Innovation and Sustainable Business Development at Wesfarmers

This report provides a comprehensive analysis of Wesfarmers' innovation and sustainable business development initiatives, with a specific focus on the impact of artificial intelligence (AI) technology. The introduction outlines Wesfarmers' business details, location, and related staff. A business model canvas is presented, detailing key activities, partners, value propositions, customer relationships, segments, resources, channels, cost structure, and revenue streams. The report then delves into the assumptions made during AI system installation, the impact of AI on the existing business model, and an evaluation of the success rate using key performance indicators. The conclusion summarizes the positive outcomes of AI implementation, emphasizing increased efficiency and automation within Wesfarmers' value chain. The report includes references to support its findings.

RUNNING HEAD: Innovation and Sustainable Business Development
1
Name of the student-
Topic - Innovation and Sustainable Business Development
University name

Innovation and Sustainable Business Development
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1. Table of Contents
2. Introduction................................................................................................................3
2.1 Present details of Wesfarmers.......................................................................................3
2.2 Location of the business of Wesfarmers...................................................................3
2.3 Related staff members and employees.....................................................................4
3. Business Model Canvas of Wesfarmers Plc..........................................................4
4. All the key assumption taken by company while installing new artificial
intelligence system in process.........................................................................................................6
5. Key impact of the artificial intelligence technology trend on the existing business
model 7
6. Evaluation of the success rate of the business model canvas after installing new
Artificial Intelligence........................................................................................................................8
7. Conclusion..................................................................................................................8
8. References...............................................................................................................10

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2. Introduction
Organizaiton is accompanied with the complex set of activities in which several functions
are performed to achieve certain goals and objective. In this case, Wesfarmers plc has been
selected to assess the business impacted by the advances of artificial intelligence technology. It
will not only increase the overall outcomes but also set up the automation in the business value
chain activities of the organization. It is analyzed that company could increase the overall
outcomes and efficiency of the business if the automated business process is adopted in the
process system of organization. The main benefit of using the advances of artificial intelligence
technology in the value chain activities will make the process system more automated.
2.1 Present details of Wesfarmers
Wesfarmers Company is Australian Conglomerate Company having its headquartered in
Perth, Western, Australian, with interest predominantly in Australian and New Zealand retail
coal, mining and safety products. The share price of company is currently traded at
WES (ASX) A$ 49.35 -0.65 (-1.30%) (Wesfarmers plc, 2017).
2.2 Location of the business of Wesfarmers
Wesfarmers has been indulged in providing the retail store services to its clients around
the globe. All of its stores have been set up in the designed areas. It is analyzed that Wesfarmers
has installed advances of artificial intelligence technology in its value chain activities which
establish automation in the process, develop online payment portal for clients and setting up the
online market where clients could easily buy offered goods and services by Wesfarmers (Arreola
Hernandez, et al. 2017).

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2.3 Related staff members and employees
There were hired 100 IT employees in the process system who was indulged in
undertaking the technical errors and support program. In addition to this, all the line managers
were given proper training to learn the new process system (Ashwood, 2014).
3. Business Model Canvas of Wesfarmers Plc
It is analyzed that the business model Canvas of company is accompanied with the 9 building
blocks which divulges the key activities of the organization (Arreola Hernandez, et al. 2017).
Key strategic
partners
Setting up alliance
with other
organizations.
Hiring IT experts
Key Activities
Installing new system
process in value chain
activities and
advances of artificial
intelligence
technology.
Setting up of new
system process and
developing dashboard
mechanism.
Value Proposition
Hiring of new IT
experts.
Setting up new
value chain.
Online work
mechanism.
Customer
Relationships
Direct selling
through the online
and offline modes.
Develop payment
window chain by
using the advances
of artificial
intelligence
technology
Customer
Segments
Focusing on
setting up
automation in the
process.
Setting up new
system process
through IT
modes.
Implementing the
online dashboard

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mechanism.
Key Resources
IT solutions:
Hiring of IT
employees.
Setting up new
operating system.
Develop advances of
artificial intelligence
technology
Channels
Develop
application design
methods.
Setting up new
models and system
process.
Cost Structure
Maintenance cost
Website development cost
IT development charges
Hiring IT staff members
Developing infrastructure costing
Management dashboard mechanism
Other payment to employees.
Minimum Viable
Product
 Setting up new
cyber computing
system in value
chain activities
Loyalty card and
use of Google
image section to
promote the
Revenue Streams
Online service stream to sell its cloths to
clients.
Develop online mechanism.
Setting up the new dashboard to connect
with the clients.

