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. 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. Thats core to our business.. A framework to help leaders decide where to invest. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. 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.. Wesfarmers is closely monitoring the COVID-19 outbreak and its impact on product availability due to supply chain challenges. 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. This will provide greater value, expanded range and a more seamless experience for customers across the Groups retail businesses., The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital. 5. 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". Finally, digital opens up many new opportunities for established companies. 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. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. 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. 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. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. 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. 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. Wesfarmers OneDigital has set 'SaaS model' standards for itself, supported by service standards, engineering practices and tools that together create a foundation for the nascent digital and data arm to grow. The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. This is where technology gives way to analytics the science that helps us give meaning to the data. How about in Australia? Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. View my verified achievement from Project Management Institute. 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. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). This leads to costly upgrades. 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. Get started by entering your email address below. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. "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. I wouldnt trade that for anything because it helps keep the role real. There arent many roles that have such a diversity in focus and where you are literally down in the weeds working out how youre going to apply the latest patch to Internet Explorer, to the next day thinking about what service-oriented architecture we should be putting in place based on the assumption that well be deploying different types of sales terminals in different locations and channels long-term.. Uses PagerDuty as part of its foundational setup. 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. 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 . 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. In short, the critical part of digital transformation is not digital but transformation. Our world has changed dramatically in the past two decades, and adapting your organization to these changes cannot be achieved overnight, or simply by buying new technologies, or collecting more data. 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. Having run a corporate BYOD program for the past three years and maintained thousands of devices in its network, the latest step has been bringing BYOD to store managers. 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. 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. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. Testing RFID blocking cards: Do they work? As the figure below shows, five components are needed to execute an organizations digital transformation: Digital transformation starts with people, which is a useful reminder that whenever we talk about data especially valuable data there are humans at the end of it. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. All four are part of most companies digital transformation journey. 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. However, as AI, machine learning, and big data becomes increasingly used across organisations, Lowthorpe acknowledged that ethics must be maintained as a priority in any data-driven business strategy. According to Harvey, certain loads are always going to be difficult for large corporates to move into the cloud. Illustration by Joi Fulton. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. By Chet Kapoor, Chairman & CEO of DataStax. Do you treat it as though it is a part of them? 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. Lenovo Late Night I.T. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. 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.). Its about so much more than your technology. 6 ways data analytics are advancing the enterprise (TechRepublic). 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. Suppose that your insights tell you that a certain type of leader is more likely to derail how will you change your internal hiring and development process? Historically, these relationships yielded poor or dispersed records. 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. 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. 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. 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. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. Being clear about their differing demands can help you make smart tradeoffs and clear progress. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. 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 key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. These Experts Are Racing to Protect AI From Hackers. It requires IT architects and time, but promises up-to-date platforms with more effective tools to serve customers at lower cost of maintenance. Consider the chart below: However, these are all American-headquartered companies. 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. "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. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. Information includes sales data, stock availability, store remuneration, markdowns and waste. Most businesses have these opportunities at hand but seizing them requires a greater digital maturity than for an IT uplift or digitizing processes. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. 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. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. OneData also provides data analytics support OnePass and Catch. 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. As a startup Id love cloud, but Coles is not a startup. Wesfarmers Ltd (ASX:WES) is planning for Bunnings growth to be fuelled by e-commerce. 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. 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. If you are looking for digital solutions to win clients, build brand awareness, profile clients or simply sell online, then you are pursuing the digital marketing pillar. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. Read:Predictions for 2019 in data, analytics, and AI. View my verified achievement from Project Management Institute. 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. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. 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. 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. He added that AIOps to detect anomalies and correlate events is also potentially on OneDigitals radar. 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 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. Underpayment epidemic: Software Problem? If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. 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. Lowthorpe said it is important that data and analytics be interwoven throughout organisations, referring to the use of data and analytics to improve customer centricity as an example. 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. 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". 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. 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.. 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. Typically, the CMO leads this initiative and should focus on KPIs such as return on marketing investments, reduction customer acquisition costs, and generation of a large amount of valuable data that can be used to acquire new customers and better serve existing customers. 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. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. 1. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. 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. Help using this website - Accessibility statement. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. 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. how Blockbuster missed their big opportunity. As Coles IT we had our own logo and acted as a consultant to the business, charging an hourly rate, he recalls. While reporting for the data and digital division remains as part of corporate for FY22, the company said this will be separated from FY23. Including Catch, this amounted to AU$2.5 billion. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. 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. Digital transformation can mean a lot of different things. 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. 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. 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. View my verified achievement from Project Management Institute. Wesfarmers formally acquired the online retailer Catch for $230 million in August 2019. But even getting to the insights stage is not enough. Wesfarmers industrial and safety division lands new CDTO To continue transformation efforts. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. Yep, we're here again, Case study: Transurban uses automation to detect road incidents, Cover Story: The business of gaming will reshape marketing, technology. Often this is the first step on the digital journey. 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. In the final stage of the process, you can evaluate results or impact. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. The Catch acquisition has also improved digital expertise leading to better execution and innovation. 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. 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. The . 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. Except this is not really the final step after you evaluate results, you need to go back to the data. In late spring 2020, we surveyed senior executives, digital transformation . 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. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. 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