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Three Data Insights That Set Marketing Leaders Apart from Marketing Laggards

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Google partnered with MIT Sloan Management Review and MIT Technology Review for a deep dive into the mindsets of marketing leaders who use machine learning and AI to get better results from their marketing activities, compared to marketing executives who don't.

With insights directing the bulk of today’s marketing decisions, leading marketers are driving growth by embracing three core mindset shifts. Marketing leaders are working toward a holistic view of consumers; they are investing in machine learning to support their activities; and they believe how they apply their data is crucial to success. Google partnered with MIT Sloan Management Review and MIT Technology Review for a deeper dive into the mindsets around these beliefs. Here’s what we found.

1. Leading marketers are working toward a holistic view of consumers.

  • 63% of leading marketers agree they are using KPIs to develop a single integrated view of the customer.
  • 66% of leading marketers agree they should build teams for end-to-end customer experiences and journeys, across channels and devices.
  • Marketing leaders are 60% more likely than laggards to believe that marketing teams should own a data-driven customer strategy that supports all organizational stakeholders.

2.  Leading marketers are investing in machine learning to support their activities.

  • Measurement-leaders are more than 2X as likely as their measurement-challenged counterparts to agree that their organization is already investing in automation and machine learning technologies to drive marketing activities.
  • 75% of marketers who use machine learning to drive marketing activities said they were satisfied with how their KPIs inform and influence decision-making across their enterprise.
  • 73% of marketing leaders who have invested in machine learning have shifted more than 10% of their time from manual activation to strategic insight generation.

3. Leading marketers believe how they apply their data is crucial to success.

  • 66% of marketing leaders believe how companies apply their data will play a key role in their ability to thrive.
  • 60% of leading marketers believe data-driven attribution is essential to understanding journeys of high-value customers.
  • Marketing leaders are 53% more likely than laggards to say machine learning processes data signals to help marketers better understand consumer intent.
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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.

1 data-first digitization.jpg
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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
Click to enlarge

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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How-to

How to Build a BI Dashboard With Google Data Studio and BigQuery

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For as long as business intelligence (BI) has been around, visualization tools have played an important role in helping analysts and decision-makers quickly get insights from data.

In our current era of big data analytics, that premise still holds. To provide an integrated platform for building BI dashboards on top of big data, GCP offers the combination of Google BigQuery, a cloud-native data warehouse that helps you analyze petabytes of data quickly, and Google Data Studio, a free tool that helps you quickly create beautiful reports.

First, imagine that you work for an online retailer that bases important decisions on customer interaction data in the form of large amounts (multiple TBs) of usage logs stored as date-partitioned tables in a BigQuery dataset called usage. To get business value out of that data as quickly as possible, you want to build a dashboard for analysts that will provide visualizations of trends and patterns in your data.

The good news is that a connector is available that lets you query data stored in BigQuery directly from Data Studio.

Learn how to build a BI dashboard with Data Studio as the front end, and powered by BigQuery on the back end (with some help from Google App Engine for added efficiency). Download this how-to now.

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Enabling Real-time AI with Streaming Ingestion in Vertex AI

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Vertex AI's game-changing Streaming Ingestion propels real-time AI applications to new heights, revolutionizing industries from retail to security by delivering up-to-the-minute insights and predictions.

Many machine learning (ML) use cases, like fraud detection, ad targeting, and recommendation engines, require near real-time predictions. The performance of these predictions is heavily dependent on access to the most up-to-date data, with delays of even a few seconds making all the difference. But it’s difficult to set up the infrastructure needed to support high-throughput updates and low-latency retrieval of data.

Starting this month, Vertex AI Matching Engine and Feature Store will support real-time Streaming Ingestion as Preview features. With Streaming Ingestion for Matching Engine, a fully managed vector database for vector similarity search, items in an index are updated continuously and reflected in similarity search results immediately. With Streaming Ingestion for Feature Store, you can retrieve the latest feature values with low latency for highly accurate predictions, and extract real-time datasets for training.

For example, Digits is taking advantage of Vertex AI Matching Engine Streaming Ingestion to help power their product, Boost, a tool that saves accountants time by automating manual quality control work.“Vertex AI Matching Engine Streaming Ingestion has been key to Digits Boost being able to deliver features and analysis in real-time. Before Matching Engine, transactions were classified on a 24 hour batch schedule, but now with Matching Engine Streaming Ingestion, we can perform near real time incremental indexing – activities like inserting, updating or deleting embeddings on an existing index, which helped us speed up the process. Now feedback to customers is immediate, and we can handle more transactions, more quickly,” said Hannes Hapke, Machine Learning Engineer at Digits.

