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How Vertex AI Helps Coca-Cola Bottlers Japan Analyze Billions of Data Records

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Coca-Cola Bottlers Japan operates nearly 70,000 vending machines across the country and generates data at a massive scale for analysis to drive strategic decisions. Analytics platform built with Google Cloud's Vertex AI accelerates data analysis.

Japan is home to millions of vending machines installed on streets and in buildings, sports stadiums and other facilities. Vending machine owners and operators, including beverage manufacturers, stock these machines with different product combinations depending on location and demand. For example, they primarily display coffee and energy drinks in machines placed in offices and sports drinks and mineral water in machines at sports facilities. The combinations also vary by season: for example, owners and operators may display cold beverages in summer and hot beverages in winter. 

Traditionally, vending machine operators have relied on the intuition and experience of sales managers to determine the optimum product mix for each vending machine. However, in recent years, manufacturers such as Coca-Cola Bottlers Japan (CCBJ) have turned to data to analyze and make strategic decisions about when and where to locate products in machines.

CCBJ is the number one Coca-Cola bottler in Asia and vending machines comprise the bulk of its business. The organization operates about 700,000 machines across Tokyo, Osaka, Kyoto, and 35 prefectures. Minori Matsuda, Google Developer Expert and also Data Science Manager at CCBJ, says “The billions of data records collected from 700,000 physical devices are a great asset and a treasure trove we can take advantage of.”

Minori points out that when considering the mix of products in vending machines in sporting facilities, the managers naturally assume sports drinks would generally sell well. However, analysis of purchase data – including hot drinks and hot drinks plus sports drinks – found many parents purchased sweet drinks such as milk tea when they attended games or sessions involving their children.  “Analyzing data gives us new discoveries and, by using catchy storytelling techniques from exploratory data analysis, we are instilling a data culture within our company,” he says. “It’s worth creating by looking at facts rather than making assumptions!”

Minori believes that to analyze the vast amount of data collected from more than 700,000 vending machines, the business needs a powerful analytical platform. However, until recently, CCBJ had to extract data for analysis from its core systems, load this data into a warehouse it created and perform the required analyses.  The billions of records of data generated across the fleet – including transaction data – exposed some challenges for traditional analysis platforms. They could not efficiently process data at a considerable scale: it could take a day to return results and required extensive maintenance due to the size.

CCBJ considered building a machine learning (ML) platform as a layer on top of existing systems in August 2020 and opted for Google Cloud the following month.  “I feel that Google Cloud has an edge in all products and is very well thought out,“ says Minori, noting the scalability and cost of the platform allow the business to take a ‘trial and error’ approach to achieve the best outcomes from ML. Google Cloud also delivered the required visibility and flexibility to help the business deliver change every day against key performance indicators. 

MLOps platform streamlines ML pipeline development

CCBJ built its analysis platform using Vertex AI (formerly AI Platform) centered on a BigQuery analytics data warehouse, and partly using AutoML for tabular data. “We have created a prediction model of where to place vending machines, what products are lined up in the machines and at what price, how much they will sell, and implemented a mechanism that can be analyzed on a map,” says Minori, adding that building the platform with Google Cloud was not difficult. “We were able to realize it in a short period of time with a sense of speed, from platform examination to introduction, prediction model training, on-site proof of concept to rollout.”

The data analytics platform with Vertex AI at Coca-Cola Bottlers Japan
The data analytics platform with Vertex AI at Coca-Cola Bottlers Japan

The new data analytics platform of CCBJ consists of the following parts:

Data Sources

  • The data collected from the vending machines are all stored on BigQuery.

Data Discovery and Feature Engineering

  • Minori and other data scientists at CCBJ are using Vertex Notebooks, where they access the data on BigQuery by executing SQL queries directly from the Notebooks. This environment is used for the data discovery process and feature engineering. 

ML Training

ML Prediction and Serving

CCBJ started constructing the platform in September 2020, and completed it within a month. The business has conducted proofs of concept at its base in Kyoto since February 2021, and since April, has rolled out the platform to sales managers in 35 prefectures in one metropolitan area. “Data analysis is built into the day-to-day routines of sales managers with 100% utilization,” says Minori. “They can utilize the prediction results on tablets that were able to achieve pretty high accuracy from the start.”

The hardest part was the education of sales managers in the field; having them understand the reasoning behind the ML prediction results for particular outcomes, so they could be convinced to make use of the results. “For example, regarding a new installation location predicted by the model, it seemed that there was no effective information for installation from the map information, but when I actually went there, there was a motorcycle shop and it was a place where young people who like motorcycles gathered,” says Minori. “Or there is a small meeting place where the elderly in the neighborhood are active. 

