Get started by entering your email address below. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. Rodney Zemmel. NAB Digital Option To Restrict Gambling Transactions, IBM X-Force Threat Intelligence Index Uncovers Surge in Thread Hijacking, Synopsys OSSRA 2023 report reveals the growing need for Software BOM, As Digital Card Platforms Expand Globally, Over 320 Million Credit Cards To Be Issued, More than 80% of Australian Businesses Are Reskilling IT Workers, The rising importance of AI in Precision Medicine as spending increases, Thoughtworks Technology Radar Foresees ML Propelling IoT. The focus for the ATO, according to Rucinski, will be implementing data analytics and AI to "enhance the human ability to make judgments" so humans can ultimately make the final decisions for matters. 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. 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. Meanwhile, the ATO believe successful organisations are those that utilise data analytics, IT, and business together. 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. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. Lydia joined WES corporate office in Business development and commercial. Bunnings announced setting up of a Technology Centre in Bengaluru which is not surprising. 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. 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. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. While there are some savings in using external cloud environments for test and training activities, Harvey admits significant cost reduction hasnt been apparent. Well, one Australian conglomerate which has recently begun to embrace digital transformation is Wesfarmers (ASX:WES). 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. 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. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations. 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. But other times it involves rearchitecting the system to meet the needs of today 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). Like in any journey, you need to decide where to go first. When you think about hardware stores, digital technology is probably the last thing that comes to mind. Big data to deliver business efficiencies and better customer engagement is another majority area of focus for Harvey, and he explains his team is taking a three-pronged approach to information management. Leadership is always an argument with the past, with tradition it is the essential task of leaders to create a bridge between the past and the future, and in that sense digital transformation is not an exception to the rule, but the name we give to todays bridge. How about in Australia? 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 . He saw merit in causing chaos yourself so youre ready for as many eventualities as possible. As a company rearchitects their processes, they also start to unlock more transformational possibilities. 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. The investments in data and digital transformation continue with an additional $10mn budget with the data and analytics initiatives enhancing productivity and inventory optimisation. Then they will lead the change because you helped them see the opportunity.. Deloitte US | Audit, Consulting, Advisory, and Tax Services In the final stage of the process, you can evaluate results or impact. how to upgrade the digital infrastructure, a team capable of running experiments to validate the new business opportunity, Network Advantage: How to Unlock Value From Your Alliances and Partnerships. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization. Wesfarmers is hoping to transform the way its organisation uses data, making data analytics a business strategy instead of a side effect. 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. As noted at the recent half year results, more detail on Wesfarmers OneDigital will be provided at the Strategy Briefing Day in June 2022. 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' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. Earnings before interest and tax came also came in 12% lower at AU$1.9 billion. The Challenge. There are plenty of technology changes underpinning how Coles meets this objective. Catch will move from Kmart Group and join Wesfarmers OneDigital on 1 July 2022. For example, in the past when PayPal sent payments via email, they had significant time to ensure regulatory compliance. 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. 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. The Evolving State of Digital Transformation. 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. Catch operates an online business model offering branded products on a first-party basis and a third-party online marketplace. 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. Kmart sales increased $241m, more than offsetting a $67m decline in Target. 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. 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. Announcing the half-year results, Managing Director Rob Scott said: pleasing progress continues on Wesfarmers digital strategy. 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. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. Trevor Collens. 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. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. But for more mature digital companies, investment is still required to use advanced tools such as artificial intelligence. 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. Nobody is truly a leader if they are in charge and keep things as they are. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. In early 2022, the Club Catch subscription program was rebranded and repositioned as OnePass. 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. Reinforcing the importance of Catch to its digital strategy and online growth, Wesfarmers lured former Amazon VP Pete Sauerborn to lead Catch. As previously announced, Wesfarmers OneDigital is led by Nicole Sheffield and currently includes the OnePass subscription program and the Advanced Analytics Centre. 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. View my verified achievement from Project Management Institute. 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. 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 for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. - 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 interviewed four global leaders responsible for their organizations' digital transformation, each in different business and technical functions, industries, and geographies, and found that they were already approaching transformation in this waybut without a clear language and framing to guide them. A framework to help leaders decide where to invest. Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. 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. This is why talent plays such a critical role in unlocking (or indeed blocking) your digital transformation. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. If you are looking for digital solutions to win clients, build brand awareness, profile clients or simply sell online, then you are pursuing the digital marketing pillar. 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. This leads to costly upgrades. Digital and omnichannel capability is a critical area for other retailers as well. Industrial and safety comprises four main businesses: Blackwoods, NZ Safety Blackwoods, Workwear Group, and Coregas. 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". ", 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.". He was initially brought on as a program director for a merchandising systems refresh project, before taking the role of general manager of IT strategy, architecture and program delivery in 2004. [You] might as well just break it yourself in a controlled environment and learn from it, and thats where PagerDuty plays a key role.. 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. All models are wrong to some degree, but some are more useful than others. Doing so will help you articulate what kind of digital transformation youre really talking about, and plan accordingly. Do you treat it as though it is a part of them? The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. The first and ongoing strategy is an extensive replatforming of the groups structured data warehouses to Oracle Exadata boxes. As tech talent becomes central to digital strategy and tech initiatives, the Bengaluru centre is aimed at sharpening Bunnings technology edge. OneData also provides data analytics support OnePass and Catch. Being clear about their differing demands can help you make smart tradeoffs and clear progress. we equip you to harness the power of disruptive innovation, at work and at home. She reports directly to Wesfarmers managing director, Rob Scott. As part of the change, Catch Managing Director Pete Sauerborn has decided to leave the business on 30 June 2022. Its online operations are supported by a leading technology platform and fulfilment centres located in Victoria and New South Wales. 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. 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. 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. All rights reserved. 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. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). "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.". Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. 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. Whatever the challenges in future, Harvey says he couldnt imagine a job he could enjoy more than the one hes in today. 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. The second priority is better leveraging unstructured data to gain new insights, and Coles is trialling solutions such as Hadoop to do that, he says. 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. By building the right cloud technology and orchestration today, we have options for the future. In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. 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. 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. 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. 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. Do you need one? 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 results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. 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. Thats core to our business.. 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 increase in online sales across its retail business. What is needed is a shift in mindset, culture, and talent, including upskilling and reskilling your workforce so that they are future-ready. Although embarking on a digital transformation can be daunting and requires investment, many companies worlwide are starting that journey because they know it will pay off in the future. 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