Case Study Example – IT Transformation – Analytics Enabling Organizations - Building & Managing Data to Deliver Business Value

October 21, 2014Teradata Partner’s Conference

Becky WantaPresident & CEO RSW1C Consulting

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RSW1C Consulting - “Business and Technology Partnered for Success…” 2857 Paradise Road, #1505, (480) 205-7229 Las Vegas, NV 89109 rebecca_wanta@yahoo.com

Agenda

• Background• Why Transformation?– IT Industry Changing– CIO Role Changing

• How To Transform?• Next Generation CIO• Case Study – MGM Resorts International – MLIFE• References• Questions?

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Professional BackgroundRSW1C Consulting

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Ranked 12th of Top 200 CIO Executives by Exec Rank in 2012…*

•CEO/President RSW1C Consulting•SVP/Chief Information, Technology & Innovation Officer – MGM Resorts International•SVP & CIO – State Compensation Insurance Fund – California•SVP & CIO – Best Buy•VP & Global CTO – Pepsico•VP & Global CTO – Southwest Airlines•VP & Global CTO – Wellpoint Health•EVP & Global Chief Technology Officer – Wells Fargo•CIO & CTO – The MoneyStore

*http://execrank.com/2012/10/2012-top-cios/

Why Transformation?

• Number 1 – Only One Direction to Go• Business Opinion of Information Technology (IT):– Ranges from “Competitive Advantage” to “Necessary Evil”

Depending on Industry Vertical– Pricey – “No Value Add…”

• Budget - 1-5% of Gross Revenues Depending On Vertical• 80-90% of Budget is “Fixed Spend” (e.g., License, Maintenance

and Labor) • $8 of every $10 of IT Spend – “Dead” Money*

• Risk of “Disintermediation”

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*Source: Gartner

Why Transformation (Continued)?…

• Competitive Business Pressures • Relentless Pace of Change – “Biggest invention 100 years ago” • What “Got us Here, Won’t Get us There*” • Architectures are Flattening and Borders are Graying • Consumerism of IT Movement – “Always On/Always

Connected/Always Available – “The Internet of Things!”• Formal Hierarchies – “Road to Bottom**” • IT Dis-intermediated or Deemed Irrelevant! • IT Industry is Changing …

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*“What Got Us Here Won’t Get Us There,” by Marshall Goldsmith **Gary Hamel, IGate Bonfire Keynote Address - September 2012

IT Industry is Changing …

• In a recent survey, CIOs state that in 3-5 years they plan to spend 29% MORE time driving business innovation, and 33% LESS time on operations and system performance – Source: CIO Magazine

• ...$8 out of every $10 spent on IT is “DEAD MONEY” – not contributing directly to business change and growth – Source: Gartner

• …by 2015, 35% of enterprise IT expenditures WILL BE managed OUTSIDE of the IT department’s budget – Source: Gartner

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Today: 3 Kinds of CIO – Which One Are You?…

1 - Valued Business Partner

2 - CIO Cronyism – Waiting-out Retirement – Leave it to Successor…

3 - Not-qualified

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How To Transform?• Partner With Business In Experimentation to Strengthen Partnership and

Embrace/Adoption of New Capabilities, Innovation, Change – “Not through Entitlement!”

• Implement the Correct Organizational Model to Move the “Hearts & Minds” of the Team – Re-harvest Talent Where Possible and Fill Gaps

• Limit Pioneering – Collaborate & Leverage Key Learnings From Other Industries & Markets

• Partner With Millennial Forums such as Venture Firms, Academia, Start-ups, TEDx to Stay Current and Incorporate Talent, New Capabilities Real Time

• Create Environment for Safe Experimentation

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How To Transform (Continued) ?• Define What’s “Core” and “Non-Core”

• Examine What Really Requires “Control” & Enable “Freedom”