“In many cases, new discoveries that cannot be understood from map information alone can be derived from the data.”

Minori also points to a phenomenon whereby humans pursued and confirmed factors inferred by the model – meaning that once they experienced analysis and it worked effectively, they asked why the same type of analysis or prediction could not be undertaken next time. The resulting cycle of more inquiries generated, more information gathered and more data captured for analysis meant the accuracy of results was improved.

results
Sales managers use tablets to access the real time prediction results 

Minori describes Vertex AI as having a number of strengths in helping CCBJ build a ML data analysis platform. “One of the major merits of Vertex AI was that we were able to realize MLOps that streamlines the entire development life cycle from construction of the ML pipeline to its execution,” he says.

With near real-time data analysis through Google Cloud, CCBJ teams can spend time developing strategies rather than waiting for data requested from the IT systems department. Exploratory data analysis is also considerably easier as repeated trial and error has greatly improved the accuracy of analyses. Before we used Machine Learning, most machine placement processes were done by human senses, by looking at a map to find the suggestion points. By using Machine Learning to generate a massive number of placement point suggestions, the efficiency of routing of salespeople has been dramatically improved. 

In the future, CCBJ aims to automate the continuous training pipeline with Vertex AI. “CCBJ is a tech company that operates in the food industry,” says Minori. With the organization operating a vending machine network of 700,000 units, it would like to create new businesses based on utilization and analyzing data. Some of these businesses may be based on Sustainable Development Goals (SDGs) initiatives such as the utilization of recycled PET bottles, measures to prevent food loss and ways of using vending machines to contribute to local communities, which we have been working on for some time. It would be interesting if we could collaborate with Google Cloud on these in the future.”

minori
Minori Matsuda,  Google Developer Expert (ML), and Data Science Manager at Coca-Cola Bottlers Japan

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Predict User Churn on Gaming Apps with Google Analytics Data using BigQuery ML

User retention can be a major challenge for mobile game developers. According to the Mobile Gaming Industry Analysis in 2019, most mobile games only see a 25% retention rate for users after the first day. To retain a larger percentage of users after their first use of an app, developers can take steps to motivate and incentivize certain users to return. But to do so, developers need to identify the propensity of any specific user returning after the first 24 hours. 

In this blog post, we will discuss how you can use BigQuery ML to run propensity models on Google Analytics 4 data from your gaming app to determine the likelihood of specific users returning to your app.

You can also use the same end-to-end solution approach in other types of apps using Google Analytics for Firebase as well as apps and websites using Google Analytics 4. To try out the steps in this blogpost or to implement the solution for your own data, you can use this Jupyter Notebook

Using this blog post and the accompanying Jupyter Notebook, you’ll learn how to:

  • Explore the BigQuery export dataset for Google Analytics 4
  • Prepare the training data using demographic and behavioural attributes
  • Train propensity models using BigQuery ML
  • Evaluate BigQuery ML models
  • Make predictions using the BigQuery ML models
  • Implement model insights in practical implementations

Google Analytics 4 (GA4) properties unify app and website measurement on a single platform and are now default in Google Analytics. Any business that wants to measure their website, app, or both, can use GA4 for a more complete view of how customers engage with their business. With the launch of Google Analytics 4, BigQuery export of Google Analytics data is now available to all users. If you are already using a Google Analytics 4 property, you can follow this guide to set up exporting your GA data to BigQuery.

Once you have set up the BigQuery export, you can explore the data in BigQuery. Google Analytics 4 uses an event-based measurement model. Each row in the data is an event with additional parameters and properties. The Schema for BigQuery Export can help you to understand the structure of the data.  

In this blogpost, we use the public sample export data from an actual mobile game app called “Flood It!” (AndroidiOS) to build a churn prediction model. But you can use data from your own app or website. 

Here’s what the data looks like. Each row in the dataset is a unique event, which can contain nested fields for event parameters.

  SELECT *
FROM `firebase-public-project.analytics_153293282.events_*`
TABLESAMPLE SYSTEM (1 PERCENT)
table

This dataset contains 5.7M events from over 15k users.

