Connected Data is the Lifeblood of Today’s Retailers: IDC’s 2022 Research
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For a look ahead at the trends that will animate the retail industry this year, let’s take a look back at the 2022 National Retail Federation (NRF) “Big Show” in NYC.
Attendees at January’s event were treated to tangible examples of how retail challenges are being solved today, including new solutions to help them parse customer expectations and buying patterns, adapt stores into omni-channel experience hubs, and improve data visibility and actionability.
NRF 2022 also took the “omni-channel everything” theme of last year’s show to the logical next level: Enabling the best hybrid experiences. The message came through loud and clear of the importance of integration and interoperability in this new hybrid world – making everything work well together.
The need for modern digital infrastructure to enable this blending of physical and digital retail smoothly is paramount. To that end, technology vendors demonstrated how digital transformation initiatives, such as contactless and real time IoT and mobile applications, need to be built on cloud, edge, and secure connectivity to allow retailers to achieve the modern seamless hybrid retail that today’s consumer wants.
Other prominent themes and technologies highlighted at NRF included: extending engagement in the metaverse, sustainability, physical and digital security, and the agility and adaptability imperative.
The Metaverse and Hybrid (Omni-channel) Experiences
Today, the metaverse is an extension of our lives, enhanced by technology, which exists as a series of virtual worlds. In the future, the metaverse will be an interconnected, endless world where digital and physical lives fully converge. Imagine waiting for an appointment at a real booth on the NRF show floor while your avatar roams a fully fleshed-out digital NRF, meeting other virtual attendees, stopping for coffee at the digital Starbucks, and paying for a coffee that an in-the-flesh Starbucks employee brings to them. Digital and physical selves merge seamlessly in the metaverse, as the worlds draw closer together.
In the metaverse, brands have a digital presence, too. Nike filed seven trademarks late last year, including those for “Nike,” “Just Do It,” and its swoosh logo, and posted openings for virtual designer roles, indicating its intent to make and sell virtual branded sneakers and apparel. It subsequently purchased RTFKT Studios, a company that already makes and sells NFTs and digital sneakers. (In one collaboration with teenage artist FEWOCiOUS, the company sold 600 pair/NFTs of sneakers in just six minutes to the tune of more than $3.1 million.)
The metaverse also opens possibilities for gathering data about consumers and product demand. Imagine a sneaker drop in the virtual world. Certain styles of new kicks sell like gangbusters, giving the brand insight into what might sell IRL, intelligence that leads to trend-right production and less inventory headed for markdown or landfills. The metaverse can be a vehicle for more sustainable operations.
The metaverse further bridges the narrowing gap between digital worlds and physical worlds. Most consumers aren’t outfitting an avatar, but they are moving between online and offline and expect retailers to accommodate those hybrid omni-channel journeys seamlessly. Those demands have accelerated around last-mile delivery and experiences such as buying online and picking up in store (BOPIS) or at curbside, shopping in store and returning merchandise online, adding items to a BOPIS purchase when at the store, or communicating a substitution to the third-party grocery delivery service
Hybrid experiences open opportunities to please the consumer in new ways, but they also add expense and complexity. The need to meet this demand while enabling profitability was a major theme behind many of the technologies discussed at NRF. These included artificial intelligence (AI) for recommending the right product, return logistics software for defining and guiding product-specific reverse logistics workflows, order orchestration and fulfillment applications for omni-channel shopping, and last-mile delivery visibility for optimizing customer experience, to name a few. Also on display were task management applications help to improve and optimize in-store employee engagement, as well as touch-free applications to allow for faster payments and customer self-service checkout. RFID continues to improve inventory accuracy and inventory locating on the shelf, throughout the store, and the supply chain.
Sustainability
NRF 2022 saw a strong focus on sustainability. An NRF/IBV study released at the show highlighted the significant embrace of sustainable shopping by consumers. According to the survey, 62% of shoppers are “willing to change their purchasing habits to reduce environmental impacts.” About half indicated a willingness to pay a premium – on average a 70% premium – for sustainable products and brands.
