In 1984, Mario Maio set up a small business manufacturing electrical transformers in his Johannesburg garage. Over the next two decades, the ACDC Dynamics company he created came to dominate manufacturing, import, and distribution in South Africa’s electrical goods sector. Then, in 2007, Mario’s son, Ricardo Maio, founded a retail arm to the business, ACDC Express. Today ACDC Express is South Africa’s largest electrical retail franchise, with 29 franchise stores across the country. Eight of those franchises joined in 2017 alone, and ACDC Express is experiencing quarter-on-quarter growth of 28% per year.

Rapid expansion increases the demands on the ACDC Express central administration, which provides each franchise with IT support and a full suite of marketing, operational, and bookkeeping functions. So when email server downtime became a frequent problem, Ricardo and his team chose G Suite to transform the way the franchise worked.

“We lost revenue when our email servers went down. When I researched Google’s SLA of 99.9% uptime and experimented with G Suite on my private Gmail account, I could see the difference this technology could create.”

Ricardo Maio, CEO, ACDC Express

“On consecutive occasions, our entire email server went down,” says Ricardo Maio, CEO at ACDC Express. “It would take more than one or two days to bring it back up. We had already highlighted software cost overhead as a potential thing to reduce, so when that happened several times within a short period, we knew it was time to make a change.”

Building a better franchise

Franchise businesses undergoing rapid expansion must respond quickly to the demands of new stores. At ACDC Express, 33 staff run the national franchise, delivering core services and support to 29 franchises across the country. Key tasks, such as updating the operations manual, were hampered by a reliance on paper forms and mail services, while email servers experienced repeat failures, which compromised communication. By implementing new, cloud-based productivity tools, ACDC Express looked to cut down on slow and expensive practises, and deliver an agile, reliable online communications platform.

To do that, ACDC Express migrated its franchise to G Suite with Opennetworks. “We lost revenue when our email servers went down,” says Ricardo. “When I researched Google’s SLA of 99.9% uptime and experimented with G Suite on my private Gmail account, I could see the difference this technology could create.”

Since moving to Gmail, ACDC Express reports that the problem of email server downtime “is no longer existent for us,” while with Google Drive, versioning problems have been resolved. Using surveys on Google Forms, ACDC Express quickly and easily collects data from stores and customers—whether they are in stores or on the road—and populates Google Sheets with the information.

“Our operations manual is a binding document, and it’s a living document that gets regularly updated. In the past, we would struggle to track which franchise had which version. With Google Drive, we can be sure that everyone is looking at the right one.”

Ricardo Maio, CEO, ACDC Express

With Google Data Studio, the managing team then consolidates that data on dashboards, creating snapshots of performance, complete with averages and simple comparisons, which make it easy to spot issues and outliers in need of attention. Individual businesses that do require help are then contacted over Google Hangouts Meet to assess what they need, part of a culture of sharing expertise, which Ricardo sees as key to the franchise mode.

“As a franchise, sharing knowledge is as important as maintaining control,” he says. “If there’s a new procedure or system that worked in one store, we can immediately update our manuals and documentation so that everyone has access to it. That’s been fantastic.”

“Our operations manual is a binding document, and it’s a living document, which gets regularly updated,” says Ricardo. “In the past, we would struggle to track which franchise had which version, and every time we had to make a change we would print out a version and send it to stores through an unreliable postal service. With Google Drive, we can be sure that everyone is looking at the right one.”

Remote training, rapid migration

Rolling out new IT tools across a franchise is often expensive, demanding extensive travel and numerous training sessions, which often repeat the same material. Instead, ACDC Express set up training on Google Hangouts that staff could drop into at their convenience, creating a cost-effective training schedule, which meant individual stores could plan their own learning process.

“When we moved to G Suite, we did it all at once, with every employee changing at the same time. We took a band-aid approach, switching to the new tools as rapidly as possible. After six months of training, there have been no reported problems with G Suite at all.”

Ricardo Maio, CEO, ACDC Express

“The whole benefit of franchising is that you can learn from your peers,” says Ricardo. “When we moved to G Suite, we did it all at once, with every employee changing at the same time. We took a band-aid approach, switching to the new tools as rapidly as possible. After six months of training, there have been no reported problems with G Suite at all.”

More mobile, more reliable

Today, ACDC Express operates 240 Google accounts, and information from the franchises’ marketing systems, research, operations, and accounting is fed back automatically to Google Sheets and Google Dashboard at the headquarters in Edenvale, Gauteng. By Ricardo’s estimation, the administrative team is now so effective with G Suite tools, it can achieve twice as much as it could without them.

Now, ACDC Express is looking to use Google Chromebooks in a new web-based point-of-sale system, and considering moving its ERP onto Google Cloud Platform for greater stability, in another project with Opennetworks.

“We’ve developed an in-house point of sale system that’s web-based and can use a functional touchscreen,” adds Ricardo. “We’re looking at rolling that out with Google Chromebooks. We really like how straightforward and simple the Google Chrome devices are, and because we’ve taken a lot of infrastructure into the cloud, we no longer actually need physical machines on our counters. We can work anywhere. That’s something that applies from our head office right down to our smallest franchise store.”

For a business to succeed in the long term, it needs to learn not just to adapt to inevitable change, but to harness it. South Africa-based PPS has been an insurance company since 1941 and today is the biggest mutual insurance provider in the country.

As a mutual company, PPS is owned by more than 200,000 members, making them shareholders. In recent years, PPS and other companies like it have been affected by a number of external factors.

