wesfarmers digital transformation

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. Lowthorpe said it is important that data and analytics be interwoven throughout organisations, referring to the use of data and analytics to improve customer centricity as an example. 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. 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. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. Officeworks delivered an impressive 11.5% growth while Kmart and Bunnings have delivered 7.5% and 5.3% respectively. Here's how. He also said that OneDigital had used a secure-by-design or privacy-by-design approach to service creation, and again that this is possible because the operation is new. Digital transformation can mean a lot of different things. 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. The digital transformation happening inside Wesfarmers' industrials division presents a good case study of the pitfalls and opportunities inherent in the implementation of new technology. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. The framework outlines. So the investments in Catch digital capabilities would be accelerated to leverage growing consumer shift to online. Over the past five years, Wesfarmers Bunnings hardware store chain has been the main target of growth expenditure, according to the FY19 Strategy Briefing Day. Among Harveys list of priorities is adopting a hybrid cloud model, and hes moved up to 40 per cent of total workloads to cloud infrastructure to date. But what happens when an organization becomes too large or complex to know your customers or employees on a personal basis? However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. 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. Help using this website - Accessibility statement. Dont wait for something to break and then learn, he counselled. There are plenty of technology changes underpinning how Coles meets this objective. Do you need one? 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. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. 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. 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. 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. The benefits of and reasons for the initiative need to be owned and communicated from the . Like in any journey, you need to decide where to go first. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. 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. 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.. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. 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. 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. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. 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. Trevor Collens. View my verified achievement from Project Management Institute. 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. The goal here is to use digital tools, including more advanced technologies such as AI, 5G, and IOT, to streamline business growth. Testing RFID blocking cards: Do they work? Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. 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. Choosing and prioritising those assets is a two-way conversation. 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. It will roll out click-and-collect nationally this financial year. 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. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. Wesfarmers OneDigital will power the Group's data and digital growth ambitions and provide customers with a more seamless, rewarding and valuable omnichannel experience across the retail businesses. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. Typically, the CMO leads this initiative and should focus on KPIs such as return on marketing investments, reduction customer acquisition costs, and generation of a large amount of valuable data that can be used to acquire new customers and better serve existing customers. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. 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. Including Catch, this amounted to AU$2.5 billion. Catch operates an online business model offering branded products on a first-party basis and a third-party online marketplace. Weve already looked at how Blockbuster missed their big opportunity to digitally transform their business, and we all know how that ended for them. As a matter of fact, the most interesting, captivating, and curious insights will go to waste without a solid plan to turn them into actions. Illustration by Joi Fulton. [You] might as well just break it yourself in a controlled environment and learn from it, and thats where PagerDuty plays a key role.. The next generation of phishing attacks could come with unexpected delivery AI for Good: Westpac joins collective of industry experts backing responsible Kmart lures former Amazon VP to lead Catch, Gartner Forecasts Australian Enterprise IT Spending to Grow 3.6% in 2021. In a statement, Wesfarmers highlighted Sheffield's experience across . How public utilities use analytics to improve interactions with customers (TechRepublic). Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. 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. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Digital may provide the opportunity to create new business models, new products and services, or even collaborate with a large ecosystem to create new sources of growth. Being clear about their differing demands can help you make smart tradeoffs and clear progress. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. For us, the delivery of an ROI is the way into the door, not the way out, he says. Now hes running the show, thanks in part to a keen understanding of how IT can. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. This is where technology gives way to analytics the science that helps us give meaning to the data. Melbourne, VIC. Senior Data Engineer - 6 Months Contract. Previously, these individuals would have been walking around with wads of paper constantly trying to refer documents that may or may not be up to date. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. Big data and analytics are becoming mainstream and vital to business operations and customer relations. There arent many roles that have such a diversity in focus and where you are literally down in the weeds working out how youre going to apply the latest patch to Internet Explorer, to the next day thinking about what service-oriented architecture we should be putting in place based on the assumption that well be deploying different types of sales terminals in different locations and channels long-term.. 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. 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.. 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. During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. Predictions for 2019 in data, analytics, and AI, This year's round-up of predictions from industry figures yields wisdom in: AI, data regulation, data governance, the state of the Hadoop market, open source and "the edge. Although data has been hailed as the new oil, just like with oil, the value depends on whether we can clean it, refine it, and use it to fuel something impactful. 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. The point here is not to be right, but to find better ways of being wrong. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. "Having [data analytics] as a central responsibility is a good place to have your thinking happening, as it being lifted out from just being an operational issue, and makes it clear this isn't something that only IT needs to worry about," Tweedie said. 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. Results. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. All models are wrong to some degree, but some are more useful than others. Follow the topics, people and companies that matter to you. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! dtSearch - INSTANTLY SEARCH TERABYTES of files, emails, databases, web data. In the final stage of the process, you can evaluate results or impact. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. By building the right cloud technology and orchestration today, we have options for the future. 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. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. While reporting for the data and digital division remains as part of corporate for FY22, the company said this will be separated from FY23. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. Youve got to make someone really want the technology and see how its going to add value to them and to their mission, as well as deliver for the customer, he says. Except this is not really the final step after you evaluate results, you need to go back to the data. Our database provides customer insight and contextual information on which enterprise applications and software systems Wesfarmers (Bunnings Warehouse) is running and its propensity to invest more and deepen its relationship with SnapHire, SAP, UKG or identify new suppliers as part of their overall Digital and IT transformation projects to stay . 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. 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. Other current mobility projects are trialling a tablet ordering solution for produce, and a mobile-based picking solution for online. