
- Business departments don't view IT innovation leadership as an important service (10th in importance).
- IT's low importance and effectiveness toward data quality and analytics means they do not provide the business with reliable data and the self-sufficiency to analyze the data.
Workforce of the future
Evaluate
- IT organizations suffer a top-heavy seniority structure.
- 14.3 years as the average IT experience means there's a risk of aging skills, status quo thinking, and absence of innovation.
- Organizations are effective in KLO operations and spend more time in infrastructure when the future of digital is applications.
Resilient Operations
Evaluate
- G&H organizations' low application maintenance staffing levels illustrates the industry's pivot toward cloud-based platforms like PMS, sports betting, and iGaming.
- G&H organizations have declined in security maturity from 51% pre-COVID-19 to 49% post-COVID-19.
IT must gain total digital ownership by:
- #1 EDUCATING THE BUSINESS DEPARTMENTS TO TRANSFORM
- #2 OBTAINING MANDATE FROM EXECUTIVES TO INNOVATE
- #3 ENHANCING IT'S ABILITY TO EXECUTE
Research to bridge the gaps to digital
Digital strategy
New Customer Frontiers
- Document Your Business Architecture
- Enable Omnichannel Commerce That Delights Your Customers
- Build a Strong Technology Foundation for Customer Experience Mgmt.
Workforce of the future
- Build a Strategic IT Workforce Plan
- Create a Work-From-Anywhere Strategy
- IT Diversity & Inclusion Tactics
Resilient Operations
- Master the Public Cloud IaaS Acquisition Model
- Embrace Business-Managed Applications
- Achieve Digital Resilience by Managing Digital Risk
Continuous Innovation
Bibliography
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Caesars Entertainment, Inc. "Q2 2022 Earnings Call." AlphaSense, 2 Aug. 2022.
"Crypto Gambling Skyrockets – What Do the Infographics Show." Yahoo! Finance, 4 May 2022.
Jaffery, Bilal. "Connecting with Meaning." Deloitte, 24 June 2020.
MGM Resorts International. "Q2 2022 Earnings Call." AlphaSense, 2 Aug. 2022.
Mohegan Gaming & Entertainment. "Q3 2022 Earnings Call." AlphaSense, 11 Aug. 2022.
PENN Entertainment. "Penn National Gaming (PENN) Q2 2022 Earnings Call Transcript." AlphaSense, 4 Aug. 2022.
Rosen, Phil. "This metaverse casino raked in $7.5 million in last 3 months and accounts for a third of Decentraland's daily users." Business Insider, 4 Feb. 2022.
"Trading Statement." Rank Group PLC, 14 Oct. 2021.