Swarovski's Journey towards Online and Offline Conversion with Predictive Analytics - Build What's Next

6549

Of your peers have already watched this video.

24:00 Minutes

The most insightful time you'll spend today!

Webinar

Swarovski’s Journey towards Online and Offline Conversion with Predictive Analytics

Luxury brand and leader in crystals and glass production, Swarovski has charmed customers with its exquisite collections for over 125 years. To understand their customers better and map their online behaviors, Swarovski had to overcome prediction hurdles as majority of the purchases are not frequent or habitual. They are mostly impulse buys or have no rational behind the purchase in order for the brand to accurately map customers’ interest and delight them with relevant personalization or website customization strategy.

Swarovski used a machine learning (ML) model to predict the most performing SKUs and list of products based on both online and offline indicators to target buyers. A score was assigned to each product in the list and was personalized at the country level that delivered relevant insights. Swarovski is aiming to expand the product listing page to personalize at customer level. Watch the video to dive deep into Swarovski’s data analytics efforts to answer complex questions, reporting and prediction using both online and offline data.

Case Study

How One Company Uses AI and Data Analysis to Boost Revenue

9479

Of your peers have already read this article.

4:30 Minutes

The most insightful time you'll spend today!

With Google Cloud, ViSenze has created a data platform that can ingest and process 500 million records per day and store data for up to one year, while giving non-technical team members the ability to generate detailed, insightful reports.

AI, deep learning, and image recognition is transforming the shopping experience. These technologies enable consumers to use product images or screenshots rather than text to search for similar products. This improves the customer experience and enables retailers with online and offline outlets to provide a genuine omnichannel experience.

The lack of complexity and the ease of use of BigQuery has enabled ViSenze to reduce its data infrastructure and management costs by 30%–50%, and scale up without incurring downtime.

—Renjie Yao, Data Platform Lead, ViSenze

Visual commerce provider ViSenze is helping some of the world’s leading retailers improve conversion rates through image-based search.

The business’s products also enable media companies to use the platform to turn images and videos into engagement opportunities—driving new and incremental revenues.

Created through NExT—a research center established by the National University of Singapore and Tsinghua University of China—ViSenze now operates in the United States, United Kingdom, India, China, and Singapore. The business is backed by Japan-based internet and ecommerce company Rakuten and cross-border investment specialist WI Harper Group.

Growth in SMB and Mobiles

Renjie Yao, Data Platform Lead at ViSenze, sees opportunities for growth in the small-to-medium business sector, where companies do not have the resources to build similar technologies, and with mobile device OEMs to integrate ViSenze natively on smartphones.

Phone owners can activate a “shopping lens” on camera and gallery apps to capture an image of a product. They then receive matching results from more than 800 partner merchants and retailers and can then click through to product pages on partner apps or mobile websites. Alternatively, they may use a photo to compare products sold on different sites or shop matching styles.

“Our research found Google Cloud provided a complete, integrated ecosystem rather than a disparate collection of tools and components, and so was ideal for our needs.”

—Renjie Yao, Data Platform Lead, ViSenze

The ViSenze API analyzes the contents of a selected or clicked image and sends the information back to the organization’s visual commerce platform. The platform feeds back similar results based on that information.

The ViSenze offering also extends to image analysis for the tagging of product attributes—such as a white turtleneck cardigan with full sleeves—to provide an improved search experience.

Data Vital to ViSenze

Capturing and analyzing large volumes of data is integral to ViSenze. “We have to understand how consumers interact with our customers’ ecommerce websites and apps,” says Yao. “For example, we need to know who has looked at a particular pair of jeans on a website and whether that visit led to a conversion. We can then tell that customer whether they need to make more stock available.”

ViSenze also relies on data to provide high-quality training for its image recognition models and its domain-specific models for online retail.

Protect Customer Data

Data is vital to ViSenze—but customer privacy is most important. “All the data we collect is transparent to our customers, meaning they can decide what they do not want us to collect. In addition, all personal data processing complies with privacy protection regulations in each region, such as the General Data Protection Regulation in Europe.”

A Quick Move to the Cloud

ViSenze started operations using servers, storage, networking, and associated systems in an on-premises data center operated by NExT.

However, to support rapid growth, the business decided to move its workloads to the cloud. ViSenze opted for a multi-cloud architecture, using in part a Google Cloud data infrastructure.

“Our research found Google Cloud provided a complete, integrated ecosystem rather than a disparate collection of tools and components, and so was ideal for our needs,” says Yao. “We could connect different components with the click of a mouse.” Further, the business found it could easily configure rules and pipelines to route data logs to relevant Google Cloud services.