This blog post covers how these new features can improve predictions and enable near real-time use cases, such as recommendations, content personalization, and cybersecurity monitoring.

Streaming Ingestion enables you to serve valuable data to millions of users in real time.

Streaming Ingestion enables real-time AI

As organizations recognize the potential business impact of better predictions based on up-to-date data, more real-time AI use cases are being implemented. Here are some examples:

  • Real-time recommendations and a real-time marketplace: By adding Streaming Ingestion to their existing Matching Engine-based product recommendations, Mercari is creating a real-time marketplace where users can browse products based on their specific interests, and where results are updated instantly when sellers add new products. Once it’s fully implemented, the experience will be like visiting an early-morning farmer’s market, with fresh food being brought in as you shop. By combining Streaming Ingestion with Matching Engine’s filtering capability, Mercari can specify whether or not an item should be included in the search results, based on tags such as “online/offline” or “instock/nostock.”

Mercari Shops: Streaming Ingestion enables real-time shopping experiment
  • Large-scale personalized content streaming: For any stream of content representable with feature vectors (including text, images, or documents), you can design pub-sub channels to pick up valuable content for each subscriber’s specific interests. Because Matching Engine is scalable (i.e., it can process millions of queries each second), you can support millions of online subscribers for content streaming, serving a wide variety of topics that are changing dynamically. With Matching Engine’s filtering capability, you also have real-time control over what content should be included, by assigning tags such as “explicit” or “spam” to each object. You can use Feature Store as a central repository for storing and serving the feature vectors of the contents in near real time.
  • Monitoring: Content streaming can also be used for monitoring events or signals from IT infrastructure, IoT devices, manufacturing production lines, and security systems, among other commercial use cases. For example, you can extract signals from millions of sensors and devices and represent them as feature vectors. Matching Engine can be used to continuously update a list of “the top 100 devices with possible defective signals,” or “top 100 sensor events with outliers,” all in near real time.
  • Threat/spam detection: If you are monitoring signals from security threat signatures or spam activity patterns, you can use Matching Engine to instantly identify possible attacks from millions of monitoring points. In contrast, security threat identification based on batch processing often involves potentially significant lag, leaving the company vulnerable. With real-time data, your models are better able to catch threats or spams as they happen in your enterprise network, web services, online games, etc.

Implementing streaming use cases

Let’s take a closer look at how you can implement some of these use cases.

Real-time recommendations for retail

Mercari built a feature extraction pipeline with Streaming Ingestion.

Mercari’s real-time feature extraction pipeline


The feature extraction pipeline is defined with Vertex AI Pipelines, and is periodically invoked by Cloud Scheduler and Cloud Functions to initiate the following process:

  1. Get item data: The pipeline issues a query to fetch the updated item data from BigQuery.
  2. Extract feature vector: The pipeline runs predictions on the data with the word2vec model to extract feature vectors.
  3. Update index: The pipeline calls Matching Engine APIs to add the feature vectors to the vector index. The vectors are also saved to Cloud Bigtable (and can be replaced with Feature Store in the future).

“We have been evaluating the Matching Engine Streaming Ingestion and couldn’t believe the super short latency of the index update for the first time. We would like to introduce the functionality to our production service as soon as it becomes GA, ” said Nogami Wakana, Software Engineer at Souzoh (a Mercari group company).

This architecture design can be also applied to any retail businesses that need real-time updates for product recommendations.

Ad targeting

Ad recommender systems benefit significantly from real-time features and item matching with the most up-to-date information. Let’s see how Vertex AI can help build a real-time ad targeting system.

Real-time ad recommendation system

The first step is generating a set of candidates from the ad corpus. This is challenging because you must generate relevant candidates in milliseconds and ensure they are up to date. Here you can use Vertex AI Matching Engine to perform low-latency vector similarity matching, generate suitable candidates, and use Streaming Ingestion to ensure that your index is up-to-date with the latest ads.

Next is reranking the candidate selection using a machine learning model to ensure that you have a relevant order of ad candidates. For the model to use the latest data, you can use Feature Store Streaming Ingestion to import the latest features and use online serving to serve feature values at low latency to improve accuracy.

