The Use of Chief Digital Officer in Gaming & Hospitality
Modernizing the role of IT to create and unlock enterprise value through digital.
- 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.
- Digital is not embedded or formally structured within the IT organization.
- Executive leadership does not have the digital culture or understanding required to enable a digitally enabled IT department.
Our Advice
Critical Insight
Gaming and hospitality organizations lag in focus on a truly digital role. As your organization shifts to an omnichannel platform business, the role of IT needing to pivot to a revenue operating model is increased and requires a chief digital office role to fall under IT.
Impact and Result
Embed digital into IT and leverage this report’s contents to make the case to the business:
- Articulate the importance and effectiveness of embedding digital in IT versus a business department.
- Analyze the current state of the CDO role in the gaming and hospitality industry as well as adjacent industries.
- Choose your own digital journey depending on where you’re at on the IT maturity ladder.
The Use of Chief Digital Officer in Gaming & Hospitality
Modernizing the role of IT to create and unlock enterprise value through “digital.”
Analyst Perspective
Digital is not a trend.
Your guests’ lifestyles, habits, and preferences have changed immensely since COVID-19. Digital is not a trend – it’s the way. For organizations to be most successful in their digital transformation journey, a digital leader is crucial. Organizations will be faced with many questions on this matter: Why do I need a digital leader? Who does a digital leader report to? Where do they sit in the organization’s structure? Is the hiring of a digital leader common among Gaming & Hospitality organizations?
This report is designed to educate Gaming & Hospitality organizations on the role of a chief digital officer (CDO) and the importance for the role to be embedded within IT. The report can be leveraged as a “make the case” for business executives.
Monica Pagtalunan
Research Analyst, Industry Practice
Info-Tech Research Group
Executive Summary
| Your Challenge | Common Obstacles | Info-Tech’s Approach |
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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. Digital is not embedded or formally structured within the IT organization. Executive leadership does not have the digital culture or understanding required to enable a digitally enabled IT department. |
The Gaming & Hospitality industry is behind the curve when it comes to embedding a digital leadership role in the organization:
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Embed digital into IT and leverage this report’s contents to make the case to the business:
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Info-Tech Insight
Gaming & Hospitality organizations lag in focus on a truly digital role. As your organization shifts to a platform business, the role of IT needing to pivot to a revenue operating model is increased and requires a digital leader to fall under IT.
Becoming a digital business
Automate tasks to free up time for innovation.
Business activities (tasks, procedures, processes, etc.) are used to create, sell, buy, and deliver goods and services.
When we convert information into a readable format used by computers, we call this digitization (e.g. converting paper into digital format). When we convert these activities into a format to be processed by a computer, we have digitalization (e.g. scheduling appointments online).
These two processes alter how work takes place in an organization and form the foundation of the concept digital transformation.
We maintain that digital transformation is all about becoming a “digital business” – an organization that performs more than 66% of all work activities via executable code.
As organizations take a step closer to this optimal state, new avenues are open to identify advances to promote growth, enhance customer experiences, secure sustainability, drive operational efficiencies, and unearth potential future business ventures.
Key Concepts:
Digital: The representation of a physical item in a format used by computers.
Digitization: Conversion of information and processes into a digital format.
Digitalization: Conversion of information into a format to be processed by a computer.
The CDO enables a platform strategy
Your digital leader will develop interactions that can jump from physical to digital, and vice versa, but keeps the identity of the customer intact in both environments by curating content, delivering seamless interactions, and orchestrating value across the ecosystem.
- Mobile application
- Loyalty platform
- Casino management system
- iGaming/Sports betting platform
- Customer relationship management
- Property management system
- Central reservation system
Structure redesign matters
Your organization must redesign the IT structure to align to the strategic objectives of the enterprise.
Adaptability is at the core of staying competitive today. Digital technology and information transparency are driving organizations to reorganize around customer responsiveness. To remain relevant and competitive, your reporting structure must be forward looking and ready to adapt to rapid pivots in technology or customer demand.