Retailers are working to improve sustainability and reduce carbon footprint across operations by using sustainable sourcing through the supply chain, the store, and even returns. Tech vendors unveiled a variety of solutions enabled by cloud/edge, AI, computer vision, and IoT/RFID to allow retailers to effectively measure and record their environmental efforts, with the goal of reducing their impact.
Several cloud and digital infrastructure providers showcased sustainability clouds and other technology aimed at asset management with the goal of reducing energy consumption, water usage, waste. Examples included using IoT sensors to reduce water usage, optimizing re-use of store assets, and dashboards that allow retailers to accurately monitor and measure carbon output. However, such sustainability solutions can be most successful when running on the next-generation digital infrastructure that helps retailers better compete and differentiate in today’s omni-channel world.
Physical and Digital Security
According to a 2021 NRF survey, 57% of U.S. retailers reported the pandemic led to an increase in organized retail crime, while 50% reported an increase in shoplifting. When IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021) asked retailers which digital infrastructure investments would provide the greatest strategic advantage in 2022, their #1 response was “cybersecurity and recovery investments.”
A wide range of technology vendors acknowledged retailer concerns with regards to security, fraud, and loss prevention:
- Networking, connectivity, and edge vendors highlighted multilayer security solutions that promise to protect data from a range of IoT applications that utilize customer and associate data. Many offer security consulting services to address varied threats including ransomware, retail crime, and loss prevention.
- Security and e-commerce security vendors showcased solutions to prevent fraud and abuse in e-commerce applications as well as omni-channel applications such as BOPIS and curbside pickup, using AI-based analysis for identifying “bad”/risky customers and mitigating risk.
- Cloud vendors highlighted how retail clouds provide consistent, reliable identity management and data security.
- POS/payments/store technology vendors emphasized their ability to handle payments securely from any platform with multifactor tokenization, improved identity techniques such as biometrics and voice authentication, as well as AI-enabled and computer vision solutions for loss prevention at checkout and at the door.
The Agility and Adaptability Imperative
On display at the show were multiple flavors of the digital infrastructure technology that retailers need to achieve agile, personalized, data-driven, integrated seamless operations across the many channels of today’s retail landscape. The emphasis was apt. More than half of retailers plan to boost investment in business agility and operational agility over the next 12 months, according to IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021).
Technology vendors highlighted their connectivity investments to enable business and operational agility and their technology investments for better ease of integration, scalability, and the ability to more easily swap out or mix and match applications with integrated platforms, open systems, hybrid cloud, and retail industry clouds.
Vendors also showed off infrastructure to better harness data while enabling its visibility, maximizing its value, and providing the data-driven personalization essential for competitive advantage and differentiation. Highlights included fast, secure connectivity, 5G and Wifi-6, and edge- and cloud-enabled data and AI platforms to generate real-time insights – all designed to enable today’s omni-channel retail.
Advice for the technology buyer
Retailers should consider these key themes from NRF 2022 when making technology investment decisions for 2022 and beyond. To avoid lagging behind those retailers already moving toward thriving into the future, take action to:
- Enable the seamless, contactless omni-channel approach that today’s consumers want and expect.
- Replace legacy infrastructure that was not built to handle the modern retail environment that requires the agility and adaptability to seamlessly connect rapidly increasing volumes of data securely and more quickly than ever.
Whether sustainability, adaptability, the metaverse, or security are top concerns, addressing business needs holistically and strategically should be job #1.
Continue the conversation by downloading our Transforming retail and CPG markets whitepaper today.
withVR Uses the Power of VR to Prep People with Speech Disorders for Real-life Speaking Situations
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Editor’s note: Meet Gareth Walkom, an entrepreneur dedicated to helping others with speech disorders.
Turning life experience into innovation
Did you know that 3% of Americans have a speech disorder, while 1% of the world’s population have a stutter? Just getting what they need in everyday interactions can be stressful, which intensifies when the stakes are raised during job interviews, presentations, public speaking, and other activities. As a result, some people with speech disorders may avoid conversations and relationships, and risk being denied jobs because of a difference in how they speak.