The review found Google Cloud’s extensive managed services would also remove administration and maintenance tasks from ViSenze’s in-house technology team—freeing team members to focus on more valuable tasks.

In addition, Google Cloud provided the security features—including custom hardware running hardened operating systems and file systems and encryption of data at rest and in transit—needed to protect sensitive information. Finally, the location of Google Cloud regions in several countries would enable the business to meet regulatory and data sovereignty requirements.

A Three-Month Implementation

ViSenze opted to move to Google Cloud in mid-2017 and completed a three-month implementation using internal resources. “The process was very smooth and intuitive, and we had no problems building our entire data platform within Google Cloud,” says Yao.

The business now uses an architecture comprising Google Kubernetes Engine to manage and orchestrate Docker containers running in Google Cloud Platform; BigQuery to provide an analytics data warehouse, with Google Data Studio providing customizable visualization and reports; Stackdriver to monitor and manage virtual machine instances and services inside Google Cloud; Cloud SQL to manage its relational databases for real-time analytics; Compute Engine to provide compute resources; Cloud Storage to store files and objects; Cloud Pub/Sub to provide real-time messaging between applications; and Cloud Functions to build event-driven applications.

After collecting the request logs of users in virtual machine instances and Docker containers, ViSenze distributes them in three directions. “We export raw logs into Cloud Pub/Sub for indexing inside an Elasticsearch search engine, and to a BigQuery data warehouse for further analytics,” explains Yao. “We also use Cloud Functions-created applications to obtain the logs from Cloud Pub/Sub to perform some real-time calculations.”

“We are currently using Airflow workflow management on Compute Engine as our hosted ETL platform, but are likely to move to Cloud Composer in future.”

500 Million Records Per Day

With Google Cloud providing its data infrastructure, ViSenze is well positioned to meet internal and customer demands for more granular insights. The business is now processing 500 million records per day through BigQuery and saves up to one year’s aggregated data—excluding any personal data—in the data warehouse for analysis.

The nature of ViSenze’s business means most reports are generated for data processed on an hourly, daily, or monthly basis. “BigQuery is extremely stable and performance optimized, regardless of the volume of data it processes,” says Yao. “Across BigQuery and other Google Cloud Platform services, we’ve recorded 99.99% availability over the past year.”

The lack of complexity and the ease of use of BigQuery has enabled ViSenze to reduce its data infrastructure and management costs by 30%–50%, and scale up without incurring downtime.

“With BigQuery, we have saved the equivalent of two full-time engineers and now need only half of one person’s time to maintain our whole data platform,” says Yao.

“In addition, BigQuery integrates closely with Data Studio, enabling non-technical people in our product and business teams to create dynamic, detailed analysis dashboards. We now use Data Studio to create nearly 50 separate reports.”

The business has now grown to offer access to more than 1 billion users and a listing of more than 400 million purchasable products.

Next Steps

ViSenze is now researching the potential of the Cloud AutoML suite of machine learning products to improve the training of its models and run a fully managed NoSQL database through Cloud Datastore.

“A NoSQL database service is the only missing piece of our architecture for now, and using Cloud Datastore would enable us to focus almost exclusively on our business,” says Yao. “With Google Cloud Platform, we are ideally positioned to continue providing support to our business team and help them continue expanding into new markets.

“In addition, we can help retailers and consumers to unlock the potential of the web and apps to transform the purchasing experience.”

Case Study

AgroStar: Small farms in India getting big help from the cloud

13264

Of your peers have already read this article.

3:30 Minutes

The most insightful time you'll spend today!

AgroStar launched a multilingual mobile app using Google Cloud Platform that is helping to boost crop yields and increase income for small farmers in India.

AgroStar has launched a cloud-based mobile app that is helping to boost crop yields and encourage best practices for small farmers in India. Launched as an on-premises ecommerce platform selling farm tools in 2008, the firm turned to Google Cloud Platform (GCP) to expand its offering. It now uses cloud-based analytics and is deploying ML models to provide timely advice in five languages on everything from seed optimization, crop rotation, and soil nutrition to pest control.

2018 survey underscored the demand for agricultural planning for Indian farmers. While farming remains a dominant sector in India, employing half of its labor force, 70 percent of small farmers – those cultivating fewer than three acres – said their crops are damaged by unforeseen weather and pests. An even higher number – 74 percent – say they lack access to farming-related information.

Widening that gap is the relative lack of access to new, higher yield seeds and improved soil analyses for small farmers, who must otherwise rely on traditional methods. “It could take a few years for innovative information to trickle down from universities to small, grassroots farmers,” says Pritesh Gudge, AgroStar Software Engineer. “Today, just by clicking through our Android application, farmers learn about new, effective farming practices and receive advice customized to their crop and soil.”

