Deloitte US | Audit, Consulting, Advisory, and Tax Services View my verified achievement from Project Management Institute. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. As Ajay Agrawal and colleagues argue, even with the best AI, data science, and analytics, it is up to us humans to work out what to do with a prediction. 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. 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. Testing RFID blocking cards: Do they work? As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. 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. Were not spending the time arguing who should be doing what.. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. 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. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. 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. This has now been fixed. 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. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. But other times it involves rearchitecting the system to meet the needs of today customers. 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. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. "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. The key is to listen and think critically. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. 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. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. Chanticleer is Australia's pre-eminent business column. He was initially brought on as a program director for a merchandising systems refresh project, before taking the role of general manager of IT strategy, architecture and program delivery in 2004. 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. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. 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. These Experts Are Racing to Protect AI From Hackers. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. 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. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. Baxby says Scott has met Microsoft CEO Satya Nadella, who is personally committed to the success of the Blackwoods implementation, as is Microsoft Australia CEO Steven Worrall. Now hes running the show, thanks in part to a keen understanding of how IT can. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. For us, the delivery of an ROI is the way into the door, not the way out, he says. 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. On average, we would perceive that hosting most loads is still marginally cheaper internally than externally, but we expect that as the cloud fully matures that line is going to shift, he says. Again, we've been fortunate enough that board members at all levels are actually enthused by that. 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. If we are focused on the business objectives and keep the long-term priorities of the company front of mind, there are such exciting things we can make happen with technology working as part of a business. In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. 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. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. 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. Recognize the emotional side of digital transformation. 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. 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. Cloud Technology: Cloud technology has . It will remain so until cloud [providers] understand and contemplate the same levels of redundancy we take for granted in the way we have active-active data centres, for example, he claims. 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. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. When you think about hardware stores, digital technology is probably the last thing that comes to mind. 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. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. 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. 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. 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. Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles. Although there is no indication of any reduction in digital investments, any impact of COVID-19 outbreak and underpayment troubles on technology roadmap seems unlikely yet although Target remains a concern. 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. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. But what happens when an organization becomes too large or complex to know your customers or employees on a personal basis? 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. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. 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. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. Being clear about their differing demands can help you make smart tradeoffs and clear progress. 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. The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. The framework outlines. There are plenty of technology changes underpinning how Coles meets this objective. 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. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. Results. 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. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. 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. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. One of the most enjoyable things about being a CIO is that you have to balance real day-operational decisions and trade-offs against thinking about what system and platform I am going to need in three or five years time. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Bunnings announced setting up of a Technology Centre in Bengaluru which is not surprising. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. This almost-great Raspberry Pi alternative is missing one key feature, This $75 dock turns your Mac Mini into a Mac Studio (sort of), Samsung's Galaxy S23 Plus is the Goldilocks of Smartphones, How the New Space Race Will Drive Innovation, How the metaverse will change the future of work and society, Digital transformation: Trends and insights for success, Software development: Emerging trends and changing roles. Except this is not really the final step after you evaluate results, you need to go back to the data. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. Lydia joined WES corporate office in Business development and commercial. 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. 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 . 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. "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. The point . View my verified achievement from Project Management Institute. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. 6 ways data analytics are advancing the enterprise (TechRepublic). 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. 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. 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. Do you need one? 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. 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. 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 group's retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. Digital and omnichannel capability is a critical area for other retailers as well. 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. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. 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. 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. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. 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. 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 transformation can be bewildering and exhausting for leaders and employees alike. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. 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. But even getting to the insights stage is not enough. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. Moving your company forward in the wake of the pandemic. Digital transformation is not a destination; it's a permanent state of evolution. 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). According to Harvey, certain loads are always going to be difficult for large corporates to move into the cloud. Learn howand get unstoppable. Underpayment epidemic: Software Problem? 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. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. Dont wait for something to break and then learn, he counselled. 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. 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. On top of that, weve changed the digital interactions. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Bunnings, Kmart and Officeworks continue to deliver topline growth for Wesfarmers while Target was below expectations. In the same way, a London cab driver or a Parisian bistro waiter might have in-depth knowledge of their customers and what they want, or a small business founder might know the 20 employees that make up her workforce rather well, without needing much tech or data. 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. She reports directly to Wesfarmers managing director, Rob Scott. 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. The benefits of and reasons for the initiative need to be owned and communicated from the . Including Catch, this amounted to AU$2.5 billion. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. 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. It will roll out click-and-collect nationally this financial year. 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. 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. Summary. Closes in 19 days. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. Read:Predictions for 2019 in data, analytics, and AI. Blackwoods carries about 260,000 stock-keeping units (SKUs). 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. 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". 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. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. Managing Change. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Thats where I think some of the smarts around event orchestration is going to help as well.. I think setting up PagerDuty right allows us to reflect what those business services are which are critical, what are some of the components which make those business services, and how we align it back to the right people when there are issues, which is critical in this day and age., Madan said that OneDigital is also using PagerDuty to manage its incident response faster, and in doing so, show its internal customers - the other Wesfarmers businesses - that we are reducing the risk [because] we can respond to issues faster.. He was heavily involved in the transformation under. Nobody is truly a leader if they are in charge and keep things as they are. Officeworks delivered an impressive 11.5% growth while Kmart and Bunnings have delivered 7.5% and 5.3% respectively. Although these failures have multiple causes, they are generally the result of underestimating the various steps or stages required to successfully execute a transformation agenda. 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. 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. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. In the final stage of the process, you can evaluate results or impact. This is where technology gives way to analytics the science that helps us give meaning to the data. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. we equip you to harness the power of disruptive innovation, at work and at home. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. Kmart sales increased $241m, more than offsetting a $67m decline in Target. Doing so will help you articulate what kind of digital transformation youre really talking about, and plan accordingly. 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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. 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