When IDC recently asked CEOs what single word most reflects what their organization needs to thrive in 2022, the overwhelming response was “technology.” CEOs want to acquire greater digital know-how as they recognize that technology will underpin the business model of the future.

Digital transformation, already well underway, is becoming digital first. 

In fact, an astonishing 95% of CEOs see the need to adopt a digital-first strategy, according to IDC, and the majority of organizations are down the path of executing their plans. Currently, they report that about 30% of their organization’s revenue comes from digital products, services and experiences, a figure that will reach past 40% by 2027. 

But what will power this digital-first enterprise? Successful large-scale digital transformations are executed by a diverse set of partners and vendors—including a cloud partner, valuable channel partners and resellers, independent software vendors (commonly called ISVs), and services partners; multiple cloud partners are even becoming quite common.

These networks of experts are increasingly the driver behind enterprise transformation. They help companies and organizations to establish an actively managed and governed cloud ecosystem that integrates native and third-party solutions, which can create shared value for all partners from the latest digital technologies. In fact, 85% of CEOs told IDC that actively participating in digital ecosystems is important to their revenue growth.

The new digital agenda is built on cloud ecosystems

Recently, I sat down with the author of the IDC CEO survey, Philip Carter. He’s the group vice president, European chief analyst, and worldwide C-suite tech research lead at IDC, and I wanted to better understand from him how executives are approaching their digital-first mission. 

He explained that CEOs are turning to cloud platforms as a primary partner to put in place new, industry-specific digital business models. These platforms are at the center of “industry value networks” that accelerate time to value and benefit from cloud architecture’s ability to deliver scale, extensibility, and AI-driven experiences to create new revenue streams. 

At Google Cloud, we have made building such industry value networks a priority, comprising of: 

• Google Cloud, which provides the infrastructure and develops industry-specific data and analytics capabilities using artificial intelligence.
• Broader Google product areas like Google Shopping, Ads, Maps, Pay, Assistant, Android and Chrome.
• Independent software vendors (ISVs) relevant to a specific industry, who co-innovate with Google to provide end-to-end solutions to industry problems.
• System integrators (SIs) with deep industry knowledge who build the strategy and implement the business transformation for customers.

As an example, Google Cloud customers across multiple industries are looking for digital transformation to reinvent their core functions, such as supply chain. They might be identifying new distribution channels or restructuring their inventory. Google Cloud understands how to link the enterprise ecosystem with the consumer ecosystem. We can help enterprises access this broader ecosystem while leveraging AI-driven insights from data to help inform decisions in real time, at the point of engagement.

Google Cloud’s partner ecosystem can help achieve multiple items on the C-suite tech agenda such as improving customer experience, powering enterprise intelligence, building trust, supporting a distributed workplace, driving innovation, and streamlining operations. 

According to IDC, 75% of all organizations will be completely digitally transformed by 2030. Google Cloud has been working hard with our partners to create an extensive ecosystem that can help your organization achieve its digital transformation ahead of competitors. This includes co-developing and co-innovating industry-specific solutions with a host of partners in key areas such as operations, enterprise intelligence, customer experience, workplace productivity, innovation, security, and trust. 

And over the next few years, Google Cloud will double its investment in its partner ecosystem with increased co-innovation resources, more incentives, and co-marketing campaigns and funding. We’ll also offer greater integration into the Google Cloud Marketplace and a larger commitment to training and enablement. 

For more insights on the C-suite “Future of Enterprise” agenda, you can watch my full IDC interview. You might also download our ebook featuring IDC data on the future of enterprise with ecosystem examples from partners like AMD, Confluent, Fortinet, Genesys, Informatica, and Workspot.

Our goal is to provide comprehensive best-in-class support for our mutual customers’ digital transformations. As we look toward that goal, one thing is for sure: Our ecosystem of partners will continue to grow, adding solutions to meet the needs of digital-first enterprises. Care to join us on that journey?

State and local government (SLG) agencies are reeling from a combination of unbudgeted COVID-related expenses and reduced tax revenue caused by unemployment and business closures. Any way you look at it, the situation is challenging. To understand how SLG agencies are coping, Google Cloud collaborated with MeriTalk to survey 200 SLG IT and program managers, uncovering some revealing trends in SLG technology innovation. Unsurprisingly, approximately 84% of SLG organizations report making budgetary tradeoffs to bridge funding the gaps the ongoing pandemic has created. 

However, researchers discovered a silver lining: The pandemic has also been a catalyst to modernize the legacy infrastructure in states and cities. The majority of survey respondents (88%) reported that their agency made greater modernization progress this past year than in the prior 10 years.

