Kohl’s is an omnichannel retailer focused on driving traffic, operational efficiency and delivering seamless omnichannel customer experiences.

Ratnakar Lavu is Kohl’s Senior Executive Vice President and Chief Technology Officer. He, and Kohl’s, are at the forefront of retail technology innovation, focusing on a frictionless customer journey across digital, mobile and more than 1,150 stores.

As part of this journey to more closely unify its online and offline experiences for customers, the company was looking for supporting cloud services that would continue to drive  best-in-class data center infrastructure; the ability to manage data at a very large scale; and industry leading analytics and machine learning tools to continually understand real time data streams and help personalize experiences for their customers.

Kohl’s recognized the opportunity to take on a cloud partner to help drive the improvement of the speed and reliability of their operations, while they focused on a number of innovations to deepen customer experiences.

“At the time, I was looking for an open and scalable platform to partner with our Kohl’s technology team as we transform our business by shifting to the cloud,” says Ratnakar.

“Google has great engineering talent as well as demonstrated experience solving stability and scale in its own Ads and Search business. At Kohl’s, we need to be bold and innovative in today’s retail environment, and therefore need partners who deeply understand how to manage risk.” 

Kohl’s leveraged several capabilities of Google Cloud. For example:

• They built applications to automate deployment, scaling and operations.
• They used monitoring capabilities to monitor for things like response time.
• Scalable technology provided an infrastructure to elastically scale to site traffic.
• They ran their infrastructure across multiple regions for high availability.

In 2017 and 2018, record-setting numbers of customers visited Kohls.com during the Thanksgiving holiday weekend and the digital platform experienced high double-digit growth both years.

The capabilities provided by Google Cloud Platform (GCP) and Google’s data center infrastructure supported Kohl’s servers and systems during these key timeframes.

In addition, the Kohl’s team partnered together with Google’s core engineering team and services organization to optimize applications and make them more reliable.

Google Cloud’s Customer Reliability Engineers (CREs) worked with them in advance of their peak time frames to test the infrastructure for performance, scaling, and fault tolerance.

“Google CRE and services teams collaborated with us as we ran drills and exercises during each phase of preparation for peak time frames,” Ratnakar said. “As we continued to understand better how to scale, monitor, and support our applications in GCP and we are pleased that we worked with the CRE team as partners on monitoring services, alerting teams, and triaging work.”

The financial services industry is evolving at a rapid pace, with shifting consumer expectations, new technologies, and developing regulatory requirements. Financial services firms need the right technology to help them stay agile and prepare for the future. 

The cloud is a key point of leverage for firms looking to improve performance across a broad range of activities. Moving to the public cloud can advance operational resiliency, improve staff productivity, increase regulatory compliance and enhance business model innovation. 

However, there are a number of financial services companies that are still hesitant in their cloud journeys. The barriers to adoption vary, from the complexity of legacy systems, to trust and skills gaps, regulatory uncertainty, and fragmentation of compliance requirements. Although many companies have embraced the benefits of cloud technology, more robust cloud adoption—especially around core back-office functions—will require additional facilitation, including through regulatory harmonization and streamlining.

A new comprehensive study on cloud adoption in financial services

To better understand the challenges and opportunities of cloud adoption in financial services Google Cloud, together with the Harris Poll, surveyed more than 1,300 leaders from the financial services industry across the United States, Canada, France, Germany, United Kingdom, Hong Kong, Japan, Singapore and Australia. 

There were five noteworthy takeaways from the study:  

1. A vast majority of financial services companies are already using some form of public cloud. A large number of surveyed financial services companies (83%) report they are deploying cloud technology as part of their primary computing infrastructures. Of those using cloud technology, the most popular architecture of choice is hybrid cloud (38%), followed by single cloud (28%), and multicloud (17%). Notably, of respondents without a multicloud deployment, 88% reported they are considering adopting a multicloud strategy in the next 12 months.

2. Financial services institutions in North America are leading in cloud adoption. Of the financial services companies who are implementing a cloud strategy, the highest levels of cloud workload adoption were reported in North America, with institutions in the U.S. (54%) and Canada (52%) leading the way. The lowest level of cloud adoption was reported in Japan (42%).

