Its also good for customers as it means our store leaders are out more on the floor.. Or what if it tells you that customers dislike a certain product how will this influence your product development and marketing strategy? 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. As Stanfords Erik Brynjolfsson noted, a major reason for the lack of productivity gains from new technologies, including AI, is the failure to invest in skills especially the lack of reskilling and upskilling once employees are in your workforce. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. Illustration by Joi Fulton. 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. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. The point here is not to be right, but to find better ways of being wrong. 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. "This included investment in the shared data asset and scalable customer data architecture as well as the continued development of capabilities within the advanced analytics centre, specialist technical expertise, and robust data governance," he said. Data analytics are now an established, valuable tool for businesses, but the way they are used is rapidly changing. It is going to break. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Also read: The Key Drivers Behind Rising AI Investment in Australia. 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 June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. Because of the need to understand how the business works, digitizing operations often fares better when led by the CFO or COO. 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. Address weaknesses exposed by the digital journey, and be willing to accept a little short-term pain in exchange for long-term gain. In the final stage of the process, you can evaluate results or impact. "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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. But that's an end-state that we want to move towards so I think it's really about at first -- in the initial stages -- allowing [for the development] of business priorities such as how can we help make better decisions faster," Lowthorpe said. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. . Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. 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 benefits of and reasons for the initiative need to be owned and communicated from the . 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. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! 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. Choosing and prioritising those assets is a two-way conversation. 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. 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. In early 2022, the Club Catch subscription program was rebranded and repositioned as OnePass. 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. 5. University of Melbourne data strategy advisor Fiona Tweedie, who also took part in the panel, added that organisations should be active in interrogating the tools and data they use, taking into account the biases and assumptions that may arise. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. 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). Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). 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. The Catch acquisition has also improved digital expertise leading to better execution and innovation. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. 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. we equip you to harness the power of disruptive innovation, at work and at home. 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. 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. 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. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. 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. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. 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. All four are part of most companies digital transformation journey. 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. The Evolving State of Digital Transformation. 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. 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. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. 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. A second critical pillar of digital transformation, often tackled earlier in the digital transformation journey, is using digital for optimizing, simplifying, and rationalizing existing processes. 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. Consider the chart below: However, these are all American-headquartered companies. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. Do you treat it as though it is a part of them? 2023 ZDNET, A Red Ventures company. 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. 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. 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. During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. 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. 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. Wesfarmers is closely monitoring the COVID-19 outbreak and its impact on product availability due to supply chain challenges. 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. 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. 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. Going beyond what the legislative requirements is something I think creates sort of a threshold for ethical standards which is a really good mindset to have: are we protecting this asset in a way that customers want us to?". Most of the digital transformation is being done by an in-house . 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. Except this is not really the final step after you evaluate results, you need to go back to the data. He added that AIOps to detect anomalies and correlate events is also potentially on OneDigitals radar. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. 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. 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. 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. But with the right expertise and tools, data can be turned into insights. Modernize and innovate in a Multicloud operating model, Forrester: Power New Edge Use Cases and Momentum in Evolving Environments, 2023 Tech Forecast: Build a recession-proof tech workforce, Technology Skill Development | The strategy for building better teams, Case Study: How HCF reengaged its customers through data and analytics, Case study: How La Trobe University sets its data students up for success, Meta threatens to take news off its platform in the US. All models are wrong to some degree, but some are more useful than others. 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. The worlds largest enterprises use NETSCOUT to manage and protect their digital ecosystems. These Experts Are Racing to Protect AI From Hackers. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Weve already looked at how Blockbuster missed their big opportunity to digitally transform their business, and we all know how that ended for them. Safety -identifying contributing factors to safety incidents, Localisation- in-store product ranges are tailored to meet local conditions, Inventory optimisation- to improve in-stock position and increase productivity, Personalisation- for personalised marketing and customer interactions. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. This pillar is different from the others in its focus on digital tools to interact and sell to customers. 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 program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. 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. Trevor Collens. 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. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. Thats where I think some of the smarts around event orchestration is going to help as well.. The . Here's how. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. Here's a look at how modern tech fits into the customer service puzzle. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. 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. In its most basic form, this pillar can mean swapping out analog activities with digital ones. Technology is a focus for the business. View my verified achievement from Project Management Institute. 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. 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. 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. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. By Chet Kapoor, Chairman & CEO of DataStax. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. 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.. Digital transformation can be bewildering and exhausting for leaders and employees alike. 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. 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. OneData also provides data analytics support OnePass and Catch. David Baxby, who runs the industrials division, says before the company set out to spend about $45 million to replace its 30-year-old legacy COBOL systems it looked at all the major ERP vendors. Catch operates an online business model offering branded products on a first-party basis and a third-party online marketplace. "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. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. "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. 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. 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. As a company rearchitects their processes, they also start to unlock more transformational possibilities. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. 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. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. As for Wesfarmers share price, after a rough end to 2018, this year has seen it steadily climb, rising approximately 23% year to date. 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. [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 $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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. However, according to the latest reports, this initiative has been facing some roadblocks, as the team battles to migrate a generations worth of legacy code. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. 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. 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 data Rising AI investment in every channel strategy with ongoing enhancements targeting improved online experience! The track for the initiative need to understand how the business works digitizing! Training activities, Harvey says he couldnt imagine a job he could enjoy more the. 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