Structure is not just an organizational chart. The design of your organization dictates how roles function. If not aligned to the strategic direction, the structure will act as a bungee cord and pull the organization back toward its old strategic direction. Structure supports strategy, but strategy also follows structure.
Visual Extract: This is Info-Tech’s IT maturity ladder where organizations can visually determine where they are in their current state and where they want to successfully climb to as their aspirational state. In relation to the CDO initiative, when an organization achieves Innovator level, the operating model and IT leadership title is going to change because considering digital in your portfolio helps to achieve competitive advantage.
Steps to embed digital in IT
Enable your organization’s ability to thrive in a digital economy.
Journey #1: If your IT department is viewed as a “business partner” or “innovator.”
1
Use of CDO in Gaming
Make the case to roll digital into IT.
2
Redesign Your Organization Structure
Taking on digital capabilities is a critical redesign driver.
3
Define Your Digital Business Strategy
Cross-collaboratively build your people, processes, and technology initiatives.
Journey #2: If your IT department is viewed as a “trusted operator” or below.
1
Define Your Digital Business Strategy
Cross-collaboratively build your people, processes, and technology initiatives.
2
Redesign Your Organization Structure
Taking on digital capabilities is a critical redesign driver.
3
Use of CDO in Gaming
Make the case to roll digital into IT.
Gaming & Hospitality Organizations must strongly consider a CDO role
The Gaming & Hospitality industry is vulnerable to significant changes that are reshaping value – facing a digital threat with e-commerce, online sports betting, and iGaming. For example, digital-first fantasy sports betting companies like FanDuel (with 12 million users and $1.9 billion in revenue) are new entrants into real-money gambling that have become a digital threat to the industry. The CDO should bridge the brick-and-mortar and online experience gap to counter this disruption.
Organizations must improve operational efficiency and resiliency for years to come. Many organizations in the Gaming & Hospitality industry have not fully embraced the power of artificial intelligence and machine learning to benefit both internal processes and external guest experiences. The industry will require a disruptive perspective from someone (CDO) who can improve and re-engineer business functions and processes to better enable a seamless and personalized digital guest experience.
Embracing the digital era will benefit your organization and by extension, the entire industry. It would allow the organization and industry to expand existing revenue streams and tap into new growth strategies including new customers, new products and services, and new business models. The industry should move beyond basic digital implementations and toward a fundamental and seamless transformation of the business, taking advantage of new/er concepts to transform the industry.
The CDO can unlock organizational value post-pandemic
Build business resilience and customer relationships.
97% of surveyed executives say COVID-19 accelerated their digital transformation, using the pandemic as a stimulus for change. – Forbes, 2020
- COVID-19 has irrefutably changed livelihoods, businesses, and the economy. During the pandemic, digital tools have acted as a lifeline, helping businesses and economies survive, and in the process, have acted as a catalyst for digital transformation.
- Although the chief digital officer role has steadily been increasing since it was created in 2010, COVID-19 has accelerated a post-pandemic push for a CDO because of its ability to enable the following:
- Enterprise-wide digital transformation: Improve and digitize all aspects of the business internally and externally by modernizing systems, introducing agile processes, and embracing innovative technology to increase business resilience.
- Seamless customer journey: The pandemic made organizations realize that they must prioritize the digital experiences for their customers to optimize customer relationships. The CDO will help the organization be better positioned to tackle the post-pandemic new normal where consumers’ needs and expectations have drastically changed.
According to an IBM Study:
92%
Percentage of surveyed organizations that scored high in digital maturity have a CDO.
65%
Percentage of surveyed organizations that scored low in digital maturity do not have a CDO.
- IBM, 2019
Three ways to embed the CDO role into your organization
| IT Ownership | Business Ownership | Digital Ownership | |
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| Role Distinction and Reporting Structure | Common Structures:
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Common Structures:
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Structure:
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Digital should be embedded into IT
Transformation is driven by IT initiatives.
