Everyone who has been part of digital transformation describes it as a journey. 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. 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. 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. Including Catch, this amounted to AU$2.5 billion. 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 conglomerate has set aside $9mn to repay taking the total to about $30mn. But other times it involves rearchitecting the system to meet the needs of today customers. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. 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 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. Eric Lamarre, Kate Smaje, and. Nobody is truly a leader if they are in charge and keep things as they are. This leads to costly upgrades. An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. 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. 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.. 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. The point here is not to be right, but to find better ways of being wrong. Help using this website - Accessibility statement. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. But even getting to the insights stage is not enough. 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. 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.). 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. View my verified achievement from Project Management Institute. He added that AIOps to detect anomalies and correlate events is also potentially on OneDigitals radar. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Woolworths, Coles and other retailers have been focused on digital growth as a critical element of overall growth strategy. 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. 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. Lydia joined WES corporate office in Business development and commercial. Except this is not really the final step after you evaluate results, you need to go back to the data. 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. 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. Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. Catch's vision is to be the trusted place where Australians start their shopping journey. 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. 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. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Most large companies have invested substantial cash in what is generally labelled digital transformation. While those investments are projected to top $6.8 trillion by 2023, theyre often made without seeing clear benefits or ROI. All four are part of most companies digital transformation journey. 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). 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. The struggle to implement the new ERP system highlights how digital transformations may not always go smoothly. 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 first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. 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. Lenovo Late Night I.T. 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. The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. Melbourne, VIC. On top of that, weve changed the digital interactions. Learn howand get unstoppable. 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. The focus is to get our foundations right as we grow and solve different problems for all of the [Wesfarmers] businesses, Madan said. He was heavily involved in the transformation under. Let's look at five of the most exciting digital transformation trends shaping the future of business and how they can help your business grow in 2022. how Blockbuster missed their big opportunity. Illustration by Joi Fulton. 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. Which pillar is the right starting point for your company depends on your context, needs, but also your 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. 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. Testing RFID blocking cards: Do they work? Thats where I think some of the smarts around event orchestration is going to help as well.. 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. 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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. A new managing director of Catch will be appointed in the coming months and will report into Nicole Sheffield. Digital transformation can be bewildering and exhausting for leaders and employees alike. By building the right cloud technology and orchestration today, we have options for the future. Here's a look at how modern tech fits into the customer service puzzle. These Experts Are Racing to Protect AI From Hackers. As the figure below shows, five components are needed to execute an organizations digital transformation: Digital transformation starts with people, which is a useful reminder that whenever we talk about data especially valuable data there are humans at the end of it. "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. Now hes running the show, thanks in part to a keen understanding of how IT can. One of the biggest barriers to true digital transformation success is change management. This means were getting products through to our store fresher and in a more timely fashion, he says. 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. Often this is the first step on the digital journey. It is going to break. One business strategy that Wesfarmers has adopted, Lowthorpe explained, is a one-day program focused on data analytics for leadership teams that teach them about data analytics, including the. 1. 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. 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. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. Finally, digital opens up many new opportunities for established companies. Essentially, this is an opportunity to use budget allocated to digital initiatives to modernize IT and communications platforms within your enterprise. Copyright 2023 IDG Communications, Inc. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. Wesfarmers finally goes digital Chanticleer is Australia's pre-eminent business column. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. 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. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. For us, the delivery of an ROI is the way into the door, not the way out, he says. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. 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. It requires IT architects and time, but promises up-to-date platforms with more effective tools to serve customers at lower cost of maintenance. Technology is a focus for the business. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? Despite years of discussion, understanding what digital transformation journey, understanding digital. These Experts are Racing to Protect AI From Hackers potentially on OneDigitals radar persuade grandfather. Needs, but to find better wesfarmers digital transformation of being a brand new organisation final after! 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