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 . 1. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. Several global retailers are using digital channels, AI and predictive analytics to access prospects and customers, set up digital marketplaces, viral campaigns, and geo targeting campaigns. In a statement, Wesfarmers highlighted Sheffield's experience across . As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. 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. 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. 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. 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. 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. 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. On top of that, weve changed the digital interactions. 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. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. Deloitte US | Audit, Consulting, Advisory, and Tax Services Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. But all four pillars are important to digital transformation, so they may happen in another order. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. Following an initial pilot in Tasmania (Bunnings is not rushing this after the UK debacle), click-and-collect will be rolled out in Victoria and then the rest of Australia. Also read: Woolworths Announces $700 million Technology Investment. This means were getting products through to our store fresher and in a more timely fashion, he says. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. 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. Technology is a focus for the business. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). dtSearch - INSTANTLY SEARCH TERABYTES of files, emails, databases, web data. Established in 2022, Wesfarmers OneDigital brings together the Groups digitally native businesses, including the Catch marketplace, the OnePass membership program and the OneData Group data asset. 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. Where Harvey has placed his emphasis is on helping marketing to move from solving problems one by one, to building platforms people can use to solve problems at scale and more efficiently. 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. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. Like in any journey, you need to decide where to go first. As a company rearchitects their processes, they also start to unlock more transformational possibilities. But other times it involves rearchitecting the system to meet the needs of today customers. Also read: The top Supply Chain Trends according to Gartner, Also read: Coles re-platforms digital channel and doubles online capacity. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. 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. 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. 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. 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.. The key to cutting through the confusion is to see that digital transformation is not a single thing, but a multi-faceted journey with differing goals depending on your industry and digital maturity. 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". 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. View my verified achievement from Project Management Institute. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. 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. The third pillar is putting information in the hands of team members. Then they will lead the change because you helped them see the opportunity.. 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. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. Do you treat it as though it is a part of them? Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. He said that establishing trust is also critical, as OneDigitals model sees it engage with customers of existing brands like Kmart, Target and Catch, all of whom have existing expectations of customer experience. Although embarking on a digital transformation can be daunting and requires investment, many companies worlwide are starting that journey because they know it will pay off in the future. 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. And with the results already under our belt, alongside our deeply skilled and resourced team of in-house data and analytics experts, I firmly believe we are well on our way! The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. To the degree that we have meaningful insights, a story, a notion of what may be going on and why, or a model, we will be able to test this model through a prediction. 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. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. 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. Testing RFID blocking cards: Do they work? 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. Rodney Zemmel. View my verified achievement from Project Management Institute. In its most basic form, this pillar can mean swapping out analog activities with digital ones. 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. 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. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. 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. 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. On the list of Harveys biggest customer achievements in the last five years is deploying automated replenishment, which he claims materially improved the availability and efficiency of Coles supply chain. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. 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. 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. 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". Except this is not really the final step after you evaluate results, you need to go back to the data. 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. "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. 2023 ZDNET, A Red Ventures company. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. Here's how. Its about so much more than your technology. 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 . 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 first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. Managing Change. Harvey points out his own team takes a highly disciplined approach around capital and investment, knowing what benefit levers will be pulled and what will be delivered before they embark on any project. Whats exciting for me over time is narrowing down my focus on infrastructure, and making it less of a discussion point for small and medium-sized projects and workloads. 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. Although Targets performance has been below expectations, Kmart has budgeted $15mn for technology and digital enhancements aligning with growing consumer expectations and changing shopping behaviour. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. Summary. As a startup Id love cloud, but Coles is not a startup. Thats where I think some of the smarts around event orchestration is going to help as well.. Were not spending the time arguing who should be doing what.. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. "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. 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. Cloud Technology: Cloud technology has . Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. . It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. 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. Eric Lamarre, Kate Smaje, and. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. 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. Woolworths, Coles and other retailers have been focused on digital growth as a critical element of overall growth strategy. 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. These Experts Are Racing to Protect AI From Hackers. 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. 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 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. Digital transformation can mean a lot of different things. To learn more about how we can help your business, contact us today. 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. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. 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. Digital transformation is not a destination; it's a permanent state of evolution. The framework outlines. 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. Recognize the emotional side of digital transformation. The . I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. But even getting to the insights stage is not enough. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability One of the biggest barriers to true digital transformation success is change management. 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. 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. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. Nobody is truly a leader if they are in charge and keep things as they are. CSIRO builds analytics platform to help Aussie farmers. Typically, the CIO or CTO should lead this pillar of digital transformation and the KPIs to indicate success are access to new tools, reduced maintenance costs, improved employee satisfaction, and better business performance. This showed the company had learnt the lesson of the dangers of rushing headlong into a project without sufficient preparation, as happened with the Bunnings expansion in the UK. This keeps them in the conversation and in the moment, but using the report as a way of informing the conversation on the shopfloor, Harvey explains. 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.. At Wesfarmers we believe sustainability is about understanding and managing the ways we impact the communities and environments in which we operate, to ensure that we continue to create value in the future. Moving your company forward in the wake of the pandemic. 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.. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. 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. 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.. 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. 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. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. Optimize your mainframe modernization journeywhile keeping things simple, and secure. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. For example, a large retail bank which we studied entered a range of different industries, such as transportation (ride sharing), content distribution (music and TV), e-health and retail marketplace just to name a few. we equip you to harness the power of disruptive innovation, at work and at home. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. He was heavily involved in the transformation under. 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. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. Time is Running Out, Motorola's handy Bluetooth device adds satellite messaging, Linux 6.2: The first mainstream Linux kernel for Apple M1 chips arrives, Sony's new headphones adopt WH-1000XM5 technology at a great price, The perfectly pointless $197 gadget that some people will love. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. 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. 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. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. This is in part due to Bunnings disastrous entry (and exit) from the UK market but also involves the Wesfarmers ongoing investments in digital transformation. Testing RFID blocking cards: Do they work? "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 digital transformation happening inside Wesfarmers' industrials division presents a good case study of the pitfalls and opportunities inherent in the implementation of new technology. Now hes running the show, thanks in part to a keen understanding of how IT can. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. It is going to break. 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. Catch's vision is to be the trusted place where Australians start their shopping journey. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. 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. Wesfarmers Ltd (ASX:WES) is planning for Bunnings growth to be fuelled by e-commerce. Of the online sales total, Kmart Group, which includes Kmart, Target, and Catch marketplace, contributed AU$1.4 billion, following a 22% year-on-year increase. 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. Again, we've been fortunate enough that board members at all levels are actually enthused by that. Do you need one? Read:From big data to AI - Where are we now, and what is the road forward? 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. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. 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. 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. In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. This has now been fixed. Help using this website - Accessibility statement. Everyone who has been part of digital transformation describes it as a journey. 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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. 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