Common challenges of digital transformation makes its way back to IT as the digital solution
| DIGITAL CHALLENGE | IT AS THE SOLUTION |
|---|---|
| Reliance on legacy tools and ability to sync technologies. | IT is responsible for modernizing tools and integrating technologies. Therefore, IT should lead every step of the way to tackle this challenge. |
| The organization’s view of digital transformation and lack of organizational culture. | IT can communicate the importance of digital transformation across the enterprise to decrease chance of resistance while helping them get accustomed to digital culture, tools, technology, and solutions. |
| Supporting digital security. | Cybersecurity is in IT’s realm and therefore will be their role to consider how to keep the trust with customers, avoid risk, and if a privacy breach were to occur or a player loses trust, how will the organization respond? |
| Embracing an agile development approach. | Ability to merge two levels of maturity by aligning strategic goals and building digital fluency. |
| People fear too much change at once. | IT does well in prioritizing people, process, and technology initiatives. |
IT departments face challenges in becoming digital leaders
CHALLENGE #1: Corporate culture that is slow to embrace change and disruption.
63%
Percentage of surveyed organizations that claim IT is ready for digital transformation but the business isn’t ready.
CHALLENGE #2: Digital does not fall within IT.
52%
Percentage of organizations that embed digital’s leadership and budget in a business department: marketing, operations, or finance.
CHALLENGE #3: IT lacks IT budget and resources.
46%
Percentage of surveyed organizations that lack capable talent to carry out key roles or take advantage of new systems.
30%
Percentage of surveyed organizations that struggle with high cost of purchasing and implementing new systems.
Info-Tech LIVE, 2022.
Gaming & Leisure Las Vegas, 2022.
A CTO, CISO, and CIO reporting to the CDO allows for an all-encompassing, future-forward approach
What should the CDO reporting structure look like? It varies.
In 2019, IBM conducted a chief digital officer survey with 1,500 executives and in discerning its results, they state “that the CDO reporting structure is as varied as the organizations we surveyed.” Info-Tech Research Group asserts a similar stance, detecting a highly varied CDO reporting structure across organizations and industries. A wide variety of reporting structures can work and structure is dependent on the needs of the organization.
However, three key benefits come out of this proposed reporting structure:
| 1 | 2 | 3 |
|---|---|---|
| This proposed reporting structure ensures sustainment – that when the business has been transformed and the level of digitization is high, the CDO and its IT reports will work with business leaders to ensure every executive and business unit is enabling, supporting, and improving digital across all value streams. | In this reporting structure, the CTO, CIO, and CDO roles are distinguished with focus on all aspects of the business. A CDO should be looking internally and externally to improve processes and experiences. This can be accomplished by having a CIO (internal) and CTO (external) report to the CDO. | Increased IT resources and budget to bridge skill gaps and enable a digital workforce. Without these components, operators will struggle in overcoming digital transformation challenges. |
Reporting structure may be based on size of organization and business model
As an organization grows, it may add more departments and divisions, which creates more layers that exist in the hierarchy and a greater need to differentiate management of authority.
Distinguishing the CIO, CTO, and CDO roles
Chief Information Officer
The CIO typically looks internally, aiming to improve processes within the company by developing the overall business-aligned IT strategy and its projects while providing vision and leadership in all aspects of IT management and operations.
First use of the term: mid-1980s
CIO keywords:
IT Management, IT Service Management, IT Strategy, Information Technology, Cloud Computing, Enterprise Resource Planning, COBIT, Project Management
Chief Technology Officer
The CTO typically looks outwards, building and using technology to improve and innovate products that serve the customer experience with the objective of achieving and supporting the organization’s customer goals and objectives.
First use of the term: mid-1990s
CTO keywords:
Technical Leadership, Innovation, Collaboration, Software Development, Customer Service, Compliance, Software Engineering, Deployment, Technology, Coding, Infrastructure
Chief Digital Officer
The CDO looks internally and outwards to transform the organization through a digital business strategy which entails both business and technology initiatives, and the development of new revenue streams through technology.
