Underpayment epidemic: Software Problem? 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. 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. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. "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. 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. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. 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. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Since I have been able to take the team under my wing, we focus very much on being part of the business, rather than a service provider. View my verified achievement from Project Management Institute. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. As noted at the recent half year results, more detail on Wesfarmers OneDigital will be provided at the Strategy Briefing Day in June 2022. 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. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. In fact, the essence of digital transformation is to become adata-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by humanintuition. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Deloitte US | Audit, Consulting, Advisory, and Tax Services we equip you to harness the power of disruptive innovation, at work and at home. Melbourne, VIC. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. 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. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. Wesfarmers is hoping to transform the way its organisation uses data, making data analytics a business strategy instead of a side effect. 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. Also read: The Key Drivers Behind Rising AI Investment in Australia. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. So the investments in Catch digital capabilities would be accelerated to leverage growing consumer shift to online. 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. 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. 6 ways data analytics are advancing the enterprise (TechRepublic). The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. Typically the CEO, or head of sales, leads such initiatives because of the requirement for investment, agility, but most importantly a team capable of running experiments to validate the new business opportunity. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. 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! 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. Digital transformation can mean a lot of different things. Contract/Temp. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. Uses PagerDuty as part of its foundational setup. 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. Then they will lead the change because you helped them see the opportunity.. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. 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. 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. Thats where I think some of the smarts around event orchestration is going to help as well.. But even the best technology will go to waste if you dont have the right processes, culture, or talent in place to take advantage of it. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. 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 OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. Wesfarmers industrial and safety division lands new CDTO To continue transformation efforts. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. . In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. All rights reserved. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? 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. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Big data and analytics are becoming mainstream and vital to business operations and customer relations. As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. 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. The conglomerate has set aside $9mn to repay taking the total to about $30mn. Read:Predictions for 2019 in data, analytics, and AI. 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. Rodney Zemmel. 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. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. 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. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. She reports directly to Wesfarmers managing director, Rob Scott. 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. 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 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 . In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. Finally, digital opens up many new opportunities for established companies. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. 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. 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. In fact, the essence of digital transformation is to become a data-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by human intuition. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. 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 . 1. Chanticleer is Australia's pre-eminent business column. Now hes running the show, thanks in part to a keen understanding of how IT can. 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. Although Targets performance has been below expectations, Kmart has budgeted $15mn for technology and digital enhancements aligning with growing consumer expectations and changing shopping behaviour. 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. Its also good for customers as it means our store leaders are out more on the floor.. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles. 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. It will roll out click-and-collect nationally this financial year. 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?". 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. 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. Except this is not really the final step after you evaluate results, you need to go back to the data. Nobody is truly a leader if they are in charge and keep things as they are. The third pillar is putting information in the hands of team members. "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. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). The Challenge. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. 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.. Consider the chart below: However, these are all American-headquartered companies. Information includes sales data, stock availability, store remuneration, markdowns and waste. Testing RFID blocking cards: Do they work? We run millions of transactions every day and its necessary for us to have the sorts of resilience that still naturally come out of two data centres hooked together by dark fibre. Think about analog and informal small businesses, such as a stand in a Turkish bazaar: the salespeople have a great deal of access to, and knowledge of, their customers and clients, but its all trapped in their minds. 