Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. Summary. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. The Challenge. 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. 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. 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. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. 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.. Marcelo brings positive energy to. CIOs need to ensure they are business-first and commercially focused if they wish to remain key contributors to strategy and retain a seat at the executive table, Harvey claims. In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. 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. 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. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). The Catch acquisition has also improved digital expertise leading to better execution and innovation. 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. 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. Lowthorpe said it is important that data and analytics be interwoven throughout organisations, referring to the use of data and analytics to improve customer centricity as an example. How public utilities use analytics to improve interactions with customers, 6 ways data analytics are advancing the enterprise, Do Not Sell or Share My Personal Information. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. Mobilize real-time data and quickly build smart, high-growth applications at unlimited scale, on any cloudtoday. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. 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. Uses PagerDuty as part of its foundational setup. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. 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. As a company rearchitects their processes, they also start to unlock more transformational possibilities. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Lydia joined WES corporate office in Business development and commercial. Help using this website - Accessibility statement. Nobody is truly a leader if they are in charge and keep things as they are. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. Illustration by Joi Fulton. Recognize the emotional side of digital transformation. Because of the need to understand how the business works, digitizing operations often fares better when led by the CFO or COO. 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. 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. Most of the digital transformation is being done by an in-house . Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. These Experts Are Racing to Protect AI From Hackers. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. 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. we equip you to harness the power of disruptive innovation, at work and at home. 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. 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. 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. Being clear about their differing demands can help you make smart tradeoffs and clear progress. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. Trevor Collens. 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. 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. Results. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. 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. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation. Managing Change. 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 these failures have multiple causes, they are generally the result of underestimating the various steps or stages required to successfully execute a transformation agenda. 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. Without a model, a system, a framework, or reliable data science, any data will be useless, just like 0s and 1s. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. - Emmy-nominated host Baratunde Thurston is back at it for Season 2, hanging out after hours with tech titans for an unfiltered, no-BS chat. 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. 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. 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. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? 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. OneDigital broke cover in April, and has since gone on to unveil OnePass, a subscription program that consolidates products from across Wesfarmers' retail brands, and offers member-only prices as well as free delivery on many items. 5. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. 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. 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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. 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. 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. The point here is not to be right, but to find better ways of being wrong. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. This is where technology can have the biggest impact in the process of capturing or creating digital records of people (e.g., what they do, who they are, what they prefer, etc.). Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. Below we outline the four pillars and how to invest properly to set yourself up for success. The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. Except this is not really the final step after you evaluate results, you need to go back to the data. Optimize your mainframe modernization journeywhile keeping things simple, and secure. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. View my verified achievement from Project Management Institute. The performance of the Industrial and Safety business was disappointing, reflecting the impact on Blackwoods earnings from ongoing investment in customer service and the enterprise resource planning (ERP) system, Scott said in Wesfarmers FY19 results briefing in August. This pillar is different from the others in its focus on digital tools to interact and sell to customers. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. 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. Technology is a focus for the business. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. 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. 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. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. Big data and analytics are becoming mainstream and vital to business operations and customer relations. How public utilities use analytics to improve interactions with customers (TechRepublic). In a statement, Wesfarmers highlighted Sheffield's experience across . 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. 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. 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 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. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. This keeps them in the conversation and in the moment, but using the report as a way of informing the conversation on the shopfloor, Harvey explains. I wouldnt trade that for anything because it helps keep the role real. 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. 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. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. He was heavily involved in the transformation under. Officeworks delivered an impressive 11.5% growth while Kmart and Bunnings have delivered 7.5% and 5.3% respectively. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). 2023 ZDNET, A Red Ventures company. On top of that, weve changed the digital interactions. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. 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. By Chet Kapoor, Chairman & CEO of DataStax. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. 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. Historically, these relationships yielded poor or dispersed records. 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. Contract/Temp. 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. He says the company rejected SAP and Oracle because these software systems are not only expensive to install but have to be customised to suit the business. 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