After reranking the ads candidates, you can apply final optimizations, such as applying the latest business logic. You can implement the optimization step using a Cloud Function or Cloud Run.

What’s Next?

Interested? The documents for Streaming Ingestion are available and you can try it out now. Using the new feature is easy: For example, when you create an index on Matching Engine with the REST API, you can specify the indexUpdateMethod attribute as STREAM_UPDATE.

{
    displayName: "'${DISPLAY_NAME}'", 
    description: "'${DISPLAY_NAME}'",
    metadata: {
       contentsDeltaUri: "'${INPUT_GCS_DIR}'", 
       config: {
          dimensions: "'${DIMENSIONS}'",
          approximateNeighborsCount: 150,
          distanceMeasureType: "DOT_PRODUCT_DISTANCE",
          algorithmConfig: {treeAhConfig: {leafNodeEmbeddingCount: 10000, leafNodesToSearchPercent: 20}}
       },
    },
    indexUpdateMethod: "STREAM_UPDATE"
}

After deploying the index, you can update or rebuild the index (feature vectors) with the following format. If the data point ID exists in the index, the data point is updated, otherwise, a new data point is inserted.

{
    
datapoints: [
        
{datapoint_id: "'${DATAPOINT_ID_1}'", feature_vector: [...]}, 
        {datapoint_id: "'${DATAPOINT_ID_2}'", feature_vector: [...]}
    
]
}

It can handle the data point insertion/update at high throughput with low latency. The new data point values will be applied in any new queries within a few seconds or milliseconds (the latency varies depending on the various conditions).

The Streaming Ingestion is a powerful functionality and very easy to use. No need to build and operate your own streaming data pipeline for real-time indexing and storage. Yet, it adds significant value to your business with its real-time responsiveness.

To learn more, take a look at the following blog posts for learning Matching Engine and Feature Store concepts and use cases:

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WayFair and Google Cloud Get Together to Raise the Bar on World-class Experience!

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To fuel a culture of collaboration and experimentation, WayFair teamed up with Google Cloud for Machine Learning Hackathon in early December. Read to understand the five categories event participants worked on and reflections on AI/ML innovations.

On Dec 9th and 10th, Wayfair and Google Cloud came together for the inaugural Wayfair-Google Cloud Machine Learning Hackathon. Wayfair firmly believes that hackathons are a great way to fuel a culture of collaboration and experimentation. To fuel Wayfair’s incredible pace of innovation at scale, it’s team of more than 3,000 technologists is constantly experimenting and taking smart risks. It’s test-and-learn culture empowers everyone to think critically and creatively, and take big swings to raise the bar on its world-class experience. 

The Wayfair-Google Cloud Machine Learning Hackathon was all about getting Wayfairians excited about and enabled on new technology. More specifically, this event was a contained test environment for Wayfair innovators to validate AI and ML tools in order to understand how to get better insight from their data. The projects worked on during this hackathon will help Wayfair build new use cases that could impact the business and the end customer in new and productive ways. Google Cloud’s focus for this Hackathon was to enable Wayfairains to harness the power of Machine Learning and AI to enable their own goals around continual improvement and relentless customer focus. 

Prior to the event, Wayfair Data Scientists and Machine Learning Engineers who signed up and submitted ideas for the Hackathon were invited to optional Google Cloud enablement and training sessions. Google Cloud set up classrooms in Qwiklabs on topics including, but not limited to, BigQuery, Vertex AI, and Natural Language AI, so that all Hackathon participants could try out new technologies and tools in a learning environment. Google Cloud subject matter experts were available to field any questions Wayfairians had about the use cases they were hacking on. 

The Hackathon was a hybrid virtual & physical event that hosted 67+ innovators, 49 of which registered for Google Cloud supported ideas. 15 judges from both Google Cloud and Wayfair oversaw the event. The esteemed list of judges included Steven Conine, Wayfair’s Co-Founder and Co-Chairman who has helped pave the way for the development of practical applications of next-generation technologies like augmented reality. The judges measured and evaluated the success of a project based on the following criteria:

  • “Wow Factor”: How innovative is the project?
  • Impact: How impactful is the project to Wayfair?
  • Polish: How complete is the project?
  • Presentation Quality: How clear and consistent is the demo? 