First use of the term: 2010
CDO keywords:
Digital Strategy, Digital Transformation, Analytics, Content Strategy, Mobile, Revenue, Automation, Digital Innovation, Cross-Functional Change, Digital Technology, Digital Ecosystem
The CDO Scope
The chief digital officer provides vision and leadership for developing and implementing digital technology initiatives. They also:
- Work closely with the business to digitize operations, responsible for the exploration and investment of digital innovations and emerging technology with a focus on improving the customer journey.
- Lead development and operation of digital projects within each function of the company to achieve cost-savings or to enhance the customer experience.
- Work closely with company business leaders to conceive and plan the digital transformation of the organization.
- Work closely with the IT department to implement digital technology and coordinate customer-facing teams to excel in service delivery on digital channels.
- Conceive of new digital products contributing to an underlying platform strategy.
- Create digital innovation hubs in the organization and cultivating a digital-first culture.
- Educate other business and IT executives on the value of digital technology.
CDO job title equivalents:
Chief Innovation Officer, Chief Transformation Officer, Head of Digital, Head of Digital Transformation
MGM’s Chief Strategy, Innovation & Technology Officer
“Oversees MGM Resorts’ digital strategy, driving growth and innovation through technology-led customer-centric experiences, products, and services.”
Hyatt Hotels’ SVP and Global Head of Digital
“Is in charge of setting digital strategy and improving the company’s digital capabilities, managing revenue from digital channels, and ensuring that it continues to advance the guest experience and provide seamless digital interactions throughout the ecosystem.”
Chief digital officer responsibilities
Strategy and planning responsibilities
- Participate in strategic and operational governance processes of the business organization as a member of the senior management team.
- Define the digital strategy and partner with IT to implement it.
- Lead cross-function strategic and operational planning to achieve business goals by fostering innovation, driving a focus on the customer, interacting with customers across digital touchpoints, and collaborating with IT to execute on implementing a digital platform.
- Create a seamless and personalized customer experience.
- Establish cross-functional digital business goals, objectives, and operating procedures by working closely with the business.
- Identify opportunities for the appropriate efficiency gains to focus more resources on the customer experience, including staffing, sourcing, purchasing, and in-house development.
- Assess and communicate risks associated with digital investments.
- Develop, track, and control the digital annual operating and capital budgets.
- Develop business case justifications and cost/benefit analyses for digital spending and initiatives.
- Assess and make recommendations on the improvement or re-engineering of organizational functions to better serve customers.
- Define and communicate corporate plans, policies, and standards for the organization for acquiring tools and resources related to digital initiatives.
Acquisition and deployment
- Develop and implement digital design processes across the organization, establishing a standard of excellence for customer-facing designs.
- Manage digital performance across the organization, being accountable for outcomes of both internal and external products and the project portfolio as they relate to the selection, acquisition, development, and installation of tools and licenses required to deliver on the digital strategy.
- Develop business case justifications and cost/benefit analyses for digital spending and initiatives.
Operational management
- Foster company-wide commitment to a digital vision and mission statement.
- Supervise end-to-end delivery of the company’s digital roadmap.
- Establish lines of control for current and proposed digital processes and systems.
- Keep current with trends and issues in digital business delivery, including current technologies and prices. Advise, counsel, and educate executives and management on their competitive or financial impact.
- Promote and oversee strategic relationships between company resources and external entities, including government, vendors, and partner organizations that will further the company’s digital capabilities.
- Supervise recruitment, development, retention, and organization of digitally savvy employees across all organizational functions in accordance with corporate budgetary objectives and personnel policies.
- Coordinate and facilitate consultation with stakeholders to define business and systems requirements for new digital initiatives.
Typical CDO background
Typical education
- CDOs typically possess at least a bachelor’s degree in computer science, information technology, information systems, engineering, or another relevant field.
