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Headless e-Commerce is the Next Big Thing in Retail

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Headless commerce (HC) for retail helps innovate, develop and launch with limited resources, decoupling the backend and frontend. Learn more about headless e-commerce as the future of retail and commerce tools on Google Cloud Marketplace.

Headless Ecommerce

In the last couple of years there has been a shift in the way retailers approach ecommerce: where in the past development efforts were prioritized around building a solid foundation for backend transactions and operations now it is clear that companies in this space are focusing on differentiating themselves by creating unique shopping experiences that increase engagement and reduce friction. 

But how can development teams spend the necessary time designing and writing code for this kind of interactions while also having to seamlessly maintain ecommerce vital components like online catalogs, shopping carts and checkout payment processes? Enter headless commerce.  

Headless commerce (HC) helps companies of all sizes to innovate, develop and launch in less time and using fewer resources by decoupling backend and frontend. Headless solution providers empower online retailers by offering a balance between flexibility and optimization through pre-built api-accessible modules and components that can be easily plugged into their frontend architecture. This translates into rapid development while keeping desired levels of security, compliance, integration and responsiveness. 

This composable approach enables dev teams not only to create new features but also connect other ecommerce components with less effort which is critical when responding to business trends. But above all, the main benefit retailers receive from HC, is owning and controlling the frontend for an engaging customer journey as well as quickly launching new experiences.  

Google Cloud + commercetools

commercetools, a leader in the headless commerce space, has partnered with Google Cloud to make their cloud-native SaaS platform available in the Google Cloud Marketplace. With a flexible API system (REST API and GraphQL), commercetools’ architecture has been designed to meet the needs of demanding omnichannel ecommerce projects while offering real flexibility to modify or extend its features. It supports a variety of storefront providers like Vue Storefront, offers a large set of integrations and supports microservice-based architectures. All this while providing access to multiple programming languages (PHP, JS, Java) via its SDK tools

commercetools and Google Cloud provide development teams with all the tools to build high-quality digital commerce systems. Google Cloud’s scalability, AI/ML components, API management capabilities and CI/CD tools are a perfect fit to build frontend shopping experiences that easily integrate with the commercetools stack. Developers can take advantage of this compatibility by:

Additionally, commercetools allows ecommerce solutions to tap into the wider Google Ecosystem by providing authoritative data via Merchant Center, advertising via product listing ads and selling via Google Shopping

Architecture Overview

As mentioned previously, headless commerce is increasingly preferred by retailers who want to own and control the ‘front-end’ for providing and enabling an engaging and differentiated user and shopping experiences. 

The approach involves a loosely coupled architecture that separates ‘front end’ from the ‘back end’ of a digital commerce application. The front end is typically built and managed by the retailer. They want to leverage an independent software vendor (ISV) offered, ready-to-use ‘back-end’ commerce building blocks for capabilities, such as product catalog, pricing, promotions, cart, shipping, account and others.

retail.jpg

Most retailers want to invest their time and resources in building a front end that requires an agile development model to introduce new and tweaking existing user experiences to acquire and retain customers. A few retailers that do not have an in-house web development team may choose an ISV that offers ready to use front end. The front end is a web app and designed as a progressive web application (PWA) on Google Cloud. The backend is a headless commerce offered by an ISV, such as commercetools. The backend commerce capabilities are built as a set of microservices, exposed as APIs, run cloud-native and implemented as headless. It is commonly referred to as the  “MACH” solution. The API-first approach of the architecture allows easily integrating ‘best of breed’ capabilities built internally and/or offered by 3rd party ISVs.

Leveraging Google Cloud Components

The architecture of the front end will be implemented on Google Cloud and will integrate with the ISV’s headless commerce back end that runs natively in Google Cloud. 

The front end will be designed using cloud-native services for 

Additionally, API management (Apigee on Google Cloud) can be used to orchestrate interactions of the front end with the APIs of the backend commerce services. The API management’s capability will be used for accessing the services of on-premises systems, such as ERP, order management system (OMS), warehouse management system (WMS) as needed to support the functioning of digital commerce application.  Alternatively, depending on the frontend capabilities, developers can use middleware to build custom services and route requests. 

