In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. 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. View my verified achievement from Project Management Institute. Like in any journey, you need to decide where to go first. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. Then they will lead the change because you helped them see the opportunity.. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. All models are wrong to some degree, but some are more useful than others. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. 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. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. 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. That said, there is one thing that hasnt changed namely the fact that all of this is just the new version of an old task or challenge every leader has always faced throughout human history: to prepare their teams and organizations for the future, and create a better future. Catch's vision is to be the trusted place where Australians start their shopping journey. 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. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. 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. 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. Most of the digital transformation is being done by an in-house . . Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. "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. 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. OneData also provides data analytics support OnePass and Catch. This will provide benefits in the attraction and development of digital talent as well as logical synergies between the Groups shared data platform, advanced analytics team and subscription capabilities. Digital transformation is not a destination; it's a permanent state of evolution. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. 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. 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. Results. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. The Rural Intelligence Platform uses artificial intelligence, machine learning, and cloud-based geospatial technology to give farmers the heads up on how their property is changing and is expected to change in the future. Choosing and prioritising those assets is a two-way conversation. 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. 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 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. Kmart, Target and Catch are currently part of the OnePass program, with partnerships with Bunnings and Officeworks, and additional benefits to be added over the coming year. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. ", Google Cloud, Golden State Warriors ink analytics, cloud partnership at new arena. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. This pillar is different from the others in its focus on digital tools to interact and sell to customers. 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. 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. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. 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. Finally, digital opens up many new opportunities for established companies. 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. 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.. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. 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. If you want to scale the knowledge you have about your customers and employees, and replicate it across a big organization and in far more complex and unpredictable situations, you need to have data widely accessible and retrievable records of interactions with consumers, employees, and clients. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. Digital and omnichannel capability is a critical area for other retailers as well. 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. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. Testing RFID blocking cards: Do they work? Moving your company forward in the wake of the pandemic. 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. She reports directly to Wesfarmers managing director, Rob Scott. As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. I wouldnt trade that for anything because it helps keep the role real. 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. 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. 6 ways data analytics are advancing the enterprise (TechRepublic). 2023 ZDNET, A Red Ventures company. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. In a statement, Wesfarmers highlighted Sheffield's experience across . 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. Managing Change. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. 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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. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. But for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. Its about so much more than your technology. Except this is not really the final step after you evaluate results, you need to go back to the data. 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. "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. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. 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. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. 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. Thats where I think some of the smarts around event orchestration is going to help as well.. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. Just as we had to evolve our view of computers after their introduction from a device performing a narrow set of tasks at the edge of the organization to one that performs many tasks, in many different ways so it is time to evolve our view of digital transformation, from a monolithic concept to understand that digital transformation means many different things for different parts of the organization. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. 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. 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. In the final stage of the process, you can evaluate results or impact. 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. This is where technology can have the biggest impact in the process of capturing or creating digital records of people (e.g., what they do, who they are, what they prefer, etc.). The third pillar is putting information in the hands of team members. 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 framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. But all four pillars are important to digital transformation, so they may happen in another order. 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. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. 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. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. 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. 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. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. How about in Australia? For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. Without a model, a system, a framework, or reliable data science, any data will be useless, just like 0s and 1s. 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. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. 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! 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. Here's a look at how modern tech fits into the customer service puzzle. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. Data analytics are now an established, valuable tool for businesses, but the way they are used is rapidly changing. Lydia joined WES corporate office in Business development and commercial. Like many things, its tempting to look for the conflict, but if you just focus on the win-win, the roles just naturally evolve themselves. 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. December 20, 2021. Contract/Temp. Read:Predictions for 2019 in data, analytics, and AI. When you think about hardware stores, digital technology is probably the last thing that comes to mind. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. In support of this, recent research from IDC indicates that organizations which had begun an ERP cloud migration as part of a digital transformation initiative prior to the COVID-19 pandemic fared far better than organizations that didnt. 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. This has now been fixed. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. 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. 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. 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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. 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. 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. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. These Experts Are Racing to Protect AI From Hackers. 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. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. 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