Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. Recognize the emotional side of digital transformation. 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. One business strategy that Wesfarmers has adopted, Lowthorpe explained, is a one-day program focused on data analytics for leadership teams that teach them about data analytics, including the differences between advanced analytics and business intelligence reporting. we equip you to harness the power of disruptive innovation, at work and at home. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? CSIRO builds analytics platform to help Aussie farmers. View my verified achievement from Project Management Institute. 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. Marcelo brings positive energy to. 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. 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. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. Wesfarmers OneDigital Software Development Docklands, Victoria 2,347 followers We're an exciting new digital enterprise with big ideas, supporting some of Australia's most trusted and iconic. Address weaknesses exposed by the digital journey, and be willing to accept a little short-term pain in exchange for long-term gain. 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. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. 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. Copyright 2023 IDG Communications, Inc. 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. 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. Youve got to make someone really want the technology and see how its going to add value to them and to their mission, as well as deliver for the customer, he says. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. 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. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. The goal here is to use digital tools, including more advanced technologies such as AI, 5G, and IOT, to streamline business growth. 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. 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. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. 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. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability 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.. December 20, 2021. But even getting to the insights stage is not enough. 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. But with the right expertise and tools, data can be turned into insights. But all four pillars are important to digital transformation, so they may happen in another order. Wesfarmers investment in digital assets pay off as online sales jump 57% During the 2021 full year, Wesfarmers ploughed a total of AU$86 million into capital expenditure, which compromised of. The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. 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. Thats core to our business.. Now hes running the show, thanks in part to a keen understanding of how IT can. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. 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. 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. Yep, we're here again, Case study: Transurban uses automation to detect road incidents, Cover Story: The business of gaming will reshape marketing, technology. In the final stage of the process, you can evaluate results or impact. 5. Everyone who has been part of digital transformation describes it as a journey. 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. Also read: Woolworths Announces $700 million Technology Investment. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. Moving your company forward in the wake of the pandemic. All four are part of most companies digital transformation journey. Rodney Zemmel. 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. The Catch acquisition has also improved digital expertise leading to better execution and innovation. 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. 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 . Contract/Temp. While Rucinski did not share how the ATO has dealt with changing its culture to align with this thinking, he did say the government organisation was working on processes that were not yet "front-line ready". It will roll out click-and-collect nationally this financial year. Digital transformation can be bewildering and exhausting for leaders and employees alike. Again, we've been fortunate enough that board members at all levels are actually enthused by that. It requires IT architects and time, but promises up-to-date platforms with more effective tools to serve customers at lower cost of maintenance. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. Baxby says Scott has met Microsoft CEO Satya Nadella, who is personally committed to the success of the Blackwoods implementation, as is Microsoft Australia CEO Steven Worrall. 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. 2023 ZDNET, A Red Ventures company. Often this is the first step on the digital journey. View my verified achievement from Project Management Institute. 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. 2023 ZDNET, A Red Ventures company. Get started by entering your email address below. "The group's retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. Digital transformation is more than just a catchphrase, it is a global movement that is improving businesses and customer experiences worldwide. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. Being clear about their differing demands can help you make smart tradeoffs and clear progress. 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. 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 other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. 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. Most businesses have these opportunities at hand but seizing them requires a greater digital maturity than for an IT uplift or digitizing processes. In line with previous guidance, operating expenditure associated with the group's data and digital ecosystem is expected to be approximately AU$100 million during the 2022 financial year, the company said. Wesfarmers a diversified corporation From its origins in 1914 as a Western Australian farmers' cooperative, Wesfarmers has grown into one of Australia's largest listed companies. Like in any journey, you need to decide where to go first. Officeworks delivered an impressive 11.5% growth while Kmart and Bunnings have delivered 7.5% and 5.3% respectively. This pillar is different from the others in its focus on digital tools to interact and sell to customers. She reports directly to Wesfarmers managing director, Rob Scott. The third pillar is putting information in the hands of team members. "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. 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. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation. Then they will lead the change because you helped them see the opportunity.. Wesfarmers formally acquired the online retailer Catch for $230 million in August 2019. Lydia joined WES corporate office in Business development and commercial. 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. 1. Results. Closes in 19 days. 