In recent years, the grocery industry has had to shift to facilitate a wider variety of checkout journeys for customers. This has meant ensuring a richer transaction mix, including mobile shopping, online shopping, in-store checkout, cashierless checkout or any combination thereof like buy online, pickup in store (BOPIS).  

What’s more, in the past year and a half alone grocers have had to enable consumers new ways to shop for essentials. This has included needing to rapidly integrate or build on-demand delivery apps, offer curbside pickup with near-instant fulfillment as well as support touchless and cashless checkout experiences. Searches on Google Maps for retailers in the US with curbside pickup options have increased by 9000% since March 2020, and we believe these trends from 2020 will continue to define the future of grocery shopping.

The future of grocery will require agility and openness

Firstly, the need to rapidly adapt to changing consumer habits will be the new normal. Grocers will increasingly look to digitally transform legacy retail systems and modernize point of sale (POS) platforms to deliver and scale omnichannel experiences as quickly as possible. This necessitates a more agile and open architectural approach to technology – one built on microservices and leverages APIs so that new applications and experiences can be built, integrated and delivered faster.

Automation and data-driven retailing will be table stakes

In order for retailers to blend what they’re offering in the store with digital experiences more efficiently, they will also need to automate more. For example, with automation and business intelligence, grocers can take labor that might have been tied up with tender operations and checkout and redistribute those resources to restocking shelves, curbside pick-up or improving customer experiences. 

Automation and access to real-time in-store inventory & supply chain data can also help grocers avoid the supply chain challenges seen in the early days of COVID-19. Grocers will need to find ways to leverage automation to ingest, organize, and analyze data from physical store networks, digital channels, distribution centers to better forecast demand and manage future fluctuations.

How NCR and Google Cloud are helping grocers adapt to disruption with operational agility

Helping grocers improve operational agility to address changing consumer shopping habits and to thrive during times of disruption is something that NCR and Google Cloud have teamed up to do. NCR has over 135 years of experience in retail, having invented the cash register and are continuing to help grocers innovate. NCR Emerald builds upon the company’s leadership in POS software and has turned it into a unified platform that helps grocers operate the entire store from front to back. The solution supports cashier-led checkout, self-checkout, integrated payments, merchandising, and enables regional managers and corporate employees access to the analytics and tools needed to optimize loyalty programs and promotions.

NCR has invested in a comprehensive, agile, and API-led retail architecture that lets grocers continually innovate and design new experiences as customers and the industry evolve. By running Emerald on Google Cloud, NCR can offer the solution on a subscription basis, helping grocers lower upfront capital expenditures and ensuring scalability. What’s more, NCR can tap into Google Cloud’s strength in data, analytics, and openness to deliver three key imperatives. Let’s take a look at each of these below.

Run the way grocers need to while leveraging Google Cloud as a single source of logic

Traditionally the POS system lived in the store. If disaster strikes, people still need access to food and essentials so the grocery store still needs to operate. It hardly gets more mission-critical than that. NCR Emerald is built on microservices, leveraging Kubernetes for front-of-house compute, and VMs (See graphic 1 below). This makes it easy to support lightweight clients accessible by store employees via any range of mobile devices, computer terminals, self-service kiosks, peripheral devices like receipt printers as well as legacy applications.

What’s unique is that because Emerald runs on Google Cloud, it supports all those in-store and digital touchpoints mentioned above, but also allows grocers to run lean. Emerald leverages Google Cloud as a single source of truth and operates a lot of what it does out of logic. Every sales transaction coming from every channel, including e-commerce, can be logged via NCR’s Hosted Service and centralized in BigQuery and Bigtable as a transaction data master. This enables the grocer to manage any transactional use case very consistently, whether it e supporting customers who want to purchase in one store and return in another, offering digital receipts or the ability to exchange online purchases in store. Emerald on Google Cloud can help retailers extend capabilities through the power of the cloud but not need to live exclusively in the cloud. In other words, the solution allows grocers the ability to run the way they need to.

Enable data-driven and real-time decision making for grocers

Store managers, regional managers, category managers, and others all require different cuts of the data to do their jobs effectively. However, data silos persist and how data is formatted and arranged can still remain pretty static. Therefore allowing users with different roles the ability to view and analyze that data quickly and in different ways continues to be a challenge. 

