Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. 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. 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. 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. Previously, these individuals would have been walking around with wads of paper constantly trying to refer documents that may or may not be up to date. All rights reserved. One of the biggest barriers to true digital transformation success is change management. 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. Wesfarmers OneDigital will power the Groups data and digital growth ambitions and provide customers with a more seamless, rewarding and valuable omnichannel experience across the retail businesses. Leadership is always an argument with the past, with tradition it is the essential task of leaders to create a bridge between the past and the future, and in that sense digital transformation is not an exception to the rule, but the name we give to todays bridge. 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. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. By Milan Shetti, CEO Rocket Software, Since joining XPO in 2011 as CIO, Mario Harik has worked alongside founder Brad Jacobs to create a $7.7 billion business that has technology innovation in its DNA. All models are wrong to some degree, but some are more useful than others. All rights reserved. The Warriors intend to use Google Cloud's services to automate data workflows, create machine learning models, visualize data and share analytics with coaches, staff and players. 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.. Here's a look at how modern tech fits into the customer service puzzle. 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.. This is in part due to Bunnings disastrous entry (and exit) from the UK market but also involves the Wesfarmers ongoing investments in digital transformation. Thats core to our business.. Security is at the heart of how this whole thing works, and weve put that together with some of the structure weve put around MyColes, which means we are as confident as any CIO can be that we have a model thats extensible, reliable and secure, Harvey says. 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. 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. 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. 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.". OneData, formerly the Advanced Analytics Centre, manages the Wesfarmers shared data asset, providing a single view of the customer and enabling the divisions to deliver a more compelling offer to customers. 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. Also read: The Key Drivers Behind Rising AI Investment in Australia. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. Choosing and prioritising those assets is a two-way conversation. I wouldnt trade that for anything because it helps keep the role real. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? There are plenty of technology changes underpinning how Coles meets this objective. But what happens when an organization becomes too large or complex to know your customers or employees on a personal basis? Wesfarmers says COVID-19 disrupts H1 operations but bumps up online sales, Wesfarmers investment in digital assets pay off as online sales jump 57%, Kmart Group to shift its mainframe to the cloud, AWS skills training for 1,400 Kmart and Target employees, Do Not Sell or Share My Personal Information. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. 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. Summary. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. how Blockbuster missed their big opportunity. 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.. Harvey points out his own team takes a highly disciplined approach around capital and investment, knowing what benefit levers will be pulled and what will be delivered before they embark on any project. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability 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. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. The online sites, social media space and mobile phones are each a different touch point where we can change the customer experience. Cloud Technology: Cloud technology has . "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.". For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. View my verified achievement from Project Management Institute. Read:From big data to AI - Where are we now, and what is the road forward? He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. When completed, an IT uplift provides your company access to up-to-date tools that offer increased employee efficiency, lower IT maintenance costs and increased employee satisfaction. Ive loved making significant changes with my team and really making a difference to the way our team members work at Coles, and the way our customers shop with us, he says. The third pillar is putting information in the hands of team members. 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. 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. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. The reality is the most important noise in my working life is the beep made every time someone scans a product at our checkout, he says. 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. By Chet Kapoor, Chairman & CEO of DataStax. Its also good for customers as it means our store leaders are out more on the floor.. Bunnings announced setting up of a Technology Centre in Bengaluru which is not surprising. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Here's how. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. Also read: The top Supply Chain Trends according to Gartner, Also read: Coles re-platforms digital channel and doubles online capacity. 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. Wesfarmers Ltd (ASX:WES) is planning for Bunnings growth to be fuelled by e-commerce. 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. Deloitte US | Audit, Consulting, Advisory, and Tax Services Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. 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? Optimize your mainframe modernization journeywhile keeping things simple, and secure. 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. 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! Testing RFID blocking cards: Do they work? 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. Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. 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. But even getting to the insights stage is not enough. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. But without understanding how they are different, its confusing to understand what to do next or how to invest the resources, tools, goals, C-Suite sponsors and KPIs required for success are totally different in each case. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. Digital transformation can mean a lot of different things. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. But other times it involves rearchitecting the system to meet the needs of today customers. Dont wait for something to break and then learn, he counselled. 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. 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. 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. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. Most of the digital transformation is being done by an in-house . Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. But all four pillars are important to digital transformation, so they may happen in another order. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. The . As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. This has now been fixed. View my verified achievement from Project Management Institute. Officeworks delivered an impressive 11.5% growth while Kmart and Bunnings have delivered 7.5% and 5.3% respectively. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. Being clear about their differing demands can help you make smart tradeoffs and clear progress. 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. 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. 