Connected Retail & Devices (Google Cloud Next ’17)

[MUSIC PLAYING] RAJIN SHETH: OK, great. Thank you all for coming. We really appreciate it. My name is Rajin Sheth,
and I’m a director of product management at
Google responsible for Chrome OS, and Android, and
enterprise, and education. And we’re here to
talk to you about what we’re calling connected retail. And how we think we
can, with a combination of devices and the
Cloud, really transform the retail experience. And so I’m going to tell
you a little bit about what we’re doing. But then I’m excited to then
hand it off to Greg Chambers from Coca Cola to actually give
you a real life example of how this is taking place and
some of the amazing work that Coca Cola is doing using
the combination of Chrome devices and Google Cloud
in interesting ways. So to start off with, the
concept of the workspace has really changed. If you think about all
of us, say 10 years ago, we all had a laptop. For most of us that was
probably the only device we had. And so all of our content
was on that laptop. In many cases that was
probably the only device we had that was connected
to the internet. And obviously that
changed a bit over time. But really everything
boiled down to that. We all probably went into
offices, and many of us still do. But that was the
way we all worked. And if you look at the
way people are working now and the way work
spaces are oriented, it’s changing dramatically. And you know, this stat
was really amazing to me– that 72% of the US
workforce will work from a mobile location by 2020. If you look at the number
of connected devices, it’s expected to expand to
100 billion devices by 2025. And it just seems like
an unbelievable number until you start to think
about all the things that are now starting to get
connected to the internet. You look at then devices
that we can’t even think of right now that will
affect us down the line. Things like wearables that are
just kind of at their infancy right now that will start
to grow bigger and bigger. Things like the
internet of things. And you think about the
effect that that can then have on the workplace itself. And that’s a lot of
what we want to talk about today is, what does
that workplace actually look like down the line? So one of the opportunities
it presents and also challenges it presents
is that we can become a data-centric world. And businesses can
become data-centric, and really must
become data-centric, to continue to have a
competitive advantage. And what I mean by
that is that you should be able to gather
data, understand that data, and then make decisions on
that data very, very quickly. And businesses have obviously
done this for decades, and for centuries, really. But the pace at which this is
happening has grown quite a bit just because of the
technology that’s out there. And some of the things that
we’re talking to you about today is, then how do we
actually take that and apply it, especially to retail? So we’re introducing a
concept called The Connected Workspaces. And this is really something
where we’re bringing together a lot of the tools that we
have with Chrome, with Android, with Google Cloud, with
things like DoubleClick, for example, as well, too,
to really have it such that you can
instrument a workspace and make it even better. And there are really
three parts of this. How do you get the workspace
connected in the right way? And when I say that
I don’t just mean how do you get your
knowledge workers connected? It’s more how can you get
every worker connected? And beyond that, how can you get
not just your workers but also your customers connected when
they walk into that space? And beyond that, how can you get
the space itself and everything in that space connected? By doing so you can start
to gather a lot of data. This second part is how can
you be smart about that? How can you gather that data and
actually make smart decisions about that? And the third part is, how
do you do this securely? When you have many
more endpoints and you have all this
data, how can you actually make it secure? So we think that
this feeds itself into a virtuous cycle,
which is, the first part is you need to instrument. You need to instrument
your workspace. And that means having places
that you’re getting data from. In many cases data is
not being captured. So how do you systematically
get that data? The second part is that
you need to analyze this. You need to draw
better insights. And this is where a lot
of the cloud-based tools can really come in place. And the third part is, based
on that, you need to improve. And the more that you do this,
the more data that you can then gather, and it makes your
business better and better, because you can then start
to test hypotheses very, very quickly and then
iterate on those. So we think that in
those three areas really there’s sets of technologies
that are very critical. In instrumenting, this is where
devices really come into play. How can you get
computing to more places within your enterprise? How can you, for example, get
mobile devices out farther? How can you get larger
computing devices out farther? How can you get IOT and sensors
out to different places? The second part of this is,
once you have that data, how can you bring
that into the cloud. And this is where things
like Google Cloud and data warehouses really
come into play. But then also machine
learning really comes into play here, as
well, too, which is, great. You got that data. But then how do you
actually make sense of it? And how do you make decisions
and make predictions based on the data
that you have there? Decisions and predictions
that you probably would not have made had you just
had a human look at that data as well. And then the third part
is then based on that. How do you improve? And also, can you
figure out ways by which you can improve the experience,
and improve your stores, and improve your
businesses without having to have a lot of
intervention, or a lot of manual intervention,
in place there too? So we believe that with Google