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business.
4. All the key assumption taken by company while installing new
artificial intelligence system in process
Key strategic partners
 Setting up strategic alliance with other IT support companies
 Focusing on the IT developing strategic plans.
Key activities
 Hiring IT experts IT team members to set up the advancement in the process.
Value proposition
 Use of the advance technologies and system process development program
Customer relation
 Use of social media and online marketing survey to connect with the clients.
Customer segment
 Focus on the all types of clients who wants to save their time and cost by doing
online shopping (Davis, 2018).
Cost structure
 In the starting, it managed its business at no profit no cost and after 2 years it will
start to earn profit.
Minimum Viable Product

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 Installation of the cyber computing system and online development program.
Revenue Streams
 Sale of its products and services through the online portals.
Channel
 Use of its online dashboard mechanism and provide clients user ID and password.
5. Key impact of the artificial intelligence technology trend on the
existing business model
The main impact of artificial intelligence trend on the existing business model was
related to change its value chain activities. Company had automation in its various processes and
strengthens its value services program (Ashwood, 2014). These artificial intelligence
technologies assist organization to increase its overall efficiency and strengthen its business
process system. It provides another medium to connect with tis clients in the virtual world.
Company strengthens the visibility of its company’s offered goods and services in market
through the online IT channel (Solomon, 2014). On the other hand, on the negative side, those
employees who could not adapt with the technologies changes had to leave the organization
which negatively impacted the business sustainability. In addition to this, hired new IT experts
promoted the business online and strengthen the marketing activities in effective manner
(Diggle, 2013).
The upside potential support for the innovative and advance business of Wesfarmers was
based on the use of advance technologies and system process. It assisted organization to

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promote its business online through several modes. It also strengthens the overall
outcomes and turnover of business in long run.
The new cyber system process strengthens the overall turnover and reduce the costing of
the business (Siguaw, &Simpson, 2015).
6. Evaluation of the success rate of the business model canvas
after installing new Artificial Intelligence
Key performance indicators Success rate Potential probability
Overall Turnover
50% Depends upon the overall
costing of the business and
increased business output.
Net profit business 45% Increased return on capital
employed based on the
reduced cost of capital
Employee turnover 45% Changes in the process and
increased complexity,
employee turnover
increased.
Other factors 40% Automation in the process
system.
7. Conclusion
After analyzing all the details and case study of the business, it is inferred that
Wesfarmers has increased its overall outcomes and set up automation in its value chain activities
by using the advance artificial intelligence program. It is further observed that the decision to
install advance artificial intelligence process was the biggest achievement for the business
success of the Wesfarmers in this ramified economy.

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8. References
Arreola Hernandez, J., Hammoudeh, S., Nguyen, D.K., Al Janabi, M.A. &Reboredo,
J.C., (2017). Global financial crisis and dependence risk analysis of sector
portfolios: a vine copula approach. Applied Economics, 49(25), pp.2409-2427.
Ashwood, A.J., (2014). Portfolio selection using artificial intelligence (Doctoral
dissertation, Queensland University of Technology). 44(25), pp.249-247
Davis, N., (2018). The future relationship between technology and inequality. How
unequal? Insights on inequality, 44 (24) p.110.
Diggle, P. J. (2013). Statistical analysis of spatial and spatio-temporal point patterns.
CRC Press.
Siguaw, J.A. & Simpson, P.M., (2015). A marketing plan for marketing instruction: A
satirical look at student comments. In Creating and Delivering Value in
Marketing (pp. 129-133). Springer International Publishing.
Solomon, M.R., (2014). Consumer behavior: Buying, having, and being (Vol. 10).
Engelwood Cliffs, NJ: Prentice Hall.
Wesfarmers plc, (2017), annual report, Retrieved on 23rd July, 2018 from
http://www.wesfarmers.com.au/investor-centre/company-performance-news/
reports

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