Prepare for the Unknown in Supply Chain with SAP IBP and Google Cloud
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Responding to multiple, simultaneous disruptive forces has become a daily routine for most demand planners. To effectively forecast demand, they need to be able to predict the unpredictable while accounting for diverse and sometimes competing factors, including:
- Labor and materials shortages
- Global health crises
- Shifting cross-border restrictions
- Unprecedented weather impacts
- A deepening focus on sustainability
- Rising inflation
Innovators are looking to improve demand forecast accuracy by incorporating advanced capabilities for AI and data analytics, which also speed up demand planning. According to a McKinsey survey of dozens of supply chain executives, 90% expect to overhaul planning IT within the next five years, and 80% expect to or already use AI and machine learning in planning.
Google Cloud and SAP have partnered to help customers navigate these challenges and supply chain disruptions starting with the upstream demand planning process, focusing on improving forecast accuracy and speed through integrated, engineered solutions. The partnership is enabling demand planners who use SAP IBP for Supply Chain in conjunction with Google Cloud services to access a growing repository of third-party contextual data for their forecasting, as well use an AI-driven methodology that streamlines workflows and improves forecast accuracy. Let’s take a closer look at these capabilities.
Unify data from SAP software with unique Google data signals
When it comes to demand forecasting and planning, the more high-quality and relevant contextual data you use, the better, because it helps you understand the influencing factors of your product sales to sense trends and react to disruptions or capitalize on market opportunities more timely and accurately.
The expanded Google Cloud and SAP partnership helps customers who use SAP® Integrated Business Planning for Supply Chain (SAP IBP for Supply Chain) bring public and commercial data sets that Google Cloud offers into their own instances of SAP IBP and include them in their demand planning models in SAP IBP. So, in addition to sales history, promotions, stakeholder inputs and customer data that are typically in SAP IBP, a demand planner can incorporate their advertising performance, online search, consumer trends, community health data, and many more data signals from Google Cloud when working through demand scenarios.
More data enables more robust and accurate planning, so Google continues to build an ecosystem of data providers and grow the number of available data sets on Google Cloud. Some current providers include the U.S. Census Bureau, the National Oceanic and Atmospheric Administration, and Google Earth, and partnerships are underway with Crux, Climate Engine, Craft, and Dun & Bradstreet to help companies identify and mitigate risk and build resilient supply chains.
Augmenting demand planning with additional external causal factor data is a starting point to drive more accurate forecasting. For example, knowing what regional events may be happening, or the weather patterns that may impact sales of your products, allows you to react faster to these changes by making sure adequate supply is being provided. The result is a more accurate overall plan that reduces resource waste and out-of-stock events. Planners can respond with more accurate and granular daily predictions about sales, pricing, sourcing, production, inventory, logistics, marketing, advertising, and more based on the expanded data.
Get more accurate forecasts with Google AI inside
Extending the already expansive algorithm selection available in SAP IBP, the release of version 2205 allows SAP IBP customers to access Google Cloud’s supply chain forecasting engine, which is built on Vertex AI — Google Cloud’s AI-as-a-platform offering — from within SAP IBP as part of their forecasting process.
The benefit of using an AI-driven engine for demand forecasting is that it meaningfully improves forecast accuracy. Most demand forecasting today is done through a manually set, rules-based model versus an AI-driven model that is smarter and gets better at predicting demand as it works.
Take the fastest path from data to value with streamlined workflows
Vertex AI can include relevant contextual data sets for demand planning, and the results can be shown in SAP IBP for planners to incorporate when building their workflows.
In addition to more accurate forecasts, planners can work faster and more efficiently as they build potential scenarios, meaning they can do more simulations than they do now so that a wider range of disruptions can be modeled. Customers of SAP IBP don’t have to do any of the heavy lifting. They just have to share their data from SAP IBP with Google, then access the process workflow capabilities to set up automated workflows that use the combined data. Google makes the data available so that planners can use it as they’re setting up their workflows in Vertex AI.
Users of the Google Supply Chain twin and SAP IBP can combine the rich planning data from IBP with additional SAP data and other Google data sources to provide better supply chain visibility. The Google Supply Chain twin is a real-time digital representation of your supply chain based on sales history, open customer orders, past and future promotions, pricing and competitor insights, consumer history signals, external data signals and Google data.