The theme of the Hackathon was Machine Learning and AI. Teams were able to collaborate with participants globally, either in-person or virtually, and work together on projects in five categories:  Relentless Customer Focus, Always Improving, Google’s Choice, People’s Choice, and Hackers’ choice. 

At the end of the two days there were winners in all 5 categories. The Google’s Choice award went to “Entity Extraction for Order Matching”. Team “Project Clippy” was named both Hackers’ Choice and the winners of the Relentless Customer Focus category. See below for the results of the 5 categories: 

  • Relentless Customer Focus and Hackers’ Choice
    • Winning Team: Project Clippy
    • Hackers: Misha Balyasin, Alex Saad, Leo Smerling, and Gabriele Lanaro
    • This project provided a gamified experience to make the process of leaving a product review even more seamless. 
  • Always Improving
    • Winning Team: Customer Causal MetaLeaners
    • Hackers: Colin Gray, Irene Wang, Huy Vo Tran, Wenhao Xu, and Santiago Velez Ferro
    • Team Customer Causal MetaLeaners worked to build lightweight procedure(s) for computationally distributed, multi-target, customized loss functions to make causal meta-learners more applicable to real-world Wayfair problems.
  • Google’s Choice Award:
    • Winning Team: Entity Extraction for Order Matching
    • Hackers: Roger Bock, Bradley West, Sina Moeini, and Jonathan de Melker Worms
    • This team built out a solution to use text models to extract and identify the products that customers purchased from user reviews.
  • People’s Choice:
    • Winning Team: KNN and ANN on Vertex AI
    • Hackers: Santosh Jhingade, Ashrith Marpaka, Nikhil Bhaip, Adam Schulze, and Brandon Sanders
    • This team used Vertex AI to expand the impact they can have on suppliers and customers by providing accurate and real-time information of products that match either description or image.

Wayfair leaders reflected on the two days and shared their input. Matt Ferrari, Head of Ad Tech, Customer Intelligence, and Machine Learning; Engineering and Product at Wayfair said, “Wayfair has a lot of vendors, but very few strategic partners, and Google is that. Our Partner.” “Thank you all for the participation! I’m grateful to Google, and the many others for helping lead a successful event.” 

Wayfair partners with Google Cloud to optimize performance and resiliency, support scaling data-driven decisions, and Increase employee productivity. “Our category is ripe for innovation, and our partnership with Google Cloud helps us ensure that great ideas can come from anywhere by empowering our technologists with cutting-edge products and solutions,” said Ferrari. “We’re proud to partner on efforts like hackathons that align with our team’s eagerness to work on complex, rewarding problems that push the envelope and challenge us to always think big.”

At first Google Cloud won Wayfair over with the speed, reliability and performance of their technology. Hackathons like this one exemplify that what is equally as important is Google Cloud’s willingness to work side-by-side with Wayfair at every level to enable a culture of innovation. Learn more about the Wayfair-Google Cloud partnership here.

Case Study

How Domino’s Increased Monthly Revenue By 6% with Google Marketing Platform

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Pizza purveyor Domino’s is dominating delivery sales around the world. Today, Domino’s is the most popular pizza delivery chain operating in the U.K., the Republic of Ireland, Germany, and Switzerland — and sales just keep growing.

In these regions in 2014, Domino’s sold 76 million pizzas and generated £766.6 million (1.02 billion USD) in revenue — a 14.6% increase from the previous year.

In the U.K. and Ireland, online sales are increasing 30% year over year and currently account for almost 70% of all sales. Notably, 44% of those online sales are now made via mobile devices.

Multi-Device Purchasing Means Fresh Opportunities

Domino’s is a consistent digital innovator. Much of the company’s success stems from early investments in ecommerce and mobile commerce platforms that help people easily purchase pizzas from different devices.

Domino’s sold its first pizza online in 1999. It then launched an iPhone app in 2010, quickly followed by apps for Android and iPad in 2011, and a Windows app in 2012. By late 2014, Domino’s customers could even order pizzas from Xboxes.

 The Domino’s marketing team had assembled a variety of tools to measure marketing performance, keeping pace with the company’s rapid innovations. Unfortunately, measuring siloed analytics and channel-focused tools restricted the team’s ability to fully understand all of the different paths to purchase.

 Find out how they worked around this challenge with Google Marketing Platform. Download the case study!

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