What’s next?

A considerable number of retailers have adopted headless commerce and are now focusing on adopting best practices and leveraging the agility that comes with this approach. Just like commercetools offers robust components that meet the retailer’s backend operational needs (Product CatalogOrder ManagementCartsPayments, etc), Google Cloud’s Compute, Networking, Severless and AI/ML services  provide the agility and flexibility required by development teams to quickly and easily extend their frontend capabilities. 

commercetools and Google Cloud work seamlessly together because they both prioritize ease of integration, scalability, security and iterability while providing ready-to-use building blocks. It also helps that commercetools backend runs on Google Cloud. Once an initial foundation of Google Cloud and commercetools has been established, adding new commerce modules and extending functionally of the current ones becomes a straightforward process that allows to route efforts to innovation initiatives. In the end, the main beneficiaries of this technical synergy are the shoppers that enjoy experiences which increase engagement and minimize friction. 

Alternatively, retailers can also save time and resources by relying on frontend integrations. commercetools offers a variety of third-party solutions that can effortlessly be added to a headless commerce architecture. These integrations as well as other important headless commerce extensions will be explored in future blog entries.  In the meantime, all the necessary tools to leverage headless commerce can be found in just one place: 

Get started with commercetools on the Google Cloud Marketplace today!

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Data-first Digitization Helps Leverage the Cloud for Your Mainframe Assets

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What's the future state you want to achieve with your mainframe data? Google Cloud's experts introduced the 'data-first digitization', an approach beyond modernization that helps bring data directly to the cloud instead of modernizing apps!

For many enterprises, the venerable mainframe is home to decades’ worth of data about the company’s customers, processes and operations. And it goes without saying that the business would like access to that mainframe data — to report on it, to analyze it with big data analysis tools, or to use it as the basis of new machine learning and artificial intelligence initiatives.

At Google Cloud, we are eager to work with organizations to help them transform their mainframe assets for the cloud era. Of course, we can help them modernize their mainframe applications by migrating them to the cloud. At the same time, working with partners and customers, we’ve developed another, more lightweight approach that can help them start to leverage the cloud for their mainframe assets much more quickly than performing a full-fledged migration. We call this approach data-first digitization.   

In this rapidly evolving digital ecosystem, it’s imperative to understand the difference between ‘modernization’ and ‘digitization.’ With modernization you start with the current state and look forward, and rely on mainframe application migration approaches such as rehosting (emulation), refactoring (automated code transformation), reengineering — or simply replacing a custom application with a commercial package. With digitization, you start with the future state that you want to achieve, and work back to what is required to get there.

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This data-first digitization approach includes a mainframe data-first integration framework comprising in-house and partner products and tools to migrate heterogeneous data sources from the mainframe to Google Cloud Storage. Once mainframe data has been copied to Cloud Storage, it can then be integrated and leveraged by Google Cloud tools such as BigQueryAI and machine learning prodcuts  and Smart and Stream analytics platforms. The integration framework covers both bulk batch data transfers and real-time data replication (change data capture).

Data First Overview.jpg
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Data-first digitization is based on the tenet that ‘applications are transient, data is permanent.’ By bringing data first to Google Cloud instead of traditional ways of modernizing applications (for example, with Gartner’s 7 options to Modernize), this allows organizations to leapfrog to new business models, use cases and innovative ways to serve end customers. For example:

  • Making decisions with smart and stream analytics platforms and AI/ML engines. These tools need data to make decisions. Google is a pioneer in extracting information and value from the raw structured and unstructured data, and this approach opens up mainframe data for use by BigQuery and AI/ML models. 
  • Building new reporting applications. With access to mainframe data, you can use Google cloud products like Looker and Appsheet to build net-new reporting applications, expediting the process of retiring mainframe reporting applications, and accelerating your overall transformation.