• Install The Correct Architecture That Will:– Drive Business Agility & Flexibility– Implement “Safe Harbor” for “Safe Experimentation”– Transition to “Transient” IT Asset Portfolio– Inculcate “30-60-90-Day Continuous Delivery Model”– Establish “Information” As The Key Corporate Asset

• Revamp Fixed Spend From 80-90% to 50-60% to Institutionalize “Innovation” Into The Operating Fabric

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Voila! – The Next Generation CIO – “The Innovator & Strategic Partner!”…

• Valued Strategic Business Partner• Leader in Smart Innovation & Adoption• Leverages Technology To Massively Increase Market Position,

Productivity, Innovation and Top Line Revenue• Strikes the Balance Between “Control” and “Freedom” • Aggressively Transitions To a “Transient” Product Portfolio• Transitions From Back-Office Expense Function to “Front-Office”

Competitive Advantage• Driver of “Business Innovation!”• Examines Monetization of “Core” for Next Generation Products

Next Generation CIO!...RSW1C Consulting

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Case Study: MGM Resorts International - Mlife

*Source: LVCA Bureau

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• 7 Industries in 1: ‒ Retail – Consumer Packaged Goods – Integrated Financial Services‒ Hospitality – Entertainment‒ Gaming – Convention

• 22+ Brands:– Bellagio – MGM Grand Las Vegas – MGM Grand Detroit– Mirage – Aria – Vdara– Mandalay Bay – New York/New York – Monte

Carlo– Beau Rivage Biloxi – Luxor – Excalibur– Circus Circus Las Vegas – Circus Circus Reno – Slots of Fun– Gold Strike Tunica – Gold Strike Jean – Railroad Pass– TheHotel at Mandalay Bay – MGM Signature – MGM

Grand Ho Tram– MGM Grand Macau – MGM Grand Sanya – MGM Springfield

• Expiring Daily Asset Portfolio (e.g., 44,847 room; 122 restaurants etc.)• Corporate Direction – Property Autonomy Balanced with Corporate• 38MM Visitors to Las Vegas Annually*• Customers 38MM – 1.3 visits per year• MGMRI’s “WHY” is the “WOW!”

Impact of “Big Data”on Mlife!

• Failure to Harvest and Act “In the Moment” on the “Information” Resulting In:– Customer Abrade– Lost Revenue/”Share of Wallet”

• Inadequate Capability to Effectively Attract and Retain Customers

• Inability to Deliver True Customer Relationship Management (CRM) Across All Channels

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RSW IT Critical to Enable Customer

Targeting & Mlife!

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RSW Mlife – Creating Customer Loyalty

IT Transformation & MLife

• YouTube Video – IT Transformation - MLife

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http://www.youtube.com/watch?v=cZPavn9l7gk

References•YouTube Video: Gary Hamel – Next Generation IT Leadership: http://www.youtube.com/watch?v=aodjgkv65MM

•Article: Lawrence Lerner – “Goodbye, CIO. Say Hello to Chief Customer Officer: Innovation Insights/Wired.com

•Book: Disrupt by Luke Williams – Founder of “Frog Think”

•Article: Marla Tabarka - Leadership 2.0 - What it takes to become a “Thought Leader,” INC Magazine: http://www.inc.com/marla-tabaka/how-to-become-a-thought-leader-online.html

•Book: The Two-Second Advantage by Vivek Ranadive, Founder of TIBCO

•Book: What Matters Now by Gary Hamel: http://www.amazon.com/exec/obidos/ASIN/1118120825/garyhamel-20

•Book: What Got Us Here Won’t Get us There by Marshall Goldsmith: http://www.amazon.com/What-Got-Here-Wont-There/dp/1610660137

•Forum: Management Innovation Exchange – Time To Reinvent Management: http://www.managementexchange.com/

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Questions?

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RSW1C Consulting - “Business and Technology Partnered for Success…” 2857 Paradise Road, #1505, (480) 205-7229 Las Vegas, NV 89109 rebecca_wanta@yahoo.com