Conference presentation on Enterprise architecture and strategy conversations around the Finance Core systems.

1. Strategic Finance Core
Or why the boring bits are actually key

2. About me
The views and opinions expressed in this presentation are my
personal ones, and do not represent my employer.
Nigel Fernandes
Head of Strategy & Architecture

3. This is not about SAP

4. Strategic
Lens

5. Strategic
Financial
• Strive for a more flexible asset light model, shifting capex to opex and adopting as-a-Service solutions
where beneficial, for faster adaptation to evolving conditions
• Be nimble at allocating the required funds and resources through planning and through changes,
aligning to pay-backs and write-offs accordingly
• Capture incremental benefits and business outcomes, breaking complexity into stepping-stones
directionally aligned to desired end-state, leveraging positive simplification loops
Optimise holistically for
long term competitive
advantage of the whole
Group
Operational
• Common way of working (Coles Group DNA), that is simple and flexible enough to cater for specific
needs across the business
• Integrate and standardise business process and technology by default, tailor by exception where direct
value and overhead is justified by evidence
• Automate and AI-enable where viable, manual by exception when justified by evidence
Simplify operations and
improve decision-
making leveraging
technology and
business improvement
Accelerate business
outcomes with lean
and nimble resources
and recycling of
incremental benefits
• Leverage full scale of the Coles Group, adopting a whole of business holistic approach and promoting
synergies across business units to improve our cost base and drive efficiency
• Optimise for strategic goals, leveraging ‘Big Rocks’ and ‘Strategic Partners’, balancing the underlying
trade-offs
• Use a long term value lens (5+ years) to assess decisions, as the only sustainable option for deep
transformation, reflected in program and organisational KPIs
What it meansPrincipleCategory
Strategic Principles

6. Recasting the story
From this sort of story To this sort of story
Based on the strategic intent of the group,
we understand ….
In order to support that goal we need a
financial system capable of adapting to …new
business models, market experiments etc.
By investing in the following core systems,
over the following time period, in the sequence
Suggested, we can… achieve outcomes
with minimal disruption… Etc.

7. Enterprise
Architecture
Lens

8. Conway’s Law
VS
Technical Organization of
teams drives an
architecture of technical
capabilities
Teams organized by
business capabilities drives
a business oriented
architecture

9. Factoring systems by Business Unit
● Rate of change
● Rate of evolution (complexity)
● Balancing central versus devolved efficiencies
Example:
BU Level – ERP Systems Group Level – FICO/Treasury Systems
Control Account
in General Ledger
Consolidation and forecasting
Group Reporting
Meat Grid Buying
Fresh Produce Ordering Strategic
Foundational

10. Integration
Lens

11. An Evented
approach
Dumb Pipes, Smart Endpoints
Events not Commands
Events named in the past tense

12. ThoughtWorks Technology Radar - 2011
Choreography over Orchestration

13. A final thought.

14. A joke that’s too close for comfort
Created by Simon Wardley

15. Reed Hastings is on a Charlie Rose interview, and Charlie says,
“Reed, what do the people in Palo Alto know that everyone else
doesn’t know?” And he said, “Moore’s Law.” And Charlie goes,
“Well, I know what Moore’s law is.” And he goes, “Yeah, but
Charlie, you don’t understand. We’re designing for the next
iteration now.”
Jim Hackett
Talking to Stephen Dubner in the Freakonomics
Podcast

16. We’re designing for the
next iteration now.

17. Thank you.
Questions?