3. As financial services companies continue to use the cloud, more core functionalities can and will be migrated. While many financial services companies have migrated substantial workloads to the cloud, the industry is far from full adoption when it comes to core, back-office workloads. Of financial services companies currently using a majority cloud strategy in the United States, for example, only half (54%) of their workloads are fully deployed in the cloud. Data and IT security (74%), regulatory reporting (57%), and fraud detection and prevention (57%) rank among the highest workload adoption. Core underwriting activity (40%) and data reconciliation (48%) ranked lowest. Across Europe, cloud usage for core activities like underwriting also scored low with the UK listing only 30% adoption.

4. Among respondents, there is a very strong positive perception of the potential for cloud technology to assist in business operations and regulatory compliance. Nearly all respondents (>88%) agreed that cloud adoption can:

1. help adapt to changing customer behaviors and expectations,  
2. enhance operational resilience, 
3. support the creation of innovative new products and services, 
4. enhance financial services institutions’ data security capabilities, and 
5. better connect siloed legacy software infrastructure within financial services institutions. 

5. Certain regulator-induced challenges, including the complexity of sectorial compliance frameworks and fragmentation, create hurdles to cloud adoption for financial services companies. While 88% of respondents had a positive view of current regulatory efforts to provide guidance and clarity for cloud implementation, the results showed that more needs to be done to facilitate adoption. Most respondents (84%) agree that regulatory reviews and approvals take too long because of regulatory fragmentation across regulatory bodies. And 78% say that regulatory uncertainty over the use of public cloud prevents their organizations from adopting cloud technologies that would otherwise provide benefit to them. Additionally, a third of all on-premises respondents (38%) say that the large investment of resources for the regulatory approval process is a reason why they’re not using cloud services.

“While many banks have already deployed hybrid cloud environments, others are still in various stages of planning and deploying,” said Jerry Silva, research vice president for IDC Financial Insights. “Clearly, hybrid infrastructure is a reality, and financial institutions must focus not only on leveraging the modern infrastructure model to gain efficiencies, resilience and agility, but also on taking the necessary steps to manage such environments, including the security and compliance of cloud services.”

Future recommendations for financial services regulators

Financial services firms should continue to maximize the potential of technology by migrating more core workloads to the cloud, and actively considering multicloud and hybrid-cloud strategies. Such strategies enhance resiliency of existing IT infrastructure and reduce concerns over vendor lock-in. 

The research also points to steps that regulators could take to provide additional clarity and guidance, such as aligning regulatory reviews across agencies to avoid fragmentation; developing regulatory “safe harbors” for cloud adopters based on adherence to accepted standards and best practices; training regulatory staff on emerging tech; and advancing data reporting requirements via cloud and related technologies.

In the past few years, many regulators across the globe have taken a robust approach to rationalizing rules and guidance to cloud adoption in the financial sector, which has helped significantly stimulate adoption. But further assurances and harmonization of best practices around supervision is needed to advance risk-based and secure digital innovation.  

At Google Cloud, we’re committed to working with financial services customers and regulators to provide them with controls and assurances on risk management, data locality, transparency, and compliance. We are constantly engaging with regulators to share information, respond to their considerations and concerns, and address questions in the interest of transparency and building trust. 

To learn more about these findings and more, download our infographic and our full report. 

^{Research methodology}

^{The survey was conducted online by the Harris Poll on behalf of Google Cloud, from December 7, 2020, to January 4, 2021, among 1,363 senior executives in France (n=113), Germany (n=178), the UK (n=192), Hong Kong (n=99), Indonesia (n=100), Japan (n=142), Singapore (n=71), Australia (n=134), Canada (134), and the United States (n=200) who are employed full-time, part-time, or self-employed whose main functional role is in risk/compliance or IT at a company in the banking, finance, or financial services industry with a title of director level or higher. The data in each country were weighted by the number of employees to bring them into line with actual company size proportions in the population. A global post-weight was applied to ensure equal weight of each country in the global total.}

Since 2007, PrestaShop has helped companies unlock the power of e-commerce through its open-source platform. Over 300,000 merchants worldwide use the PrestaShop platform to grow their business and serve online shoppers.

“Our open-source strategy to ecommerce enablement sets us apart,” says Rémi Paulin, Ph.D., Data Architect at PrestaShop. “Customization is becoming more crucial to retailers, and our open-source platform allows companies to continually evolve their sites and services to stand out from competitors.”