Leverage Google data signals with SAP IBP for more accurate forecasts
It’s not difficult to access these new capabilities, and the benefits are more accurate near-term forecasts and more return on your investments in SAP IBP and Google Cloud. If you happen to be at the Gartner Supply Chain Symposium from June 6-8th in Orlando, Florida, stop by our booth to say hello. Or, get started now
Three German Retail Firms Choose Google Cloud to Migrate SAP Workloads for Business Transformation
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The retail industry is rapidly evolving, with customers demanding exceptional digital experiences, and retailers adjusting their businesses to be more efficient. With many retailers relying on SAP for critical business functions like digital transactions, finance, supply chains and more, this shift has led them to look for ways to modernize these systems, deliver them on highly scalable infrastructure, and extract more value out of the data from within them.
I’m proud that we are helping German retailers successfully migrate business-critical SAP systems onto Google Cloud, minimizing risk and downtime and ultimately helping them build a foundation for future growth. Our work with retailers like Otto Group, one of the world’s largest ecommerce businesses, MediaMarktSaturn, the large consumer electronics retailer, and METRO, the wholesale retailer with operations across Europe, demonstrates our deep partnership with SAP to support customers’ digital transformations.
Helping Otto Group IT run SAP on secure, sustainable infrastructure
Otto Group, a leading online-retailer and services group in Germany and one of the world’s largest ecommerce companies, migrated their SAP workloads to Google Cloud in order to modernize their SAP landscape and build a more agile environment that would enable them to quickly scale up or down according to business needs.
The Otto Group, which consistently balances the sustainable use of resources and climate-neutral action with economic growth, is also able to leverage Google Cloud’s clean infrastructure to deliver the bulk of its internal SAP environment, ensuring the company’s business systems are running on secure, sustainable infrastructure. Since 2017, Google has matched 100% of its global electricity use with purchases of renewable energy every year, and is now building on that progress with a new goal of running entirely on carbon-free energy at all times by 2030.
With Google Cloud, Otto Group has told us they have access to better means of automation and improved network capability compared to what they had with their previous provider. Through this cloud migration, Otto Group IT is providing modern and flexibly scalable SAP systems to their internal customers.
Powering MediaMarktSaturn’s online ecommerce experience
For MediaMarktSaturn, SAP is critical to the smooth day-to-day running of its business, so the company was keen to ensure maximum availability and stability with a cloud environment. After a thorough examination of its business needs and hands-on support from Google Cloud’s teams, MediaMarktSaturn elected to migrate its SAP HANA database onto Google Cloud, enabling a performance increase of four times compared to its previous on-premises installations.
The SAP suite is critical for the ecommerce platform to run smoothly on a day-to-day basis. By migrating to Google Cloud, the retailer is providing even more support and maximum availability for its customers. With Google Cloud’s industry-specific expertise, MediaMarktSaturn’s customers have access to a reliable and stable ecommerce platform, so they can browse for products online from wherever they are.
Transforming METRO’s business by running SAP workloads in the cloud
With more than 97,000 employees in 34 countries, Germany’s METRO is one of the world’s largest B2B wholesalers. Previously, METRO relied on unique finance systems that were different in each country, and updates or system testing required substantial coordination across numerous teams, which was both time-consuming and costly.
To address these pain points, METRO is moving away from on premise deployments and is now migrating its SAP S/4HANA finance systems to Google Cloud to support everything from classical role-based accounting to the use of cognitive tools. Now, internal METRO teams can work seamlessly across operations, enhancing the services they provide to customers by addressing demands in real time.
To read more about how SAP on Google Cloud drives agility, efficiency, and innovation for our customers, visit our solutions page here.
Forrester Surveyed Indian Retailers About Digital Transformation. Here’s What They Found
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As today’s empowered consumers demand more of the retail experience than ever before, leading retailers and brands in India are investing to rethink and reinvent in their customers’ cross-touchpoint experiences.
Our survey results demonstrate that retail decision makers understand that better customer experience can yield financial benefits, including faster revenue growth, and elevate the reach of influence and brand in the market.
Forty percent or more of retail executives are prioritizing revenue growth, improvement of customer experience (CX), and simplification of operations as the top priorities in their business agendas over the next year.
The survey also covers:
- Key Drivers For Retail Organizations To Migrate Application To Public Cloud
- Cloud Investments In The Retail Industry
- The Three Dimensions That The Industry’s Cloud Challenges Are Taking
- The Top Agendas Retailers Want to Accomplish with the Public Cloud
Download Forrester’s Retail Report Now.
