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. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). All four are part of most companies digital transformation journey. Click and Collect has been scaled to 100 stores, with plans to expand in New Zealand. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Illustration by Joi Fulton. 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). An equally important consideration was the buy-in by Microsofts senior engineers in Australia and in the head office in Seattle. Weve already looked at how Blockbuster missed their big opportunity to digitally transform their business, and we all know how that ended for them. 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.. 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. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. Blackwoods, which is the largest provider of industrial and safety supplies in Australia, is implementing a new enterprise resource planning (ERP) system supplied by Microsoft. The . 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. [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 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. 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. Consider the chart below: However, these are all American-headquartered companies. Its about so much more than your technology. 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. In a statement, Wesfarmers highlighted Sheffield's experience across . 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. This pillar is different from the others in its focus on digital tools to interact and sell to customers. 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. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. This showed the company had learnt the lesson of the dangers of rushing headlong into a project without sufficient preparation, as happened with the Bunnings expansion in the UK. It has employed the global firm DXC to implement the Microsoft Dynamics 365 suite of products. 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. 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. The key to success is simply getting clarity that digital transformation is not one thing, but rather many different things. 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. Based on our collective research on companies undergoing digital transformation, we offer a simplifying framework to cut through the confusion and conflicting demands. The third pillar is putting information in the hands of team members. Thats where I think some of the smarts around event orchestration is going to help as well.. In late spring 2020, we surveyed senior executives, digital transformation . The key is to listen and think critically. 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. 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. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. The Catch acquisition has also improved digital expertise leading to better execution and innovation. With these dueling considerations in mind, we distilled our research findings into seven guiding principles for digital transformations at any stagenascent, progressing, or stalled: 1. 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. I've put together a list of Predictions for 2019 in data, analytics, and AI, This year's round-up of predictions from industry figures yields wisdom in: AI, data regulation, data governance, the state of the Hadoop market, open source and "the edge. Woolworths, Coles and other retailers have been focused on digital growth as a critical element of overall growth strategy. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. 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. As noted by customer experience expert Blake Morgan, when done strategically, digital transformation can improve stock prices and revenue in the long run. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. 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. 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. Follow the topics, people and companies that matter to you. Chanticleer is Australia's pre-eminent business column. 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. 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. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. 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! Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. Below we outline the four pillars and how to invest properly to set yourself up for success. Aug 27, 2019 - 8.57pm Share After years of talking about lifting its digital capabilities, Wesfarmers. He was heavily involved in the transformation under. Prior to joining Coles, Harvey worked for Accenture delivering projects across South Africa, the UK and Australia, largely in the retail sector. 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. Here's a look at how modern tech fits into the customer service puzzle. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. 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. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. 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. Including Catch, this amounted to AU$2.5 billion. 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. Safety -identifying contributing factors to safety incidents, Localisation- in-store product ranges are tailored to meet local conditions, Inventory optimisation- to improve in-stock position and increase productivity, Personalisation- for personalised marketing and customer interactions. From an engineering perspective, Madan flagged a potential embrace of chaos engineering - a set of practices designed to improve system reliability by making it more resistant to failure when encountering unknown or unanticipated operating conditions. Eric Lamarre, Kate Smaje, and. Wesfarmers OneDigital May 2022- Present10 months Melbourne, Victoria, Australia After launching OnePass in May 2022, I moved into a role focussed on identifying, validating, and executing on. It will remain so until cloud [providers] understand and contemplate the same levels of redundancy we take for granted in the way we have active-active data centres, for example, he claims. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. 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. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. 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 differences between advanced analytics and business intelligence reporting. 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. Kmart sales increased $241m, more than offsetting a $67m decline in Target. One of the biggest barriers to true digital transformation success is change management. But with the right expertise and tools, data can be turned into insights. 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. Except this is not really the final step after you evaluate results, you need to go back to the data. CSIRO builds analytics platform to help Aussie farmers. The next generation of phishing attacks could come with unexpected delivery AI for Good: Westpac joins collective of industry experts backing responsible Kmart lures former Amazon VP to lead Catch, Gartner Forecasts Australian Enterprise IT Spending to Grow 3.6% in 2021. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. 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 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. 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. Historically, these relationships yielded poor or dispersed records. While reporting for the data and digital division remains as part of corporate for FY22, the company said this will be separated from FY23. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. 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.. 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. 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. How about in Australia? 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. By building the right cloud technology and orchestration today, we have options for the future. Finally, digital opens up many new opportunities for established companies. Digital transformation is not a destination; it's a permanent state of evolution. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. 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. "The group's retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers. Wesfarmers is spending another $100 million this year to build a "market-leading data and digital ecosystem," OneDigital, and develop its new subscription and delivery service, OnePass, which . . According to Harvey, certain loads are always going to be difficult for large corporates to move into the cloud. It will roll out click-and-collect nationally this financial year. Wesfarmers says COVID-19 disrupts H1 operations but bumps up online sales, Wesfarmers investment in digital assets pay off as online sales jump 57%, Kmart Group to shift its mainframe to the cloud, AWS skills training for 1,400 Kmart and Target employees, Do Not Sell or Share My Personal Information. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. Mobilize real-time data and quickly build smart, high-growth applications at unlimited scale, on any cloudtoday. This is where technology gives way to analytics the science that helps us give meaning to the data. 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. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. 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