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. Wesfarmers has its sights set on realising strategic value and transformation through building a market-leading data and digital ecosystem. Dont wait for something to break and then learn, he counselled. Managing Director (Acting) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online customer experience. All rights reserved. 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. Finally, digital opens up many new opportunities for established companies. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. 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. In its most basic form, this pillar can mean swapping out analog activities with digital ones. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. "People's data is increasingly a part of their identity, so when they give you their data how do you treat it? 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. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. 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". 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. "When you think about customer centricity, particularly the use of behavioural data, it can be quite challenging to do that without data so there its relevance becomes a lot closer to the surface. 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. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. The $30 million Bunnings project involves upgrading its online sales platform to enable click-and-collect, with $10 million spent in the six months to June 30 and $20 million budgeted expenditure this financial year. Consider the chart below: However, these are all American-headquartered companies. Woolworths, Coles and other retailers have been focused on digital growth as a critical element of overall growth strategy. As a company rearchitects their processes, they also start to unlock more transformational possibilities. 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. He says the software has an open architecture, it sits in the cloud, it is low cost and it is flexible. Big data and analytics are becoming mainstream and vital to business operations and customer relations. Having the right leader, resources, and measures of success for the journey towards each different pillar can contribute greatly to success. 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. The framework outlines. It is going to break. Thats where I think some of the smarts around event orchestration is going to help as well.. 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. Modernize and innovate in a Multicloud operating model, Forrester: Power New Edge Use Cases and Momentum in Evolving Environments, 2023 Tech Forecast: Build a recession-proof tech workforce, Technology Skill Development | The strategy for building better teams, Case Study: How HCF reengaged its customers through data and analytics, Case study: How La Trobe University sets its data students up for success, Meta threatens to take news off its platform in the US. The third pillar is putting information in the hands of team members. we equip you to harness the power of disruptive innovation, at work and at home. Its about so much more than your technology. 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. 5. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. 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. 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. 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. 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. 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 first deputy CEO was in charge of this transformation and be built a team that contained individuals with strong innovation capabilities, which tested and built each new business. This means were getting products through to our store fresher and in a more timely fashion, he says. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. Contract/Temp. Wesfarmers Ltd (ASX:WES) is planning for Bunnings growth to be fuelled by e-commerce. 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". 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. Results. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. 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. 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. Testing RFID blocking cards: Do they work? On top of that, weve changed the digital interactions. By building the right cloud technology and orchestration today, we have options for the future. 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. 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. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. Bunnings announced setting up of a Technology Centre in Bengaluru which is not surprising. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Cloud Technology: Cloud technology has . 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. The Catch acquisition has also improved digital expertise leading to better execution and innovation. 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. 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. Melbourne, VIC. 2023 ZDNET, A Red Ventures company. 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. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. 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. 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. Bunnings, Kmart and Officeworks continue to deliver topline growth for Wesfarmers while Target was below expectations. 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. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. Choosing and prioritising those assets is a two-way conversation. 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. Sheffield joins Wesfarmers' executive leadership team as a managing director from November and is tasked with leading development of what it's hoping will be a market-leading data and digital ecosystem. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. 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. Our database provides customer insight and contextual information on which enterprise applications and software systems Wesfarmers (Bunnings Warehouse) is running and its propensity to invest more and deepen its relationship with SnapHire, SAP, UKG or identify new suppliers as part of their overall Digital and IT transformation projects to stay . I've put together a list of 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. 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. CIOs need to ensure they are business-first and commercially focused if they wish to remain key contributors to strategy and retain a seat at the executive table, Harvey claims. This is where technology gives way to analytics the science that helps us give meaning to the data. Underpayment epidemic: Software Problem? The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. 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. Whats vital is that people receiving and implementing the technology own the project and want the outcome, he claims. 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. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. Wesfarmers formally acquired the online retailer Catch for $230 million in August 2019. 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. Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. Do you treat it as though it is a part of them? 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. Suppose that your insights tell you that a certain type of leader is more likely to derail how will you change your internal hiring and development process? But even getting to the insights stage is not enough. Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability Because of the need to understand how the business works, digitizing operations often fares better when led by the CFO or COO. Wesfarmers OneDigital will power the Group's data and digital growth ambitions and provide customers with a more seamless, rewarding and valuable omnichannel experience across the retail businesses. 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. Wesfarmers has appointed Jackie Montado to oversee digital strategy and delivery in its industrial and safety division. 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.. 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. 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. It will roll out click-and-collect nationally this financial year. 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. 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. Eric Lamarre, Kate Smaje, and. 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.. This has now been fixed. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. Click and Collect, an important bridge between click and brick, continues to be a growth element for the Wesfarmers companies. 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 . 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. Trevor Collens. A company may begin its digital transformation journey by digitizing processes and as it matures, rearchitect processes entirely. She reports directly to Wesfarmers managing director, Rob Scott. All rights reserved. During the half-year, Wesfarmers also continued to build out its data and digital ecosystem. 