- They often undergo additional education in business or management, which allows them to understand the complex interactions between technology and business .
Work experience
- To be effective, it’s pivotal that they possess extensive and relevant professional experience with employers usually considering candidates with 5-7 years of experience.
- They should have experience from a similar role designing and launching digital platforms or working in roles that involve the use of technology and entail managing a team and leading projects.
Indeed, 2022.
LinkedIn, n.d.
Highlighting CDOs in the Gaming & Hospitality industry
| Company | Name | Title | Role Start Date | Market Cap | Previous Titles | |
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| 2. | Entain | Chris Ward | Chief Digital Officer | January 2019 | $8.7 billion |
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| 3. | Hilton APAC | Joshua Tong | Chief Information and Digital Officer | June 2019 | $42 billion (Worldwide) |
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| 4. | Hilton EMEA | Xavier Walker | Chief Information and Digital Officer | November 2019 | $42 billion (Worldwide) |
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| 5. | Holiday Club Resorts | Nicholas Stubb | Chief Digital Officer | January 2020 | -- |
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| 6. | Marriott International | Jim Scholefield | Chief Information and Digital Officer | February 2020 | $56.6 billion |
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| 7. | Nord Choice Hospitality Group | Carl Oldsberg | Chief Digital Officer | January 2021 | $7.5 billion (Worldwide) |
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| 8. | AccorHotels | Alix Boulnois Lombard | Chief Digital Factory Officer | May 2021 | $8.3 billion |
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| 10. | Loto-Quebec | Denis Daly | Chief Officer of Digital Transformation & Technology | April 2021 | -- |
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| 11. | Ontario Lottery & Gaming Corp. | David Pridmore | Chief Digital and Strategy Officer | June 2021 | -- |
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| 13. | Crown Resorts | Nic Emery | Chief Customer and Digital Officer | October 2021 | $8.6 billion |
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Note: As sourced from press releases and online sales tools and may or may not be represented in the forthcoming organizational charts.
Based on key organizational chart findings:
Gaming & Hospitality organizations lag in focus on a truly digital role.
| Gaming & Hospitality Organizational Charts | Adjacent Organizational Charts | CxO Reporting to CxO Organizational Charts |
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Of CISOs Key statistics based on peer group sample size: |
Key statistics based on adjacent peer group sample size: |
Key statistics based on CxO org. chart sample size: |
Note: The CxO Reporting to CDO organizational charts includes the reporting structures from the Gaming & Hospitality and adjacent organizational charts. Additionally, the organizations in the CxO reporting to CDO analysis was based on Info-Tech’s repository of tools and the top search results when researching CDO titles.
Gaming & Hospitality Organizational Charts
- Info-Tech researched and analyzed organizations in the Gaming & Hospitality industry and their reporting structures.
- 50% of peers have a 3-layer C-level reporting structure.
- 53% of peers have a digital executive of which 71% are C-level.
- 19% of peers have merged the digital executive role with another C-level title (i.e., CIDO, CITO, etc.).
- 50% of CISOs report into an IT executive.
- The Gaming & Hospitality industry is behind the curve when it comes to embedding a digital leadership role in the organization and enabling 3-layer C-level reporting structures, especially in comparison with adjacent industries. Although these components are not prevalent, they still do exist in the industry.
- A proposal for a 3-layer C-level reporting structure and a dedicated CDO role would put your organization on the path of natural progression for competitive advantage.