As mentioned above, Emerald leverages Google Cloud data management solutions as the central repository for transactional, behavioral, and merchandising data. Every transaction from every store and every channel can be stored via NCR Hosted Service on BigQuery and Bigtable. NCR Analytics then harnesses the advanced analytical and data visualization capabilities of Looker to help grocers get a consolidated view of their business across all channels and then allow employees to slice and dice the data they way they need to. NCR Analytics also leverages the power of Google Cloud AI and machine learning to add another level of intelligence to the retailer’s data. For example, store managers can visualize how well they’re using their real estate and see how productive lanes 1-3 are compared with 7-10 or compare self-service versus manned lanes. By mapping to the retailer’s own catalog, they can also break down category-level performance and trends.

NCR Analytics takes advantage of Google Cloud’s data pipeline to reduce processing time, with scaling and resource management provided out of the box. By letting the cloud store and process the data, NCR is providing the ability for retailers to analyze their data in near real-time across all platforms – a real game changer in the grocery business.

Open APIs let grocers continually enrich the retail experience

Finally, Emerald is built on an API-first architecture managed through Apigee. It uses the power of Apigee as an open API platform to expose how Emerald can work with other NCR applications like loyalty and promotions, and third party applications like mobile ordering and order delivery to enrich the grocery experience for employees and customers. Every API that Emerald uses is available on Apigee, allowing them to share code samples and giving developers the ability to run scripts. This approach can allow retailers the ability to innovate in a fraction of the time and cost, speeding up 3rd party integrations up front and as businesses grow. 

Take, for example, Northgate Market, a chain of 40 stores in California, that were able to transform its digital operations and enable experiences that set it apart from competitors – quickly and simply with Emerald. It took less than 6 months to go from contract to live deployment in the first store. Since then, Northgate Market has been able to extend their intelligence by leveraging the power of Looker and NCR Analytics.

Learn more about how NCR has been able to leverage an open, cloud-enabled architecture to help customers innovate across the retail, hospitality, and banking industries on the webinar “Role of APIs in Digital Transformation”. You can also learn more about how Northgate uses e-commerce to transform customer experience and gain consumer insights.

Establishing a mature MLOps practice to build and operationalize ML systems can take years to get right.  We recently published our MLOps framework to help organizations come up to speed faster in this important domain.  

As you start your MLOps journey, you might not need to implement all of these processes and capabilities. Some will have a higher priority than others, depending on the type of workload and business value that they create for you, balanced against the cost of building or buying processes or capabilities. 

To help ML practitioners translate the framework into actionable steps, this blog post highlights some of the factors that influence where to begin, based on our experience in working with customers. 

The following table shows the recommended capabilities (indicated by check marks) based on the characteristics of your use case, but remember that each use case is unique and might have exceptions. (For definitions of the capabilities, see the MLOps framework.)

Your use case might have multiple characteristics. For example, consider a recommender system that’s retrained frequently and that serves batch predictions. In that case, you need the data processing, model training, model evaluation, ML pipelines, model registry, and metadata and artifact tracking capabilities for frequent retraining. You also need a model serving capability for batch serving.

In the following sections, we provide details about each of the characteristics and the capabilities that we recommend for them.

Pilot

Example: A research project for experimenting with a new natural language model for sentiment analysis.

For testing a proof of concept, your focus is typically on data preparation, feature engineering, model prototyping, and validation. You perform these tasks using the experimentation and data processing capabilities. Data scientists want to set up experiments quickly and easily and track and compare them. Therefore, you need the ML metadata and artifact tracking capability in order to debug, to provide traceability and lineage, to share and track experimentation configurations, and to manage ML artifacts. For large-scale pilots, you might also require dedicated model training and evaluation capabilities.

Mission-critical

Example: An equities trading model where model performance degradation in production can put millions of dollars at stake.

In a mission-critical use case, failure with the training process or production model has a significant negative impact on the business (a legal, ethical, reputational, or financial risk). The model evaluation capability is important to identify bias and fairness, as well as to provide explainability of the model. Additionally, monitoring is essential to assess the quality of the model during training and to assess how it performs in production. Online experimentation lets you test newly trained models against the one in production using a controlled environment before you replace the deployed model. Such use cases also need a robust model governance process to store, evaluate, check, release, and report on models and to protect against risks. You can enable model governance by using the model registry and metadata and artifact tracking capabilities. Additionally, datasets and feature repositories provide you with high-quality data assets that are consistent and versioned.

