For a look ahead at the trends that will animate the retail industry this year, let’s take a look back at the 2022 National Retail Federation (NRF) “Big Show” in NYC.

Attendees at January’s event were treated to tangible examples of how retail challenges are being solved today, including new solutions to help them parse customer expectations and buying patterns, adapt stores into omni-channel experience hubs, and improve data visibility and actionability.

NRF 2022 also took the “omni-channel everything” theme of last year’s show to the logical next level: Enabling the best hybrid experiences. The message came through loud and clear of the importance of integration and interoperability in this new hybrid world – making everything work well together.

The need for modern digital infrastructure to enable this blending of physical and digital retail smoothly is paramount. To that end, technology vendors demonstrated how digital transformation initiatives, such as contactless and real time IoT and mobile applications, need to be built on cloud, edge, and secure connectivity to allow retailers to achieve the modern seamless hybrid retail that today’s consumer wants.

Other prominent themes and technologies highlighted at NRF included: extending engagement in the metaverse, sustainability, physical and digital security, and the agility and adaptability imperative.

The Metaverse and Hybrid (Omni-channel) Experiences

Today, the metaverse is an extension of our lives, enhanced by technology, which exists as a series of virtual worlds. In the future, the metaverse will be an interconnected, endless world where digital and physical lives fully converge. Imagine waiting for an appointment at a real booth on the NRF show floor while your avatar roams a fully fleshed-out digital NRF, meeting other virtual attendees, stopping for coffee at the digital Starbucks, and paying for a coffee that an in-the-flesh Starbucks employee brings to them. Digital and physical selves merge seamlessly in the metaverse, as the worlds draw closer together.

In the metaverse, brands have a digital presence, too. Nike filed seven trademarks late last year, including those for “Nike,” “Just Do It,” and its swoosh logo, and posted openings for virtual designer roles, indicating its intent to make and sell virtual branded sneakers and apparel. It subsequently purchased RTFKT Studios, a company that already makes and sells NFTs and digital sneakers. (In one collaboration with teenage artist FEWOCiOUS, the company sold 600 pair/NFTs of sneakers in just six minutes to the tune of more than $3.1 million.)

The metaverse also opens possibilities for gathering data about consumers and product demand. Imagine a sneaker drop in the virtual world. Certain styles of new kicks sell like gangbusters, giving the brand insight into what might sell IRL, intelligence that leads to trend-right production and less inventory headed for markdown or landfills. The metaverse can be a vehicle for more sustainable operations.

The metaverse further bridges the narrowing gap between digital worlds and physical worlds. Most consumers aren’t outfitting an avatar, but they are moving between online and offline and expect retailers to accommodate those hybrid omni-channel journeys seamlessly. Those demands have accelerated around last-mile delivery and experiences such as buying online and picking up in store (BOPIS) or at curbside, shopping in store and returning merchandise online, adding items to a BOPIS purchase when at the store, or communicating a substitution to the third-party grocery delivery service

Hybrid experiences open opportunities to please the consumer in new ways, but they also add expense and complexity. The need to meet this demand while enabling profitability was a major theme behind many of the technologies discussed at NRF. These included artificial intelligence (AI) for recommending the right product, return logistics software for defining and guiding product-specific reverse logistics workflows, order orchestration and fulfillment applications for omni-channel shopping, and last-mile delivery visibility for optimizing customer experience, to name a few. Also on display were task management applications help to improve and optimize in-store employee engagement, as well as touch-free applications to allow for faster payments and customer self-service checkout. RFID continues to improve inventory accuracy and inventory locating on the shelf, throughout the store, and the supply chain.

Sustainability

NRF 2022 saw a strong focus on sustainability. An NRF/IBV study released at the show highlighted the significant embrace of sustainable shopping by consumers. According to the survey, 62% of shoppers are “willing to change their purchasing habits to reduce environmental impacts.” About half indicated a willingness to pay a premium – on average a 70% premium – for sustainable products and brands.

Retailers are working to improve sustainability and reduce carbon footprint across operations by using sustainable sourcing through the supply chain, the store, and even returns. Tech vendors unveiled a variety of solutions enabled by cloud/edge, AI, computer vision, and IoT/RFID to allow retailers to effectively measure and record their environmental efforts, with the goal of reducing their impact.