Connecting a million farmers in the cloud

Operating in the Indian states of Gujarat, Maharashtra, Rajasthan, Orissa, Bihar, and Karnataka, AgroStar is closing the knowledge gap with a full-service, cloud-based SaaS solution – the only one of its kind in India. It combines agronomy, data science, and analytics to help farmers by providing a variety of resources.

AgroStar has reached over a million farmers through its Android app, the AgroStar Agri-Doctor. The mobile client is available as a web-based or full-featured native app. Both provide access to the firm’s knowledge base hosted on GCP, a Q&A forum that connects farmers to each other to help understand and better solve problems and to learn about innovative practices and products. Farmers can also click through to follow local and national market trends that help forecast crop prices.

In addition to the self-service knowledge base, AgroStar provides access to agronomy experts who use cloud-based analytics tools and historical data to provide season-and locale-specific advice to each farmer. “We are now tracking thousands of calls in 5 languages each day,” says Pritesh.

The AgroStar app also provides links to purchase and then track the delivery of farm tools and supplies such as cultivators and fertilizers. An in-house platform manages fulfillment centers and a doorstep delivery network simplifies the supply chain while giving farmers what they need, when they need it. By procuring directly from the manufacturers and primary distributors of farm supplies, Agrostar is achieving cost savings, which it passes on to farmers.

Build fast, pivot faster

From the start, the human and environmental variables of farming in India, not to mention the volume of AgroStar’s few hundred thousand monthly active users, made a highly scalable cloud-based solution inevitable. Farmers rely on the firm’s Agri-Doctor app to provide advice in multiple languages on topics that range widely throughout three growing seasons, each with distinct crop nutrition and rotation cycles and farm implementation requirements.

“For farmers, the focus keeps changing every month, and every season,” says Pritesh. “To serve our growing community, we needed a platform that could process images at high volume, fulfill tools and seed orders across thousands of miles, and respond to multilingual queries. We quickly moved away from spreadsheets and server-based solutions – we needed to build fast and pivot faster.”

Ending late-night deployments

The firm’s first cloud experience was with an AWS solution. At the time, AWS was the only cloud provider in India, but AgroStar wanted to find a solution that was easier to use and offered better integration with Android devices. “Deployment and processing costs were very high, and the developer tools and documentation were not as intuitive as we needed,” says Pritesh.

When GCP service arrived in India in October 2017, AgroStar embarked on a platform re-implementation that made possible dramatic changes in the way it developed and deployed its solution. Using Google Kubernetes Engine (GKE) for crop advice management and Compute Engine for its production application services, the firm built the backend for the Agri-Doctor discussion forum in only three weeks. The platform’s microservice architecture is implemented in Python and Golang and deployed on GCP.

AgroStar began to realize significant efficiencies in its build, deploy, and test cycles. “We previously needed to work overnight to deploy to production,” says Pritesh. “Now using Google for Kubernetes containers and a rolling update strategy, we can deploy during the day without any problems or interruptions to service.”

The move to GCP streamlined AgroStar’s stack. “We were running 12 independent instances on AWS,” says Pritesh. “With Google Kubernetes Engine, we are deployed on a single cluster at a cost savings of $1,300 per month and growing.”

Improving customer response times by 85 percent

With a managed deployment capability, AgroStar can devote more time and resources to executing on its platform and Agri-Doctor app development plan. A strategic goal was managing customer response times as the firm grew its base. GCP has helped the firm meet that goal, achieving an 85 percent improvement in customer response times even as traffic grew significantly.

“With our on-premises solution, we could handle around 100 customers daily, which took 30 to 50 minutes for each customer,” says Pritesh. “We now handle thousands of customers daily, taking only 4 to 5 minutes for each one.”

AgroStar used Firebase to implement its Agri-Doctor app. A real-time cloud database, Firebase provides an API that enables the Agri-Doctor advice forum to be synchronized across all its far-flung mobile clients, effectively sharing knowledge base updates with one million users in near real time.

Using cloud tools to manage and monitor

Cloud Pub/Sub, Kafka, and Cloud Dataflow manage data ingestion and queueing of event and transaction data to the analytics layer. BigQuery fetches and persists data to Cloud StorageCloud SQL and dashboards powered by Tableau deliver farmer crop and soil profiles within minutes.

Cloud IAM helps AgroStar control access to all its cloud resources. And Stackdriver, the integrated logging aggregation capability for GCP, helps monitor and speed debugging on every tier of the AgroStar solution.

Machine learning to enhance yields

AgroStar is developing a variety of ML components to improve responsiveness and extend its platform offerings.