As a person who stutters, I know firsthand the ableism that people with a speech disorder can encounter in wanting to use their voice in a judgemental world: the frustration of sometimes not being able to say exactly what you want to say and therefore speaking less in speaking situations. And the educational and career opportunities are lost when doors remain closed to us, especially when employers advertise their jobs as requiring someone who speaks the language ‘fluently’.
While researchers still don’t definitively know what causes stuttering, emerging technologies are giving us new and promising pathways for improving the quality of life of people with speech disorders.
That’s why after years of researching and testing potential therapeutic uses of virtual reality, and with the support of the Google for Startups Cloud Program, I founded withVR on International Stuttering Awareness Day (October 22) in 2020. The mission of withVR is to prepare people with speech disorders for real-life speaking situations by utilizing the power of virtual reality.
Working through it
One of the difficulties in adapting to any disability is the opportunity to work through it in a safe and nonjudgmental environment. withVR provides a virtual space for individuals, in collaboration with their speech therapists, to practice real-world speaking scenarios in safe, controlled environments.
Imagine being able to raise your hand in class and give your opinion without hesitation, ordering the meal you want rather than something that’s easier to say, or sit across the table from an avatar of an employer and explain why you are the right person for your dream job. Then further customize the speaking situation and its surroundings to challenge yourself and be ready for anything. That’s what withVR offers individuals and their speech therapists.
Making VR come to life
To bring the withVR vision to life, we are developing applications using the Unity game engine on Google Cloud with integrated Firebase services including authentication, web hosting, storage, and database. It’s a powerful combination that’s enabled us to build industrial-strength applications that we’ve rapidly deployed on a global basis. Today we are already collaborating with 80+ labs, clinics, and hospitals in more than 20 different countries worldwide.
These organizations help us to test and refine a virtual reality application to support people in achieving their speech goals and build comfort through immersive VR experiences using easily available viewers like Google Cardboard.
The application works in conjunction with a web app through which speech therapists configure customized VR scenarios for their patients to use. As no real-life speaking situation is ever exactly the same, customization of VR scenarios is vital. They can construct different scenes, create and script avatars, and through the Google Text-to-Speech API can even choose from hundreds of different voices in a variety of languages. This gives them the flexibility to create many unique speaking situations for their clients no matter where they are in the world.
Progress from the practice sessions is presented through a dashboard that provides therapists with a tool to monitor their clients’ progress and provide feedback and encouragement.
No shortage of support
My founder’s journey has been supported by many passionate people. The Google for Startups Cloud Program has been instrumental in helping us come so far in the first year, and we’ve only scratched the surface of what’s possible. There are many capabilities in Firebase and Google Cloud that we have yet to explore, and through the startup program I now have a Google Mentor who can help guide that exploration.
We also joined the 2Gether-International (2GI) Tech Cohort, which is supported by Google for Startups and is built for and run by entrepreneurs with disabilities. At the end of the 10-week cohort, we finished with a pitch competition, where I was one of six selected founders to pitch in just three minutes. I was very fortunate to win the Best Overall Pitch Award, gaining 10,000 USD in seed funding. This award not only highlights the potential of withVR, but also showcases that anyone can pitch their idea in a short amount of time no matter their difference.
Working with 2GI also gave me the opportunity to collaborate and learn from other founders who have disabilities. It’s a safe space where I don’t have to explain my everyday challenges and can focus on the all-important task of advancing the vision of withVR, while seeing how others use technology in their domain.
Building on a strong foundation
I’m amazed to look back and see what we’ve accomplished in just one year and humbled by the thousands of lives we’ve touched. Every day we receive valuable real-life feedback from people in the field—both clinicians and those with speech differences who benefit from VR therapy. That knowledge tells us that we are heading in the right direction and opening our eyes to new possibilities for where to take withVR. And inspiring us to keep moving ahead.
If you’d like to participate in testing or if you are speech therapist or researcher, please feel free to reach out to us. We’d love to show you how you can contribute to a world where anyone with a speech disorder can truly use their voice in any situation. If you’d like to take part, contact us at hello@withvr.app.
If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.