Reusable and collaborative

Example: Customer Analytic Record (CAR) features that are used across various propensity modeling use cases.

Reusable and collaborative assets allow your organization to share, discover, and reuse AI data, source code, and artifacts. A feature store helps you standardize the processes of registering, storing, and accessing features for training and serving ML models. Once features are curated and stored, they can be discovered and reused by multiple data science teams. Having a feature store helps you avoid reengineering features that already exist, and saves time on experimentation. You can also use tools to unify data annotation and categorization. Finally, by using ML metadata and artifacts tracking, you help provide consistency, testability, security and repeatability of the ML workflows. 

Ad hoc retraining

Example: An object detection model to detect various car parts, which needs to be retrained only when new parts are introduced. 

In ad hoc retraining, models are fairly static and you do not retrain them except when the model performance degrades. In these cases, you need data processing, model training, and model evaluation capabilities to train the models. Additionally, because your models are not updated for long periods, you need model monitoring. Model monitoring detects data skews, including schema anomalies, as well as data and concept drifts and shifts. Monitoring also lets you continuously evaluate your model performance, and it alerts you when performance decreases or when data issues are detected. 

Frequent retraining

Example: A fraud detection model that’s trained daily in order to capture recent fraud patterns.

Use cases for frequent retraining are ones where model performance relies on changes in the training data. The retraining might be based on time intervals (for example, daily or weekly), or it could be triggered based on events like when new training data becomes available. For this scenario, you need ML pipelines to connect multiple steps like data extraction, preprocessing, and model training. You also need the model evaluation capability to ensure that the accuracy of the newly trained model meets your business requirements. As the number of models you train grows, both a model registry and metadata and artifact tracking help you keep track of the training jobs and model versions.

Frequent implementation updates

Example: A promotion model with frequent changes to the architecture to maximize conversion rate.

Frequent implementation updates involve changes to the training process itself. That might mean switching to a different ML framework, such as changing the model architecture (for example, LSTM to Attention) or adding a data transformation step in your training pipeline. Such changes in the foundation of your ML workflow require controls to ensure that the new code is functional and that the new model matches or outperforms the previous one. Additionally, the CI/CD process accelerates the time from ML experimentation to production, as well as reducing the possibility for human error. Because the changes are significant, online experimentation is necessary to ensure that the new release is performing as expected. You also need other capabilities such as experimentation, model evaluation, model registry, and metadata and artifact tracking to help you operationalize and track your implementation updates. 

Batch serving

Example: A model that serves weekly recommendations to a user who has just signed up for a video-streaming service.

For batch predictions, there is no need to score in real time. You precompute the scores and you store them for later consumption, so latency is less of a concern than in online serving. However, because you process a large amount of data at a time, throughput is important. Often batch serving is a step in a larger ETL workflow that extracts, pre-processes, scores, and stores data. Therefore, you need the data processing capability and ML pipelines for orchestration. In addition, a model registry can provide your batch serving process with the latest validated model to use for scoring.

Online serving

Example: A RESTful microservice that uses a model to translate text between multiple languages. 

Online inference requires tooling and systems in order to meet latency requirements. The system often needs to retrieve features, to perform inference, and then to return the results according to your serving configurations. A feature repository lets you retrieve features in near real time, and model serving allows you to easily deploy models as an endpoint. Additionally, online experiments help you test new models with a small sample of the serving traffic before you roll the model out to production (for example, by performing A/B testing).

Get started with MLOps using Vertex AI

We recently announced Vertex AI, our unified machine learning platform that helps you implement MLOps to efficiently build and manage ML projects throughout the development lifecycle. You can get started using the following resources: 

• MLOps: Continuous delivery and automation pipelines in machine learning
• Getting started with Vertex AI
• Best practices for implementing machine learning on Google Cloud

^{Acknowledgements: I’d like to thank all the subject matter experts who contributed,  including Alessio Bagnaresi, Alexander Del Toro, Alexander Shires, Erin Kiernan, Erwin Huizenga, Hamsa Buvaraghan, Jo Maitland, Ivan Nardini, Michael Menzel, Nate Keating, Nathan Faggian, Nitin Aggarwal, Olivia Burgess, Satish Iyer, Tuba Islam, and Turan Bulmus. A special thanks to the team that helped create this, Donna Schut, Khalid Salama, and Lara Suzuki, and Mike Pope for his ongoing support.}

Presently, every government agency has to take a hard look at their data capabilities and decide whether their current infrastructure supports their workflow. For many, it doesn’t. Most data systems are developed with a strict set of parameters in mind before implementation, which can limit flexibility and long-term use. Particularly during a crisis, flexible “living systems” offer tremendous advantages as they’re able to change capacity rapidly. Building living data systems with the cloud in mind allows organizations to respond to a changing world with confidence.

