Becky Wanta discusses the need for IT transformations to keep up with changing business needs and technologies. She outlines how the role of the CIO is changing from a focus on operations to driving business innovation. Wanta then presents a case study of how MGM Resorts International transformed its IT to create a loyalty program called MLife that leverages customer data and analytics. This enabled more effective customer targeting, relationship management, and increased revenue.

1. Case Study Example – IT Transformation –
Analytics Enabling Organizations - Building &
Managing Data to Deliver Business Value
October 21, 2014
Teradata Partner’s Conference
Becky Wanta
President & 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

2. 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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3. Professional Background
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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/

4. 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

5. 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

6. 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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7. 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
CIO Role is Changing …RSW1C Consulting
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8. 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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9. 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!”…

10. • 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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11. 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!”

12. 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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13. RSW1C Consulting
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IT Critical to Enable Customer
Targeting & Mlife!

14. RSW1C Consulting
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15. IT Transformation & MLife
• YouTube Video – IT Transformation - MLife
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http://www.youtube.com/watch?v=cZ
Pavn9l7gk

16. 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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17. 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