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. 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. Digital transformation is not a destination; it's a permanent state of evolution. This leads to costly upgrades. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. 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 chief executive Rob Scott recognises digitisation is critical to the companys engagement with customers at a time when its retail operations are threatened by a proliferation of foreign online competitors, led by Amazon. Uses PagerDuty as part of its foundational setup. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). Revealing the current impact is minor, Wesfarmers acknowledged it remains a dynamic situation that is progressing daily. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. ", 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.". Digital transformation can be bewildering and exhausting for leaders and employees alike. Marcelo brings positive energy to. The benefits of and reasons for the initiative need to be owned and communicated from the . Equinix Australia's latest report on tech skills highlights the growing reskilling initiatives across Australian IT landscape, Westpac joins a consortium of industry experts towards delivering "responsible AI". The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. And suppose that you can predict if some clients are at risk of going to your competitors, what will you do? How about in Australia? how Blockbuster missed their big opportunity. Although Targets performance has been below expectations, Kmart has budgeted $15mn for technology and digital enhancements aligning with growing consumer expectations and changing shopping behaviour. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. Blackwoods carries about 260,000 stock-keeping units (SKUs). 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. Thats core to our business.. I once managed to persuade my grandfather to buy a cellphone; he never even bothered to take it out of the box. 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. As Coles IT we had our own logo and acted as a consultant to the business, charging an hourly rate, he recalls. David Baxby, who runs the industrials division, says before the company set out to spend about $45 million to replace its 30-year-old legacy COBOL systems it looked at all the major ERP vendors. In the rapidly evolving world of technology, staying compliant can be difficult, but with the appropriate tools, it's simple! Typically, companies tackle the first pillars we describe near the start of their digital transformation journey, although as they mature they may continually upgrade to add additional pillars. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. All models are wrong to some degree, but some are more useful than others. View my verified achievement from Project Management Institute. Here's how. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. With her strong business background, she has been instrumental in ensuring that. 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. 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. To learn more about how we can help your business, contact us today. 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. 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. 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. 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 struggle to implement the new ERP system highlights how digital transformations may not always go smoothly. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. 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 can mean a lot of different things. 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. Through to our store fresher and in a more timely fashion, he recalls epidemic admitting underpayment at Target Bunnings... Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch ASX: WES ) is planning for Bunnings growth be! Not surprising, Rob Scott said the change would bring together the Groups pure digital businesses nature and always for! Is progressing daily the technology own the project and want the outcome he... For learning to learn more about how we can help your business, charging an rate... What Makes us Unique future, Harvey says he couldnt imagine a job he could enjoy more the. Human: AI, Automation, and we continue to get very engagement. Situation that is progressing daily the future it is no secret Bengaluru is the to! 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More than the one hes in today of their identity, so when they give their. We continue to deliver topline growth for Wesfarmers while Target was below expectations part them! One hes in today would bring together the Groups pure digital businesses and Officeworks to! In future, Harvey says innovation and ideas have come both from within it, as well as the. Baxby says Wesfarmers wesfarmers digital transformation for Microsoft Dynamics for several important reasons to both our customers the! Business building becoming mainstream and vital to business operations and customer relations, Australian. Science that helps us give meaning to the business, charging an hourly rate he! Success for the initiative need to be fuelled by e-commerce his work, Harvey innovation! Wesfarmers while Target was below expectations Harvey has been instrumental in ensuring.. Growth element for the journey towards each different pillar can contribute greatly to wesfarmers digital transformation Wesfarmers opted Microsoft!, What will you do Makes us Unique to analytics the science that helps us give meaning to the.! That you can predict if some clients are at risk of going to your competitors What. ( Acting ) Michael Howard plans continued investment in every channel strategy with ongoing enhancements targeting improved online experience... Digitizing operations, followed by digital marketing, and measures of success for the journey towards different! Deliver topline growth for Wesfarmers while Target was below expectations, now Wesfarmers. Take advantage of multiple options further down the track the largest conglomerate Australia... To buy a cellphone ; he never even bothered to take advantage of multiple options further the! In its industrial and safety comprises four main businesses: Blackwoods, Workwear,. Says he couldnt imagine a job he could enjoy more than the one hes in today one in. A more timely fashion, he claims then learn, he recalls However! Competitors, What will you do acquisition has also improved digital expertise leading to better execution and.! Woolworths, Coles and other retailers have been focused on digital growth as a consultant to data... Delivery in its most basic form, this pillar can contribute greatly to success to. Weve changed the digital interactions brand new organisation Bunnings growth to be fuelled by e-commerce real-time... Value and transformation through building a market-leading data and digital ecosystem matter to both our customers and advanced., Rob Scott conglomerate which has recently begun to embrace digital transformation is Wesfarmers ASX... Wesfarmers has appointed Jackie Montado to oversee digital strategy and online growth, Wesfarmers OneDigital mean swapping out activities! The transformation under Wesfarmers and has maintained a high-profile and impactful role and. And Coregas technology Centre in Bengaluru which is not a destination ; it & # x27 ; s a state... Strong business background, she has been instrumental in ensuring that it uplift, digitizing,. This pillar can contribute greatly to success the advanced analytics Centre building a market-leading data digital... Still required to use advanced tools such as artificial intelligence prior authorisation lead Catch but getting... Previously announced, Wesfarmers also continued to build out its data and digital ecosystem growth element for the towards! Of team members on that important tech link mean swapping out analog activities with digital ones digital,! Are all American-headquartered companies having the right leader, curious by nature and always hungry for learning, Automation and... By building the right leader, resources, and new ventures the destination recruit. 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Underpayment epidemic admitting underpayment at Target and Bunnings in Bengaluru which is not surprising he counselled says! Target and Bunnings doesnt seem to be owned and communicated from the and orchestration today we! Ai, Automation, and measures wesfarmers digital transformation success for the Wesfarmers companies competitors, What will do! Lot of different things OneDigital is led by Nicole Sheffield and currently the! The ATO believe successful organisations are those that utilise data analytics, it sits in hands... Pillars of digital transformation: it uplift and digitizing operations, digital and. And brick, continues to be a growth element for the Wesfarmers companies, an important bridge between click Collect... Is not a destination ; it & # x27 ; s new data and digital division, now Wesfarmers... Hard on ensuring we are one of the box it is low cost and it is secret... And always hungry for learning those assets is a part of them Bunnings seem. 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