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. 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. 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. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. we equip you to harness the power of disruptive innovation, at work and at home. Marcelo brings positive energy to. Rodney Zemmel. As the COVID-19 pandemic continues, executives are finding their companies' digital transformation more urgent than ever. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. As Stanfords Erik Brynjolfsson noted, a major reason for the lack of productivity gains from new technologies, including AI, is the failure to invest in skills especially the lack of reskilling and upskilling once employees are in your workforce. Do you need one? The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. Including Catch, this amounted to AU$2.5 billion. 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. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. She reports directly to Wesfarmers managing director, Rob Scott. But other times it involves rearchitecting the system to meet the needs of today customers. I wouldnt trade that for anything because it helps keep the role real. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. 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. 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. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. Catch's vision is to be the trusted place where Australians start their shopping journey. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, for what it means. It will roll out click-and-collect nationally this financial year. 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. This will provide benefits in the attraction and development of digital talent as well as logical synergies between the Groups shared data platform, advanced analytics team and subscription capabilities. ", Google Cloud, Golden State Warriors ink analytics, cloud partnership at new arena. He was heavily involved in the transformation under. 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. CSIRO builds analytics platform to help Aussie farmers. To do this, IT has invested in application reporting capabilities to give regional store managers and leaders drillable reports and dashboards on their iPads. ", 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.". The . Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. 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. 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 increase in online sales across its retail business. Wesfarmers is hoping to transform the way its organisation uses data, making data analytics a business strategy instead of a side effect. 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. Mobilize real-time data and quickly build smart, high-growth applications at unlimited scale, on any cloudtoday. Digital transformation can be bewildering and exhausting for leaders and employees alike. As Coles IT we had our own logo and acted as a consultant to the business, charging an hourly rate, he recalls. 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. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. One of the biggest barriers to true digital transformation success is change management. Except this is not really the final step after you evaluate results, you need to go back to the data. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. All rights reserved. All four are part of most companies digital transformation journey. As a company rearchitects their processes, they also start to unlock more transformational possibilities. 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. 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. 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. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. He said that establishing trust is also critical, as OneDigitals model sees it engage with customers of existing brands like Kmart, Target and Catch, all of whom have existing expectations of customer experience. 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. Lenovo Late Night I.T. Information includes sales data, stock availability, store remuneration, markdowns and waste. Except this is not really the final step after you evaluate results, you need to go back to the data. They are then taken through one stage of the conglomerate's use cases, such as identification, beta engineering, or the advanced analytics and implications, to highlight what role the various teams in the business play in applying the use cases, followed by this information being cascaded around the organisation. Summary. 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. The Catch acquisition has also improved digital expertise leading to better execution and innovation. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. 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. 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.". 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. Follow the topics, people and companies that matter to you. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. 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. How about in Australia? Consider the chart below: However, these are all American-headquartered companies. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. [You] might as well just break it yourself in a controlled environment and learn from it, and thats where PagerDuty plays a key role.. 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. But for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. To address these needs, Wesfarmers Industrial and Safety has identified the need to be digitally ready as a priority and embarked on a Digital Transformation Journey with New Web Platforms. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. View my verified achievement from Project Management Institute. Trevor Collens. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. Now hes running the show, thanks in part to a keen understanding of how IT can. 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. Everyone who has been part of digital transformation describes it as a journey. 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. Digital transformation is not a destination; it's a permanent state of evolution. Eric Lamarre, Kate Smaje, and. 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. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. 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. 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. He describes his time at Coles in two chapters: The first as head of the Coles IT unit; and the second as a core business contributor. 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. But that's an end-state that we want to move towards so I think it's really about at first -- in the initial stages -- allowing [for the development] of business priorities such as how can we help make better decisions faster," Lowthorpe said. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability In the final stage of the process, you can evaluate results or impact. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? 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. 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. View my verified achievement from Project Management Institute. 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 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. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. 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.. 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". 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. Kmart sales increased $241m, more than offsetting a $67m decline in Target. 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. 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. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. The Challenge. 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. View my verified achievement from Project Management Institute. 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. Whats exciting for me over time is narrowing down my focus on infrastructure, and making it less of a discussion point for small and medium-sized projects and workloads. This is more than just swapping analog processes for digital ones; it is about rearchitecting the organization and the digital operations to serve customers better. However, if the brains behind the worlds and Australias- biggest companies think it is worth it, you should definitely be looking at how to digitise aspects of your business. 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.). Senior Data Engineer - 6 Months Contract. 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. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. 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. Below we outline the four pillars and how to invest properly to set yourself up for success. we equip you to harness the power of disruptive innovation, at work and at home. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. 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. "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. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. But with the right expertise and tools, data can be turned into insights. 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. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! Bunnings, Kmart and Officeworks continue to deliver topline growth for Wesfarmers while Target was below expectations. Read:From big data to AI - Where are we now, and what is the road forward? Blackwoods carries about 260,000 stock-keeping units (SKUs). Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. 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". But even getting to the insights stage is not enough. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. 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. 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. 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. 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. Most of the digital transformation is being done by an in-house . 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. Catch operates an online business model offering branded products on a first-party basis and a third-party online marketplace. Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. 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. Moving your company forward in the wake of the pandemic. Often this is the first step on the digital journey. 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. 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. 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