In our experience, taking a data-first digitization approach to your mainframe offers a number of benefits:

  1. Faster time-to-business: Because data-first modernization is built on existing products, the implementation cycle is much shorter.
  2. Less capital investment: You spend your time integrating products, not developing applications.
  3. Minimized risk: Data-first integrates with existing, proven and reliable Google Cloud products.
  4. Faster overall mainframe transformation: When you shift your modernization center of gravity from the application to the data, you look at mainframe applications from a business perspective instead of just “keeping the lights on.” As a result, only the most business-critical applications are modernized and many support applications can be decommissioned, accelerating your transformation journey. 

Taking a data-first approach to digitization is still relatively new, but we’re heartened by customers’ early successes. Watch this space for additional insights, reference architectures and technical white papers around data-first. And if you think this approach may be right for you, reach out to mainframe@google.com.


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Case Study

Hike: Processing Analytics Queries 20X Faster with Google Cloud Platform

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After a seamless migration to Google Cloud Platform, Hike has reduced its costs by 20% and processed analytics queries 20 times faster.

After a seamless migration to Google Cloud Platform with CloudCover and Google Cloud Professional Services, Hike has reduced its costs by 20% and processed analytics queries 20 times faster than with its previous cloud provider. The business is also using AI and machine learning to enhance the experience provided by a new sticker-based messaging app, Hike Sticker Chat.

India is a market of opportunity for businesses that provide messaging apps to consumers. With more than 1.3 billion people, the country is the second most populous in the world. However, global messaging app providers face a robust market challenge from Hike, a home-grown internet and technology startup. Launched in 2012, Hike provides innovative products such as Hike Messenger and more recently the AI- and machine-learning-enabled Hike Sticker Chat, a service that enables young people in the country to express themselves through digital stickers.

The business says it understands the people of India and communication like no one else, while its mission is to reduce individuals’ dependency on the keyboard. To do this, Hike is building one of the largest repositories of AI and machine-learning-enabled stickers for Hike Sticker Chat. This messaging platform is, according to Hike, the only product of its type that enables conversations through stickers covering more than 40 languages and local dialects.

Google Cloud Results

  • Processes analytics queries 20X faster than previously
  • Doubles compute throughput
  • Uses Google Cloud Machine Learning Engine managed, distributed capabilities to train complex models on TensorFlow that provide delightful local sticker recommendations through Hike Sticker Chat

Founded by Kavin Bharti Mittal, the Delhi-based venture is backed by SoftBank, Tencent, Tiger Global, Foxconn, and Bharti. To date, Hike has raised $261 million in funding. In August 2016, Hike raised its Series D round of funding, led by Tencent and Foxconn, at a valuation of $1.4 billion. The business is one of the fastest Indian startups to achieve Unicorn status, doing so in less than four years.

Hike started operations on a multinational cloud service. However, as user numbers and usage grew, the business began exploring options to improve performance and stability, reduce costs, and cut administration loads. In particular, Hike wanted to reduce latency between cloud data centers.

Focus on product development

“We aimed to move away from a technology stack with single points of failure to a horizontally scaled, highly reliable, distributed systems and managed services environment that enabled us to focus on product development rather than operations,” says Aditya Gupta, Director, Engineering, Hike.

Hike then began exploring the opportunities presented by Google Cloud Platform. The business held a number of executive-level meetings with Google to understand the capabilities, roadmap, and track record of the cloud service. It then decided to proceed with a proof of concept with Google Cloud Premier Partner CloudCover.

The proof of concept revealed that when Cloud Load Balancing was operating, latency between the Google Cloud data center in Taiwan and Delhi, India, was less than the latency between the incumbent cloud provider’s data center and Delhi. Further, compute throughput was up to two times greater on Compute Engine than on the equivalent service, while Hike could complete more then 1 million connections on Compute Engine – up from 500,000 connections on the incumbent service.