  SELECT 
    COUNT(DISTINCT user_pseudo_id) as count_distinct_users,
    COUNT(event_timestamp) as count_events
FROM
  `firebase-public-project.analytics_153293282.events_*
count

Our goal is to use BigQuery ML on the sample app dataset to predict propensity to user churn or not churn based on users’ demographics and activities within the first 24 hours of app installation.

data

In the following sections, we’ll cover how to:

  1. Pre-process the raw event data from GA4
    1. Identify users & the label feature
    2. Process demographic features
    3. Process behavioral features
  2. Train classification model using BigQuery ML
  3. Evaluate the model using BigQueryML
  4. Make predictions using BigQuery ML
  5. Utilize predictions for activation

Pre-process the raw event data

You cannot simply use raw event data to train a machine learning model as it would not be in the right shape and format to use as training data. So in this section, we’ll go through how to pre-process the raw data into an appropriate format to use as training data for classification models.

This is what the training data should look like for our use case at the end of this section:

user id

Notice that in this training data, each row represents a unique user with a distinct user ID (user_pseudo_id). 

Identify users & the label feature

We first filtered the dataset to remove users who were unlikely to return the app anyway. We defined these ‘bounced’ users as ones who spent less than 10 mins with the app. Then we labeled all remaining users:

  • churned: No event data for the user after 24 hours of first engaging with the app.
  • returned: The user has at least one event record after 24 hours of first engaging with the app.

For your use case, you can have a different definition of bounce and churning. Also you can even try to predict something else other than churning, e.g.:

  • whether a user is likely to spend money on in-game currency 
  • likelihood of completing n-number of game levels
  • likelihood of spending n amount of time in-game etc.

In such cases, label each record accordingly so that whatever you are trying to predict can be identified from the label column.

From our dataset, we found that ~41% users (5,557) bounced. However, from the remaining users (8,031),  ~23% (1,883) churned after 24 hours:

  SELECT
    bounced,
    churned, 
    COUNT(churned) as count_users
FROM
    bqmlga4.returningusers
GROUP BY 1,2
ORDER BY bounced
boucned

To create these bounced and churned columns, we used the following snippet of SQL code. 

  ...
#churned = 1 if last_touch within 24 hr of app installation, else 0
IF (user_last_engagement < TIMESTAMP_ADD(user_first_engagement, 
      INTERVAL 24 HOUR),
    1,
    0 ) AS churned,
#bounced = 1 if last_touch within 10 min, else 0
IF (user_last_engagement <= TIMESTAMP_ADD(user_first_engagement, 
      INTERVAL 10 MINUTE),
    1,
    0 ) AS bounced,
...

You can view the Jupyter Notebook for the full query used for materializing the bounced and churned labels. 

Process demographic features

Next, we added features both for demographic data and for behavioral data spanning across multiple columns. Having a combination of both demographic data and behavioral data helps to create a more predictive model. 

We used the following fields for each user as demographic features:

  • geo.country
  • device.operating_system
  • device.language

A user might have multiple unique values in these fields — for example if a user uses the app from two different devices. To simplify, we used the values from the very first user engagement event.

  CREATE OR REPLACE VIEW bqmlga4.user_demographics AS (
  WITH first_values AS (
      SELECT
          user_pseudo_id,
          geo.country as country,
          device.operating_system as operating_system,
          device.language as language,
          ROW_NUMBER() OVER (PARTITION BY user_pseudo_id ORDER BY event_timestamp DESC) AS row_num
      FROM `firebase-public-project.analytics_153293282.events_*`
      WHERE event_name="user_engagement"
      )
  SELECT * EXCEPT (row_num)
  FROM first_values
  WHERE row_num = 1 #first engagement
);

Process behavioral features

There is additional demographic information present in the GA4 export dataset, e.g. app_info, device, event_params, geo etc. You may also send demographic information to Google Analytics through each hit via user_properties. Furthermore, if you have first-party data on your own system, you can join that with the GA4 export data based on user_ids. 

To extract user behavior from the data, we looked into the user’s activities within the first 24 hours of first user engagement. In addition to the events automatically collected by Google Analytics, there are also the recommended events for games that can be explored to analyze user behavior. For our use case, to predict user churn, we counted the number of times the follow events were collected for a user within 24 hours of first user engagement: 

  • user_engagement
  • level_start_quickplay
  • level_end_quickplay
  • level_complete_quickplay
  • level_reset_quickplay
  • post_score
  • spend_virtual_currency
  • ad_reward
  • challenge_a_friend
  • completed_5_levels
  • use_extra_steps

The following query shows how these features were calculated:

  WITH
  events_first24hr AS (
    SELECT
      e.*
    FROM
      `firebase-public-project.analytics_153293282.events_*` e
    JOIN
      bqmlga4.returningusers r
      ON
        e.user_pseudo_id = r.user_pseudo_id
    WHERE
      TIMESTAMP_MICROS(e.event_timestamp) <= r.ts_24hr_after_first_engagement
  )
SELECT
  user_pseudo_id,
  SUM(IF(event_name = 'user_engagement', 1, 0)) AS cnt_user_engagement,
  # ... repeated for all behavior data ... 
  SUM(IF(event_name = 'use_extra_steps', 1, 0)) AS cnt_use_extra_steps,
FROM
  events_first24hr
GROUP BY
  1

View the notebook for the query used to aggregate and extract the behavioral data. You can use different sets of events for your use case. To view the complete list of events, use the following query:

  SELECT
    event_name,
    COUNT(event_name) as event_count
FROM
    `firebase-public-project.analytics_153293282.events_*`
GROUP BY 1
ORDER BY
   event_count DESC

After this we combined the features to ensure our training dataset reflects the intended structure. We had the following columns in our table:

  • User ID:
    • user_pseudo_id
  • Label:
    • churned
  • Demographic features
    • country
    • device_os
    • device_language
  • Behavioral features
    • cnt_user_engagement
    • cnt_level_start_quickplay
    • cnt_level_end_quickplay
    • cnt_level_complete_quickplay
    • cnt_level_reset_quickplay
    • cnt_post_score
    • cnt_spend_virtual_currency
    • cnt_ad_reward
    • cnt_challenge_a_friend
    • cnt_completed_5_levels
    • cnt_use_extra_steps
    • user_first_engagement

At this point, the dataset was ready to train the classification machine learning model in BigQuery ML. Once trained, the model will output a propensity score between churn (churned=1) or return (churned=0) indicating the probability of a user churning based on the training data.

Train classification model 

When using the CREATE MODEL statement, BigQuery ML automatically splits the data between training and test. Thus the model can be evaluated immediately after training (see the documentation for more information).

For the ML model, we can choose among the following classification algorithms where each type has its own pros and cons:

model

Often logistic regression is used as a starting point because it is the fastest to train. The query below shows how we trained the logistic regression classification models in BigQuery ML.

  CREATE OR REPLACE MODEL bqmlga4.churn_logreg
TRANSFORM(
  EXTRACT(MONTH from user_first_engagement) as month,
  EXTRACT(DAYOFYEAR from user_first_engagement) as julianday,
  EXTRACT(DAYOFWEEK from user_first_engagement) as dayofweek,
  EXTRACT(HOUR from user_first_engagement) as hour,
  * EXCEPT(user_first_engagement, user_pseudo_id)
)
OPTIONS(
  MODEL_TYPE="LOGISTIC_REG",
  INPUT_LABEL_COLS=["churned"]
) AS
SELECT
  *
FROM
  bqmlga4.train

We extracted monthjulianday, and dayofweek  from datetimes/timestamps as one simple example of additional feature preprocessing before training. Using TRANSFORM() in your CREATE MODEL query allows the model to remember the extracted values. Thus, when making predictions using the model later on, these values won’t have to be extracted again. View the notebook for the example queries to train other types of models (XGBoost, deep neural network, AutoML Tables).

Evaluate model

Once the model finished training, we ran ML.EVALUATE to generate precisionrecallaccuracy and f1_score for the model:

  SELECT
  *
FROM
  ML.EVALUATE(MODEL bqmlga4.churn_logreg)
row

The optional THRESHOLD parameter can be used to modify the default classification threshold of 0.5. For more information on these metrics, you can read through the definitions on precision and recallaccuracyf1-scorelog_loss and roc_auc. Comparing the resulting evaluation metrics can help to decide among multiple models.Furthermore, we used a confusion matrix to inspect how well the model predicted the labels, compared to the actual labels. The confusion matrix is created using the default threshold of 0.5, which you may want to adjust to optimize for recall, precision, or a balance (more information here).

  SELECT
  expected_label,
  _0 AS predicted_0,
  _1 AS predicted_1
FROM
  ML.CONFUSION_MATRIX(MODEL bqmlga4.churn_logreg)
expected

This table can be interpreted in the following way:

actual

Make predictions using BigQuery ML

Once the ideal model was available, we ran ML.PREDICT to make predictions. For propensity modeling, the most important output is the probability of a behavior occurring. The following query returns the probability that the user will return after 24 hrs. The higher the probability and closer it is to 1, the more likely the user is predicted to return, and the closer it is to 0, the more likely the user is predicted to churn.