Key statistics based on peer group sample size:
Gaming & Hospitality Organizational Charts
| Hilton Grand Vacations | Marriott International | Caesars Entertainment |
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Gaming & Hospitality Organizational Charts
| Wyndham Hotels & Resorts | MGM Resorts | Hyatt Hotels |
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Gaming & Hospitality Organizational Charts
| Loto-Quebec | Ontario Lottering & Gaming Corp. | Accor Hotels |
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Gaming & Hospitality Organizational Charts
| Rank Group | Las Vegas Sands | Aristocrat Leisure |
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Gaming & Hospitality Organizational Charts
| Fontainebleau | Sonesta Resorts | British Columbia Lottery Corp. |
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Gaming & Hospitality Organizational Charts
| Penn National Gaming | Omni Hotels | Best Western |
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| IGT | Flutter Entertainment | Electronic Arts |
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Gaming & Hospitality Organizational Charts
| Station Casinos | Seminole Hard Rock | Wynn Resorts |
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Gaming & Hospitality Organizational Charts
| JetBlue Airways | DraftKings |
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Adjacent Industries
Organizational Charts
- Info-Tech researched and analyzed three other adjacent industries (similar characteristics) and their reporting structures:
- Healthcare: High compliance characteristic.
- Retail: Sales transaction and experience characteristic.
- Banking: High compliance characteristic.
- 83% of adjacent peers have a 3-layer C-level reporting structure.
- 88% of adjacent peers have a digital executive of which 100% are C-level.
- 50% of adjacent peers have merged the digital executive role with another C-level title (i.e., CIDO, CITO, etc.).
- 67% of CISOs report into an IT executive.
- In adjacent industries, 3-layer C-level reporting structures and the embedding of a digital leadership role in the organization is more prevalent.
- If we use the adjacent industries as a leading indicator for Gaming & Hospitality, it’s an opportunity for your organization to realize the organizational value that comes from a dedicated CDO role.
Key statistics based on adjacent peer group sample size:
Banking Industries Organizational Charts
| Scotiabank | Columbia Bank | LoanDepot |
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Banking Industries Organizational Charts
| Bank of Missouri | Fifth Third Bank | Live Oak Bank |
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Retail Industries Organizational Charts
| Indigo | Crocs | Nike |
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Retail Industries Organizational Charts
| Ralph Lauren | Abercrombie & Fitch | Macy’s |
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Healthcare Industries Organizational Charts
| Quest Diagnostics | Bristol-Myers Squibb | Zoetis |
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Healthcare Industries Organizational Charts
| Spring Health | St. Jude’s Children Research Hospital | Atlantic Health System |
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CxO Reporting to CxO
Organizational Charts
- Info-Tech researched and analyzed 200 organizations and their reporting structures across various industries for the purpose of this section.
- Of the organizational charts that involve C-level tech executive reporting structures,
- 69% have a CTO reporting to the CDO.
- 50% have a CIO reporting to the CDO.
- 38% have a CISO reporting to the CDO.
- Although not prevalent, this desired C-level reporting structure that involves tech executives reporting to a CDO does exist in other organizations and industries.
Key statistics based on CxO org. chart sample size:
CxO Reporting to CDO Organizational Charts
| LoanDepot | Marriott International | National Grid |
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CxO Reporting to CDO Organizational Charts
| Philip Morris International | Cushman & Wakefield |
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CxO Reporting to CDO Organizational Charts
| Littelfuse | Bayer Global |
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CxO Reporting to CDO Organizational Charts
| General Mills | Gap | Adeo |
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CxO Reporting to CDO Organizational Charts
| Arcutis Biotherapeutics | Michelin | CBRE |
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CxO Reporting to CDO Organizational Charts
| ExlService | Fiserv | UDR |
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Bibliography
“Chief digital officer job description” LinkedIn, n.d.
“Chief Digital Officer Responsibilities (With Qualifications) Indeed, 2022.
“Designing the modern digital function” Deloitte, 2021.
“Gaming & Leisure Roundtable” Gaming & Leisure Las Vegas, 2022.
“Is your Chief Digital Officer MIA?” IBM, 2019.
“Organize for Digital – the CIO / CDO relationship” Deloitte, 2018.
“Sports, Gaming & Hospitality Roundtable: Delivering IT in the Digital Experience Economy” Info-Tech LIVE, 2022.
Koetsier, John. “97% Of Executives Say Covid-19 Sped Up Digital Transformation” Forbes, 2020.
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