Putting people at the centre of digital transformation
NTUC ENTERPRISE
Putting people at the centre of 02
DIGITAL TRANSFORMATION WRITTEN BY
WILL GIRLING PRODUCED BY
KRISTOFER PALMER
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w w w.nt uc so c i a l e nte rpri se s. s g . com
NTUC ENTERPRISE
Johnny Wong, Group Chief Digital and Technology Officer at NTUC Enterprise, explains why digital transformation is an essential, although not always easy, path to improving customer experience
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t is a testament to any company if it can sustain an enduring legacy in its hometown that spreads over decades. Yet
NTUC Enterprise has managed to do more than 04
just maintain an expanding level of popularity and ambition in Singapore for 50 years. Comprised of 10 separate NTUC Social Enterprises (such as FairPrice, Foodfare, Health and Income), the holding company combines the public and private sectors to find solutions to consumer issues. With a corporate reach that serves over two million Singaporeans every day (33% of the population), NTUC Enterprise has attained the rare status of a national institution; its deeply humanitarian mission to harness social enterprises to address social needs is keenly felt by Singapore’s citizens every day. Drawn to the company’s ethics and particularly the challenges of its digital transformation, Johnny Wong became the Group Chief Digital and Technology Officer (CDTO) of NTUC Enterprise
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2012
Year founded
20,000 Number of employees
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NTUC ENTERPRISE
“ NTUC Enterprise is a unique organisation; a socially-minded commercial organisation, with strong partnerships with the government and the labor unions, for the benefit of the Singapore society” 06
— Johnny Wong, Group Chief Digital and Technology Officer, NTUC Enterprise
and FairPrice in 2018. Coming from a background which included tenures at Oracle, Google, MercadoLibre and Lazada, Wong gained valuable experience that would serve him well for the future. “I was in charge of managing product development and the engineering to create products for end-users,” he explains. “NTUC Enterprise is a unique organisation; a socially-minded commercial organisation, with a strong partnership with the government and the labour unions, for the benefit of the Singapore society. It’s a very rare model, and I would say, a truly Singaporean partnership model.” However, when Wong joined the company, he discovered that NTUC Enterprise’s heritage was, in some regards, both a blessing and an obstacle. After decades of successful operations, the company had, from a technological point-of-view and mindset, not made much advancement. “It was very much a traditional organisation, with strong operations and people values, but technology had taken a backseat,” he says. “My goal was to make it much more forward-looking and change into an organisation that’s
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07 able to shape its own destiny when
and added over 200 new staff to
it comes to digital transformation.”
achieve a new vision, including soft-
This bold ambition required a well-
ware engineers, UX researchers and
thought-out strategy and answers to
product designers, data scientists and
key questions. What does digital trans-
engineers, cybersecurity specialists,
formation mean for a group of social
technologiests, enterprise system
enterprises? What positive effects will
experts, and more.
it have for the customer? Recognising
“We need to see how our customers
that answering these questions would
are evolving and how we can serve
require a new approach, Wong imple-
them better,” says Wong. “Unless
mented a ‘three pillar’ plan focusing
organisations adapt to the future,
on digital strategies, organisational
they will become irrelevant. We lev-
capabilities and a cultural mindset shift.
erage data and new technology to
NTUC Enterprise then defined digital
better compete in a rapidly chang-
strategies for its main businesses
ing world.” This is particularly true w w w.nt uc so c i a l e nte rpri se s. s g . com
NTUC ENTERPRISE
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in NTUC Enterprise’s case, which
enterprises, they are also contributing
maintains a large network of brick and
to the improvement of Singapore’s
mortar (B&M) stores in addition to its
citizens’ lives and to making a better
online presence. “NTUC Enterprise
society,” he explains.
is about serving working people and
For NTUC’s FairPrice platform,
the broader interests of the Singapore
Wong relaunched its ecommerce,
community across a range of social
enabling Singaporeans to shop for
needs,” he emphasises. Viewing
groceries, household essentials
digital transformation as the route to
and other consumer products. Now
achieving this goal in 2020 and beyond,
providing an easy online shopping
Wong committed wholeheartedly to
experience, available through all
the endeavour. “Part of the allure for
standard devices (smartphones, tab-
new talent to join us is knowing that,
lets, computers, etc), FairPrice has
in improving NTUC’s group of social
grown its market share to become
the second-largest online grocery
level of convenience and customer
provider in the country and the fast-
service whether online or offline.