Google Cloud and Univision Partnership to Up the Ante in UX for Spanish-speaking Audience
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The past year has given everyone lots to think about—about our priorities as people and as businesses. As the world retreated behind closed doors, we saw how shared interests and experiences can bring us together. As the world grappled with a common enemy, we witnessed just how differently individuals, communities and indeed entire countries can experience a situation. And as we faced seemingly unending obstacles to making it through the pandemic, we saw how making smart decisions based on data can drive meaningful solutions—fast.
That’s why we here at Google Cloud are so proud to partner Univision, the country’s leading Spanish-language content and media company. By partnering with Google Cloud, Univision will be able to accelerate growth across its portfolio of properties, deliver an enhanced user experience for Spanish-speaking audiences and provide the enterprise solutions needed to create the Spanish-language media company of the future.
According to Instituto Cervantes, there are over 580 million Spanish language speakers worldwide. Those viewers, like people everywhere, are avid consumers of streaming content. In Q4 of 2020 alone, viewing time for that content increased by 44%1, and in 2020, from 50%2 more sources. With that surge in demand, Univision needed a cloud provider whose infrastructure could reach Hispanic viewers around the world. With two-plus decades spent building out its network and data centers, as well as global content-delivery capabilities, Google Cloud has the infrastructure Univision needs to reach viewers across the Spanish-speaking world.
At the same time, with such a diverse audience for their content, Univision needs to target that content to viewers’ specific preferences. By applying Google Cloud’s artificial intelligence (AI) and machine learning (ML) technology across its content, Univision intends to personalize content based on shows users have previously watched, enhancing their engagement and viewing experience.
And as Univision transforms the user experience, it can use Google Cloud’s data and analytics suite to garner deeper insights into its audience and forge stronger relationships with them on an individual basis. With Looker and BigQuery, Univision employees will have access to real-time data to help them make business decisions about programming.
Univision will also migrate video distribution and production operations to Google Cloud, where we’ll help them streamline media workflows and develop innovative new capabilities. Meanwhile, Google Cloud’s tight business and technical integration with other Google services will help ensure Univision reaches viewers on the device of their choice, wherever they are in the world. For example, in the coming years, Univision will expand its global YouTube partnership and will integrate with entertainment features on Google Search that help people better discover TV shows and movies. The company will also use Google Ad Manager for global ad decisioning and Google’s Dynamic Ad Insertion for PrendeTV and future video-on-demand offerings. Finally, Univision will distribute its content and services on Google Play across Android phones and tablets, as well as Google TV and other Android TV OS devices.
We’re thrilled to partner with Univision to help them reach the Spanish-speaking world with their content. With our cloud portfolio, we can help them reach individual viewers around the world, with personalized content that they can consume however they see fit. Best of all, together, we can help them achieve this vision fast, leveraging established cloud, content delivery, and data analytics technologies. You can learn more about the partnership here.
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Strategies for Migrating to the Cloud
What are the technologies that are helping enterprises scale, adapt, and modernize? Are there any strategies that enterprises can adopt for moving to the cloud?
What this webinar to find out the different migration patterns to the cloud and learn how enterprises can choose the right strategies based on their business and technical environments, and the tooling that can help them get there.
Tencent Africa Cuts Cost and Improves Stability with Google Cloud
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About Tencent Africa
Tencent Africa is dedicated to making every day easier for customers and brands. Opening its doors in 2013 as WeChat Africa, the company is responsible for WeChat operations on the continent.
About Siatik Systems
Founded in 2008, South Africa-based Siatik Systems is a leading Google Cloud Platform solutions provider with a focus on cloud integration services, information technology consulting services, and bespoke software engineering solutions.
Google Cloud Results
- Reduced latency in its service from 180 to 35 milliseconds with powerful hardware and a fast, global network from Google Cloud Platform
- Cut costs with per-minute billing and sustained use discounts
- Increased the speed of provisioning new servers with easy-to-use interface of Google Compute Engine
As one of Africa’s leading technology companies, Tencent Africa is responsible for WeChat operations on the continent. WeChat Africa has successfully launched a number of features including the WeChat Wallet, a mobile payment service for smartphones, which enables seamless and secure transactions for friends to send money to one another, cash money out at Standard Bank ATMs, use at accredited retailers, and make purchases from any SnapScan merchant in South Africa. Under the new name, Tencent Africa recently launched two new mobile products, JOOX, a mobile music streaming application, and VOOV, a social live streaming application.
