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. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. Everyone who has been part of digital transformation describes it as a journey. One of the biggest barriers to true digital transformation success is change management. As a company rearchitects their processes, they also start to unlock more transformational possibilities. Melbourne, VIC. 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. 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. 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. 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. 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". So the investments in Catch digital capabilities would be accelerated to leverage growing consumer shift to online. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. 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. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. Kmart sales increased $241m, more than offsetting a $67m decline in Target. As Ajay Agrawal and colleagues argue, even with the best AI, data science, and analytics, it is up to us humans to work out what to do with a prediction. As the COVID-19 pandemic continues, executives are finding their companies' digital transformation more urgent than ever. 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. 2023 ZDNET, A Red Ventures company. 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. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. Lenovo Late Night I.T. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. 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. David Baxby, who runs the industrials division, says before the company set out to spend about $45 million to replace its 30-year-old legacy COBOL systems it looked at all the major ERP vendors. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. 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. Doing so will help you articulate what kind of digital transformation youre really talking about, and plan accordingly. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. "The group's retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers. The Evolving State of Digital Transformation. 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. 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. 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. This leads to costly upgrades. 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. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. how Blockbuster missed their big opportunity. 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. 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 formally acquired the online retailer Catch for $230 million in August 2019. 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 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. 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. 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. 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. Like in any journey, you need to decide where to go first. 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. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. The Challenge. ", 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.". View my verified achievement from Project Management Institute. Typically, the CIO or CTO should lead this pillar of digital transformation and the KPIs to indicate success are access to new tools, reduced maintenance costs, improved employee satisfaction, and better business performance. Underpayment epidemic: Software Problem? 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. Also read: The Key Drivers Behind Rising AI Investment in Australia. 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. 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. 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. All four are part of most companies digital transformation journey. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. 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. Uses PagerDuty as part of its foundational setup. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. 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. 6 ways data analytics are advancing the enterprise (TechRepublic). We are getting exceptional high take-up of that, and its an example of a win-win for both Coles and our store managers, Harvey claims. Being clear about their differing demands can help you make smart tradeoffs and clear progress. 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.. For most organizations, the people aspect of transformation refers to the access they have to consumers, clients, and employees. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. 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. 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. How public utilities use analytics to improve interactions with customers (TechRepublic). 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.". On the back of its solid growth, Kmart continues investment in digital and technology. Although there is no indication of any reduction in digital investments, any impact of COVID-19 outbreak and underpayment troubles on technology roadmap seems unlikely yet although Target remains a concern. 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? 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. 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. He added that AIOps to detect anomalies and correlate events is also potentially on OneDigitals radar. 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.. 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. 1. 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. Were not spending the time arguing who should be doing what.. Lydia joined WES corporate office in Business development and commercial. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. 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. 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. Closes in 19 days. All rights reserved. Seizing these opportunities, some of which may be quite disruptive, requires both developing the innovation and digital capabilities to test and pivot to new sources of growth. 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. 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. 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. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. Often this is the first step on the digital journey. Except this is not really the final step after you evaluate results, you need to go back to the data. Testing RFID blocking cards: Do they work? 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! Follow the topics, people and companies that matter to you. we equip you to harness the power of disruptive innovation, at work and at home. 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. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! 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. 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. 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. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. "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. 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. Here's how. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. "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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? This will provide greater value, expanded range and a more seamless experience for customers across the Groups retail businesses., The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital. Read:From big data to AI - Where are we now, and what is the road forward? 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. 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. You have to enjoy it to do this job and youve got to be constantly testing whether youre pushing technology because its cool, or if youre pushing solutions and options that will make a difference to the customer and team.. 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. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. But all four pillars are important to digital transformation, so they may happen in another order. dtSearch - INSTANTLY SEARCH TERABYTES of files, emails, databases, web data. 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. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. 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