  SELECT
  user_pseudo_id,
  returned,
  predicted_returned,
  predicted_returned_probs[OFFSET(0)].prob as probability_returned
FROM
  ML.PREDICT(MODEL bqmlga4.churn_logreg,
  (SELECT * FROM bqmlga4.train)) #can be replaced with a proper test dataset

Utilize predictions for activation

Once the model predictions are available for your users, you can activate this insight in different ways. In our analysis, we used user_pseudo_id as the user identifier. However, ideally, your app should send back the user_id from your app to Google Analytics. In addition to using first-party data for model predictions, this will also let you join back the predictions from the model into your own data.

  • You can import the model predictions back into Google Analytics as a user attribute. This can be done using the Data Import feature for Google Analytics 4. Based on the prediction values you can Create and edit audiences and also do Audience targeting. For example, an audience can be users with prediction probability between 0.4 and 0.7, to represent users who are predicted to be “on the fence” between churning and returning.
  • For Firebase Apps, you can use the Import segments feature. You can tailor user experience by targeting your identified users through Firebase services such as Remote Config, Cloud Messaging, and In-App Messaging. This will involve importing the segment data from BigQuery into Firebase. After that you can send notifications to the users, configure the app for them, or follow the user journeys across devices.
  • Run targeted marketing campaigns via CRMs like Salesforce, e.g. send out reminder emails.

You can find all of the code used in this blogpost in the Github repository:

https://github.com/GoogleCloudPlatform/analytics-componentized-patterns/tree/master/gaming/propensity-model/bqml

What’s next? 

Continuous model evaluation and re-training

As you collect more data from your users, you may want to regularly evaluate your model on fresh data and re-train the model if you notice that the model quality is decaying.

Continuous evaluation—the process of ensuring a production machine learning model is still performing well on new data—is an essential part in any ML workflow. Performing continuous evaluation can help you catch model drift, a phenomenon that occurs when the data used to train your model no longer reflects the current environment. 

To learn more about how to do continuous model evaluation and re-train models, you can read the blogpost: Continuous model evaluation with BigQuery ML, Stored Procedures, and Cloud Scheduler

More resources

If you’d like to learn more about any of the topics covered in this post, check out these resources:

Or learn more about how you can use BigQuery ML to easily build other machine learning solutions:

Let us know what you thought of this post, and if you have topics you’d like to see covered in the future! You can find us on Twitter at @polonglin and @_mkazi_.Thanks to reviewers: Abhishek Kashyap, Breen Baker, David Sabater Dinter.

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90-Sec Demos of Truly Incredible Customer Care Calls Powered By AI

How real, fast, and easy do you think an AI-powered call center experience is for customers today?

It’s likely you have seen AI-powered chatbots and are deeply unimpressed with the static nature of the interaction between customers and service representatives.

But that’s not how Google Cloud’s AI-powered contact centers are.

Here have a look yourself. Here’s what a customer from a bank or financial organisation would experience.

And here’s what a customer from a telecom company would experience.

Explainer

FAQs: Everything Your Need to Know About Cloud Computing

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Cloud computing is an ever-expanding subject as experts introduce and adopt newer approaches and technologies that broaden its scope. From containers, Kubernetes, microservice architecture, to app modernization enrich your know-how on Google Cloud Platform.

There are a number of terms and concepts in cloud computing, and not everyone is familiar with all of them. To help, we’ve put together a list of common questions, and the meanings of a few of those acronyms. You can find all these, and many more, in our learning resources.

What are containers?

Containers are packages of software that contain all of the necessary elements to run in any environment. In this way, containers virtualize the operating system and run anywhere, from a private data center to the public cloud or even on a developer’s personal laptop. Containerization allows development teams to move fast, deploy software efficiently, and operate at an unprecedented scale. Read more.

Containers vs. VMs: What’s the difference?

You might already be familiar with VMs: a guest operating system such as Linux or Windows runs on top of a host operating system with access to the underlying hardware. Containers are often compared to virtual machines (VMs). Like virtual machines, containers allow you to package your application together with libraries and other dependencies, providing isolated environments for running your software services. However, the similarities end here as containers offer a far more lightweight unit for developers and IT Ops teams to work with, carrying a myriad of benefits. Containers are much more lightweight than VMs, virtualize at the OS level while VMs virtualize at the hardware level, and share the OS kernel and use a fraction of the memory VMs require. Read more.