Several cloud and digital infrastructure providers showcased sustainability clouds and other technology aimed at asset management with the goal of reducing energy consumption, water usage, waste. Examples included using IoT sensors to reduce water usage, optimizing re-use of store assets, and dashboards that allow retailers to accurately monitor and measure carbon output. However, such sustainability solutions can be most successful when running on the next-generation digital infrastructure that helps retailers better compete and differentiate in today’s omni-channel world.

Physical and Digital Security

According to a 2021 NRF survey, 57% of U.S. retailers reported the pandemic led to an increase in organized retail crime, while 50% reported an increase in shoplifting. When IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021) asked retailers which digital infrastructure investments would provide the greatest strategic advantage in 2022, their #1 response was “cybersecurity and recovery investments.”

A wide range of technology vendors acknowledged retailer concerns with regards to security, fraud, and loss prevention:

• Networking, connectivity, and edge vendors highlighted multilayer security solutions that promise to protect data from a range of IoT applications that utilize customer and associate data. Many offer security consulting services to address varied threats including ransomware, retail crime, and loss prevention.
• Security and e-commerce security vendors showcased solutions to prevent fraud and abuse in e-commerce applications as well as omni-channel applications such as BOPIS and curbside pickup, using AI-based analysis for identifying “bad”/risky customers and mitigating risk.
• Cloud vendors highlighted how retail clouds provide consistent, reliable identity management and data security.
• POS/payments/store technology vendors emphasized their ability to handle payments securely from any platform with multifactor tokenization, improved identity techniques such as biometrics and voice authentication, as well as AI-enabled and computer vision solutions for loss prevention at checkout and at the door.

The Agility and Adaptability Imperative

On display at the show were multiple flavors of the digital infrastructure technology that retailers need to achieve agile, personalized, data-driven, integrated seamless operations across the many channels of today’s retail landscape. The emphasis was apt. More than half of retailers plan to boost investment in business agility and operational agility over the next 12 months, according to IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021).

Technology vendors highlighted their connectivity investments to enable business and operational agility and their technology investments for better ease of integration, scalability, and the ability to more easily swap out or mix and match applications with integrated platforms, open systems, hybrid cloud, and retail industry clouds.

Vendors also showed off infrastructure to better harness data while enabling its visibility, maximizing its value, and providing the data-driven personalization essential for competitive advantage and differentiation. Highlights included fast, secure connectivity, 5G and Wifi-6, and edge- and cloud-enabled data and AI platforms to generate real-time insights – all designed to enable today’s omni-channel retail.

Advice for the technology buyer

Retailers should consider these key themes from NRF 2022 when making technology investment decisions for 2022 and beyond. To avoid lagging behind those retailers already moving toward thriving into the future, take action to:

• Enable the seamless, contactless omni-channel approach that today’s consumers want and expect.
• Replace legacy infrastructure that was not built to handle the modern retail environment that requires the agility and adaptability to seamlessly connect rapidly increasing volumes of data securely and more quickly than ever.

Whether sustainability, adaptability, the metaverse, or security are top concerns, addressing business needs holistically and strategically should be job #1.

Continue the conversation by downloading our Transforming retail and CPG markets whitepaper today.

Google Cloud and Synopsys Inc are partnering to help semiconductor companies drive Electronic Design Automation (EDA) innovation in the cloud to accelerate time to market, and lower costs across the entire semiconductor product life cycle. Synopsys is the industry’s largest provider of EDA technology used in the design and verification of integrated circuits, or semiconductor chips. Bringing Synopsys technology onto Google Cloud enables customers to benefit from scalable cloud bursting and complementary licensing models to help them quickly deploy and scale Synopsys’ EDA tools. Semiconductor companies can significantly accelerate chip design and production, increase designer productivity, and empower innovation in power-performance-area optimization.

Google Cloud Platform has enabled high performance computing workloads, such as those used by today’s semiconductor chip designers, to deliver exceptionally fast results and reduce prototyping from years to months. Google Cloud’s HPC services have delivered highly scalable solutions across multiple industries – from scientific research to autonomous vehicle testing and simulation.