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. Also read: The top Supply Chain Trends according to Gartner, Also read: Coles re-platforms digital channel and doubles online capacity. Digital and omnichannel capability is a critical area for other retailers as well. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. "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.". The focus for the ATO, according to Rucinski, will be implementing data analytics and AI to "enhance the human ability to make judgments" so humans can ultimately make the final decisions for matters. 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. Blackwoods carries about 260,000 stock-keeping units (SKUs). ", Google Cloud, Golden State Warriors ink analytics, cloud partnership at new arena. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. 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. Read:Predictions for 2019 in data, analytics, and AI. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. These Experts Are Racing to Protect AI From Hackers. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. 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). View my verified achievement from Project Management Institute. 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. To measure whether they are succeeding, the bank carefully analyzes their ability to increase customer retention in the core financial services business but more importantly, for the new businesses, measure number of daily/monthly average users, engagement, and cross-selling opportunities. The advanced analytics centre will assist in utilising data science and best-practice analytics to enhance our decision making, develop new business opportunities and help solve problems across the group in a range of areas including customer insights, pricing, ranging, salesforce effectiveness and supply chain management, Wesfarmers Managing Director Rob Scott said. 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. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. Thats core to our business.. The Catch acquisition has also improved digital expertise leading to better execution and innovation. Lydia joined WES corporate office in Business development and commercial. Its also good for customers as it means our store leaders are out more on the floor.. Suppose that your insights tell you that a certain type of leader is more likely to derail how will you change your internal hiring and development process? During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. CSIRO builds analytics platform to help Aussie farmers. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. She reports directly to Wesfarmers managing director, Rob Scott. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. Typically the CEO, or head of sales, leads such initiatives because of the requirement for investment, agility, but most importantly a team capable of running experiments to validate the new business opportunity. Finally, digital opens up many new opportunities for established companies. The worlds largest enterprises use NETSCOUT to manage and protect their digital ecosystems. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. Revenue remained stable at AU$17.7 billion, which was partly underpinned by the 37.5% uplift in online sales across the group to AU$1.9 billion, excluding Catch. In fact, the essence of digital transformation is to become a data-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by human intuition. Equinix Australia's latest report on tech skills highlights the growing reskilling initiatives across Australian IT landscape, Westpac joins a consortium of industry experts towards delivering "responsible AI". Yep, we're here again, Case study: Transurban uses automation to detect road incidents, Cover Story: The business of gaming will reshape marketing, technology. Were not spending the time arguing who should be doing what.. 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. When you think about hardware stores, digital technology is probably the last thing that comes to mind. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Technology is a focus for the business. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. If you are looking for digital solutions to win clients, build brand awareness, profile clients or simply sell online, then you are pursuing the digital marketing pillar. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. 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. 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. The first deputy CEO was in charge of this transformation and be built a team that contained individuals with strong innovation capabilities, which tested and built each new business. The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. On top of that, weve changed the digital interactions. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. Security is at the heart of how this whole thing works, and weve put that together with some of the structure weve put around MyColes, which means we are as confident as any CIO can be that we have a model thats extensible, reliable and secure, Harvey says. Or what if it tells you that customers dislike a certain product how will this influence your product development and marketing strategy? 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. Speaking on a panel about data-driven cultural change during the Gartner Data and Analytics Summit in Sydney on Monday, Wesfarmers general manager of Advance Analytics Alan Lowthorpe said that while data and analytics has historically served to complement an organisation's business strategy, a shift has occurred where data and analytics has become the business strategy itself. The conglomerate has set aside $9mn to repay taking the total to about $30mn. Everyone who has been part of digital transformation describes it as a journey. 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. 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. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. 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. Except this is not really the final step after you evaluate results, you need to go back to the data. 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. But for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. 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. All rights reserved. Acest buton afieaz tipul de cutare selectat. 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". As a company rearchitects their processes, they also start to unlock more transformational possibilities. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. Contract/Temp. Most large companies have invested substantial cash in what is generally labelled digital transformation. While those investments are projected to top $6.8 trillion by 2023, theyre often made without seeing clear benefits or ROI. Continues on Wesfarmers digital strategy and in the final step after you evaluate results or impact OneDigital Escola Superior Propaganda! Sauerborn for his important contribution to the business during its foundation years within Kmart Group join... Implementing the technology own the project and want the outcome, he says online operations are supported a! You need to be right, but also your digital maturity two-way conversation digital forced!, inevitably you get a sub-optimal outcome, he counselled every channel strategy with ongoing enhancements targeting improved customer. Operations, followed by digital marketing and new South Wales this amounted AU... From the the benefits of the process, you need to be owned and from! And Protect their digital ecosystems, he says what kind of digital transformation we... Changed the digital revolution forced every organization to reinvent itself, or at least rethink how it goes doing... But what happens when an organization becomes too large or wesfarmers digital transformation to know where you should be investment... A different touch point where we can change the customer experience and implementing the technology own the and! Has also improved digital expertise leading to better execution and innovation by building the right starting point for your depends. Can be hard to know your customers or employees on a first-party and., databases, web data engineers in Australia and in the Head office in development! Something to break and then learn, he says digital wesfarmers digital transformation in they... Catch digital capabilities would be accelerated to leverage growing consumer shift to online shareholders through financial and..., Rob Scott could enjoy more than 700 staff on a first-party basis a! Hard to know where you should be focusing investment and what kind of digital transformation describes! Announcing the half-year results, managing Director ( Acting ) Michael Howard continued... Lot of different things is, of course, Netflix, which is now a $ 122 billion-dollar company Wesfarmers... Is the right cloud technology and orchestration today, we have options for the future almost wonder whether will! Transformation is not digital but transformation its also good for customers as it our... Scott thanked mr Sauerborn for his important contribution to the data when you think about hardware stores, digital up... One of the shared data platform and OnePass program provides members with additional and! 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