What is Kubernetes?

With the widespread adoption of containers among organizations, Kubernetes, the container-centric management software, has become the de facto standard to deploy and operate containerized applications. Google Cloud is the birthplace of Kubernetes—originally developed at Google and released as open source in 2014. Kubernetes builds on 15 years of running Google’s containerized workloads and the valuable contributions from the open source community. Inspired by Google’s internal cluster management system, Borg, Kubernetes makes everything associated with deploying and managing your application easier. Providing automated container orchestration, Kubernetes improves your reliability and reduces the time and resources attributed to daily operations. Read more.

What is microservices architecture?

Microservices architecture (often shortened to microservices) refers to an architectural style for developing applications. Microservices allow a large application to be separated into smaller independent parts, with each part having its own realm of responsibility. To serve a single user request, a microservices-based application can call on many internal microservices to compose its response. Containers are a well-suited microservices architecture example, since they let you focus on developing the services without worrying about the dependencies. Modern cloud-native applications are usually built as microservices using containers. Read more.

What is ETL?

ETL stands for extract, transform, and load and is a traditionally accepted way for organizations to combine data from multiple systems into a single database, data store, data warehouse, or data lake. ETL can be used to store legacy data, or—as is more typical today—aggregate data to analyze and drive business decisions. Organizations have been using ETL for decades. But what’s new is that both the sources of data, as well as the target databases, are now moving to the cloud. Additionally, we’re seeing the emergence of streaming ETL pipelines, which are now unified alongside batch pipelines—that is, pipelines handling continuous streams of data in real time versus data handled in aggregate batches. Some enterprises run continuous streaming processes with batch backfill or reprocessing pipelines woven into the mix. Read more.

What is a data lake?

A data lake is a centralized repository designed to store, process, and secure large amounts of structured, semistructured, and unstructured data. It can store data in its native format and process any variety of it, ignoring size limits. Read more.

What is a data warehouse?

Data-driven companies require robust solutions for managing and analyzing large quantities of data across their organizations. These systems must be scalable, reliable, and secure enough for regulated industries, as well as flexible enough to support a wide variety of data types and use cases. The requirements go way beyond the capabilities of any traditional database. That’s where the data warehouse comes in. A data warehouse is an enterprise system used for the analysis and reporting of structured and semi-structured data from multiple sources, such as point-of-sale transactions, marketing automation, customer relationship management, and more. A data warehouse is suited for ad hoc analysis as well custom reporting and can store both current and historical data in one place. It is designed to give a long-range view of data over time, making it a primary component of business intelligence. Read more.

What is streaming analytics?

Streaming analytics is the processing and analyzing of data records continuously rather than in batches. Generally, streaming analytics is useful for the types of data sources that send data in small sizes (often in kilobytes) in a continuous flow as the data is generated. Read more.

What is machine learning (ML)?

Today’s enterprises are bombarded with data. To drive better business decisions, they have to make sense of it. But the sheer volume coupled with complexity makes data difficult to analyze using traditional tools. Building, testing, iterating, and deploying analytical models for identifying patterns and insights in data eats up employees’ time. Then after being deployed, such models also have to be monitored and continually adjusted as the market situation or the data itself changes. Machine learning is the solution. Machine learning allows businesses to enable the data to teach the system how to solve the problem at hand with machine learning algorithms—and how to get better over time. Read more.

What is natural language processing (NLP)?

Natural language processing (NLP) uses machine learning to reveal the structure and meaning of text. With natural language processing applications, organizations can analyze text and extract information about people, places, and events to better understand social media sentiment and customer conversations. Read more.

Learn more

This is just a sampling of frequently asked questions about cloud computing. To learn more, visit our resources page at cloud.google.com/learn.

Blog

How AI and Analytics in EdTech are Living Upto the Hype

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EdTech platforms saw a staggering growth in 2020, driving their markers to compete on content, personalization and security for continued adoption. With AI and analytics, they can transform online learning, and boost its accessibility and experience.

Over the last year, COVID-19 presented unforeseen challenges for practically every type of business and organization—including schools, colleges, and universities. For educational institutions, the pandemic was an unapologetic agent of acceleration, shifting one billion learners from in-person to online learning within two months. 

The rapid transition to online learning exposed many schools’ lack of readiness for the new online learning environment. It also widened the learning equity gap for students, with fewer than 40% of students from low-income families having access to the tools required for remote learning.