Know the Leaders of Google Cloud Public Sector Community
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At Google Cloud, being a strategic partner is part of our DNA. Whether it’s listening closely to our customers, helping to build team skills for innovation or simply being there (since we know the cloud is 24/7), we get excited about working hands-on with customers to deliver new solutions.
As we look to solve decades-old challenges with new technologies in workforce productivity, cybersecurity, and artificial intelligence/machine learning, we know that we are only as good as the people behind the technology. Today, we’re proud to spotlight a few of the inspiring folks behind Google Cloud Public Sector and celebrate their recognition in the industry.
Melissa Adamson, Head of Government Channels at Google Cloud, has been named to the highly respected Women of the Channel list for 2021. This annual list recognizes the unique strengths, leadership and achievements of female leaders in the IT channel. The women honored this year pushed forward with comprehensive business plans, marketing initiatives and innovative ideas to support their partners and customers.
Melissa was brought on to build the Public Sector channel from scratch. The initial focus was building the channel for the US government team and has since expanded to include education, Canada and Latin America.
Having a career background at both Microsoft and Accenture, Melissa leveraged her extensive professional network to build the organic partnerships needed to accelerate the Public Sector partner ecosystem. This helped her drive two key wins (US Postal Service and PTO) and personally recruit top cloud partners in the industry. Melissa loves card games and is learning a new language.
Todd Schoeder, Director of Global Public Sector Digital Strategy, was recently featured in the “Top 20 Cloud Executives to Watch in 2021” by Wash Exec. Recognized for his work in helping customers navigate through the impact of COVID-19 and developing innovative solutions to meet mission challenges, he says: “New partnerships are required to solve for the problems of the future. Challenges that were previously thought of as insurmountable, too risky or expensive, are actually quite the opposite — as long as you have the right partner that is working in your best interest with you.”
Josh Marcuse, Head of Strategy & Innovation, received his second Wash100 Award for leading a digital transformation team that works to drive the development of public sector solutions, including cyber defense, smart cities, and public health.
Josh has launched services to support collaborative team operations including Workspace for Government and an artificial intelligence-based customer service platform to support remote work needs. His work also includes leading Google Cloud’s partnerships with organizations to improve data sharing in the public health community, contact tracing activities, and supporting research efforts across national laboratories.
Like Melissa, Josh was brought on to build a new team dedicated to strategy and innovation. This team’s purpose is to bring an intense focus to public sector mission outcomes and the public servants who own them. Josh spent a decade pushing digital modernization and workforce transformation at the U.S. Department of Defense, and co-founded the Federal Innovation Council at the Partnership for Public Service, and now brings that domain expertise to supporting government workers who are driving digital transformation.
Join us in celebrating these folks for their leadership and contributions!
New Google Cloud regions are coming to Asia Pacific
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Digital tools offered by cloud computing are fueling transformation around the world, including in Asia Pacific. In fact, IDC expects that total spending on cloud services in Asia Pacific (excluding Japan) will reach 282 billion USD by 2025.1 To meet growing demand for cloud services in Asia Pacific, we are excited to announce our plans to bring three new Google Cloud regions to Malaysia, Thailand, and New Zealand — on top of six other regions that we previously announced are coming to Berlin, Dammam, Doha, Mexico, Tel Aviv, and Turin.
When they launch, these new regions will join our 34 cloud regions currently in operation around the world — 11 of which are located in Asia Pacific — delivering high-performance services running on the cleanest cloud in the industry. Enterprises across industries, startups, and public sector organizations across Asia Pacific will benefit from key controls that enable them to maintain low latency and the highest security, data residency, and compliance standards, including specific data storage requirements.
“The new Google Cloud regions will help to address organizations’ increasing needs in the area of digital sovereignty and enable more opportunities for digital transformation and innovation in Asia Pacific. With this announcement, Google Cloud is providing customers with more choices in accessing capabilities from local cloud regions while aiding their journeys to hybrid and multi-cloud environments,” said Daphne Chung, Research Director, Cloud Services and Software Research, IDC Asia/Pacific.