“For one thing, technology platforms have brought in a new gig economy that has all kinds of implications for insurance,” says Avsharn Bachoo, CTO at PPS. “What we’ve been seeing is basically a disruption of the South African insurance industry. We chose to see that as an opportunity.”

“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely. To embrace the world of AI and machine learning effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”

—Avsharn Bachoo, CTO, PPS

In early 2018, faced with an uncertain economic environment that was squeezing growth and profitability, PPS decided to transform itself from a traditional broker-based business into a digital insurance provider. A key pillar of this new strategy was to overhaul the company’s technology infrastructure. To turn the strategy into reality, Avsharn and his team chose Google Cloud Platform (GCP).

“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely,” says Avsharn. “To embrace the world of AI and machine learning (ML) effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”

Power, speed, flexibility with Google Cloud Platform

Previously, PPS maintained an on-premises IT infrastructure, which worked for its traditional business but was unsuited for its new way of working. In early 2018, the company started working on new products for its members but this required large amounts of compute power that proved prohibitively expensive with on-premises servers. Even existing products were starting to require more than the infrastructure could deliver. Aging equipment meant that it’s testing and quality assurance environments bore little resemblance to the actual production environment.

“We had no pre-production environments at all,” says Avsharn, resulting in more work for developers after products had been released. Meanwhile, the capital required to buy and configure more servers for new projects meant fewer resources available for innovation, and left the company less able to react to changes in the market. PPS knew it had to find a cloud-based alternative.

Shortly after devising a new digital strategy, PPS engineers attended a training session on cloud infrastructure given by leading South African Google Cloud Partner Siatik. Impressed with the presentation, PPS engaged Siatik to help run a proof of concept for a cloud-based infrastructure, running on GCP. With on-site engineers and constant communication, Siatik formed a very close working relationship with PPS. “The team at Siatik was exemplary,” recalls Avsharn. “They were well-organized, with cutting-edge technical acumen and very creative solutions to our problems. They were real game-changers.”

“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information. Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”

—Kimoon Kim, Lead Solution Architect and Data Engineer, Siatik

The proof of concept was successful, with GCP outperforming the existing infrastructure in terms of how it handled compute demands, databases, and storage.

“It’s the speed of GCP that really impresses us,” says Avsharn. PPS saw that GCP wasn’t just an opportunity to migrate its existing infrastructure to the cloud. With Siatik’s help, it redesigned its monolithic core architecture to one based around microservices using Google Kubernetes Engine (GKE). For data processing and storage, Cloud Dataflow and Cloud Datastore proved invaluable, while Stackdriver helped the IT team stay on top of logging and monitoring the system.

“Google Cloud makes migrations very easy,” says Brett St. Clair, CEO at Siatik. “It takes care of all the hard work with configurations and replications, so when we switch the machines on, everything is ready and working.”

The ease with which PPS migrated to GCP means that it can now tackle strategic goals much more quickly than before. The most ambitious of these is an AI-powered product recommendation platform. Information is collected from customers who opt in at a defined point in their journey, this database is queried using BigQuery, and the information is fed into the platform. The AI model then calculates the most appropriate products for each member, according to their personal history.

“Most of the product recommendation engines out there are based on clustering, where you’re offered products based on your peer groups,” explains Avsharn. “For the first time, we can make recommendations to members based on their individual preferences and historical behavior. That’s really powerful for us.”

Siatik helped PPS use TensorFlow and Cloud Machine Learning Engine to build the AI platform. For the engineers, these easy-to-use tools helped speed up the process considerably, allowing them to host the models locally without any fuss. Previously, it took one to three months to manually build the model and match an offer to a customer. With the AI platform, a match takes just a few minutes. Cloud ML Engine, in particular, helped the platform adapt to new information on the fly and easily make adjustments to its hyperparameters, that is, preset variables which define the model-training process.

“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information,” says Kimoon Kim, Lead Solution Architect and Data Engineer at Siatik. “Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”

“Google Cloud helped us cancel out a lot of the noise around machine learning and AI. We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”

—Avsharn Bachoo, CTO, PPS

Harnessing artificial intelligence for real-world results

PPS deployed its new AI recommendation platform in December, 2018. Just a couple of months later, its impact was clear. “In around eight weeks, we saw a 5 percent growth in sales,” says Avsharn. “It’s been a direct result of building our recommendation platform with Google Cloud. We can offer the right products to the right members.”

For developers and engineers at PPS, working with Google Cloud gives them access to high performance technology and automation options with GKE. As a result, the infrastructure runs 70 percent faster than before with fewer cores and less memory. Developers can also work in mature testing environments, and for the first time, are able to build pre-production environments, leading to better quality products. More strategically, moving to a serverless, cloud-based infrastructure has helped PPS take control of its budget, moving away from intermittent, large capital spends to more manageable, project-to-project flows of operational expenditure. The company expects to see savings of around 50 percent, or $695,000.

“We have a lot more flexibility with our resources thanks to Google Cloud,” says Avsharn. “When we have a new idea, we don’t have to outlay new capital such as servers before we can even start working on it. We just spin up instances when we want and spin them back down when we’re done.”

With the AI platform deployed and working well, PPS is already looking at ways to improve it, including real-time updates and further automation. Soon, the company will integrate the platform with more sales campaigns for more effective targeting to boost sales even further. Meanwhile, it’s also experimenting with machine learning to spot patterns in data at scale for fraud analytics and risk assessment.

For PPS, working with Google Cloud has helped it transform quickly and effectively from disrupted to disruptor. The company is now looking to gain the same transformative effects by implementing G Suite for increased productivity and collaboration.

“Google Cloud helped us cancel out a lot of the noise around machine learning and AI,” says Avsharn. “We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”