To speed up the diagnosis of and treatment for crop blight, AgroStar is building a deep learning pipeline using TensorFlow. The pipeline relies on GoogLeNet models that use multi-layered convolutional visual pattern recognition. It will assess uploaded images to support a disease-detection capability on the mobile app. Based on the commercially successful AI algorithms that automated postal code processing, GoogLeNet offers improved performance and computational efficiencies by using a creative layering technique that distinguishes them from older, sequential recognition engines.

To improve its customer search experience, AgroStar is developing an ML pipeline that shrinks fetch times by suggesting tags mapped to stored data. Processed using TPUs, Cloud Natural Language and Video AI, the tags provide a metadata layer that supports queries in any of the ten natural languages that AgroStar farmers can use.

The AgroStar search pipeline consists of Long Short-Term Memory (LSTM) models of Recurrent Neural Networks. Recurrent networks exhibit “memory” through iterative processing and are distinguished from feedforward networks by a feedback loop connected to their past decisions, ingesting their own outputs moment after moment as input.

Implementing a recommendation engine

The firm is also adapting the Random Forests TensorFlow AI model to develop a crop and product recommendation engine. The model is trained by consuming numerical (rainfall, humidity, water availability per acre) and categorical (soil type, water sources) parameters to suggest appropriate products by season, region, and locale.

To simplify the product suggestion experience, AgroStar developers are testing Cloud Dialogflow, the Google Cloud conversational interface, to build a chatbot capability into its mobile app. The bot will track a farmer’s crop schedules and answer simple questions by linking to the recommendation engine.

AgroStar is also extending its analytics platform with AI-powered sales planning and forecasting. Using linear regression models implemented in TensorFlow and powered by Cloud ML Engine, the capability will enhance supply chain logistics as the company scales its operations across India.

To provide a credit on-demand offering for a range of seed-to-harvest cycle products, AgroStar is attempting to use Vision API to create an AI model that will convert uploaded photos of customer application records into standard data formats. The firm’s credit policy features a grace period in which farmers begin paying back loans after harvested crops go to market.

A versatile and friendly development ecosystem

AgroStar credits the convivial tools and documentation that GCP offers and its incremental, pay-as-you-go pricing model for both the firm’s success and its ability to manage growth.

“What Google Cloud offers is extremely good documentation and extremely simple-to-use tools and interfaces across all services,” says Pritesh. “It helped us initially deploy our platform and at every scale that we have required since then, and its cost effectiveness enabled us to staff up to meet new feature milestones.”

Blog

Unifying Data and AI: Bringing Unstructured Data Analytics to BigQuery

4190

Of your peers have already read this article.

2:30 Minutes

The most insightful time you'll spend today!

At Next '22, Team Google announced a new table type in BigQuery that provides a structured record interface for unstructured data stored in Google Cloud Storage. This enables you to directly run analytics and machine learning on different file types.

Over one third of organizations believe that data analytics and machine learning have the most potential to significantly alter the way they run business over the next 3 to 5 years. However, only 26% of organizations are data driven. One of the biggest reasons for this gap is that a major portion of the data generated today is unstructured, which includes images, documents, and videos. It is estimated to cover roughly up to 80% of all data, which has so far remained untapped by organizations.

One of the goals of Google’s data cloud is to help customers realize value from data of all types and formats. Earlier this year, we announced BigLake, which unifies data lakes and warehouses under a single management framework, enabling you to analyze, search, secure, govern and share unstructured data using BigQuery.

At Next ‘22, we announced the preview of object tables, a new table type in BigQuery that provides a structured record interface for unstructured data stored in Google Cloud Storage. This enables you to directly run analytics and machine learning on images, audio, documents and other file types using existing frameworks like SQL and remote functions natively in BigQuery itself. Object tables also extend our best practices of securing, sharing and governing structured data to unstructured, without needing to learn or deploy new tools.

Directly process unstructured data using BigQuery ML

Object tables contain metadata such as URI (Uniform Resource Identifier), content type, and size that can be queried just like other BigQuery tables. You can then derive inferences using machine learning models on unstructured data with BigQuery ML. As part of preview, you can import open source TensorFlow Hub image models, or your own custom models to annotate the images. Very soon, we plan to enable this for audio, video, text and many other formats, and pre-trained models to enable out-of-the box analysis. Check out this video to learn more and watch a demo.