What customers and partners are saying
From retail and media & entertainment to financial services and public sector, leading organizations come to Google Cloud as their trusted innovation partner. The new Google Cloud regions in Malaysia, Thailand, and New Zealand will help our customers continue to enable growth and solve their most critical business problems. We will work with our customers to ensure the cloud region fits their evolving needs.
“Kami was born out of the digital native era, where in order to scale globally we needed a partner like Google Cloud who could support us on our ongoing innovation journey. We have since delivered an engaging and dependable experience for millions of teachers and students around the world, so it’s incredibly exciting to hear about the new region coming to New Zealand. This investment from Google Cloud will enable us to deliver services with lower latency to our Kiwi users, which will further elevate and optimize our free premium offering to all New Zealand schools.” – Jordan Thoms, Chief Technology Officer, Kami
“Our customers are at the heart of our business, and helping Kiwis find what they are looking for, faster than ever before, is our key priority. Our collaboration with Google Cloud has been pivotal in ensuring the stability and resilience of our infrastructure, allowing us to deliver world-class experiences to the 650,000 Kiwis that visit our site every day. We welcome Google Cloud’s investment in New Zealand, and are looking forward to more opportunities to partner closely on our technology transformation journey.” – Anders Skoe, CEO, Trade Me
“Digital transformation plays a key role in helping Vodafone deliver better customer experiences and connect all Kiwis. We welcome Google Cloud’s investment in New Zealand and look forward to working together to offer more enriched experiences for local businesses, and the communities we serve,” said Jason Paris, CEO, Vodafone New Zealand
“Our journey with Google Cloud spans almost half a decade, with our most recent partnership and co-innovation initiatives paving the way for AirAsia and Capital A to disrupt the digital platform arena in the same vein as we did airlines. The announcement of a new cloud region that’s coming to Malaysia – and Thailand too if I may add – showcases Google Cloud’s continuous desire to expand its in-region capabilities to complement and support our aspiration of establishing the airasia Super App at the center of our e-commerce, logistics and fintech ecosystem, while enriching the local community and giving all 700 million people in Asean inclusivity, accessibility, and value. I couldn’t be more excited about this massive milestone and the new possibilities that Google Cloud’s growing network of cloud regions will create for us, our peers, and the common man.” – Tony Fernandes, CEO, Capital A
“Google Cloud’s world-class cloud-based analytics and artificial intelligence (AI) tools have enabled Media Prima to embed a digital DNA across our organization, deliver trusted and real-time news updates during peak periods when people need them the most, and implement whole new engagement models like content commerce, thereby allowing us to diversify our revenue streams and remain at the forefront of an industry in transition. By allowing us to place our digital infrastructure and applications even closer to our audiences, this cloud region will supercharge data-driven content production and distribution, and our ability to enrich the lives of Malaysians by informing, entertaining, and engaging them through new and innovative mediums.” – Rafiq Razali, Group Managing Director, Media Prima
“Google Cloud’s global network has been playing an integral role in Krungthai Bank’s adoption of advanced data analytics, cybersecurity, AI, and open banking capabilities to earn and retain the trust of the 40 million Thais who use our digital services to meet their daily financing needs. This new cloud region is a fundamentally important milestone that will help accelerate our continuous digital reinvention and sustainable growth strategy within the local regulatory framework, thereby allowing us to reach and serve Thais at all levels, including unbanked consumers and small business owners, no matter where they may be.” – Payong Srivanich, CEO, Krungthai Bank
“Having migrated our operations and applications onto Google Cloud’s superior data cloud infrastructure, we are already delivering more personalized services and experiences to small business owners, delivery riders, and consumers than ever before – and in a more cost efficient and sustainable way. With the new cloud region, we will be physically closer to the computing resources that Google Cloud has to offer, and able to access cloud technologies in a faster and even more complete way. This will help strengthen our mission: to build a homegrown ‘super app’ that assists smaller players and revitalizes the grassroots economy.” – Thana Thienachariya, Chairman of the Board, Purple Ventures Co., Ltd. (Robinhood)
Delivering a global network
These new cloud regions represent our ongoing commitment to supporting digital transformation across Asia Pacific. We continue to invest in expanding connectivity throughout the region by working with partners in the telecommunications industry to establish subsea cables — including Apricot, Echo, JGA South, INDIGO, and Topaz — and points of presence in major cities.
