Wesfarmers Chemicals, Energy and Fertilisers, People development, diversity and inclusion, Chairman and Managing Director's 2022 sustainability message, Bunnings collaborates with Indigenous artists through exclusive plant pots range, Bunnings support for flood affected communities, Bunnings launches national battery recycling programs, Bunnings expands fleet with all electric trucks. AI for Good, says Westpac CIO, Pleasing Progress On Digital Strategy: Wesfarmers, The Key Drivers Behind Rising AI Investment in Australia, Woolworths Announces $700 million Technology Investment, The top Supply Chain Trends according to Gartner, Amazon Reimagines Retail With Amazon Dash Cart, Woolworths announces $700 million Technology Investment, Coles re-platforms digital channel and doubles online capacity. Delivering a net growth of 5.7% after-tax profit, Wesfarmers boss Rob committed to digital strategy and technology investments preparing the group for future growth. ", Google Cloud, Golden State Warriors ink analytics, cloud partnership at new arena. The key is to listen and think critically. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. Coles has been running the insights applications for eight months across 1200 iPads in-store and the Coles Store Support Centre, and is rolling out a similar application for Coles Express. Although every organization is unique, and there are salient differences between types of businesses, industries, and cultures, the fundamental meaning of transformation is not about replacing old technologies with new ones, or capturing high volumes of data, or hiring an army of data scientists, or trying to copy some of the things Google or Amazon do. In a statement, Wesfarmers highlighted Sheffield's experience across . During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. Think about analog and informal small businesses, such as a stand in a Turkish bazaar: the salespeople have a great deal of access to, and knowledge of, their customers and clients, but its all trapped in their minds. Blackwoods, which is the largest provider of industrial and safety supplies in Australia and also part of the group, is currently in the process of replacing its 30-year-old Focus COBOL-based system with a new Microsoft Dynamics ERP. While IT plays a pivotal role in informing people of new trends, technologies and opportunities, its crucial we make sure the solution, as it is formed, delivered and then run, has to be owned by the right person and right function in Coles.. . As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. Having run a corporate BYOD program for the past three years and maintained thousands of devices in its network, the latest step has been bringing BYOD to store managers. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. As the figure below shows, five components are needed to execute an organizations digital transformation: Digital transformation starts with people, which is a useful reminder that whenever we talk about data especially valuable data there are humans at the end of it. He added that AIOps to detect anomalies and correlate events is also potentially on OneDigitals radar. "If we relied critically on large datasets, instead of removing human decision making and making decisions easier, sometimes you end up just reinforcing those biases.". "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? Illustration by Joi Fulton. When you think about hardware stores, digital technology is probably the last thing that comes to mind. Marcelo brings positive energy to. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. Woolworths, Coles and other retailers have been focused on digital growth as a critical element of overall growth strategy. View my verified achievement from Project Management Institute. While hes comfortable on the strategic high ground and being a business-led executive, Harvey doesnt believe this should take away from the day-to-day operational role CIOs need to continue playing in their organisation. Blackwoods, which is the largest provider of industrial and safety supplies in Australia, is implementing a new enterprise resource planning (ERP) system supplied by Microsoft. Everyone who has been part of digital transformation describes it as a journey. Typically, companies tackle the first pillars we describe near the start of their digital transformation journey, although as they mature they may continually upgrade to add additional pillars. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. In addition, there are obvious things you can do around leveraging the loyalty and Fly Buys programs, which are both exceptionally great value for our customers. The second priority is better leveraging unstructured data to gain new insights, and Coles is trialling solutions such as Hadoop to do that, he says. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. Dont wait for something to break and then learn, he counselled. Then they will lead the change because you helped them see the opportunity.. Likewise, companies are using artificial intelligence to identify and act on critical customer behaviors, for example, identifying customers likely to leave your service and then intervening before the do so. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. Madan said that expectation informed the level of standards that we have to hold to offer these services, both to Wesfarmers brands and to those brands customers. How public utilities use analytics to improve interactions with customers, 6 ways data analytics are advancing the enterprise, Do Not Sell or Share My Personal Information. Lydia joined WES corporate office in Business development and commercial. Digital and omnichannel capability is a critical area for other retailers as well. Being clear about their differing demands can help you make smart tradeoffs and clear progress. Testing RFID blocking cards: Do they work? Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. In the final stage of the process, you can evaluate results or impact. Super Retail Groups ongoing $2.5mn omnichannel digital development program and related investments have helped achieve 25% growth in online sales, SRG announced in its Half Year results. Trevor Collens. In support of this, recent research from IDC indicates that organizations which had begun an ERP cloud migration as part of a digital transformation initiative prior to the COVID-19 pandemic fared far better than organizations that didnt. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. Underpayment epidemic: Software Problem? Our diverse business operations cover: home improvement and outdoor living; apparel and general merchandise; office supplies;health, beauty and wellbeing; and an Industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products. In fact, he believes anyone who says CIO shouldnt have a focus on the day-to-day operations of IT are actually diminishing the roles importance. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. The . Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. We are getting exceptional high take-up of that, and its an example of a win-win for both Coles and our store managers, Harvey claims. Digital is not purely about the colour of the screen on the website, its what assets we as a company should be building that allow us to leverage multiple marketing initiatives and across multiple touch points. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. It does require time and technology but the benefits, measured by the central KPIs, are savings in time, money, and people to solve business problems and serve customers. Deloitte US | Audit, Consulting, Advisory, and Tax Services But at the heart of everything Coles IT has to do is deliver ways in which the business can save money so we can reinvest that money into the price point. Sheffield joins Wesfarmers' executive leadership team as a managing director from November and is tasked with leading development of what it's hoping will be a market-leading data and digital ecosystem. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. OneData also provides data analytics support OnePass and Catch. With these dueling considerations in mind, we distilled our research findings into seven guiding principles for digital transformations at any stagenascent, progressing, or stalled: 1. Leadership is always an argument with the past, with tradition it is the essential task of leaders to create a bridge between the past and the future, and in that sense digital transformation is not an exception to the rule, but the name we give to todays bridge. Tweedie posed the ethical question of whether organisations are avoiding making assumptions on who the normal user is, emphasising that it is important to "[think] about who are the most vulnerable users and how could your project can affect them negatively". Wesfarmers OneDigital has set SaaS model standards for itself, supported by service standards, engineering practices and tools that together create a foundation for the nascent digital and data arm to grow. But all four pillars are important to digital transformation, so they may happen in another order. But to enable the instant payments demanded in todays market required rearchitecting the PayPals organization, merging once separate divisions for payments and compliance into one entity. All four are part of most companies digital transformation journey. Kmart sales increased $241m, more than offsetting a $67m decline in Target. Data & digital was one of the key areas of focus for the group, which said it will continue to invest in its e-commerce and efficiency capabilities as well as improving back-end systems and processes to support future growth. Copyright 2023 IDG Communications, Inc. Seizing these opportunities, some of which may be quite disruptive, requires both developing the innovation and digital capabilities to test and pivot to new sources of growth. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. Read:From big data to AI - Where are we now, and what is the road forward? The Catch acquisition has also improved digital expertise leading to better execution and innovation. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. One of the foundations is to apply SaaS model thinking to OneDigitals operations, such that its quality-of-service is the same as a Wesfarmers brand would expect from any vendor or partner it engaged. In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. Wesfarmers is spending another $100 million this year to build a "market-leading data and digital ecosystem," OneDigital, and develop its new subscription and delivery service, OnePass, which . To learn more about how we can help your business, contact us today. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. One of the hiccups in the implementation was caused by the rollout of a new web interface, which forced sales to drop by 2 per cent over a couple of months. Get started by entering your email address below. The Warriors intend to use Google Cloud's services to automate data workflows, create machine learning models, visualize data and share analytics with coaches, staff and players. He says the legacy systems at Blackwoods, combined with its extensive range of products, had combined to make it impossible for staff using a computer to check inventory in each of the seven Blackwoods distribution centres in real time. They are then taken through one stage of the conglomerate's use cases, such as identification, beta engineering, or the advanced analytics and implications, to highlight what role the various teams in the business play in applying the use cases, followed by this information being cascaded around the organisation. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. He says the software has an open architecture, it sits in the cloud, it is low cost and it is flexible. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. In late spring 2020, we surveyed senior executives, digital transformation . The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. We have a large number of our stores on assisted checkouts and are constantly growing new models of those checkouts, which allows us to offer new options to our customers. Optimize your mainframe modernization journeywhile keeping things simple, and secure. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). From an engineering perspective, Madan flagged a potential embrace of chaos engineering - a set of practices designed to improve system reliability by making it more resistant to failure when encountering unknown or unanticipated operating conditions. My head of digital and loyalty systems gets on exceptionally well with the head of digital marketing, and the two understand how they can add value to each other. We interviewed four global leaders responsible for their organizations' digital transformation, each in different business and technical functions, industries, and geographies, and found that they were already approaching transformation in this waybut without a clear language and framing to guide them. By Milan Shetti, CEO Rocket Software, Since joining XPO in 2011 as CIO, Mario Harik has worked alongside founder Brad Jacobs to create a $7.7 billion business that has technology innovation in its DNA. For example, when a European retailer changed its platform to serve customers better, it discovered it could also offer other retailers products with their improved ecommerce platform and digitized logistics, enabling the retailer to create an ecosystem of products and services from third party sellers to offer to their customers. 2023 ZDNET, A Red Ventures company. Catch is an online marketplace which commenced operations in 2006 and was acquired by Wesfarmers in August 2019, bringing highly complementary digital retail and fulfilment capabilities. OneDigital broke cover in April, and has since gone on to unveil OnePass, a subscription program that consolidates products from across Wesfarmers' retail brands, and offers member-only prices as well as free delivery on many items. One business strategy that Wesfarmers has adopted, Lowthorpe explained, is a one-day program focused on data analytics for leadership teams that teach them about data analytics, including the differences between advanced analytics and business intelligence reporting. Wesfarmers OneDigital May 2022- Present10 months Melbourne, Victoria, Australia After launching OnePass in May 2022, I moved into a role focussed on identifying, validating, and executing on. In short, the critical part of digital transformation is not digital but transformation. Our world has changed dramatically in the past two decades, and adapting your organization to these changes cannot be achieved overnight, or simply by buying new technologies, or collecting more data. Here's how. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. December 20, 2021. Melbourne, VIC. Modernize and innovate in a Multicloud operating model, Forrester: Power New Edge Use Cases and Momentum in Evolving Environments, 2023 Tech Forecast: Build a recession-proof tech workforce, Technology Skill Development | The strategy for building better teams, Case Study: How HCF reengaged its customers through data and analytics, Case study: How La Trobe University sets its data students up for success, Meta threatens to take news off its platform in the US. View my verified achievement from Project Management Institute. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. Safety -identifying contributing factors to safety incidents, Localisation- in-store product ranges are tailored to meet local conditions, Inventory optimisation- to improve in-stock position and increase productivity, Personalisation- for personalised marketing and customer interactions. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. According to Scott, Wesfarmers increased its investment in digital capabilities during the period, particularly in building out its data and digital ecosystem, which helped support the increase in online sales across its retail business. Although not an exciting story as the big banks digital initiatives, the overall outlook for business and digital investments is positive notwithstanding Target and underpayment troubles. Recognize the emotional side of digital transformation. The point . Kmart, Target and Catch are currently part of the OnePass program, with partnerships with Bunnings and Officeworks, and additional benefits to be added over the coming year. That said, there is one thing that hasnt changed namely the fact that all of this is just the new version of an old task or challenge every leader has always faced throughout human history: to prepare their teams and organizations for the future, and create a better future. In the final stage of the process, you can evaluate results or impact. This means were getting products through to our store fresher and in a more timely fashion, he says. The struggle to implement the new ERP system highlights how digital transformations may not always go smoothly. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. All rights reserved. I wouldnt trade that for anything because it helps keep the role real. Its also good for customers as it means our store leaders are out more on the floor.. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. NAB Digital Option To Restrict Gambling Transactions, IBM X-Force Threat Intelligence Index Uncovers Surge in Thread Hijacking, Synopsys OSSRA 2023 report reveals the growing need for Software BOM, As Digital Card Platforms Expand Globally, Over 320 Million Credit Cards To Be Issued, More than 80% of Australian Businesses Are Reskilling IT Workers, The rising importance of AI in Precision Medicine as spending increases, Thoughtworks Technology Radar Foresees ML Propelling IoT. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. One business strategy that Wesfarmers has adopted, Lowthorpe explained, is a one-day program focused on data analytics for leadership teams that teach them about data analytics, including the. The performance of the Industrial and Safety business was disappointing, reflecting the impact on Blackwoods earnings from ongoing investment in customer service and the enterprise resource planning (ERP) system, Scott said in Wesfarmers FY19 results briefing in August. University of Melbourne data strategy advisor Fiona Tweedie, who also took part in the panel, added that organisations should be active in interrogating the tools and data they use, taking into account the biases and assumptions that may arise. Historically, these relationships yielded poor or dispersed records. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. As noted at the recent half year results, more detail on Wesfarmers OneDigital will be provided at the Strategy Briefing Day in June 2022. Finally, digital opens up many new opportunities for established companies. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Thats core to our business.. The payoff is new sources of revenue, but the KPIs are more nuanced, typically unit economic measures that you are creating solving a significant customer problem and growing profitably. "This included investment in the shared data asset and scalable customer data architecture as well as the continued development of capabilities within the advanced analytics centre, specialist technical expertise, and robust data governance," he said. When completed, an IT uplift provides your company access to up-to-date tools that offer increased employee efficiency, lower IT maintenance costs and increased employee satisfaction. The $30 million Bunnings project involves upgrading its online sales platform to enable click-and-collect, with $10 million spent in the six months to June 30 and $20 million budgeted expenditure this financial year. Let's look at five of the most exciting digital transformation trends shaping the future of business and how they can help your business grow in 2022. The more exciting thing is were actively using Agile in this area as a way of prioritising and working with a group of stakeholders to give them the best product as we go through the project, within the scope and timeline, to give them the best possible outcomes, Harvey adds. Now hes running the show, thanks in part to a keen understanding of how IT can. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. 2023 ZDNET, A Red Ventures company. While Rucinski did not share how the ATO has dealt with changing its culture to align with this thinking, he did say the government organisation was working on processes that were not yet "front-line ready". Digital transformation can be bewildering and exhausting for leaders and employees alike. One of the key drivers for the IT function is to live and breathe the important values at Coles a focus Harvey readily admits wasnt there when he joined the group. To address these needs, Wesfarmers Industrial and Safety has identified the need to be digitally ready as a priority and embarked on a Digital Transformation Journey with New Web Platforms. Where organisations have been successful, Rucinski explained, they had combined the various points of views from their respective data analytics, IT, and business arms to form a cohesive business strategy. On Thursday, the retail giant group reported net profit after tax dipped by 14% from AU$1.41 billion to AU$1.21 billion for the half year. Chanticleer is Australia's pre-eminent business column. This has now been fixed. But without understanding how they are different, its confusing to understand what to do next or how to invest the resources, tools, goals, C-Suite sponsors and KPIs required for success are totally different in each case. These Experts Are Racing to Protect AI From Hackers. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. "When we talk about use case and they're saying where are the results with [this process], it helps in terms of getting that alignment and management of expectations, and when we talk about how do we think that use case is going forward, we've got that reference. To do this, we always try to tie up our messages across all customer platforms, so that whenever an opportunity arises for example the One Direction competition we are building a reusable asset for when those opportunities arise in future, and so we have the capability to do another competition.. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology.
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