Create an object table

CREATE EXTERNAL TABLE my_dataset.object_table
WITH CONNECTION us.my_connection
OPTIONS(uris=["gs://mybucket/images/*.jpg"],
object_metadata="SIMPLE", metadata_cache_mode="AUTOMATIC");
​
# Generate inferences with BQML
SELECT * FROM ML.PREDICT(
MODEL my_dataset.vision_model,
(SELECT ML.DECODE_IMAGE(data) AS img FROM my_dataset.object_table)
);

By analyzing unstructured data natively in BigQuery, businesses can

  • Eliminate manual effort as pre-processing steps such as tuning image sizes to model requirements are automated
  • Leverage the simple and familiar SQL interface to quickly gain insights
  • Save costs by utilizing existing BigQuery slots without needing to provision new forms of compute

Adswerve is a leading Google Marketing, Analytics and Cloud partner on a mission to humanize data. Twiddy & Co. is Adswerve’s client – a vacation rental company in North Carolina. By combining structured and unstructured data, Twiddy and Adswerve used BigQuery ML to analyze images of rental listings and predict the click-through rate, enabling data-driven photo editorial decisions.

“Twiddy now has the capability to use advanced image analysis to stay competitive in an ever changing landscape of vacation rental providers – and can do this using their in-house SQL skills.” said Pat Grady, Technology Evangelist, Adswerve

Process unstructured data using remote functions

Customers today use remote functions (UDFs) to process structured data for languages and libraries that are not supported in BigQuery. We are extending this capability to process unstructured data using object tables.

Object tables provide signed URLs to allow remote UDFs running on Cloud Functions or Cloud Run to process the object table content. This is particularly useful for running Google’s pre-trained AI models, including Vision AI, Speech-to-Text, Document AI, open source libraries such as Apache Tika, or deploying your own custom models where performance SLAs are important.

Here’s an example of an object table being created over PDF files that are parsed using an open source library running as a remote UDF.

SELECT uri, extract_title(samples.parse_tika(signed_url)) AS title<br>FROM EXTERNAL_OBJECT_TRANSFORM(TABLE pdf_files_object_table,<br>["SIGNED_URL"]);


Extending more BigQuery capabilities to unstructured data

Business intelligence – The results of analyzing unstructured data either directly in BigQuery ML or via UDFs can be combined with your structured data to build unified reports using Looker Studio (at no charge), Looker or any of your preferred BI solutions. This allows you to gain more comprehensive business insights. For example, online retailers can analyze product return rates by correlating them with the images of defective products. Similarly, digital advertisers can correlate ad performance with various attributes of ad creatives to make more informed decisions.

BigQuery search index – Customers are increasingly using the search functionality of BigQuery to power search use cases. These capabilities now extend to unstructured data analytics as well. Whether you use BigQueryML to produce inference on images or use remote UDFs with Doc AI to produce document extraction, the results can now be search indexed and used to support search access patterns.

Here’s an example of search index on data that is parsed from PDF files:

CREATE SEARCH INDEX my_index ON pdf_text_extract(ALL COLUMNS);
​
SELECT * FROM pdf_text_extract WHERE SEARCH(pdf_text, "Google");

Security and governance – We are extending BigQuery’s row-level security capabilities to help you secure objects in Google Cloud Storage. By securing specific rows in an object table, you can restrict the ability of end users to retrieve the signed URLs of corresponding URIs present in the table. This is a shared responsibility security model, for which administrators need to ensure that end users don’t have direct access to Google Cloud Storage, and use signed URLs from object tables as the only access mechanism.

Here’s an example of a policy for PII images that are secured to be first processed through a blur pipeline:

CREATE ROW ACCESS POLICY pii_data ON object_table_images
GRANT TO ("group:admin@example.com")
FILTER USING (ARRAY_LENGTH(metadata)=1 AND
metadata[OFFSET(0)].name="face_detected")

Soon, Dataplex will support object tables, allowing you to automatically create object tables in BigQuery and manage and govern unstructured data at scale.

Data sharing – You can now use Analytics Hub to share unstructured data with partners, customers and suppliers while not compromising on security and governance. Subscribers can consume the rows of object tables that are shared with them, and use signed URLs for unstructured data objects.

Getting Started

Submit this form to try these new capabilities that unlock the power of your unstructured data in BigQuery. Watch this demo to learn more about these new capabilities.

Special thanks to engineering leaders Amir Hormati, Justin Levandoski and Yuri Volobuev for contributing to this post.

Case Study

World’s Largest Online-only Grocery Retailer Uses AI to Figure Which Customers Need Most Attention

9478

Of your peers have already read this article.

4:20 Minutes

The most insightful time you'll spend today!

UK-based Ocado uses machine learning to classify customer emails to fast-track urgent cases. It also discovered that 7% of its emails didn't require a response at all, which means call center representatives now have more time to devote to higher priority messages.

In the United Kingdom, the popularity of online grocery shopping is expected to surge from about 6% of the market today to 9% by 2021, according to market research firm Mintel. One of the pioneers of online-only grocery retailing is Ocado, based in Hatfield, Hertfordshire in the U.K. Since starting commercial deliveries in 2002, the company has grown to 600,000 active customers, 260,000 weekly orders, and £1.39 billion in annual revenue.