EDA software is a large consumer of high performance computing capacity in the cloud. With the release of Synopsys Cloud bring-your-own-cloud (BYOC) solution on Google Cloud, chip designers can now scale their Google Cloud infrastructure with Synopsys’s leading EDA tools under the flexible FlexEDA pay-per-use model and access unlimited EDA software license availability on-demand by the hour or minute.

The Synopsys Cloud BYOC deployment architecture on Google Cloud is enabled through their unique cloud metering service which uses Google Cloud regional MIGs (Managed Instance Groups) for autoscaling and multi-zone deployment. This enables the service to scale up to meet customer workload demands and scale down to optimize costs. Secrets used by Synopsys Cloud are securely stored in Google Secret Manager and usage data is encrypted using Google Cloud key management, providing customers with a highly secure design environment.

Synopsys Cloud also leverages Google Cloud’s Ops Agent and Operations Suite Dashboards are used to show metric data, alerting policies, and log entries, providing customers with detailed analytics visibility to make better chip design project lifecycle management decisions. The Synopsys Cloud BYOC solution has been validated with EDA workloads scaling out to thousands of cores on Google Cloud, using Google Filestore network file storage during validation to provide the highest throughput performance.

Vikram Bhatia, Head, Synopsys Cloud Product Management, Synopsys said, “With the release of Synopsys Cloud BYOC solution on Google Cloud, we are transforming the way our mutual semiconductor customers can design the chips of the future. Google Cloud has been leading the innovation wave for semiconductors in the cloud and we are excited about being an early adopter in leveraging those innovations for our unique EDA offerings on the cloud.” Customers can evaluate a full featured Synopsys Cloud BYOC environment on Google Cloud for free by signing up at: synopsys.com/cloud.

“Combined with GCP’s unique platform services for AI, security, and shared storage, the Synopsys Cloud BYOC solution creates a compelling package for semiconductor designers who will create the next generation of chips for the world’s insatiable needs” says Simon Floyd, Industry Director, Manufacturing & Transportation, Google Cloud.

Google Cloud provides everything you need, including free Google Cloud credits to get you up and running. Click here to learn more about Semiconductors on Google Cloud.

Accelerating digital transformation

Digital transformation is what propels businesses and industries forward. Organizations of all sizes—from startups to global enterprises—focus on digital transformation not only to make scaled improvements, but also to drive significant change and fully embrace the digital age. The pandemic has jump started and pushed many organizations into full gear to digitize their business models and transform with increased business agility, resiliency, and velocity, while driving new innovation and business values for the customers.

However, according to the Boston Consulting Group, only about 30% of companies navigate a digital transformation successfully. Many large scale digital transformation programs failed because of lack of clear business priorities, top-down executive sponsorship, or dedicated resources and commitment to see it through.

Laying the foundation for digital transformation success

Digital transformation drives foundational change in how an organization operates, optimizes internal resources, and delivers value to customers; however, this doesn’t just happen overnight. Digital transformation requires a programmatic approach through an incremental yet agile, cost-effective, value-driven, and sustainable strategy to drive successful transformation across the organization.

One of the critical factors foundational to success is Cloud FinOps (Cloud Financial Operations). Cloud FinOps is an operational framework and cultural shift that brings technology, finance, and business together to drive financial accountability and accelerate business value realization through cloud transformation. In the context of Digital Transformation, it requires new ways of working and operating models to drive behaviors and cultural change that foster cross-functional collaboration, drive accountability, provide greater cost transparency, and promote a blameless culture.

Most importantly, Cloud FinOps serves as an enabling function to drive successful digital transformation programs and enable business agility by breaking down the boundaries between technology, finance, and business teams. Through this cross-functional team collaboration, technology leaders partner with finance and business leaders to better understand the technology investments to create sustainable business outcomes. By doing so, business priorities become more clear and the focus shifts to value creation, customer-centricity, and innovation.

As such, companies are reinventing their business models to fund value streams and connect cloud technology investments to strategic business outcomes. With the increased visibility of the cloud costs, finance teams are also gaining greater accuracy in tracking cloud spend against budgets. Organizations can align the TCO of the technology services to the value metrics to make better informed future investment decisions and forecast demand.

