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. 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". Big data and analytics are becoming mainstream and vital to business operations and customer relations. Often this is the first step on the digital journey. Wesfarmers Ltd (ASX:WES) is planning for Bunnings growth to be fuelled by e-commerce. All rights reserved. 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. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. If IT foists outcomes onto teams and business leads, inevitably you get a sub-optimal outcome, he says. Mr Scott thanked Mr Sauerborn for his important contribution to the business during its foundation years within Kmart Group. This may evolve as cloud models evolve, but at this stage youve got to trade off tomorrow against today.. Kmart, Target and Catch are currently part of the OnePass program, with partnerships with Bunnings and Officeworks, and additional benefits to be added over the coming year. For us, the delivery of an ROI is the way into the door, not the way out, he says. Doing so will help you articulate what kind of digital transformation youre really talking about, and plan accordingly. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. Catch's vision is to be the trusted place where Australians start their shopping journey. We run millions of transactions every day and its necessary for us to have the sorts of resilience that still naturally come out of two data centres hooked together by dark fibre. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. Dont wait for something to break and then learn, he counselled. View my verified achievement from Project Management Institute. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. December 20, 2021. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. Strong performance in Bunnings, Officeworks and Kmart businesses overshadowed by underpayment and Target troubles. Learn howand get unstoppable. If we are focused on the business objectives and keep the long-term priorities of the company front of mind, there are such exciting things we can make happen with technology working as part of a business. 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. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. He says the software has an open architecture, it sits in the cloud, it is low cost and it is flexible. Investment in e-commerce capabilities, digital and technology initiatives have helped the Perth based conglomerate to achieve online sales growth of 35%. Optimize your mainframe modernization journeywhile keeping things simple, and secure. But even getting to the insights stage is not enough. Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. The framework outlines. It is going to break. 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. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. 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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. 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. Illustration by Joi Fulton. I wouldnt trade that for anything because it helps keep the role real. Deloitte US | Audit, Consulting, Advisory, and Tax Services This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. The point here is not to be right, but to find better ways of being wrong. On the back of its solid growth, Kmart continues investment in digital and technology. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. As the COVID-19 pandemic continues, executives are finding their companies' digital transformation more urgent than ever. Over the past five years, Wesfarmers Bunnings hardware store chain has been the main target of growth expenditure, according to the FY19 Strategy Briefing Day. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. 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. It is useful to remember this, because the real benefits from technology are not hard (i.e., cheaper systems or infrastructure), but soft (i.e., capturing valuable data). He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. 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. 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. The struggle to implement the new ERP system highlights how digital transformations may not always go smoothly. 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. 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. As Coles IT we had our own logo and acted as a consultant to the business, charging an hourly rate, he recalls. [You] might as well just break it yourself in a controlled environment and learn from it, and thats where PagerDuty plays a key role.. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. This pillar is different from the others in its focus on digital tools to interact and sell to customers. Other current mobility projects are trialling a tablet ordering solution for produce, and a mobile-based picking solution for online. 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. 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. This means were getting products through to our store fresher and in a more timely fashion, he says. And in that process, you enhance and develop the people skills that are needed to produce a great synergy between humans and technology. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. 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. 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. 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. 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. 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. This leads to costly upgrades. It does require time and technology but the benefits, measured by the central KPIs, are savings in time, money, and people to solve business problems and serve customers. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. 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. "This included investment in the shared data asset and scalable customer data architecture as well as the continued development of capabilities within the advanced analytics centre, specialist technical expertise, and robust data governance," he said. 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. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. 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. There are plenty of technology changes underpinning how Coles meets this objective. 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. Click and Collect, an important bridge between "click" and "brick", continues to be a growth element for the Wesfarmers companies. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Including Catch, this amounted to AU$2.5 billion. "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.". Recognize the emotional side of digital transformation. Help using this website - Accessibility statement. Closes in 19 days. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. 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. 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. Get started by entering your email address below. 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. More specifically, Wesfarmers last year invested in the creation of an Advanced Analytics Center which uses purchasing and other customer data to calculate and calibrate the value of customer offers and loyalty programmes. Do you need one? 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. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. Cloud Technology: Cloud technology has . 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. The benefits of and reasons for the initiative need to be owned and communicated from the . Also read: Woolworths Announces $700 million Technology Investment. At the moment, the cloud isnt really geared for that; its geared for quick and easy renting of capacity. 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. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. 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. 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. 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. 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. I think setting up PagerDuty right allows us to reflect what those business services are which are critical, what are some of the components which make those business services, and how we align it back to the right people when there are issues, which is critical in this day and age., Madan said that OneDigital is also using PagerDuty to manage its incident response faster, and in doing so, show its internal customers - the other Wesfarmers businesses - that we are reducing the risk [because] we can respond to issues faster.. 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. 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. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. 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. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. From a PagerDuty perspective, I think the key thing there is how do we help cut the noise across so much information thats coming through to us, he said. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. 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. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. 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. - 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. I've put together a list of Underpayment epidemic: Software Problem? 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. In fact, he believes anyone who says CIO shouldnt have a focus on the day-to-day operations of IT are actually diminishing the roles importance. 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. 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.. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. 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. 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. 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. 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. 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. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. How public utilities use analytics to improve interactions with customers (TechRepublic). 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. 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. The worlds largest enterprises use NETSCOUT to manage and protect their digital ecosystems. ", 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.". Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. Also read: The Key Drivers Behind Rising AI Investment in Australia. University of Melbourne data strategy advisor Fiona Tweedie, who also took part in the panel, added that organisations should be active in interrogating the tools and data they use, taking into account the biases and assumptions that may arise. How about in Australia? 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. All four are part of most companies digital transformation journey. 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. CSIRO builds analytics platform to help Aussie farmers. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. Where Australians start their shopping journey an hourly rate, he recalls and business,. Other companies struggle with questions about how to upgrade the digital journey technology changes underpinning how Coles this... # x27 ; s retail businesses with plans to expand in new Zealand with additional and... 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