Drive Vision Alignment for Successful Construction Projects in Hospitality, Gaming & Entertainment
Build aligned and future-ready renovations and new builds.
- IT is typically not involved from the beginning of project planning; instead, they are left to obtain buy-in for IT projects or inherit a minimal furniture, fixtures, and equipment budget halfway through planning, budgeting, and design.
- There is often a disconnect between IT and business executives when comparing priorities and how success is measured, leaving IT projects misunderstood and deprioritized and resulting in missed opportunities and future complications.
- IT projects are typically paused during construction because they have long-term benefits, rather than short-term wins, and lack immediate business value.
Our Advice
Critical Insight
The CIO must act as the primary advocate for technology initiatives, ensuring that solutions are strategically aligned with the overall project vision. By taking on the role of owner representative, the CIO guarantees cohesion across the project, enabling technology to drive operational success.
Impact and Result
The CIO should assume the role of an owner representative to ensure the integration and implementation of technology aligns with the project's objectives and organizational goals from the beginning of project initiation till completion.
- Develop a goals cascade to define impacted capabilities, which influence required solutions and desired organizational outcomes in business language.
- Map impacted capabilities to potential solutions.
- Develop an IT project charter and requirements for alignment.
Drive Vision Alignment for Successful Construction Projects in Hospitality, Gaming & Entertainment
Build aligned and future-ready renovations and new builds.
Analyst Perspective
CIOs can create cohesion across the projects.
Within the hospitality, gaming, and entertainment industries, IT is often integrated late into construction and renovation projects, leaving them to secure support and budget mid-process. This late involvement creates a disconnect between IT and business leadership, as they have different priorities and measures of success, leaving IT projects misunderstood and given lower priority.
Without clear goals and effective business communication from IT, these projects miss out on demonstrating strategic value. Additionally, as vendors and digital departments increasingly take on IT initiatives, ITs role is sidelined, leaving integration and alignment with broader business strategies insufficiently addressed.
To bridge these gaps, CIOs must take a proactive role as an “owner representative,” ensuring IT initiatives are aligned with organization goals from inception to completion. By championing technology initiatives from a strategic standpoint, the CIO can help foster cohesion across projects and demonstrate how technology contributes to operational success, rather than being an isolated division.
Elizabeth Silva
Senior Research Analyst
Gaming, Hospitality, Sports & Entertainment Industries
Info-Tech Research Group
Executive Summary
Your ChallengeIT is typically not involved from the beginning of project planning, resulting in frequent owner-initiated scope change requests where they are left to obtain buy-in for IT projects or inherit a minimal FF&E budget halfway through planning, budgeting, and design. There is often a disconnect between IT and business executives when comparing priorities and how success is measured, leaving IT projects misunderstood and de-prioritized. Resource constrains cause some IT projects to be paused during construction, as they have long-term benefits rather than short-term wins, causing a lack of immediate business value. |
Common ObstaclesLack of clear goals and business benefits is common across all projects, but more so with IT teams who lack business communication skills to showcase the value of IT projects. IT projects no longer belong to the IT team but are taken over by vendors or digital business departments. As operating models within the industry shift, IT needs to consider the needs and requirements from the business and IT to ensure proper integration with the entire organizational tech ecosystem and strategy. Critical IT projects are considered last where budgeting issues arise due to the late involvement of IT. |
Info-Tech’s ApproachThe CIO should assume the role of an owner representative to ensure IT integration and implementation of technology align with the project's objectives and organizational goals from the beginning of project initiation till completion.
|
Info-Tech Insight
The CIO must act as the primary advocate for technology initiatives, ensuring that solutions are strategically aligned with the overall project vision. By taking on the role of owner representative, the CIO creates cohesion across the project, enabling technology to drive operational success.
Early incorporation of IT ensures a future-proof venue
It becomes easier to adapt to emerging trends and integrate new technologies down the line, keeping the venue modern and competitive and minimizing change orders when technology leaders are incorporated within projects early.
However, there are challenges to execute this approach:
IT Lacks Project Confidence
75% of respondents within IT lack confidence in project success, where they believe their projects are always set to fail from the start.
IT Projects Required Alignment
80% of respondents also said they spend half of their time reshaping their projects to fit business plans.
Source: TeamStage, 2024.