Cloud FinOps to accelerate business value realization

The successful deployment and implementation of Cloud FinOps building blocks will enable organizations to accelerate digital transformation beyond cost savings, including the ability to:

• Accelerate business value realization and innovation
• Drive financial accountability and visibility
• Optimize cloud usage and cost efficiency
• Enable cross organizational trust and collaboration
• Prevent cloud spend sprawl
• Break down of departmental silos

Organizations that are successful in digital transformation most often have established processes to measure and track business value. One of the key building blocks of Cloud FinOps is “Measurement & Realization.” By establishing a robust value measurement approach to track and monitor the business value metrics toward business goals, we are bringing technology, finance, and business leaders together through the discipline of Cloud FinOps to show how digital transformation is enabling the organization to create new innovative capabilities and generate top-line revenue.

Business value metrics fall across several factors: cost efficiency, resiliency, velocity, innovation, and sustainability. We suggest assigning KPIs to the following metric categories:

Cost efficiency: Measure cost efficiency through infrastructure savings, migration, and support costs. Customers will commonly start with metrics such as cost of compute and storage per day-week-month, and evolve to unit metrics such as cost per customer served or cost per transaction, where the cost of an application stack is aligned to customer drivers.

Resiliency: Enhance operational resiliency with improvement in service quality and security risk posture. Traditional measures such as system service level and the frequency and duration of critical downtime events are effective measures of IT durability. Customers can also augment these metrics by associating a cost per minute of downtime events, reflecting not only the direct impact of these events but opportunity costs as well.

Velocity: Decrease time to market by accelerating fluidity in product and service delivery. By moving to a cloud-based microservices architecture, customers commonly achieve benefits of increasing software release frequency, as well as being able to run many more test scenarios prior to release, resulting in higher quality code. As an example, our recent Google’s State of DevOps Report 2021, shows that elite performers have 973x more frequent code deployment and release frequency than the low performers.

Innovation: Enable a culture of rapid experimentation to drive innovation and cloud transformation. With cloud technology, companies can avoid the financial constraints of fixed cost investments and lengthy procurement lead times. As a result, the marginal cost of experimentation and time from ideation to experimentation can drop significantly while the number of experiments per unit of time can grow dramatically.

Sustainability: Embed true environmental and social sustainability metrics across the organization by adopting a circular economy strategy and building sustainability into everything we do – from running applications on zero net emissions virtual machines to reducing carbon footprint with enhanced productivity and collaboration services. According to Accenture, companies with average on-premise to cloud migrations can drive 65% energy reduction and carbon emission reduction of 84%1.

Getting started

The Cloud FinOps journey starts with defining or updating your metrics. Since business goals and strategic imperatives will likely change over time, it is important to review the Cloud FinOps metrics whenever the goals change. The review of metrics should include the changes in business goals when there are changes in the internal priorities of the team. Executive leaders need to identify dependency relationships between technology and business outcomes to improve the impact of metrics on decision making and to better prioritize and invest in evolving business and technology capabilities. Defining good metrics is not just about aligning to business goals and demonstrating value. It is also important to help prioritize strategic initiatives, guide effective resource allocation, and generate awareness across the organization to drive a shift in mindset with the new way of operating in the cloud.

The pandemic has accelerated the need for companies to modernize their digital capabilities. With technology-driven disruptions across all industries, it has never been more important for organizations to transform themselves, embrace an agile mindset, and make bold investments in cloud technology and capabilities to achieve sustainable business outcomes.

So, where are you now in your cloud FinOps journey, and how do you move beyond the challenges ahead? Google can help you start the conversation and accelerate your path to maximizing business value with the cloud.

No matter where you are on the cloud transformation journey, through an interactive session with Google, we can bring executives across the organization together to work toward a shared vision and a plan to accelerate and realize business value in the cloud. If you are interested in more information, please contact us.

Special thanks to Pathik Sharma, Bruce Warner, Jon Naseath, and Nihar Jhawar for their contributions and sharing their domain expertise to this important Cloud FinOps topic.

Casper Labs announced a collaboration with Google Cloud that will allow developers to launch public and/or private Casper nodes directly from Google Cloud. This enables a much more seamless and highly secure process for the millions of developers who want to build in blockchain environments without having to learn new, highly specialized programming languages. Additionally, Google Cloud will provide its scalable and reliable infrastructure to developers building on the Casper Protocol. 