When China’s Tencent brought its hugely popular instant messaging service WeChat to South Africa, it faced a near saturated market. To gain traction, Tencent Africa had to showcase WeChat’s versatility as a platform that goes far beyond just instant messaging. Engaging with local financial partners helped WeChat launch a WeChat Wallet to facilitate electronic payments, while providing exclusive content from South African cultural figures helped bring the platform extra publicity.
As WeChat started to grow its customer base, its on-premises infrastructure was stretched beyond its limits and the company looked for a cloud-based solution. After evaluating all its options, Tencent Africa found Google Cloud Platform best suited its needs.
“We’re a growing business and constantly upgrading our infrastructure. Getting new servers was becoming quite expensive so we wanted a cloud-based solution to reduce costs,” says Christoff Albertyn, Head of Technology at Tencent Africa. “When we did some latency testing, Google came out on top, so it made sense to go with them. Everybody loves Google, it’s a great brand. Just knowing a company like Google is behind it gives you peace of mind.”
Building a platform to scale
Instant messaging services need a stable infrastructure, the ability to scale at speed, and lightning fast performance. When Tencent Africa built an Official Accounts API to run a number of services on WeChat, to help companies engage with users on the platform, latency was its main concern. The Official Accounts services had to deliver replies over WeChat in under five seconds or the connection would drop.
Between the API on-premises servers in South Africa and WeChat’s main servers in China, Tencent Africa’s services regularly hit the limits of the permissible response time. In addition, by 2015, WeChat was starting to garner more customers across South Africa and Tencent Africa had to provision more servers. The on-premises servers were simply being asked to do too much, and expansion was proving expensive, so the company looked for a cloud-based solution.
Before committing to anything, Tencent Services did a thorough latency test of several cloud-based solutions. Google Cloud Platform came top. Tencent also engaged the help of Siatik, a Google Partner, to gauge what solutions best fit the company’s needs and help implement them. Siatik customers span both the public and private sectors and its consultants are regularly engaged in the health care, education, financial and technology industries. In order to provide leading technology solutions, it partners with industry leaders, such as Google, to provide best-of-breed infrastructure and cloud platform solutions to its customers.
“Siatik was a great partner to work with,” says Christoff. “Any questions I had, I could just pick up the phone and whatever it was they’d help me out. They were also able to get some of the team from Google to come to our offices and see how we worked, which was really good.”
With a simple, clean interface in Google Compute Engine, the company was able to spin up virtual instances very quickly and begin migrating its stack to Google. When it became more comfortable with Google Cloud Platform features, Tencent used Google Cloud SQL and Google BigQuery to manage its data streams, and Google Cloud Storage to store them safely.
From day one, it was very smooth. The interface was amazing—Google must have spent a long time perfecting it because it was so easy to use says Christoff. “I set up the first virtual machine in no time without any struggles.”
In addition to powerful hardware from Google Compute Engine, the fast, global network from Google helped to speed up performance. With the infrastructure ported over to Google, Tencent also brought in G Suite as an office productivity solution, which eased the pressure on its servers even more. Throughout the process, Siatik were on hand to advise and provide technical guidance whenever any issues came up.
What I really like is how quickly you can spin servers up. There’s no messing about and the interface is really easy to use, says Christoff. “You can have a virtual machine running in just a few minutes. It’s very impressive.”
Cutting costs, raising expectations
Google Cloud Platform helped Tencent Africa to slash its latency. Before the migration, pings to the Chinese servers and back would regularly take 180 milliseconds. Afterwards, this fell to around 35 milliseconds, helping to ensure smooth service to Tencent’s South African customers. Google offers innovative pricing, such as per-minute billing and sustained use discounts, which helped significantly cut server costs compared to an equivalent on-premises solution.
As its customer base grew, and Tencent Africa began to release new products, the ease of use of Google Compute Engine meant that spinning up new servers took minutes instead of hours and allowed the company to scale up and down at speed. Exploring products such as Kubernetes for rapid deployment or TensorFlow for machine learning, Tencent Africa continues to evolve and experiment with new products to keep WeChat a growing success in South Africa.
“Initially, we just used per-minute billing, but when I saw how much work we were doing with Google BigQuery and Google Cloud SQL, we started to generate sustained-use discounts, which helped save us a lot of money,” says Christoff. “The other great thing is, Google Cloud Platform monitors how you’re using it and tells you what else you can do to reduce costs.”
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