IT must drive alignment between the business, IT, and construction to drive successful project outcomes
CIOs can be owner representatives by leaning in early and taking responsibility for all IT/technology-related scope during construction.
The key responsibilities of an owner representative are:
- Representing the interests of the owner to achieve goals and objectives.
- Acting as the owner’s eyes and ears to keep the project on schedule.
- Ensuring the projects meet requirements, budget, schedule, and regulatory agency guidelines.
- Communicating and ensuring all construction divisions are on track to meet project goals and objectives.
- Manage and mitigate inherent risks associated with the project.
Info-Tech Insight
The alignment of business projects with IT goals, initiatives, and capabilities shapes the technology solutions and desired outcomes that the CIO is responsible for executing throughout the construction project.
Source: The Concord Group, n.d.
“An Owner’s Representative acts as the right hand to the project owner to ensure it runs smoothly and that goals are met. Their role is to act on behalf of the owner to oversee the entire project.”
Source: Colliers Project Leaders, n.d.
IT must shift their strategic thinking to become a relevant leader
If CIOs positioned themselves as owner representatives, they would have less of the following obstacles:
- Lack of clear goals and business benefits are common across all projects, but more so with IT teams who lack business communication skills to showcase the value of IT projects.
- IT projects no longer belong to the IT team but are taken over by vendors or digital business departments. As operating models within the industry shift, IT needs to consider the needs and requirements from the business and IT to ensure proper integration with the entire organizational tech ecosystem and strategy.
- Critical IT projects are considered last where budgeting issues arise due to the late involvement of IT.
Lack of IT Project Planning Results in Significant Wastage
57% of IT projects fail due to inadequate planning and lack of communication.
Source: Beta Breakers, 2024.
9.9% of every dollar is wasted due to poor project performance, equating to $1 million being wasted every 10 seconds, resulting in $2 trillion a year.
Source: TeamStage, 2024.
Cost overruns during construction are not uncommon in gaming, hospitality, or entertainment
The minimization of cost overruns is the responsibility of all divisions, where cross-collaboration and alignment is key to staying in budget.
Construction Project |
Budget |
Overrun |
Outcome |
Renovations and Expansion at Harrah’s Cherokee Casino |
US$250 Million |
US$80 Million |
North Carolina’s Eastern Band of Cherokee Indians tribal council voted to remove the chairman of the Tribal Casino Gaming Enterprise. Source: Casino.org, 2020. |
Building of Las Vegas MSG Sphere |
US$1.2 Billion |
US$1.1 Billion |
Building estimate costs were adjusted prior to completion from $1.2 to $1.7 billion, however was ultimately upped to $2.3 billion. Source: Consequence, 2023. |
Building of Buffalo Bills New Stadium |
US$1.4 Billion |
US$300 Million (and increasing) |
Bills are responsible for any additional costs from the initial $1.4 billion budget. Source: Sports Illustrated, 2023. |
Building of Carmel’s Hotel Carmichael |
US$40 Million |
US$18.5 Million |
Carmel Indiana City Council was interrogated for its flawed project planning and careless use of taxpayer dollars. Source: IndyStar, 2021. |
Clearly defined IT standards will de-risk construction projects
An IT standards policy should be established before the start of construction phases and applied consistently throughout the project’s duration.
The purpose of an IT standards policy is to:
- Establish standards and guidelines for an IT environment to ensure the confidentiality, integrity, and availability of technology resources.
- Outline the technology options and specifications supported by the organization and guidelines for appropriate use, acquisition, and implementation.
The benefits of an IT standards policy in relation to construction projects are:
- Efficiency & Cost Savings: Standardized practices simplify the maintenance and support required, reducing costs associated with managing multiple types of systems, and reducing learning curves during implementation.
- Quality Assurance: Can maintain consistent quality in technology infrastructure, minimizing errors and improving reliability during construction.
- Project Management Efficiencies: Ensures all construction phases have a unified technological foundation, making it easier to monitor progress, manage resources, and collaborate across divisions.
If the organization already has an IT standards policy, be sure to apply it during the activities outlined in this deck, particularly when developing the project charter and gathering requirements.
If no IT standards policy is in place, use the following template to establish one. This is an essential step for effective project initiation, conception, planning, and definition.