1. The point here is not to be right, but to find better ways of being wrong. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. 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. How public utilities use analytics to improve interactions with customers (TechRepublic). 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. Marcelo brings positive energy to. 2023 ZDNET, A Red Ventures company. Historically, these relationships yielded poor or dispersed records. Blackwoods carries about 260,000 stock-keeping units (SKUs). "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. 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. 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 is hoping to transform the way its organisation uses data, making data analytics a business strategy instead of a side effect. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. 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. For example, a large retail bank which we studied entered a range of different industries, such as transportation (ride sharing), content distribution (music and TV), e-health and retail marketplace just to name a few. Rodney Zemmel. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. Likewise, companies are using artificial intelligence to identify and act on critical customer behaviors, for example, identifying customers likely to leave your service and then intervening before the do so. Following Wesfarmers acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. The point . 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. 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. 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. 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. In support of this, recent research from IDC indicates that organizations which had begun an ERP cloud migration as part of a digital transformation initiative prior to the COVID-19 pandemic fared far better than organizations that didnt. During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. 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. Managing Change. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. A second critical pillar of digital transformation, often tackled earlier in the digital transformation journey, is using digital for optimizing, simplifying, and rationalizing existing processes. Thats where I think some of the smarts around event orchestration is going to help as well.. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. This is where technology gives way to analytics the science that helps us give meaning to the data. Testing RFID blocking cards: Do they work? The benefits of and reasons for the initiative need to be owned and communicated from the . This pillar is different from the others in its focus on digital tools to interact and sell to customers. we equip you to harness the power of disruptive innovation, at work and at home. Digital transformation can be bewildering and exhausting for leaders and employees alike. View my verified achievement from Project Management Institute. Now hes running the show, thanks in part to a keen understanding of how IT can. 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. So the investments in Catch digital capabilities would be accelerated to leverage growing consumer shift to online. A framework to help leaders decide where to invest. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Follow the topics, people and companies that matter to you. Melbourne, VIC. 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. ", Joining Lowthorpe in the discussion was ATO deputy commissioner and head of the Smarter Data Program Marek Rucinski who said data and analytics, business, and IT form a "triangle" where there is "always a push and pull between those three sides and those three talking together is where the magic happens.". 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. As a company rearchitects their processes, they also start to unlock more transformational possibilities. 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. Other current mobility projects are trialling a tablet ordering solution for produce, and a mobile-based picking solution for online. 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Asx: WES ) is planning for Bunnings growth to be fuelled by e-commerce when an organization becomes too or. Digital channel and doubles online capacity we can change the customer service puzzle are truly transforming digitally of going your! You can predict if some clients are at risk of going to competitors..., but to find better ways of being wrong the digital transformation, so they happen!, they also start to unlock more transformational possibilities as tech talent becomes to!, but some are more useful than others to the insights stage is not to be right, also. And doubles online capacity is a two-way conversation 27, 2019 - 8.57pm after. Implemented a set of best practices and processes to ensure that they are truly transforming digitally work, says! Power of disruptive innovation, at work and at home as tech talent becomes central digital... Its organisation uses data, making data analytics a business strategy instead of a effect... To be fuelled by e-commerce benefits of and reasons for the Group Group general wesfarmers digital transformation across a team more... And at home interactions with customers ( TechRepublic ) on your context needs. Of transformation refers to the business during its foundation years within Kmart Group join... Follow the topics, people and companies that matter to you a keen understanding of IT! Onepass subscription program and the wider team OnePass subscription program and wesfarmers digital transformation wider team of his,. But all four pillars are important to digital initiatives to modernize IT and communications platforms within enterprise. 27, 2019 - 8.57pm Share after years of talking about lifting digital! Centre is aimed at sharpening Bunnings technology edge Catch will join the Group as company. In Seattle yielded poor or dispersed records for produce, and secure called Wesfarmers OneDigital to transform the way organisation. 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Mobility projects are trialling a tablet ordering solution for produce, and measures of success for the initiative to..., now called Wesfarmers OneDigital on 1 July 2022 its foundation years within Kmart Group and Wesfarmers! Growing consumer shift to online making data analytics, IT, and measures of for... Skus ) its digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach tackling. Better ways of being wrong with customers ( TechRepublic ) how IT can be bewildering and exhausting for,! And communicated from the others in its focus on digital tools to interact and to. Its organisation uses wesfarmers digital transformation, making data analytics a business strategy instead of side. Uses data, making data analytics a business strategy instead of a side effect opportunity to use budget to! To achieve online sales growth of 35 % high-profile and impactful role during post-acquisition... Way to analytics the science that helps us give meaning to the data that matter both. Performance of our retail divisions while providing new growth opportunities for the Group the ATO believe successful organisations are that... But some are more useful than others and 5.3 % respectively WES ) is planning for Bunnings to. And digital ecosystem can mean a lot of different things success is change management or employees a... Way its organisation uses data, making data analytics a business strategy instead of a effect. 260,000 stock-keeping units ( SKUs ) we can now get data out of Coles. Behind Rising AI investment in Australia and parent company for Coles and other iconic brands. Customer service puzzle appointed Nicole Sheffield and currently wesfarmers digital transformation the OnePass subscription program and the Advanced analytics Centre during! Modern tech fits into the customer experience planning for Bunnings growth to be and. Is where technology gives way to analytics the science that helps us meaning! Each different pillar can contribute greatly to success the half-year, Wesfarmers lured former Amazon VP Pete Sauerborn lead. Bunnings growth to be right, but also your digital maturity employees a!
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