Ocado takes supermarket trips out of the equation by enabling shoppers to purchase items online through its convenient web and mobile applications. Items are then picked and packed in automated warehouses and shipped directly to customers in a one-hour time slot of their choosing. Ocado’s delivery punctuality is 95%, order accuracy is 99%, and its service footprint now reaches more than 70% of the U.K. population.

“Google Cloud Platform gives us the flexibility and performance to tackle the large and complex data challenges unique to our business.”

Paul Clarke, Chief Technology Officer, Ocado

The company achieved its success by building in-house almost all the technology and automation that powers its end-to-end e-commerce, fulfillment, and logistics platform. Ocado also developed a new platform, the Ocado Smart Platform (OSP), which offers large brick-and-mortar grocery retailers around the world access to a best-in-class solution for online grocery.

Democratizing machine learning

The shopping journey for online grocery retailing differs significantly from other e-businesses. Customers often buy dozens of products at once, a single household may have multiple buyers using multiple devices, and product shelf life may only be a couple of days.

“We often say that having built an end-to-end platform that can do online grocery scalably and profitably, we can do other forms of online retail; but the reverse does not necessarily follow,” says Paul Clarke, Chief Technology Officer at Ocado. “Google Cloud Platform gives us the flexibility and performance to tackle the large and complex data challenges unique to our business.”

The Ocado business model takes advantage of consumers’ shifting preferences and the links between digital technology and shopping experiences.

“Google Cloud Machine Learning Engine gives us the agility we need. Our developers were able to try out TensorFlow and see firsthand the benefits of machine learning in the cloud.”

Paul Clarke, Chief Technology Officer, Ocado

The company has been building machine learning into its systems for over five years. Until recently, Ocado machine learning applications required specialist data scientists, typically with PhDs in machine learning, who would build these solutions from the ground up. It also required the specialist who set up the system and costly on-premises infrastructure to train and run these systems.

However, working with Google as a private alpha testing site for Google Cloud Machine Learning Engine accelerated its adoption of artificial intelligence (AI).

“We’ve been talking about how the cloud could democratize AI for some time,” says Paul. “Google Cloud Machine Learning Engine gives us the agility we need. Our developers were able to try out TensorFlow and see firsthand the benefits of machine learning in the cloud.”

TensorFlow is an open source software library for machine learning developed by the Google Brain team. Ocado developers, engineers, and data scientists now use TensorFlow for many of their machine learning projects. They deploy the models they build on Google Cloud Machine Learning Engine, which lets them train models faster across servers, desktop computers, and mobile devices through a single application program interface (API). Additionally, Google Cloud Machine Learning Engine integrates easily with the other Google Cloud Platform products used widely at Ocado.

What do customers really want?

One of the first TensorFlow models Ocado created was a machine learning algorithm that tags and categorizes customer emails and then prioritizes them for response.

The contact center receives thousands of emails each day and Ocado wanted to automate determining which ones needed to be answered immediately and which ones could wait.

For example, a first-time customer expressing their delight in using Ocado doesn’t need to be responded to with the same urgency as a customer who is missing an item from their order or who won’t be home to receive the delivery.

“Enabling agents to respond without having to sort through less-urgent emails improves Ocado’s responsiveness and customer service.”

James Donkin, General Manager, Ocado

“We get a lot of emails from customers saying, ‘Our service was great,’ or ‘The driver was very courteous,'” says James Donkin, General Manager, Ocado. “But when issues like weather or road conditions potentially affect delivery, we often get surges of urgent questions. Enabling agents to respond without having to sort through less-urgent emails improves Ocado’s responsiveness and customer service.”

Using Google Cloud Machine Learning Engine, TensorFlow, and a large data set culled from several years’ worth of manually categorized customer emails, Ocado experimented on which kind of neural network architecture would best prioritize emails. After testing its models, Ocado implemented the highest-performing one and has been able to respond to urgent messages four times faster. The company also discovered that 7% of its emails don’t require a response at all, which means call center representatives now have more time to devote to higher priority messages.

“Without Google Cloud Machine Learning Engine, it would have been a lot harder to succeed on a project like email classification,” says Roland Plaszowski, who has recently managed several big data projects and initiatives at Ocado.

“Even if we invested significantly in infrastructure, it would be difficult to manage because of the computational intensity. It’s challenging and expensive to run machine learning projects at the same time without infrastructure that you can scale easily.”