Download Info-Tech’s Information Technology Standards Policy Template
Use project standard operating procedure (SOP) as a common frame of reference
An SOP should cover the major bases of project management by providing a walk-through of the process and clarifying project governance by defining roles and responsibilities.
The purpose of an SOP is to:
- Act as a main document for project process alignment.
- Outline the defined procedures for how projects must be managed within the organization.
The benefits of an SOP in relation to construction projects are:
-
Developing standardized processes that project managers can use for direction across the following areas:
- Project Level Selection
- RACI Chart
- Project Charter Standards
- Monitor & Report Project Status
- Control Changes
- Requirements Gathering
- Manage Stakeholders
If the organization already has an SOP, be sure to apply it during the entirety of the construction project, especially when developing the project charter and gathering requirements within this research.
If no SOP is in place, use the following template to establish one with key business stakeholders. This is an essential step to ensure effective project processes and governance.
Download the Project Management SOP Template
Info-Tech Insight
An SOP should be a living and breathing document that is constantly referred to when creating and managing projects.
Avoid project failures by IT actively participating in project initiation and planning
Business-aligned IT projects require an established structure where business and IT goals are mutually supportive. This includes mapping IT solutions that align with these goals, highlighting the critical role IT plays in project success and emphasizing the need for alignment.
IT integration is required throughout all construction phases
Track KPIs
Track metrics throughout the project to keep stakeholders informed.
The success of this deliverable can be measured through:
As this approach is adopted throughout the organization:
- Project quality will increase, benefiting the business overall.
- Project scoping will improve.
- Stakeholder satisfaction should increase.
- Wasted resources will decrease.
KPI |
CSF |
Goal |
Target |
| # of projects being accepted | Trending Up | Increased # of IT projects being accepted due to improved alignment and understanding. | 50% increase in year 1 |
| # of projects delivered on time | Trending Up | Increased # of IT projects being completed on time due to proper scoping and involvement. | 50% increase in year 1 |
| # of projects delivered in scope | Trending Up | Increased # of IT projects that do not go out of budget or original scope. | 50% increase in year 1 |
| # of projects denied or cancelled | Trending Down | Reduced # of IT projects being denied or cancelled due to lack of understanding, etc. | 50% decrease in year 1 |
Defining project ownership is necessary to determine where joint ownership exists in construction projects
Identifying who is responsible, accountable, consulted, and informed (RACI) will enhance project readiness and establish a clear foundation, as collaboration across different construction divisions and phases is always essential.
Defining accountability for a project should be based on a set of criteria:
- The majority division that is involved, not dollars spent.
- Coordination concerning staffing, operations, and guest impact.
- Level of vendor involvement as a dependency to meeting timelines for the project.
Groups Involved in Hospitality, Gaming & Entertainment Construction Projects
Owners
Oversee key aspects that influence the project direction and vision, quality, and alignment with business goals.
Project Management
Manages project timelines, budgets, resource allocation, and communication between divisions. They ensure the project phases stay on track.
Architecture, Design & Engineering
Creates the concept, layout, and aesthetics of the building, ensuring the design aligns with the requirements and brand standards. Also ensures the structural integrity of the building and implementing infrastructure like water, electricity, HVAC, etc.
Procurement & Supply Chain
Sources and manages materials, furniture, fixtures, and equipment (FF&E), ensuring materials arrive on time and meet quality standards.
Construction
Executes construction tasks, overseeing daily operations on-site, and adhering to design, schedule, and safety regulations.
Finance & Budgeting
Creates and monitors the project budget, conducting financial analysis, approving expenses, and ensuring cost-effectiveness throughout the project.
Quality Control & Assurance
Monitors work quality, conducting inspections, ensuring compliance with codes and regulations, and addresses any issues that could impact the longevity or safety of the property.
Information Technology
Plans and implements technology infrastructure such as internet, audiovisual, security, and other modern technology needs.
Info-Tech Insight
Consider a business relationship manager to improve IT involvement during projects through improved stakeholder relations.
Download Info-Tech’s Embed Business Relationship Management in IT blueprint to learn more.
Sources: Procore, 2024; Eleven Western Builders Inc., 2024; CIO, 2024
Understanding the business context is a must for all strategic initiatives
CIOs must execute strategic initiatives to add value to the business. Most CIOs fail because of low support from the business.
