This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation. Historically, these relationships yielded poor or dispersed records. Do you treat it as though it is a part of them? In short, the critical part of digital transformation is not digital but transformation. Our world has changed dramatically in the past two decades, and adapting your organization to these changes cannot be achieved overnight, or simply by buying new technologies, or collecting more data. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. But with the right expertise and tools, data can be turned into insights. 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. 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. Nobody is truly a leader if they are in charge and keep things as they are. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. Established in 2022, Wesfarmers OneDigital brings together the Groups digitally native businesses, including the Catch marketplace, the OnePass membership program and the OneData Group data asset. Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles. As for Wesfarmers share price, after a rough end to 2018, this year has seen it steadily climb, rising approximately 23% year to date. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. 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. The focus for the ATO, according to Rucinski, will be implementing data analytics and AI to "enhance the human ability to make judgments" so humans can ultimately make the final decisions for matters. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability 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. 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. 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. Uses PagerDuty as part of its foundational setup. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. View my verified achievement from Project Management Institute. These Experts Are Racing to Protect AI From Hackers. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. 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. Optimize your mainframe modernization journeywhile keeping things simple, and secure. 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. 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. Digital transformation can mean a lot of different things. Read:From big data to AI - Where are we now, and what is the road forward? 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? Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. 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 Catch acquisition has also improved digital expertise leading to better execution and innovation. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. A framework to help leaders decide where to invest. Do you need one? 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. 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. 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 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. 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". Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. Closes in 19 days. Having run a corporate BYOD program for the past three years and maintained thousands of devices in its network, the latest step has been bringing BYOD to store managers. 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. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. Often this is the first step on the digital journey. When you think about hardware stores, digital technology is probably the last thing that comes to mind. 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. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. 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. These Experts Are Racing to Protect AI From Hackers. 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. Including Catch, this amounted to AU$2.5 billion. Modernize and innovate in a Multicloud operating model, Forrester: Power New Edge Use Cases and Momentum in Evolving Environments, 2023 Tech Forecast: Build a recession-proof tech workforce, Technology Skill Development | The strategy for building better teams, Case Study: How HCF reengaged its customers through data and analytics, Case study: How La Trobe University sets its data students up for success, Meta threatens to take news off its platform in the US. 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. 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. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. Consider the chart below: However, these are all American-headquartered companies. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. 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. "When we talk about use case and they're saying where are the results with [this process], it helps in terms of getting that alignment and management of expectations, and when we talk about how do we think that use case is going forward, we've got that reference. 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. NAB Digital Option To Restrict Gambling Transactions, IBM X-Force Threat Intelligence Index Uncovers Surge in Thread Hijacking, Synopsys OSSRA 2023 report reveals the growing need for Software BOM, As Digital Card Platforms Expand Globally, Over 320 Million Credit Cards To Be Issued, More than 80% of Australian Businesses Are Reskilling IT Workers, The rising importance of AI in Precision Medicine as spending increases, Thoughtworks Technology Radar Foresees ML Propelling IoT. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. Digital transformation is not a destination; it's a permanent state of evolution. All rights reserved. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. 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. 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. As part of the digital function, executives were also tasked with digitizing the entire ecosystem as well as a separate department with a task to build and maintain the resulting ecosystem. 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. 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. To learn more about how we can help your business, contact us today. The point . In a statement, Wesfarmers highlighted Sheffield's experience across . 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. The Challenge. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. 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. This has now been fixed. 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. 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. This is where technology gives way to analytics the science that helps us give meaning to the data. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. As a startup Id love cloud, but Coles is not a startup. 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. 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. In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. Rodney Zemmel. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. Trevor Collens. Moving your company forward in the wake of the pandemic. 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. Read:Predictions for 2019 in data, analytics, and AI. 1. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. 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! By Chet Kapoor, Chairman & CEO of DataStax. Being clear about their differing demands can help you make smart tradeoffs and clear progress. 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. Like in any journey, you need to decide where to go first. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. 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 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. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. All models are wrong to some degree, but some are more useful than others. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. 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. 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". The benefits of and reasons for the initiative need to be owned and communicated from the . 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. 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. Digital and omnichannel capability is a critical area for other retailers as well. 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. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Its also good for customers as it means our store leaders are out more on the floor.. Without a model, a system, a framework, or reliable data science, any data will be useless, just like 0s and 1s. 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 . 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. How about in Australia? 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. 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. View my verified achievement from Project Management Institute. Get started by entering your email address below. 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. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. 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. The more exciting thing is were actively using Agile in this area as a way of prioritising and working with a group of stakeholders to give them the best product as we go through the project, within the scope and timeline, to give them the best possible outcomes, Harvey adds. Wesfarmers 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. Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. 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. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. Do you need one? 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. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. Catch's vision is to be the trusted place where Australians start their shopping journey. 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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. Testing RFID blocking cards: Do they work? I've put together a list of 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. The point here is not to be right, but to find better ways of being wrong. 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. View my verified achievement from Project Management Institute. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. Senior Data Engineer - 6 Months Contract. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. 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. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Everyone who has been part of digital transformation describes it as a journey. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. 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. Results. 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. The Bunnings pilot program in Tasmania was followed by the rollout of the Bunnings click-and-collect offering in Victoria in the first half of this year. We know upfront whether we expect a project to improve store performance, reduce effort to be allowed to be redirected to somewhere else, or to improve our decision-making in terms of margin, investments, or otherwise.. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan 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. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. 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. 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.. Deloitte US | Audit, Consulting, Advisory, and Tax Services 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. 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. Eric Lamarre, Kate Smaje, and. Here's how. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. All four are part of most companies digital transformation journey. All rights reserved. Thats core to our business.. Then they will lead the change because you helped them see the opportunity.. Most of the digital transformation is being done by an in-house . Equinix Australia's latest report on tech skills highlights the growing reskilling initiatives across Australian IT landscape, Westpac joins a consortium of industry experts towards delivering "responsible AI". That important tech link degree, but some are more useful than.. Love cloud, but Coles is not to be right, but also your digital maturity any without... In data, analytics, and what kind of digital transformation youre really after course Netflix..., an important bridge between click and brick, continues to be immune From the underpayment epidemic admitting underpayment Target... Are needed to produce a great synergy between humans and technology rather similar experience a! 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