est growing during 2019. Utilising
“With our omnichannel strategy, we’re
its network of B&M stores - which
able to provide same-day delivery
Wong calls the company’s “bread
on groceries, sometimes even within
and butter” - in conjunction with its
two hours. Our rivals might be able
online portal, Wong believes that
to move small items quickly, but they
FairPrice can offer an unparalleled
can’t effectively deliver fresh grocery
Johnny Wong
E XE CU T I VE PRO FI LE
Mr Johnny Wong is the Group Chief Digital and Technology Officer of NTUC Enterprise, the holding entity the single largest shareholder of NTUC Social Enterprises. He holds a concurrent role as CEO of the Digital Business at FairPrice Group, driving digital businesses and strategies for the organisation. Prior to his current engagement, Johnny was the Group Chief Product Officer at Lazada, where he was responsible for all engineering and product development across the tech hubs in Singapore, Vietnam, Thailand, and Russia. He also held management positions at technology, ecommerce and consulting companies such as Oracle, Google, MercadoLibre, Boston Consulting Group, and several startups. His diverse work experience spanned countries and regions such as US, China, Australia, Mexico, South America and Southeast Asia. Johnny has a bachelor’s degree from UC Berkeley, a master’s degree from Stanford and an MBA from Wharton Business School. w w w.nt uc so c i a l e nte rpri se s. s g . com
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“ We need to see how our customers are evolving and how we can serve them better” — Johnny Wong, Group Chief Digital and Technology Officer, NTUC Enterprise
“After all,” he says, “it’s not just about simply hiring engineers or putting together a nice PowerPoint; it’s about changing pre-existing mindset; it’s about fundamentally altering the way that our organisation works and invests, and that’s very different.” However, Wong’s conviction that a digital and data-centric approach won out and proved that intelligent implementation
products to peoples’ doorsteps unless they also have an equivalent physical infrastructure nearby.” Although Wong’s vision for FairPrice
of new technology can pay dividends. Data collected by the company comes from across NTUC Enterprise’s various social enterprises, meaning
has achieved some validation from
the information can be varied and volu-
current business growth, he explains
minous. “From groceries to the food
that, in the initial stages, there was
required in food courts and restaurants
strong debate internally. Prior to the
to the health clinics and childcare
transformation, NTUC Fairprice was
centres, we collect individual data sig-
“a traditional retailer that, in regards to
nals,” Wong explains.” Based on that,
technology, operated in essentially the
we develop a fairly good view of the
same way as it had for the last 20 to 30
customer journey and can offer bet-
years and had been very successful,”
ter products and services.” However,
Wong describes. There were many dis-
with so much information to process,
cussions among executives and board
new methods to effectively analyse it
members on whether business should
became necessary. Data science and
carry on as normal “with some minor
particularly machine learning became
optimisations”, or if NTUC Fairprice
a focus for the company. “We need to
should act upon trends spearheaded
make use of and understand data. We
by ecommerce leaders like Amazon.
have about 40 different data scientists w w w.nt uc so c i a l e nte rpri se s. s g . com
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NTUC ENTERPRISE
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“ We are the only ones that don’t have to dream; we already have the capabilities” — Johnny Wong, Group Chief Digital and Technology Officer, NTUC Enterprise
and machine learning engineers working on forecasting, marketing and search engine optimisation,” he says. However, despite the company’s dedication to thoroughly modernising its operations, NTUC Enterprise is always careful to ensure its central concern remains the same: people. In 2019, the company held an initiative to help Singaporeans manage daily struggles such as the cost of living. Wong maintains that if an aspect of digitalisation doesn’t help ordinary
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working people, there is little use for
company within Singapore and beyond.
it. “At FairPrice, our social mission is to
“Whereas some of the big ecommerce
help moderate the cost of living from
players are wanting to go offline, and
groceries products. We help keep the
many of the offline players are dream-
prices down through both traditional
ing of going online, we are the only
optimisations, and also by making use
ones that don’t have to dream; we have
of technology through better demand
the omnichannel capabilities.”
forecasting and reducing waste - other grocery retailers actually benchmark their prices against ours.” It is both the company’s assiduousness and strong online/offline infrastructure that Wong believes will expand the w w w.nt uc so c i a l e nte rpri se s. s g . com
NTUC Enterprise 1 Marina Boulevard #15-09 One Marina Boulevard Singapore T +65 6213 8800 www.ntucsocialenterprises.sg.com