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. While hes comfortable on the strategic high ground and being a business-led executive, Harvey doesnt believe this should take away from the day-to-day operational role CIOs need to continue playing in their organisation. 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. Coles has been running the insights applications for eight months across 1200 iPads in-store and the Coles Store Support Centre, and is rolling out a similar application for Coles Express. Do you treat it as though it is a part of them? Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. 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. September 25, 2020 By Saibal Chakraborty , Tauseef Charanya , Romain de Laubier, and Akshaya Mahesh. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. 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. 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. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. Copyright 2023 IDG Communications, Inc. It is very easy in IT to lose sight of the money that has to be made, the customer offers that have to be delivered and the customer propositions that have to be put together, he comments. Illustration by Joi Fulton. Read:Predictions for 2019 in data, analytics, and AI. A framework to help leaders decide where to invest. Digitizing operations is a fundamental pillar of digital transformation in the sense that, without it, your company will be left behind by more efficient operators. The benefits of and reasons for the initiative need to be owned and communicated from the . There are plenty of technology changes underpinning how Coles meets this objective. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. "As a result of progress in recent years to develop deeper customer relationships, stronger digital engagement and expanded ranges of everyday products, the group's retail businesses are well-positioned to manage the transition as COVID-related restrictions are eased," the company said. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. 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. But even getting to the insights stage is not enough. Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. 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. 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. These Experts Are Racing to Protect AI From Hackers. Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. 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. Other current mobility projects are trialling a tablet ordering solution for produce, and a mobile-based picking solution for online. View my verified achievement from Project Management Institute. For many organizations, persuading experienced employees or senior managers to deploy new tech tools is a rather similar experience. For leaders, it can be hard to know where you should be focusing investment and what kind of digital transformation youre really after. 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 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. CBA, ANZ use cases selected in CBDC pilot project, Australia Post modernisation will involve digital uplift, CBA and ANZ explore conversational AI use cases. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Finally, digital opens up many new opportunities for established companies. 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. One of the foundations is to apply SaaS model thinking to OneDigitals operations, such that its quality-of-service is the same as a Wesfarmers brand would expect from any vendor or partner it engaged. Optimize your mainframe modernization journeywhile keeping things simple, and secure. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. 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. Testing RFID blocking cards: Do they work? Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. Moving your company forward in the wake of the pandemic. The goal here is to use digital tools, including more advanced technologies such as AI, 5G, and IOT, to streamline business growth. 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. At Docuworx, we facilitate the digital transformations of business and organisations across Asia-Pacific, specialising in document management and workflow automation. This means were getting products through to our store fresher and in a more timely fashion, he says. All models are wrong to some degree, but some are more useful than others. This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.. Most of the digital transformation is being done by an in-house . The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. - 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. 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. 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. 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. 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. Follow the topics, people and companies that matter to you. 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. But with the right expertise and tools, data can be turned into insights. Information includes sales data, stock availability, store remuneration, markdowns and waste. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. we equip you to harness the power of disruptive innovation, at work and at home. 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. 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. 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. Results. 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. Below we outline the four pillars and how to invest properly to set yourself up for success. 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. Wesfarmers OneDigital will complement these divisional capabilities, particularly through the benefits of the shared data platform and OnePass program. Here's a look at how modern tech fits into the customer service puzzle. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. 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. 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. Except this is not really the final step after you evaluate results, you need to go back to the data. The performance of the Industrial and Safety business was disappointing, reflecting the impact on Blackwoods earnings from ongoing investment in customer service and the enterprise resource planning (ERP) system, Scott said in Wesfarmers FY19 results briefing in August. 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. 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 digital transformation happening inside Wesfarmers' industrials division presents a good case study of the pitfalls and opportunities inherent in the implementation of new technology. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. Melbourne, VIC. Underpayment epidemic: Software Problem? 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. All rights reserved. In line with previous guidance, operating expenditure associated with the group's data and digital ecosystem is expected to be approximately AU$100 million during the 2022 financial year, the company said. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. One of the biggest barriers to true digital transformation success is change management. Without a model, a system, a framework, or reliable data science, any data will be useless, just like 0s and 1s. To measure whether they are succeeding, the bank carefully analyzes their ability to increase customer retention in the core financial services business but more importantly, for the new businesses, measure number of daily/monthly average users, engagement, and cross-selling opportunities. The key to cutting through the confusion is to see that digital transformation is not a single thing, but a multi-faceted journey with differing goals depending on your industry and digital maturity. 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. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! 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. 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". 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.". When you think about hardware stores, digital technology is probably the last thing that comes to mind. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. Wesfarmers OneDigital will power the Groups data and digital growth ambitions and provide customers with a more seamless, rewarding and valuable omnichannel experience across the retail businesses. To do this, we always try to tie up our messages across all customer platforms, so that whenever an opportunity arises for example the One Direction competition we are building a reusable asset for when those opportunities arise in future, and so we have the capability to do another competition.. December 20, 2021. In addition, there are obvious things you can do around leveraging the loyalty and Fly Buys programs, which are both exceptionally great value for our customers. 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. Also read: The Key Drivers Behind Rising AI Investment in Australia. As for Wesfarmers share price, after a rough end to 2018, this year has seen it steadily climb, rising approximately 23% year to date. Cloud Technology: Cloud technology has . 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. Wesfarmers managing director Rob Scott has described the first half of the 2022 financial year as the "most disrupted period" for the company since the onset of COVID-19, due to extended government-mandated store closures and trading restrictions in Australia and New Zealand. 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. 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