We know upfront whether we expect a project to improve store performance, reduce effort to be allowed to be redirected to somewhere else, or to improve our decision-making in terms of margin, investments, or otherwise.. 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. Results. 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. While reporting for the data and digital division remains as part of corporate for FY22, the company said this will be separated from FY23. Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. 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. Ive loved making significant changes with my team and really making a difference to the way our team members work at Coles, and the way our customers shop with us, he says. It is useful to remember this, because the real benefits from technology are not hard (i.e., cheaper systems or infrastructure), but soft (i.e., capturing valuable data). 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Wesfarmers managing director Rob Scott has described the first half of the 2022 financial year as the "most disrupted period" for the company since the onset of COVID-19, due to extended government-mandated store closures and trading restrictions in Australia and New Zealand. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. 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. Digital transformation is more than just a catchphrase, it is a global movement that is improving businesses and customer experiences worldwide. This has now been fixed. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. Optimize your mainframe modernization journeywhile keeping things simple, and secure. Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles. Then they will lead the change because you helped them see the opportunity.. As a startup Id love cloud, but Coles is not a startup. Wesfarmers is closely monitoring the COVID-19 outbreak and its impact on product availability due to supply chain challenges. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. After years of talking about lifting its digital capabilities, Wesfarmers is finally putting its money where its mouth is with IT implementation projects costing $75 million at Bunnings and in the industrials division. The Bunnings pilot program in Tasmania was followed by the rollout of the Bunnings click-and-collect offering in Victoria in the first half of this year. "When you think about customer centricity, particularly the use of behavioural data, it can be quite challenging to do that without data so there its relevance becomes a lot closer to the surface. Catch's vision is to be the trusted place where Australians start their shopping journey. Copyright 2023 IDG Communications, Inc. Below we outline the four pillars and how to invest properly to set yourself up for success. 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. To get that right we really need to invest in getting our foundations correct - and thats where PagerDuty comes in, to make sure we are adhering to our SLOs [service level objectives] and our SLAs [service level agreements], he said. 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. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. Testing RFID blocking cards: Do they work? The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. All four are part of most companies digital transformation journey. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. Lenovo Late Night I.T. CIOs need to ensure they are business-first and commercially focused if they wish to remain key contributors to strategy and retain a seat at the executive table, Harvey claims. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. From a PagerDuty perspective, I think the key thing there is how do we help cut the noise across so much information thats coming through to us, he said. Harvey downplays any questions about who should be responsible for the technology or leading the way, saying the impetus should be efficiency and customer delivery. He says the company rejected SAP and Oracle because these software systems are not only expensive to install but have to be customised to suit the business. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Get started by entering your email address below. 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. In a statement, Wesfarmers highlighted Sheffield's experience across . 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. Blackwoods carries about 260,000 stock-keeping units (SKUs). 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. The point here is not to be right, but to find better ways of being wrong. Because of the back-end technology, were able to deploy this information in very easy-to-use, graphically intuitive front-ends on tablets to people in our shops and at work.. 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". Technology is a focus for the business. Data analytics are now an established, valuable tool for businesses, but the way they are used is rapidly changing. 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. Each of our divisions is developing significant capabilities in data analytics and digital services to meet the specific needs of their customers, Mr Scott said. With her strong business background, she has been instrumental in ensuring that. In line with previous guidance, operating expenditure associated with the group's data and digital ecosystem is expected to be approximately AU$100 million during the 2022 financial year, the company said. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. 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. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. 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. This leads to costly upgrades. 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. Digital transformation can be bewildering and exhausting for leaders and employees alike. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. Senior Data Engineer - 6 Months Contract. Marcelo brings positive energy to. More specifically, Wesfarmers last year invested in the creation of an Advanced Analytics Center which uses purchasing and other customer data to calculate and calibrate the value of customer offers and loyalty programmes. we equip you to harness the power of disruptive innovation, at work and at home. Without a clear understanding, the wrong people are often put in charge, with the wrong resources, and the wrong KPIs, setting the digital transformation project up for failure. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. To learn more about how we can help your business, contact us today. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. 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. I wouldnt trade that for anything because it helps keep the role real. Wesfarmers chief executive Rob Scott recognises digitisation is critical to the companys engagement with customers at a time when its retail operations are threatened by a proliferation of foreign online competitors, led by Amazon. 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. 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. But other times it involves rearchitecting the system to meet the needs of today customers. As noted at the recent half year results, more detail on Wesfarmers OneDigital will be provided at the Strategy Briefing Day in June 2022. Digital transformation is not a destination; it's a permanent state of evolution. Often this is the first step on the digital journey. For example, common errors include the nave assumption that by simply buying technology or investing in any of the fancy tools or shiny new objects of the booming tech market organizations will somehow transform. Wesfarmers a diversified corporation From its origins in 1914 as a Western Australian farmers' cooperative, Wesfarmers has grown into one of Australia's largest listed companies. 