IT is no longer seen as a support function. It is a key driver of the business and brings new business expansion opportunities leveraging emerging technologies. As a strategic driver, IT needs to work with the business. Yet traditionally, IT has not worked hand in hand with the business. IT does not know what information it needs from the business to execute on its initiatives.
An effective CIO understands how to support the business’ strategic initiatives and how to significantly improve enterprise productivity. To understand the business context, the CIO needs to ask pointed questions to uncover business imperatives to construction. Consider the following questions:
Question |
Document(s)/Method |
Key Findings (Examples) |
| What is the mission of the construction project? |
|
|
| What are your targets for the construction project? |
|
|
| What are the projects strategic investment goals? |
|
|
| What are the goals of the construction project over the next 12 months? |
|
|
| What are your top business initiatives over the next 12 months? |
|
|
| How do your top business initiatives support your project goals? |
|
|
A goals cascade will influence required solutions and desired organizational goals
A goals cascade will identify business project and IT goals, initiatives, and capabilities that support each other to influence required solutions and desired organizational outcomes for the construction project.
You can align business goals to capabilities by identifying the value streams they relate to. Value streams connect business goals to the organization’s value realization activities in the marketplace.
Review the capability map for your specific industry
Download and review the business capability map for your specific industry:
- Hotel Industry Reference Architecture
- Integrated Casino Industry Reference Architecture
- Sports Entertainment Industry Business Reference Architecture
Business Capability Map Defined
In business architecture, the primary view of an organization is known as a business capability map.
A business capability defines what a business does to enable value creation, rather than how. Business capabilities:
- Represent stable business functions.
- Are unique and independent of each other.
- Typically, will have a defined business outcome.
A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.
Example
Source: Info-Tech Research Groups Business Capability Map for Integrated Casino Resorts
1.1 Elicit and document the business context and goals for the construction project
Elicit the organizational context with careful review of all business and project strategy documents.
1-5 hours
- Discuss the business project context questions with relevant divisions and document key findings.
- Analyze the responses and prioritize the business goals and business initiatives that IT needs to address or start addressing within the beginning of the construction project.
- Discuss findings with your IT team and link the prioritized business goals and initiatives to the key business capabilities that need to be created or improved for the project on the left side of the goals cascade.
Download the Business Context Interview Guide to document your findings
Download the Construction Project Activity Template
Input
|
Output
|
Materials
|
Participants
|
Visualize business and IT alignment through a goals cascade
Info-Tech Insight
Visualizing the impact of IT projects on business profits and cost savings is crucial for securing buy-in from stakeholders.
Resort Renovation Example
Adapted from Cision Newswire, 2024
1.2 Map business goals to IT goals to visualize alignment
1-3 hours
- Starting with IT goals, map the IT initiatives that will ultimately drive them. Next, link the key IT capabilities that enable each value stream and business capability. Finally, directly map the IT initiatives supporting the IT goals. This process will help you prioritize IT programs that deliver the most value to the organization.
-
Consider:
- Focus on the capabilities that truly drive the strategic objectives.
- Are there any capabilities not tied to outcomes?
- Are all strategic objectives supported with IT capabilities and initiatives?
- Don’t be too granular. The audience for a strategy is interested in a higher-level understanding of what IT is doing. As such, keep things at the program level as opposed to the individual projects.
Download the Construction Project Activity Template
Input
| Output
|
Materials
| Participants
|
About Info-Tech
Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.
We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Talk to an Analyst
Our analyst calls are focused on helping our members use the research we produce, and our experts will guide you to successful project completion.
Book an Analyst Call on This Topic
You can start as early as tomorrow morning. Our analysts will explain the process during your first call.
Get Advice From a Subject Matter Expert
Each call will focus on explaining the material and helping you to plan your project, interpret and analyze the results of each project step, and set the direction for your next project step.
Unlock Sample ResearchContributors
- Frank Bonini, CIO, Cordish Gaming Shared Services
- Whitney Chavez, Interim IT Director, Desert Diamond Casino
- Justin Johnson, Director of Service Delivery, Kansas City Chiefs
- Dan Kornick, CIO, Loews Hotels
- Jeremiah Martinez, IT Director, Eagle Mountain Casino
- Eric B. Twing, Systems Administrator, Eagle Mountain Casino