Walking a tightrope between innovation and budget pressure

According to 89% of state and local leaders, now is the time to invest in technology modernization. But 80% are experiencing a funding gap due to unbudgeted expenses related to the pandemic and declining tax revenue, which makes finding that balance between innovation and budget a serious challenge.

Some agencies are achieving the impossible, though. For example, the City of Pittsburgh Department of Innovation and Performance is working with Google Cloud to migrate  and modernize its legacy IT infrastructure. By decommissioning their data center and moving to Google Cloud, the city can build new data analytics tools to drive smart city initiatives and create entirely new applications to improve digital service delivery for its residents. As a result, the city will save costs, abandon its brittle legacy IT structure, and create a cloud-based technology platform for the future—becoming the region’s leader in cloud-native software development.

Google Cloud is enabling the city’s IT team by curating and delivering our certification training at no cost. The program includes live training sessions as well as on-demand training. 

Bridging funding gaps

In their drive to modernization, many SLG leaders are turning to grants as an important source of funding. Approximately 84% of those surveyed report making tradeoffs to bridge funding gaps, such as moving resources away from operations and maintenance (37%), increasing reliance on pandemic-related funding (31%), and delaying internal modernization efforts to enable remote work for employees (29%). One way that states are dealing with this tension between budget gaps and the need for innovation is to turn to Google Cloud for cost savings and improved capabilities.

For example, Google Cloud is helping the State of West Virginia innovate and enhance IT security despite decreased state funding. The state entered a multi-year agreement to ensure full access to enterprise-level Google Workspace capabilities for 25,000 state employees, keeping the state at the forefront of technology advancements at a projected cost savings of $11.5 million.

Similarly, Google Cloud helped build the Rhode Island Virtual Career Center to help the state’s constituents get back to work. Using familiar productivity tools within Google Workspace, employees can access new career opportunities quickly, while employers can reach more candidates. Skipper, the CareerCompass RI bot, uses data and machine learning to connect Rhode Islanders with potential new career paths and reskilling opportunities.

Enhancing services

Google Cloud is also helping agencies enhance services, including working with the State of Illinois to get unemployment funding to constituents in need.The state is using Contact Center AI to rapidly deploy virtual agents that help more than 1 million out of work citizens file unemployment claims faster. Capable of engaging in human-like conversations, these intelligent agents provide constituents with 24/7 access and enable government employees to focus on more complex, mission-critical tasks—such as combating fraud. In summer 2020, the virtual agents handled more than 140,000 phone and web inquiries per day, including 40,000 after-hours calls every night. The state anticipates an estimated annual savings of $100 million from the solution, which was deployed in just two weeks.

Working with Google, Ohio also uncovered $2 billion in fraudulent unemployment claims. We will continue to partner with the state to find fraudulent claims, and prioritize the processing of legitimate claims.

 Focusing on cybersecurity

Despite expanding security threats topping NASCIO’s list of 2021 State CIO priorities, more than one in three IT managers (35%) say their organization reduces security measures to expedite timelines. Partnering with Google Cloud has enabled many agencies to enhance their security measures while modernizing and staying within budget, investing in support for remote work devices, digital services for residents, and cybersecurity.

NYC Cyber Command works with city agencies to ensure systems are designed, built, and operated in a highly secure manner. NYC3 followed a cloud-first strategy using the Google Cloud Platform. The virtual operations demanded by the pandemic have increased the importance of security and compliance in SLG. Google Cloud is committed to act as a security transformation partner and be the trusted cloud for public sector agencies. 

Finally, to strengthen public and private partnerships, SLG organizations told MeriTalk that they need vendor partners to support modernization efforts for flexibility and collaboration (46%), need innovation-focused leadership groups to help balance technology needs with budget constraints (41%), and they expect significant returns on investments in cloud computing (38%), and data management/analytics (33%).

Google Cloud is helping SLG customers across the country invest in innovation to walk the tech tightrope—balancing innovation and budgets—and helping to build a more resilient future. Visit the State and Local Government solutions page to learn more.

FM Logistic provides its international customers with complete logistics solutions that cover everything from warehousing and handling, to transport and distribution, co-packing and co-manufacturing, and supply chain optimization. Operating in 14 countries including France, Russia, Poland, India, Vietnam, Brazil, and China, FM Logistic supports its clients by offering specialized services across a number of markets including consumer goods, retail, cosmetics, and health.

“We are in the process of transforming all our tools and integrating new solutions to be able to work faster and more efficiently. Two main IT priorities are mobility and openness, in terms of working from anywhere and being able to interact with other information systems.”