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.. 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. 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. Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. Wesfarmers OneDigital will power the Groups data and digital growth ambitions and provide customers with a more seamless, rewarding and valuable omnichannel experience across the retail businesses. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. Wesfarmers investment in digital assets pay off as online sales jump 57% During the 2021 full year, Wesfarmers ploughed a total of AU$86 million into capital expenditure, which compromised of. 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. Being clear about their differing demands can help you make smart tradeoffs and clear progress. The benefits of and reasons for the initiative need to be owned and communicated from the . You have to enjoy it to do this job and youve got to be constantly testing whether youre pushing technology because its cool, or if youre pushing solutions and options that will make a difference to the customer and team.. Like in any journey, you need to decide where to go first. There are plenty of technology changes underpinning how Coles meets this objective. 6 ways data analytics are advancing the enterprise (TechRepublic). View my verified achievement from Project Management Institute. 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. This is more than just swapping analog processes for digital ones; it is about rearchitecting the organization and the digital operations to serve customers better. Do you need one? He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. Chanticleer is Australia's pre-eminent business column. OneData, formerly the Advanced Analytics Centre, manages the Wesfarmers shared data asset, providing a single view of the customer and enabling the divisions to deliver a more compelling offer to customers. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. how to upgrade the digital infrastructure, a team capable of running experiments to validate the new business opportunity, Network Advantage: How to Unlock Value From Your Alliances and Partnerships. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. The goal here is to use digital tools, including more advanced technologies such as AI, 5G, and IOT, to streamline business growth. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. Read:From big data to AI - Where are we now, and what is the road forward? Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. Melbourne, VIC. 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. This is where technology gives way to analytics the science that helps us give meaning to the data. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. Wesfarmers says COVID-19 disrupts H1 operations but bumps up online sales, Wesfarmers investment in digital assets pay off as online sales jump 57%, Kmart Group to shift its mainframe to the cloud, AWS skills training for 1,400 Kmart and Target employees, Do Not Sell or Share My Personal Information. She reports directly to Wesfarmers managing director, Rob Scott. Underpayment epidemic: Software Problem? This will provide greater value, expanded range and a more seamless experience for customers across the Groups retail businesses., The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital. 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. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. He describes his time at Coles in two chapters: The first as head of the Coles IT unit; and the second as a core business contributor. In this iterative process or retroactive feedback loop, you enable your insights to become more predictive, more meaningful, and more valuable, which itself gives more value to the data. All models are wrong to some degree, but some are more useful than others. dtSearch - INSTANTLY SEARCH TERABYTES of files, emails, databases, web data. 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. View my verified achievement from Project Management Institute. Here's a look at how modern tech fits into the customer service puzzle. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. Trevor Collens. Like many things, its tempting to look for the conflict, but if you just focus on the win-win, the roles just naturally evolve themselves. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? It is very easy in IT to lose sight of the money that has to be made, the customer offers that have to be delivered and the customer propositions that have to be put together, he comments. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. In the final stage of the process, you can evaluate results or impact. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. we equip you to harness the power of disruptive innovation, at work and at home. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. But for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. However, if the brains behind the worlds and Australias- biggest companies think it is worth it, you should definitely be looking at how to digitise aspects of your business. 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. 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. As part of the digital function, executives were also tasked with digitizing the entire ecosystem as well as a separate department with a task to build and maintain the resulting ecosystem. AI can make predictions, and data can give us insights, but the so what part requires actions, and these actions need the relevant skills, processes, and change management. Its about so much more than your technology. The conglomerate has set aside $9mn to repay taking the total to about $30mn. The key is to listen and think critically. Having the stakeholders lead this means every day they are helping set and adjust the priorities based on the technical realities being encountered by my team.. To do this, IT has invested in application reporting capabilities to give regional store managers and leaders drillable reports and dashboards on their iPads. 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. IT should be helping marketing evolve the platforms, tools and assets it can deploy in the digital space, making it easier to exploit the opportunity to be had in digital, he says. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. 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. Everyone who has been part of digital transformation describes it as a journey. Recognize the emotional side of digital transformation. Big data to deliver business efficiencies and better customer engagement is another majority area of focus for Harvey, and he explains his team is taking a three-pronged approach to information management. "As a result of progress in recent years to develop deeper customer relationships, stronger digital engagement and expanded ranges of everyday products, the group's retail businesses are well-positioned to manage the transition as COVID-related restrictions are eased," the company said. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. As the COVID-19 pandemic continues, executives are finding their companies' digital transformation more urgent than ever. 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. The reality is the most important noise in my working life is the beep made every time someone scans a product at our checkout, he says. 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. 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