Migrate to GCP

The success of the exercise prompted Hike to migrate its messaging app to Google Cloud Platform. “We chose Google Cloud Platform because of its very broad set of services and features,” explains Gupta. “In addition, Google’s innovation mindset and the richness of the partnership would allow us to be onboarded quickly to machine learning services such as Cloud Machine Learning Engine.”

The business called on Google Cloud Professional Services (Technical Account Management) to help ensure a seamless lift-and-shift migration over two months. Google Cloud Professional Services initially undertook a technical infrastructure kickoff to establish a foundation for architecture requirements such as identity and access management and security.

Google Cloud Professional Services team delivers smooth migration

Google Cloud Professional Services worked closely with Hike to map out and deliver the Google Cloud Platform architecture that would deliver the greatest value to the business. The Professional Services team also worked with Hike to resolve product and support queries quickly; provided project background for product and support teams; and organized project meetings and early adopter program access.

In addition, Professional Services team members worked on site at least once a week, coordinated external support during critical migration periods, and coordinated teams in five countries for a single, 17-hour migration marathon. Over 60 days, the business migrated 7,000 processor cores, running virtual machine instances used for messaging infrastructure and analytics, to Google Cloud Platform.

Throughout the exercise, Google Cloud Professional Services worked with CloudCover to educate the customers’ technology teams to achieve proficiency with Google Cloud Platform. The teams soon built up skills and knowledge of best practices and began applying them to the Google Cloud Platform environment.

The Hike Google Cloud Platform architecture comprises virtual machine instances running in Compute Engine; Cloud Storage for unified object storage; networking; a BigQuery analytics data warehouse; Cloud Dataflow to transform and enrich data; Cloud Load Balancing to distribute workloads to maximize efficiency; and Cloud Dataproc to run Hadoop clusters.

Hike is also stepping up its AI & machine learning capabilities. It uses Google Cloud Machine Learning Engine managed, distributed computing capabilities to train complex models on TensorFlow. This powers key use cases such as delightful local sticker recommendations on Hike Sticker Chat. Hike is also investing heavily on AI and machine learning research.

Hike has achieved a range of benefits from its Google Cloud Platform deployment. As well as reduced latency, improved compute throughput, and increased connection handling, Google Cloud Platform managed services have enabled the business to reduce the time and effort required to administer core infrastructure, with the saved resources allocated to improving its messaging product.

“Managed services are beginning to reduce our operational overheads,” says Gupta. “For example, managed instance groups and Cloud Load Balancing are reducing our instance count and costs, thereby reducing involvement from DevOps and developer teams.”

Google Cloud Platform 20% cheaper

Gupta and his team have calculated that running for three years on Google Cloud Platform will cost, including the cost of migration, 20 percent less than on its previous platform. BigQuery is processing queries 20 times faster than a similar service offered by the previous provider, while storing 125TB of data and streaming 1.5TB of data daily. Furthermore, Hike’s analytics pipeline costs 80 percent less than in its previous environment.

“Google Cloud Platform has played an important role in enabling us to continue to innovate and realize our mission of reducing dependency on the keyboard,” says Gupta.

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Creating Value With the Breadth and Depth of AI Platform

Watch Craig Wiley, Director of Product Management – Google Cloud, as he breaks down and simplifies AI for enterprises and the adoption of AI.

“As I think about AI, fundamentally AI  only does two things. One it helps you grow your market,  increase subscribership, increase users, increase their spend or increase their conversion. Or it helps you in the back-end. It can drive efficiencies, reduce costs and drive out waste from the system.

He also talks about how customers have unlocked the power of data by utilizing Google’s AI Platform. From APIs to AutoML to writing your own model code, he will show real-world examples of how customers create value, and critical tips on how to accelerate your own AI journey.

Finally, he will show how can Google Cloud maps business strategy to the right AI absorption strategy and the different ways that Google Cloud can help you deploy AI without compromising flexibility speed, quality or scale.