Ocado also uses machine learning to predict customer behavior and improve experiences. By analyzing order data, Ocado makes shopping as frictionless as possible. For example, the ordering system can pre-populate customers’ shopping carts with items they are most likely to purchase, remind customers about items they may have forgotten, and notify them of multi-buy offers they haven’t completed, for example, only buying one of a buy one, get one free offer. Based on machine learning from previous purchase data, the Ocado system can also offer new products that are likely to delight customers.

“You will regularly see items that are more personally relevant to you instead of items that are being promoted more generally,” says James. “I’m a vegetarian, so I’m offered specials for vegetarian products that I normally buy and new ones that I’ve never bought. I’m also less likely to see things that I’m not interested in.”

Machines and machine learning

Within the Internet of Things (IoT), Ocado is looking to enhance its warehouse robots with machine learning. An integral part of the OSP, thousands of robots continually stream data into Google Cloud Storage and Google BigQuery.

Ocado data scientists apply machine learning to create a type of swarm intelligence that enables warehouse robots to work cooperatively to achieve a common goal. Projects include modules to search robot telemetry data, such as whether a battery pack is operating within standard tolerances or whether firmware has been successfully loaded, and use it to optimize maintenance schedules or detect patterns in wear and tear.

“Another challenge we’re looking at is how to embed machine learning directly into robots so they become smarter in terms of self-testing, exception handling, and error recovery,” says Paul. “This is a challenging combination of IoT, data analytics, and machine learning that we believe Google BigQuery and Google Cloud Machine Learning are particularly well suited to helping Ocado achieve.”

The company also discovered that 7% of its emails don’t require a response at all, which means call center representatives now have more time to devote to higher priority messages.

Scaling for new business

Scalability is also a major reason behind some of Ocado’s cloud initiatives, including the migration of all its on-premises data to the cloud. Ocado wanted to improve customer experiences, empower business teams with greater insight, and reduce IT overhead, so it consolidated onto Google Cloud Platform.

“The old databases just weren’t fast enough,” says Paul. “We needed a solution that could scale with the amount of data we generate and how we use it. Google Cloud Storage and Google BigQuery now provide the backbone, from a data point of view, for the Ocado Smart Platform.”

Ocado estimates its business, product, and transaction data is approaching two petabytes. Combining customer and supply chain data helps both internal Ocado operations and the company’s ambitions to commercialize OSP.

“When compared with other options for expansion internationally, selling OSP as a managed service lets us turn companies that could have been competitors into customers,” says Paul. “We want to build OSP once and then turn it on for multiple business-to-business customers.”

Each time Ocado adds a new hosting customer to OSP, it will launch a customized instance to fit that customer’s requirements. The capacity and performance of each new OSP instance must be able to scale quickly as the backend platform for established retailers with large numbers of products, customers, and transactions.

Ocado’s first OSP customer, Morrisons, is already benefiting from this first-of-a kind solution. Morrisons is one of the UK’s four largest supermarkets and uses OSP to power its online retail business. Using Google Cloud Platform, Ocado has stored, processed, and analyzed terabytes of Morrisons’ data using a dedicated data lake and Google BigQuery.

In addition to using Google Cloud Platform for OSP, Ocado also adopted it for its own online grocery retail business operation. Ocado originally used the Apache Spark and Apache Hadoop open-source frameworks on Google Compute Engine for its data platform. Moving to Google BigQuery frees Ocado business analysts from the complex query setup and workflows associated with Spark and Hadoop. Plus, it lets Ocado share data analytics with suppliers and partners.

Google BigQuery is well integrated with TensorFlow on Google Cloud Machine Learning Engine and Google Cloud Dataproc, the Apache Spark and Apache Hadoop service that lets Ocado use open source data tools for batch processing, querying, streaming, and machine learning. Google Cloud Dataflow and Google Cloud Dataproc handle cluster management, and provide an easy-to-use framework so developers can spend less time and money on administration and more time on delivering valuable business features.

Switching from Hadoop to Google BigQuery revealed a series of cost and performance improvements. For example, Ocado no longer needed to decide how many instances to bring up in a cluster or wait for the instances to spin up. Google handled everything.

“We simply ran our queries and paid for the resources that we use,” adds Roland. “One big win with Google BigQuery is we don’t have to do maintenance. Best of all, we saw Google BigQuery outperform our Hadoop cluster by over 80 times on our largest dataset, and for only two-thirds the cost.”

Case Study

Candidate360: Google Cloud and Deloitte Product Improves Universities’ Enrollment and Admission Processes

4819

Of your peers have already read this article.

2:00 Minutes

The most insightful time you'll spend today!