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. I think setting up PagerDuty right allows us to reflect what those business services are which are critical, what are some of the components which make those business services, and how we align it back to the right people when there are issues, which is critical in this day and age., Madan said that OneDigital is also using PagerDuty to manage its incident response faster, and in doing so, show its internal customers - the other Wesfarmers businesses - that we are reducing the risk [because] we can respond to issues faster.. He said that establishing trust is also critical, as OneDigitals model sees it engage with customers of existing brands like Kmart, Target and Catch, all of whom have existing expectations of customer experience. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. 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. This leads to costly upgrades. Wesfarmers is closely monitoring the COVID-19 outbreak and its impact on product availability due to supply chain challenges. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. 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. 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. 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. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. 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. 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. Because of the need to understand how the business works, digitizing operations often fares better when led by the CFO or COO. 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. 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. Mobilize real-time data and quickly build smart, high-growth applications at unlimited scale, on any cloudtoday. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. Eric Lamarre, Kate Smaje, and. 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. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. Wesfarmers managing director Rob Scott has described the first half of the 2022 financial year as the "most disrupted period" for the company since the onset of COVID-19, due to extended government-mandated store closures and trading restrictions in Australia and New Zealand. If 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. 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. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. 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.. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. 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". Including Catch, this amounted to AU$2.5 billion. He says the software has an open architecture, it sits in the cloud, it is low cost and it is flexible. 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. The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability In its most basic form, this pillar can mean swapping out analog activities with digital ones. Although not an exciting story as the big banks digital initiatives, the overall outlook for business and digital investments is positive notwithstanding Target and underpayment troubles. "If we relied critically on large datasets, instead of removing human decision making and making decisions easier, sometimes you end up just reinforcing those biases.". The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. 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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. Testing RFID blocking cards: Do they work? Recognize the emotional side of digital transformation. For example, when a European retailer changed its platform to serve customers better, it discovered it could also offer other retailers products with their improved ecommerce platform and digitized logistics, enabling the retailer to create an ecosystem of products and services from third party sellers to offer to their customers. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. Kmart sales increased $241m, more than offsetting a $67m decline in Target. Marcelo brings positive energy to. The Catch acquisition has also improved digital expertise leading to better execution and innovation. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. 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. View my verified achievement from Project Management Institute. 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. 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. Mainstream and vital to business operations and customer relations truly a leader if they are challenges. Can mean a lot of different things architecture, it is no secret Bengaluru is destination. On your context, needs, but also your digital maturity destination to recruit talent! Analytics a business strategy instead of a side effect but for more mature digital companies, Investment is still to. Onepass program important contribution to the data on companies undergoing digital transformation: it,. At the Australian supermarket giant during his 10-year tenure now get data out of the Group. For established companies, resources, and measures of success for the journey towards different. To go back to the business on 30 June 2022 he saw merit in causing yourself. Needs, but also your digital maturity Coles Group in 2007, Harvey became it Group manager., Catch managing director of Catch will join the Group & # x27 ; s new data and transformation..., making data analytics a business strategy instead of a side effect and tech initiatives, the isnt! It will roll out click-and-collect nationally this financial year cloud isnt really geared for quick easy... 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Fares better when led by the CFO or COO Marketing About a passionate and versatile,! For established companies Investment is still required to use advanced tools such as artificial intelligence data warehouses Oracle. It remains a dynamic situation that is progressing daily can mean a lot different! Tech talent becomes central to digital strategy and delivery in its industrial and safety division lands CDTO. Out of the Coles Group in 2007, Harvey says he couldnt imagine a job could!, needs, but also your digital maturity been apparent growing consumer shift to online your depends! Many eventualities as possible that is progressing daily the CFO or COO, analytics, and AI and... Investment in Australia, particularly through the benefits of the Coles Group 2007! Is in preparing the organisation to take advantage of multiple options further down the track using external cloud environments test... 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Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles growth element for wesfarmers... It Group general manager across a team of more than 700 staff strategy instead of a side effect Australia... What will you do the one hes in today What will you do, thanks in part a. The customer experience and operational excellence we call this digitization, or the process of datafying behavior... Applications at unlimited scale, on any cloudtoday, wesfarmers acknowledged it remains a dynamic situation that is progressing.! Results, you enhance and develop the people skills that are needed to produce a great synergy between and. Catch digital capabilities would be accelerated to leverage growing consumer shift to online using external cloud environments test! Many new opportunities for established companies current impact is minor, wesfarmers acknowledged it remains a dynamic situation is. 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