Learn more about our global cloud infrastructure, including new and upcoming regions.
- Source: Asia/Pacific (Excluding Japan) Whole Cloud Forecast, 2020—2025, Doc # AP47756122, February 2022
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Across industries, CEOs share a top priority—harness technology to jump-start growth, accelerate time to market, and foster innovation. CIOs and other technology leaders recognize that the C-suite depends on them to achieve growth and meet rising expectations for agility.
They increasingly view IT modernization—including migrating to the cloud, adopting new application architectures, and building on cloud-native services—as a way to sustain these goals. To date, however, most companies have not captured the anticipated agility benefits because a number of challenges hinder technology leaders as they push ahead with modernization initiatives.
While many of these challenges are valid, there are some false tradeoffs that can be avoided. New McKinsey research highlights that cloud migration needs to be combined with a comprehensive organizational approach to allow for a much more effective agile transformation. CIOs need to promote the transformation mind-set of focusing on differentiated business value by adopting agile processes, automating policies, and upskilling talent across the entire organization. They need to look beyond technology to change the way their IT organization operates across three foundational elements—people, processes, and policies.
Priorities include upskilling existing talent and creating new roles (such as site reliability engineers, full-stack engineers, and data scientists), revamping procedures by adopting agile
development processes with security integrated into every step, and enforcing policies through automation.
Download this McKinsey research report to understand the practices of leaders versus that of laggards and get the key “unlocks” that can help organizations move to higher levels of business agility as they pursue increased cloud adoption.
Google Cloud’s Autism Career Program to Nurture Neurodiverse Talent
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My passion for neurodiversity began 10 years ago, when I became involved with Els for Autism, an organization that works with children and adults who have autism, as well as their families. At the time, I had a friend who was struggling to find resources for his son with autism. The foundation promotes acceptance and inclusion for people on the spectrum, helping them live independently and find jobs that harness their talents and skills. The organization’s focus on autism in the workplace resonated deeply with me, due to the rich experiences I had working with individuals with autism over the course of my career.
Approximately two percent of the population has autism, but it’s estimated this number is actually quite low as many individuals go undiagnosed. Of those that have been diagnosed, only 29% have had any sort of paid work in their lives. Personally, I find this tragic, because individuals with autism can be highly-functioning and contributing professionals in any organization. Too often, though, the interview process can pose challenges due to unconscious bias from a hiring manager or interviewer, for example, if the candidate doesn’t look an interviewer in the eyes or asks for additional time to complete a test. This bias often unintentionally marginalizes great candidates and means businesses miss out on valuable talent who can contribute and enrich the workplace.
Introducing Google Cloud’s Autism Career Program
It is in that spirit that I am excited to announce the launch of Google Cloud’s Autism Career Program, designed to hire and support more talented people with autism in the rapidly growing cloud industry.
We are working with experts from the Stanford Neurodiversity Project (part of the Stanford University School of Medicine), which provides consultation services to employers to advise on opportunities and success metrics for neurodiverse individuals in the workplace.
One key pillar of our program is to train up to 500 Google Cloud managers and others who are involved in hiring processes. Our goal is to empower these Googlers to work effectively and empathetically with autistic candidates and ensure Google’s onboarding processes are accessible and equitable. Stanford will also provide coaching to applicants, as well as ongoing support for them, their teammates and managers once they join the Google Cloud team.
We’re taking this approach to break down the barriers that candidates with autism most often face. In addition to bias, there may be challenges with how interviews are structured or conducted without the right tools. For these reasons, we will offer candidates in this program reasonable accommodations like extended interview time, providing questions in advance, or conducting the interview in writing in a Google Doc rather than verbally on a call. These accommodations don’t give those candidates an unfair advantage. It’s just the opposite: They remove an unfair disadvantage so candidates have a fair and equitable chance to compete for the job.
This program is just one example of Google Cloud’s commitment to inclusion, and it is an important step forward to building a more representative team and creating value for customers and stakeholders.
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