Blockchain technology is maturing 

As blockchain technology matures, a growing number of businesses are embracing it as a key way to drive new efficiencies and realize cost savings. 

According to a recent Casper Labs study, 87% of executives polled in the United States, United Kingdom and China reported plans to invest in a blockchain solution in 2023. This is due in no small part due to recent innovations that help organizations overcome the so-called Blockchain Adoption Trilemma, which previously held that it was impossible for any blockchain to be simultaneously a) decentralized, b) scalable, and c) secure.

Thanks to the rise of proof-of-stake blockchains like Casper, new models have emerged that enable a more scalable and secure architecture that no longer forces a compromise on decentralization. 

Another trend facilitating these growing adoption rates is the rise of WebAssembly (WASM) as a baseline technology for newer blockchains, including Casper. WASM (created by W3C) makes application development in blockchain environments far more accessible and interoperable to the millions of developers worldwide who specialize in languages like Java, Javascript, C++ and Rust. Previously, any blockchain-based build required a high degree of specialized developer knowledge, which made it a much more challenging option for most organizations. 

Meet Casper

Casper is a permissionless, decentralized public blockchain based on WASM that was built explicitly to foster enterprise adoption of blockchain technology. Beyond its more accessible model, Casper is the first and only blockchain to offer native upgradable smart contracts. This means that organizations can have the option to securely and consistently update software code even after it is running on Casper. This gives organizations the control and flexibility to use industry best practices, such as continuous deployment and continuous integration, which are already in use in their IT departments. Casper is also highly configurable and allows organizations to support public, private, and/or hybrid deployments. 

Casper is also noteworthy for the presence of Casper Labs, a software development and professional services firm that supports organizations building on the Casper network. Unlike most blockchains that follow a more traditional open-source project, Casper Labs provides around-the-clock support and bespoke software development for enterprise organizations. Recently, Casper Labs helped patent management company IPwe execute the largest-ever blockchain deployment, featuring more than 25 million patents being added as custom NFTs to the Casper Blockchain. 

How to get started with Casper on Google Cloud

Developers who want to start building on Casper can find a comprehensive series of tutorials here.

The Casper Association also recently announced a $25 million grant program to support projects and developers building on Casper. Interested participants can apply here.

The city of South Bend, Indiana has announced they are working with Google Cloud to connect 500 local job seekers with no-cost access to Google Cloud Skills Boost through Upskill SB. This initiative will train, upskill, and certify residents in cloud computing skills to create pathways to technical jobs.

As companies, nonprofits, and governments increasingly leverage cloud computing technology to strengthen their organizations, skilled cloud talent is in high demand both nationally, in Indiana, and in South Bend. According to Lightcast, there were 27,180 unique cloud roles open in the U.S. as of October 2022. Cloud skills are the most in-demand skill set by IT departments: more than one-third of tech learners said professionals with cloud skills are the most challenging to find.

“This partnership with Google Cloud will help residents get on a no-cost path to a cloud computing career at a time when the field is rapidly growing,” said Caleb Bauer, Executive Director of Community Investment for the City of South Bend. “This will help residents prepare to take the next step in their career with Google Cloud Skills Boost and will pave the way to build in-demand skills.”

Google Cloud Skills Boost is the destination for all Google Cloud learning and training opportunities. Local colleges and universities are also able to offer free access to Google Cloud Skills Boost for students through  the Google Cloud Higher Education program. Students can request access to free online labs, quests, and courses. Faculty can take advantage of free Google Cloud Computing Foundations curriculum and coach their students to prepare for Google Cloud certifications.

“Google is proud to offer no-cost access to Google Cloud Skills Boost for jobseekers in South Bend,” said Alice Kamens, Workforce Development lead at Google Cloud. “Through this partnership, we’re advancing our work to ensure everyone has access to the technical training needed to pursue cloud computing careers.”

Those interested in learning more about the program or applying for Upskill SB should visit the Google Cloud page on Upskill SB. Scholarship recipients need access to a computer, hand-held device or smartphone and the internet.