As PrestaShop grew, it wished to derive more value from its data, but the company ran into issues caused by a legacy, siloed architecture that negatively impacted data consistency and accessibility.

Let’s look at how PrestaShop works with Google Cloud and partners Fivetran and Hightouch to gain more control over data, enable a beyond-BI data strategy, and increase employee engagement from less than 10% to more than 40%.

Improving trust in data

Core systems at PrestaShop, including SQL and NoSQL databases, and SaaS Applications, were siloed; each presenting its own data, often captured from different sources such as support tickets, marketing engagement, purchase activity, and product usage. This setup made data overall inconsistent as no single system would contain a source of truth, resulting in many inefficiencies, poor collaboration across teams, and a reluctance to use data to support key decisions.

“Not long ago, less than 10% of the company regularly relied on data, so we were missing opportunities to make more data-driven decisions,” says Paulin. “Data was underutilized, and people were rapidly losing trust in data.”

PrestaShop set out to design a new architecture to address past challenges, such as lack of data consistency, and improve data accessibility.

“Google Cloud, along with Hightouch and Fivetran, allowed us to build a modern stack to solve these challenges and support our beyond-BI data strategy.”

Building a modern data stack

The first step was to build a robust data ingestion pipeline. After considering several vendors, PrestaShop chose to work with Fivetran to extract data from SaaS applications, including Zendesk, HubSpot, and GitHub, to load into BigQuery. They also use Datastream to stream Change Data Capture (CDC) data from transactional databases into BigQuery in real-time.

“Fivetran and Datastream are no-ops, efficient and highly reliable, and relieve our Data Engineers of management tasks. This brings us a high degree of confidence to build the rest of the stack atop these services,” says Paulin.

PrestaShop relies on several Google Cloud solutions, including Dataflow, and a managed Spark service by Ascend.io, for data transformation. It also uses Looker for its semantic modeling capacities and as a self-serve data platform.

As the company continued on its journey to transform how it manages and benefits from data, it engaged Hightouch to enable data accessibility through activation. Sitting on top of Looker, Hightouch unlocks all data models for operational intelligence. For example, in just a few days, the team built a customer knowledge model combining data from multiple sources and used Hightouch to sync data from the semantic layer to Zendesk via Reverse ETL. This allowed the care team to make more data-informed decisions, speeding up the time to resolve support tickets submitted through Zendesk by 33%.

“Hightouch feels like a natural extension of Looker and reinforces the position of the semantic data model as the single source of truth,” says Paulin. “It powers a variety of Data Activation use cases, supporting our beyond-BI strategy by providing teams with access to data when and where they need it to improve everyday operations. This has a big impact on the company, bolstering employee trust in available data.”

Becoming data-driven

In less than six months, PrestaShop managed to get the entire data stack up and running, build over 30 data models and engage over 120 employees with a small team of only two Data Engineers.

“Data is now accessible to every stakeholder within the company, regardless of their technical abilities,” says Paulin.

PrestaShop has already seen much progress in its shift to a more data-driven company and is excited to roll out more self-service intelligence capabilities in the future.

“Google Cloud drives home a culture of simplicity around our data stack, which is essential for us, especially given the small size of our engineering team,” says Paulin. “Fivetran and Hightouch share this culture of simplicity. Together, they offer strong foundations to support our data needs.”

Dashboards, which the company had always had an appetite for, are seamlessly created today. Before moving to Looker, a full-fledged dashboard would take an average of six weeks to develop. Now, it takes less than two days – and a simple dashboard can be created autonomously by business users in as little as 15 minutes.

Furthermore, data usage goes beyond dashboards. Thanks to Looker’s self-service exploration capabilities, many stakeholders can now glean insights surrounding product issues and business opportunities. Thanks to Hightouch, teams can activate their data to make better and smarter operational decisions.

“This is a big leap forward and one of many to come as we continue to add new models, activate our data, and onboard more users,” says Paulin. “Given our global reach and unique approach to e-commerce enablement, we know this is just the start of the great things we can accomplish with Google Cloud, Fivetran, and Hightouch.”

Check out Fivetran on Google Cloud Marketplace, or sign up for a free Hightouch workspace to learn more about what partners can do for your business.