– Communication Manager, FM Logistic

As a business that has existed since 1967 and in 2018 achieved a turnover of €1.178 billion with 9.5% annual growth, FM Logistic is always looking to help secure the company’s position within an evolving sector. To better serve its customers, FM Logistic decided to launch an innovation project in 2017 to transform the internal digital tools of the company and replace its intranet, email, and productivity software. The company looked for an integrated solution that would enable more collaborative ways of working and bring its international operations closer together. The company found that implementing G Suite and LumApps social intranet was the perfect combination.

“We are in the process of transforming all our tools and integrating new solutions to be able to work faster and more efficiently,” says the Communication Manager at FM Logistic. “Two main IT priorities are mobility and openness, in terms of working from anywhere and being able to interact with other information systems.”

A global transformation

For large international companies with global operations, implementing a single integrated solution to enable collaboration across regions while respecting regional variations can be a real challenge.

“We have 26,000 employees spread across a broad geography, with a variation in cultures and technological maturity. There was an aspiration to work in collaboration, but the necessary tools were not in place,” says FM Logistic’s Communication Manager. FM Logistic looked for a solution to enable new, more collaborative work practices, which were flexible in terms of usage and that, most importantly, would work as part of an integrated solution.

To do that, FM Logistic worked with Google Partner Devoteam G Cloud to implement G Suite alongside the LumApps intranet portal. It took six months to complete the migration of 7,000 accounts, with employees accessing the Business or Basic G Suite edition according to their needs. “Before, with our physical infrastructure we found ourselves buying additional hard drives as we ran out of storage,” says the Technical Project Manager at FM Logistic. “That’s no longer a problem, and we can tailor access depending on whether or not employees need unlimited storage .”

“It’s a real advantage to be able to access your account from any device and work from anywhere. Hangouts Meet has been really transformational in that respect: it has reduced the need for travel significantly, even in the few months we’ve been using it so far.”

– Communication Manager, FM Logistic

“We followed Google’s G Suite migration advice and had early adopter ambassadors in every country. By the time we got around to the final country, very little input was needed as they were ready to go!” says the Technical Project Manager. “Many of them were already familiar with the product, so it was very intuitive. Our feedback surveys gave a satisfaction rating of almost 4.5 out of 5 in relation to the transition. We also had significant executive support, with two members of the executive committee on the steering board. That really helped the project to move quickly.”

As a result, employees were quick to understand the benefits of the new system. “It’s a real advantage to be able to access your account from any device and work from anywhere. That was clear from the start,” says the Communication Manager. “Hangouts Meet has been really transformational in that respect: it has reduced the need for travel significantly, even in the few months we’ve been using it so far.”

LumApps: a fully-integrated enterprise hub

One of FM Logistic’s main reasons for choosing G Suite was the seamless integration with LumApps’ intranet portal. LumApps adds value to G Suite, thereby boosting and sustaining employee adoption. FM Logistic chose LumApps to create a hub for its enterprise, where everything is centralized from internal communications to business apps.

“We didn’t want a patchwork of solutions, we needed a platform that worked as an integral whole,” says the Technical Project Manager. “With LumApps, employees access the intranet using their Google authentication and can access all their G Suite tools through the intranet. Moreover, LumApps is Google native, so the integration is seamless and we know that it will evolve to accommodate any changes that might take place.”

“The main advantages we see are communication and knowledge sharing,” says the Communication Manager. “With LumApps, all 26,000 of our employees are now able to access the portal in their own language and access local news.”

For the next step, FM Logistic is considering integrating social communities so that employees can express themselves and be more engaged in the corporate culture.

Supporting digital maturity

Thanks to Drive, employees can now work from wherever they are, and are able to work more efficiently and more collaboratively. “From an administrative point of view, users can benefit from automatic updates, so there is less pressure on the IT department,” says the Technical Project Manager. “And we’re seeing many innovative uses of the tools to work in more efficient ways: many services have gone paperless with Forms, so less time is wasted; commercial agents are using Drive to work together on tenders simultaneously; and with Sheets, tasks are automatically sent from the team manager’s file to employee’s Calendar.”

“G Suite and LumApps are the first step of our digital transformation, in terms of collaboration and moving into the cloud. We have real confidence in our partners LumApps and Google, and we’re investing in those relationships for the long-term benefit of the company.”

– Communication Manager, FM Logistic

Now, FM Logistic wants to further support its employees in exploring all the tools G Suite has to offer. “We are embarking on a second phase to give our employees the skills they need for advanced uses of Docs, Sheets, and Forms,” says the Communication Manager. “It’s a learning curve, but it’s key to our goal of transforming our everyday processes.”

“G Suite and LumApps are the first step of our digital transformation, in terms of collaboration and moving into the cloud. We have real confidence in our partners LumApps and Google, and we’re investing in those relationships for the long-term benefit of the company.”