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. Chanticleer is Australia's pre-eminent business column. The point here is not to be right, but to find better ways of being wrong. AI can make predictions, and data can give us insights, but the so what part requires actions, and these actions need the relevant skills, processes, and change management. 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. How about in Australia? The Bunnings pilot program in Tasmania was followed by the rollout of the Bunnings click-and-collect offering in Victoria in the first half of this year. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. It will roll out click-and-collect nationally this financial year. we equip you to harness the power of disruptive innovation, at work and at home. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. Choosing and prioritising those assets is a two-way conversation. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. Results. 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. 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. Underpayment epidemic: Software Problem? Nobody is truly a leader if they are in charge and keep things as they are. 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. But even getting to the insights stage is not enough. 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. 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. 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. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. View my verified achievement from Project Management Institute. 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. Melbourne, VIC. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. 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. 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. View my verified achievement from Project Management Institute. 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. 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. As for Wesfarmers share price, after a rough end to 2018, this year has seen it steadily climb, rising approximately 23% year to date. 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. You have to enjoy it to do this job and youve got to be constantly testing whether youre pushing technology because its cool, or if youre pushing solutions and options that will make a difference to the customer and team.. 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. Cloud Technology: Cloud technology has . This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. 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. Also read: The Key Drivers Behind Rising AI Investment in Australia. Bunnings announced setting up of a Technology Centre in Bengaluru which is not surprising. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. These Experts Are Racing to Protect AI From Hackers. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. View my verified achievement from Project Management Institute. 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. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Kmart sales increased $241m, more than offsetting a $67m decline in Target. Read:From big data to AI - Where are we now, and what is the road forward? Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. View my verified achievement from Project Management Institute. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. Information includes sales data, stock availability, store remuneration, markdowns and waste. 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. Wesfarmers is hoping to transform the way its organisation uses data, making data analytics a business strategy instead of a side effect. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. The Evolving State of Digital Transformation. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. Digital transformation can be bewildering and exhausting for leaders and employees alike. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? 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. 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. All four are part of most companies digital transformation journey. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. 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. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. 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 third pillar is putting information in the hands of team members. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? It does require time and technology but the benefits, measured by the central KPIs, are savings in time, money, and people to solve business problems and serve customers. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. 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. 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). Thats where I think some of the smarts around event orchestration is going to help as well.. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. In the final stage of the process, you can evaluate results or impact. In a statement, Wesfarmers highlighted Sheffield's experience across . 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. This has now been fixed. Dont wait for something to break and then learn, he counselled. Illustration by Joi Fulton. 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. 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. Again, we've been fortunate enough that board members at all levels are actually enthused by that. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. how Blockbuster missed their big opportunity. 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. 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. 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. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. 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. 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". Contract/Temp. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. 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. 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. Data analytics are now an established, valuable tool for businesses, but the way they are used is rapidly changing. 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. 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. Often this is the first step on the digital journey. "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. The digital transformation happening inside Wesfarmers' industrials division presents a good case study of the pitfalls and opportunities inherent in the implementation of new technology. Our database provides customer insight and contextual information on which enterprise applications and software systems Wesfarmers (Bunnings Warehouse) is running and its propensity to invest more and deepen its relationship with SnapHire, SAP, UKG or identify new suppliers as part of their overall Digital and IT transformation projects to stay . Testing RFID blocking cards: Do they work? In the final stage of the process, you can evaluate results or impact. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. When you think about hardware stores, digital technology is probably the last thing that comes to mind. 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. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. 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. To do this, we always try to tie up our messages across all customer platforms, so that whenever an opportunity arises for example the One Direction competition we are building a reusable asset for when those opportunities arise in future, and so we have the capability to do another competition.. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. Eric Lamarre, Kate Smaje, and. View my verified achievement from Project Management Institute. The worlds largest enterprises use NETSCOUT to manage and protect their digital ecosystems. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. 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. 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. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. This is more than just swapping analog processes for digital ones; it is about rearchitecting the organization and the digital operations to serve customers better. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. Lydia joined WES corporate office in Business development and commercial. Uses PagerDuty as part of its foundational setup. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Trevor Collens. In late spring 2020, we surveyed senior executives, digital transformation . If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. The . In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. Digitizing operations is a fundamental pillar of digital transformation in the sense that, without it, your company will be left behind by more efficient operators. During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. 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. 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. One of the biggest barriers to true digital transformation success is change management. 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? The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. "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. He says the software has an open architecture, it sits in the cloud, it is low cost and it is flexible. 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 results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. 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. View my verified achievement from Project Management Institute. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. Its about so much more than your technology. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. "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. This is where technology gives way to analytics the science that helps us give meaning to the data. By building the right cloud technology and orchestration today, we have options for the future. The Catch acquisition has also improved digital expertise leading to better execution and innovation. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. It is going to break. 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. Digital transformation is more than just a catchphrase, it is a global movement that is improving businesses and customer experiences worldwide. Finally, digital opens up many new opportunities for established companies. This pillar is different from the others in its focus on digital tools to interact and sell to customers. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. On the list of Harveys biggest customer achievements in the last five years is deploying automated replenishment, which he claims materially improved the availability and efficiency of Coles supply chain. The key is to listen and think critically. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. 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. 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. Harvey downplays any questions about who should be responsible for the technology or leading the way, saying the impetus should be efficiency and customer delivery. But other times it involves rearchitecting the system to meet the needs of today customers. 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. Clients are at risk of going to your competitors, what will you do is Australia #! Of digital transformation journey the shared data platform engineering and architecture, it is a two-way conversation digital companies Investment. 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