For those who do have online access, today’s students expect everything from engaging and collaborative digital learning experiences to skills-based training for their roles in the future workforce. Expectations are also high for 24×7 multi-channel tech support across all learning devices, applications, and platforms.  

In these remarkable times, education technology companies have an important role to play in supporting academic institutions and students. Indeed, this is already happening, as the EdTech (Educational Technology) market is nearly tripling, with total global expenditures expected to reach $404 billion by 2025. However, the success of these EdTech companies depends on their performance in a number of areas, including:

  • Content and products: How quickly can they generate new content and react to learner needs with new products to additional markets for broader adoption?
  • Personalization: How effectively can they leverage artificial intelligence (AI) to provide a personalized experience to all types of learners?
  • Trust and security: How trusted and secure are their services when educational organizations are suffering the highest number of data breaches since 2005?

Here are a few examples of how EdTech companies are successfully using AI and analytics to capture this opportunity and transform their businesses:

  • Build better products: iSchoolConnect is an online platform that lets students explore schools, courses, and countries where they might study, and makes higher education admissions accessible to students around the globe. The company leverages AI services to help educational institutions optimize their academic operations by accelerating admission processing by greater than 90%, while saving significant costs.
  • Launch in new markets faster: Classroom creativity tools provider Book Creator uses AI APIs to enhance accessibility and improve the learner experience. “The broad suite of intelligent APIs enables us to deliver richer experiences, faster and more easily, without having to be experts in machine learning, drawing recognition, map embeds, or other areas,” says VP of engineering Thom Leggett.
  • Scale businesses securely: Using DevOps and CDN [content delivery network] services, Chrome browser recording extension creator Screencastify was able to support eight times growth in users overnight amid the COVID-19 pandemic, while maintaining consistent total cost of ownership. These technologies helped the company rapidly scale operations in response to the overnight increase in demand from consumers and assure student data privacy and security on a budget. “We know this is just the beginning, as more educators rely on technology to deliver richer, more interactive curricula to students,” says CEO James Francis. 
  • Provide personalized learning and support: Smart analytics and AI can provide personalized support and recommendations for students, forecast demand, and predict shifts in learners’ preferences. Online learning platform Mindvalley uses cloud-based tools to understand and make decisions based on user activity and leverage machine learning to predict behavior. 

Google Cloud is partnering with many of these leading EdTech companies, as well as industry-leading consortiums like Ed-Fi and Unizin, to standardize educational common data models and best practices for more agile and cost-effective integration of EdTech into existing environments.

The education landscape is changing rapidly, and EdTech has a major role to play as institutions adapt to the massive shift in learners’ preferences and expectations. We’re committed to empowering EdTech companies with the tools and services they need to help expand learning for everyone, anywhere. 

Watch our Spotlight session with EdTechX to learn more.

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Why it’s Easier Than Ever for Developers to Break Into Machine Learning and Data Science

Japan is home to millions of vending machines installed on streets and in buildings, sports stadiums and other facilities. Vending machine owners and operators, including beverage manufacturers, stock these machines with different product combinations depending on location and demand. For example, they primarily display coffee and energy drinks in machines placed in offices and sports drinks and mineral water in machines at sports facilities. The combinations also vary by season: for example, owners and operators may display cold beverages in summer and hot beverages in winter. 

Traditionally, vending machine operators have relied on the intuition and experience of sales managers to determine the optimum product mix for each vending machine. However, in recent years, manufacturers such as Coca-Cola Bottlers Japan (CCBJ) have turned to data to analyze and make strategic decisions about when and where to locate products in machines.

CCBJ is the number one Coca-Cola bottler in Asia and vending machines comprise the bulk of its business. The organization operates about 700,000 machines across Tokyo, Osaka, Kyoto, and 35 prefectures. Minori Matsuda, Google Developer Expert and also Data Science Manager at CCBJ, says “The billions of data records collected from 700,000 physical devices are a great asset and a treasure trove we can take advantage of.”

Minori points out that when considering the mix of products in vending machines in sporting facilities, the managers naturally assume sports drinks would generally sell well. However, analysis of purchase data – including hot drinks and hot drinks plus sports drinks – found many parents purchased sweet drinks such as milk tea when they attended games or sessions involving their children.  “Analyzing data gives us new discoveries and, by using catchy storytelling techniques from exploratory data analysis, we are instilling a data culture within our company,” he says. “It’s worth creating by looking at facts rather than making assumptions!”