Case Study

Google Data Studio Makes Reporting a Breeze For Genesys

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As a customer experience platform, Genesys helps clients nurture great relationships with customers, and creates seamless user journeys across all channels and devices. Its technologies are used by more than 10,000 companies in over 100 countries, making Genesys the top provider of its kind for 25 years in a row.

To improve data efficiency and communication across the company, Genesys turned to Analytics Pros, a digital analytics agency. Together, they used the power of Google Data Studio to transform the way teams across Genesys accessed and used data.

Communicating With Data

The marketing and product teams at Genesys had always been passionate about using data to optimize their user experience and marketing channels. But the problem was showing the data. The different offices and executives around the world had trouble logging in to view the data—and once they did, the reports were intimidating and confusing.

After learning more about the capabilities of Data Studio, Genesys decided to run a pilot project. Analytics Pros helped the company combine multiple data sets into self-service, fully-customizable dashboards on Data Studio. And it was a huge success. Regional teams were thrilled to have meaningful dashboards, and even executives started using and sharing reports.

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Special Identity Parsers in Document AI eases Customer Verification and KYC Processes

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ID and document verification and processing is time and resource consuming. Not anymore with Google Cloud Document AI for customer verification, KYC, and other identity -based workflows in scale for document intensive departments across industries!

If you’ve opened an account at a bank, applied for a government benefit, or provided a proof of age document on an ecommerce website, chances are you’ve had to share a physical or digital copy of a Driver’s License or a passport as proof of your identity. For businesses or public sector organizations that need this information to provide services, processing images of identity documents has long been a time- and resource-intensive process that requires extensive human intervention. Solutions exist to help digitally capture the data, but they require extensive human intervention that impacts the speed and cost of processing and ultimately the time to service customers.

The Google Cloud Document AI family of solutions has been designed to help solve some of the hardest problems for data capture at scale by extracting structured data from unstructured documents to help reduce processing costs and improve business speed and efficiency. Today, we’re announcing the general availability of identity parsers that bring the power of Document AI to customer verification, KYC, and other identity-based workflows.

With Document AI for Identity, businesses can leverage automation to extract information from identity documents with a high degree of accuracy, without having to bear the cost and turnaround time of manual tasks by a service provider. Document AI for Identity leverages artificial Intelligence to provide a set of pre-trained models that can parse identity and supports US driver’s licenses (generally available), US passports (generally available), French driver’s licenses (preview) and French National ID cards (preview), with more documents to be added from around the world over the coming months.

When our customers process high-volume workloads or complex workflows, they need a high degree of accuracy, since getting the first step wrong can derail the entire workflow. The introduction of special parsers for Identity processing can help solve one of the most commonly required document processing needs that our financial services and public sector customers face.

Along with the identity parsers, Google Cloud is also offering its “Human in the Loop” service, in which verification for a subset of identity documents can be automatically assigned to a pool of humans (internal or external) for manual review, based on confidence scores.

While there are multiple industries and applications that could benefit from Document AI for Identity, we’ve seen two main kinds of applications being adopted during the solution’s preview. One is around processing ID cards uploaded as unstructured images at scale, so that enterprises can have IDs on file. The second use case is to perform advanced checks on identity documents to validate their authenticity and / or to detect fraud. Google Cloud’s fraud detector API (which is currently in preview) can complement Document AI for Identity and apply an extra layer of normalization to help validate the identity as a government-issued ID by checking for suspicious words, image manipulation, and other common issues with forged identity documents. With new versions of driver’s licenses being frequently released, Document AI for identity uses specialized models and constantly-updated training data to help make sure the parsers can offer a high degree of accuracy. For all use cases, Document AI does not retain any customer data after completing the processing request (successfully or with an error).

Check out this demo and visit the Document AI for Identity landing page for more information on how Document AI can help solve your identity processing needs, and ask your Google Cloud account team to help you integrate Identity Document AI into your workflows.

For practitioners who’re interested in trying out Identity DocAI, check out our companion practitioner blog for step by step instructions on how to get started.

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