Last summer, the Government Business Council conducted a survey of government employees to understand the impacts of data efficiency on government operations. The report Built to Last: A Survey on Organizational Data Efficiency in Times of Crisis offers key insights into organizational efficacy and whether organizations can adapt to a crisis at speed. It also highlights differences between traditional data systems and living data systems. 

Data needs to be readily available

When the pandemic first hit, many agencies needed to create or transition their systems to allow employees to work remotely. This change tested the limits of existing data systems. Even after finding a cloud service provider, agencies encountered the challenges of migrating their data to the cloud. 

Government organizations had decades of data stored in paper records. Most have been working to transfer these records to a digital format, but the process has been slow. They are also faced with collecting sizable amounts of data in real time from their ongoing services,  which involves interfacing with the public, external vendors, or third-party institutions. 

Building the cloud into a flexible data system can solve both issues. Old records can be digitized and given an easy-to-access home for those who need them. Incoming data, both internal and external, can be made accessible as well. Migrating data to the cloud also doubles as a way to create backups of raw data, adding an extra layer of security. Most importantly, building in the cloud unlocked the capacity to scale when demand rises. 

Data should be updated in real-time

One of the key takeaways from the Government Business Council report is the fact that agencies are better able to adapt at speed when data efficiencies are higher. 74% of organizations with pandemic related functions reported a moderate to severe impact to their jobs at the onset of the pandemic. Of those organizations, the ones reporting their data efficiency as “very good” have largely already recovered. That adaptability directly affects an agency’s ability to make informed decisions during a time of a crisis.

Having a real-time data solution in place lets agencies make near real-time decisions. A great example of this from early in the pandemic is vaccine distribution. Google Cloud supported multiple states, such as the State of Wyoming, in distributing vaccines efficiently while handling challenges such as reaching rural populations. Data systems that gathered real-time patient data made a difference in the number of vaccines distributed. Knowing population data and patient risk factors enabled quick and effective decision-making.

A global pandemic is far from the only crisis that needs effective data analytics. Natural disasters, food deserts, public health issues, and more can all be handled more efficiently by having real-time data at hand. Effective data analytics systems are the digital equal of “having your ear to the ground” in each community. They provide valuable insights into what people  need.

Data needs to be accessible and easy to use

Making data easy to work with and understand sets phenomenal data systems apart from functional ones. Having data in the cloud is a great first step, but agencies need to be able to easily access and quickly use the data to accomplish their goals. This is where traditional data systems fail most often. Traditional IT systems and data strategies are designed for a specific purpose, usually identified before development and implementation begin. That means that when the data living in those systems needs to be used differently, adapting to new requirements can be difficult. 

Data can often feel “locked” in traditional systems; the data is there, but there’s no way to get to it or work with it in a way that meets the needs of a crisis. Flexible data systems address this by allowing for greater accessibility. Google Cloud, for example, has customizable tools, such as Contact Center AI and Document AI, which let agencies work with data in ever-changing ways. This also produces greater data transparency since data sets can be worked with and accessed more easily.

Governments need to respond to the changing needs of their constituents in emergencies. While traditional data systems can handle slowly shifting demands on the system, they do not serve agencies well in a crisis. When urgency, accuracy, and accessibility all matter, flexible systems rise to the challenge. The pandemic has pushed agencies to adapt in real time, and many have realized they need a system that adapts with them.

Google Cloud has a suite of tools to create integrated data ecosystems. These ecosystems can scale with increasing demand, meet dynamic development needs, and adapt to a changing landscape. Data-first decision-making is a core tenet of “living data systems.” Google Cloud data systems have handled everything from administering vaccines to detecting fraud. In each of these applications, a core tenet of data-first decision making was implemented at scale. 

For more insights on how flexible data systems help the public sector, download the full report “Built to Last: A Survey on Organizational Data Efficiency in Times of Crisis.”