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. Investment in divisional digital capabilities will continue and is expected to support enhancements to customer value propositions, expansion of addressable markets and delivery of operating efficiencies.". Information includes sales data, stock availability, store remuneration, markdowns and waste. Of the online sales total, Kmart Group, which includes Kmart, Target, and Catch marketplace, contributed AU$1.4 billion, following a 22% year-on-year increase. 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. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. To learn more about how we can help your business, contact us today. Its about so much more than your technology. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. 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. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. Finally, digital opens up many new opportunities for established companies. Uses PagerDuty as part of its foundational setup. This showed the company had learnt the lesson of the dangers of rushing headlong into a project without sufficient preparation, as happened with the Bunnings expansion in the UK. 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. Read:Predictions for 2019 in data, analytics, and AI. But at the heart of everything Coles IT has to do is deliver ways in which the business can save money so we can reinvest that money into the price point. Super Retail Groups ongoing $2.5mn omnichannel digital development program and related investments have helped achieve 25% growth in online sales, SRG announced in its Half Year results. By Chet Kapoor, Chairman & CEO of DataStax. On top of that, weve changed the digital interactions. 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. 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. 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. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. 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. 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. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? To measure whether they are succeeding, the bank carefully analyzes their ability to increase customer retention in the core financial services business but more importantly, for the new businesses, measure number of daily/monthly average users, engagement, and cross-selling opportunities. In early 2022, the Club Catch subscription program was rebranded and repositioned as OnePass. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. 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. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). 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. One of the biggest barriers to true digital transformation success is change management. One of the key drivers for the IT function is to live and breathe the important values at Coles a focus Harvey readily admits wasnt there when he joined the group. The 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. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. Read:From big data to AI - Where are we now, and what is the road forward? It is going to break. 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. This means were getting products through to our store fresher and in a more timely fashion, he says. "When you think about customer centricity, particularly the use of behavioural data, it can be quite challenging to do that without data so there its relevance becomes a lot closer to the surface. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. The worlds largest enterprises use NETSCOUT to manage and protect their digital ecosystems. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. View my verified achievement from Project Management Institute. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. Do you treat it as though it is a part of them? Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. 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. 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. Chanticleer is Australia's pre-eminent business column. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Melbourne, VIC. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. OneData also provides data analytics support OnePass and Catch. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. Were not spending the time arguing who should be doing what.. Catch operates an online business model offering branded products on a first-party basis and a third-party online marketplace. Testing RFID blocking cards: Do they work? 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. According to Harvey, certain loads are always going to be difficult for large corporates to move into the cloud. 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 OneDigital sets its service standards Head of engineering Gurnam Madan. Doing so will help you articulate what kind of digital transformation youre really talking about, and plan accordingly. Here's how. 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. Thats where I think some of the smarts around event orchestration is going to help as well.. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. 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. Trevor Collens. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. Speaking on a panel about data-driven cultural change during the Gartner Data and Analytics Summit in Sydney on Monday, Wesfarmers general manager of Advance Analytics Alan Lowthorpe said that while data and analytics has historically served to complement an organisation's business strategy, a shift has occurred where data and analytics has become the business strategy itself. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. All models are wrong to some degree, but some are more useful than others. 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. Digital and omnichannel capability is a critical area for other retailers as well. One of the hiccups in the implementation was caused by the rollout of a new web interface, which forced sales to drop by 2 per cent over a couple of months. Here's a look at how modern tech fits into the customer service puzzle. ", Google Cloud, Golden State Warriors ink analytics, cloud partnership at new arena. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. It will remain so until cloud [providers] understand and contemplate the same levels of redundancy we take for granted in the way we have active-active data centres, for example, he claims. Follow the topics, people and companies that matter to you. It will ever model itself on that, because its always going to be a relatively low use case look... Thats core to our store fresher and in a more timely fashion, he claims cloud... The technology own the project and want the outcome, he claims cloud, Golden Warriors... Be outlaying $ 30 million on upgrading its online operations are supported by a leading technology platform fulfilment... Corporate office in business development and commercial program provides members with additional benefits and when! Relatively low use case exposed by the digital journey a market-leading data digital... So they may happen in another order Chairman & CEO of DataStax enable click-and-collect set on realising strategic and. 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