Minori believes that to analyze the vast amount of data collected from more than 700,000 vending machines, the business needs a powerful analytical platform. However, until recently, CCBJ had to extract data for analysis from its core systems, load this data into a warehouse it created and perform the required analyses.  The billions of records of data generated across the fleet – including transaction data – exposed some challenges for traditional analysis platforms. They could not efficiently process data at a considerable scale: it could take a day to return results and required extensive maintenance due to the size.

CCBJ considered building a machine learning (ML) platform as a layer on top of existing systems in August 2020 and opted for Google Cloud the following month.  “I feel that Google Cloud has an edge in all products and is very well thought out,“ says Minori, noting the scalability and cost of the platform allow the business to take a ‘trial and error’ approach to achieve the best outcomes from ML. Google Cloud also delivered the required visibility and flexibility to help the business deliver change every day against key performance indicators. 

MLOps platform streamlines ML pipeline development

CCBJ built its analysis platform using Vertex AI (formerly AI Platform) centered on a BigQuery analytics data warehouse, and partly using AutoML for tabular data. “We have created a prediction model of where to place vending machines, what products are lined up in the machines and at what price, how much they will sell, and implemented a mechanism that can be analyzed on a map,” says Minori, adding that building the platform with Google Cloud was not difficult. “We were able to realize it in a short period of time with a sense of speed, from platform examination to introduction, prediction model training, on-site proof of concept to rollout.”

The data analytics platform with Vertex AI at Coca-Cola Bottlers Japan
The data analytics platform with Vertex AI at Coca-Cola Bottlers Japan

The new data analytics platform of CCBJ consists of the following parts:

Data Sources

  • The data collected from the vending machines are all stored on BigQuery.

Data Discovery and Feature Engineering

  • Minori and other data scientists at CCBJ are using Vertex Notebooks, where they access the data on BigQuery by executing SQL queries directly from the Notebooks. This environment is used for the data discovery process and feature engineering. 

ML Training

ML Prediction and Serving

CCBJ started constructing the platform in September 2020, and completed it within a month. The business has conducted proofs of concept at its base in Kyoto since February 2021, and since April, has rolled out the platform to sales managers in 35 prefectures in one metropolitan area. “Data analysis is built into the day-to-day routines of sales managers with 100% utilization,” says Minori. “They can utilize the prediction results on tablets that were able to achieve pretty high accuracy from the start.”

The hardest part was the education of sales managers in the field; having them understand the reasoning behind the ML prediction results for particular outcomes, so they could be convinced to make use of the results. “For example, regarding a new installation location predicted by the model, it seemed that there was no effective information for installation from the map information, but when I actually went there, there was a motorcycle shop and it was a place where young people who like motorcycles gathered,” says Minori. “Or there is a small meeting place where the elderly in the neighborhood are active. 

“In many cases, new discoveries that cannot be understood from map information alone can be derived from the data.”

Minori also points to a phenomenon whereby humans pursued and confirmed factors inferred by the model – meaning that once they experienced analysis and it worked effectively, they asked why the same type of analysis or prediction could not be undertaken next time. The resulting cycle of more inquiries generated, more information gathered and more data captured for analysis meant the accuracy of results was improved.

results
Sales managers use tablets to access the real time prediction results 

Minori describes Vertex AI as having a number of strengths in helping CCBJ build a ML data analysis platform. “One of the major merits of Vertex AI was that we were able to realize MLOps that streamlines the entire development life cycle from construction of the ML pipeline to its execution,” he says.

With near real-time data analysis through Google Cloud, CCBJ teams can spend time developing strategies rather than waiting for data requested from the IT systems department. Exploratory data analysis is also considerably easier as repeated trial and error has greatly improved the accuracy of analyses. Before we used Machine Learning, most machine placement processes were done by human senses, by looking at a map to find the suggestion points. By using Machine Learning to generate a massive number of placement point suggestions, the efficiency of routing of salespeople has been dramatically improved. 

In the future, CCBJ aims to automate the continuous training pipeline with Vertex AI. “CCBJ is a tech company that operates in the food industry,” says Minori. With the organization operating a vending machine network of 700,000 units, it would like to create new businesses based on utilization and analyzing data. Some of these businesses may be based on Sustainable Development Goals (SDGs) initiatives such as the utilization of recycled PET bottles, measures to prevent food loss and ways of using vending machines to contribute to local communities, which we have been working on for some time. It would be interesting if we could collaborate with Google Cloud on these in the future.”

minori
Minori Matsuda,  Google Developer Expert (ML), and Data Science Manager at Coca-Cola Bottlers Japan

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