Candidate360, a product of Google Cloud and Deloitte pave way for universities and higher educational institutions to manage admissions and recruitment remotely. Michigan State University recently deployed a student enrollment strategy with Candidate360 that helped them achieve enrollment increase by over 20% and generate $5M in additional net tuition revenue in a single year. Read on to learn more about the solution's real-time and predictive insights gave the university an understanding of the enrollment pipeline as well as leverage AI and predictive analytics functionalities to optimze the overall process.

Given the May 1 deadline for students to enroll, colleges and universities have been carefully watching the numbers of students who put down deposits and commit to a school. Like nearly every other sector in the U.S., colleges and universities have been hit hard by the pandemic and economic downturn, making enrollment numbers more important than ever to maintain financial health and meet student body goals. Technology and AI-based models are providing a way for institutions to manage their admissions data efficiently and cost-effectively.

For example, an admissions officer may want to offset drops in international or out-of-state enrollment by attracting local talent so they can achieve their target class profile. Additionally, institutions have sought to increase the availability and access of higher ed and are intentionally recruiting more low-income and underrepresented populations. New technologies allow admissions officers to have a stronger grasp of the incoming class’ details. With the press of a button, users can switch between overall, in-state, out-of-state, and international enrollment figures. The “How Do Regions Compare to Last Year” tile lets users view the percentage of change and the total number of candidates by region, comparing 2020 and 2021 side-by-side. With access to data, regional recruiters can focus on individual candidates and develop a plan to change the numbers.

An innovative enrollment strategy at MSU

Michigan State University was looking to improve how they managed the recruiting process. They implemented an enrollment strategy that saw their out-of-state enrollment increase by over 20% and generate $5M in additional net tuition revenue in a single year. “We knew we needed better real-time and predictive insights about our enrollment pipeline, and we understood the value of bringing in external data on prospects, but we couldn’t do that by ourselves. 

The solution really helped us be innovative with our analytics and improve our enrollment outcomes,” said someone close to the project at Michigan State University.

Data-driven insights support informed enrollment decisions

Student admissions and marketing groups are turning to Google Cloud and Deloitte to help support their enrollment decisions with predictive, actionable insights across recruiting and admissions processes. The partnership resulted in Candidate360, a solution that helps institutions process and analyze large amounts of data and develop meaningful insights to support their enrollment goals and mission. Part of Google’s Student Success Services offerings, Candidate360 uses artificial intelligence and predictive analytics to help higher education institutions improve enrollment and matriculation, as well as optimize financial aid decisions.

With nine AI/ML models, Candidate360’s capabilities help university leaders, enrollment teams and recruiters do things like:

  • Identify regions with clusters of candidates or see dips in application numbers
  • Deploy marketing resources and admissions staff to the right geographic areas 
  • Understand applicants’ needs in terms of academics, safety, and social activities
  • Make intelligent financial aid decisions to recruit and retain talented students from underrepresented communities
  • Respond faster to the students who are most likely to be accepted and then go on to enroll, stay enrolled, and graduate
  • Work towards the ideal class composition and increase competitiveness with peer institutions

Enhancing the student experience

Enrollment is the first key touchpoint with incoming students, and tools like Candidate360 can help institutions build a student preferences profile throughout the application process. They can understand each student’s prospective major, areas of interest, dream job, and more, allowing colleges and universities to personalize recommendations and advising for enrolled students.

With integrated toolsets, Candidate360 and Google Cloud’s Student Success Services can help colleges and universities emerge from the pandemic stronger than ever. 

To see a demonstration of Candidate360 in action, contact our sales team. 

More Relevant Stories for Your Company

Blog

Enhance Dev Workflows with Duet AI’s AI-Powered Support

Last week we announced the private preview of Duet AI for Google Cloud, an always-on AI collaborator that uses generative AI to provide help to developers and cloud users. This article gives you a detailed look at Duet AI for developers, showing how Duet AI can help provide developers with real-time code

Explainer

Transitioning Kagglers to TPU with TF 2.x

Kaggle has, historically, become synonymous with machine learning competitions but it's much more than that. Kaggle is a data science platform. Over 5 million data scientists from all over the world come to Kaggle to not only not only participate in machine learning competitions but to learn data science build

Explainer

How Google Secures its Data Centers: Watch Video

Security is in the DNA of Google Cloud's dozens of data centers, complex network and workloads scattered the globe. Take a tour to the nucleus of data center's six layers of physical security designed to keep unauthorized access at bay, and also learn about Google Cloud's security fundamentals to leverage

Explainer

Driving Business Transformation in Healthcare Using Google Cloud and AI/ML

Before the COVID-19 pandemic, when you thought of healthcare and AI, a number of ideas sprang to mind. But the world, especially as it relates to healthcare has seen a completely different type of transformation as a result of COVID-19. This video is about how Google Cloud is helping organizations

SHOW MORE STORIES