we have all of these tools that we can provide that
make this especially great. And so starting on one side
we have Android and Chrome OS. And with those two
operating systems, you have not only
operating systems that have been designed from the
ground up in the connected age, but you also have
operating systems that can stretch to many,
many different form factors. With Chrome we
started with laptops. But now we’re extending to
everything from digital science to kiosks to a variety
of different other form factors that address many,
many different use cases. With Android, we started
with smartphones. But we’re now extending
to the internet of things, and getting out to more and more
form factors that way, as well, too. By having these
out there you can start to bring in
data from more places. The other thing that’s
there is that you can start to get devices out to everyone. So it’s no longer
about having a $700 phone in the hands of every
individual, or a $1,500 laptop. You can now start
to get computing into the hands of every
employee out there, and every customer that
walks into the store. The second part of this is
the Google Cloud Platform. And especially with
the tools that we have around data, analytics,
and machine learning, you can do a variety of
things there to then make sense of the data that’s there. And then we have the
connected productivity tools. G Suite, to be able to have
humans understand that data, take a look at that data, and
be able to make sense of it as well, too. We have a whole
host of applications that we’re then trying
to integrate into this that will make this better. Everything from, for example,
Firebase, which lets you build mobile applications
in a more efficient manner. Google Play to be able to
distribute those applications. DoubleClick to be able
to push content out to intelligent screens
that you have out there. So the whole package
really kind of comes together to
be able to give you the optimal connected workspace. So one of the places that this
really applies well is retail. And so I think about this. How many of you enjoy
going into a store? I definitely do. So I order a lot
of stuff online. But I love going to the
store for a few reasons. One of the reasons I like it
is because if I don’t know what I want I can browse, and
I can find things that might be of interest to me. If I do know what I want I
can go and experience that. And I can see it. I can touch it. I can feel it. If it’s a piece of
clothing I can try it on. If it’s a shoe I
can find my size. I can do things
like that that only I can do if I physically
experience product. There’s the expertise that
I get by talking to somebody and having a conversation
with somebody that’s an expert in that
particular area. So for example, when I went
and bought running shoes I was able to talk
to an expert that then cured much of the ailments
that I had with knee problems by giving me the right shoe. And I wouldn’t have been
able to do that unless I talked to an expert
and they’d seen see me actually run and walk. And then finally, you get
the immediate gratification of getting that item right away. Now the problem with
a store is a lot of stores you walk into
when you walk in you have no idea where you’re going. A lot of the things that
are appealing about online, where you go to
someplace, you get content that’s tailored towards you. You can find things
very, very quickly. You can find other
information, reviews, things like that you can’t
usually find in a store. So how can we make
it such that you can get that kind of
immersive experience? And we can do it in a few ways. One is we need to
connect the store. But then we can
empower the employees to know more, as well. And be able to get more
information out to them so that they’re trained on
the latest and greatest, and do that through
digital tools. We can augment that shopping
by presenting offers, by presenting personalized
information that might be relevant to the
shopper that is there at that particular time. We can provide
immersive experiences. So for example, make it so that
you can experience something that you wouldn’t
experience in the store but you would experience about
the product somewhere else. And then we can
streamline the services to make it so that you can
check out very, very quickly. And all of that should be put
back into the management system so that you can
manage all this well, and put back into the supply
chain so you’re able to then make better decisions about what
you put in the store and what you don’t. So some of the example– I’m going to go through
a few of the examples that we’re now thinking
about, in terms of technology, that addresses this. Some of which are things
that are there and ready now, and some of the things
which we’re starting to experiment with, as well. And we’re looking to work with
customers to experiment with. So one of them that’s, of
course, there right now, is mobile-enabled staff. And with Android
you have the ability to really get mobile
devices to more people. And by doing that you make the
sales associates more informed when they’re talking
to a customer. They can look up information
right then and there, and they can answer
questions right away. They can engage
with the customers in a very, very
different way if they have that at their disposal. And then also, once
they have a sale they can actually use
things like a mobile POS to be able to actually make
that sale right then and there, as well, too. And so it can help drive sales
in a very interesting way. The second thing which
we’ve seen a lot about, and I’m going to let Greg
talk a lot more about this, because Coca Cola is doing
some amazing things here, is with smart signs. You think about a paper
sign, and what you can do with a paper sign. We’re now getting to the
point where it’s actually less expensive to
put up a digital sign than it is to put
up a paper sign. But moreover, you can do
many more things with that. You can try different things. You can push
information centrally. So you can do things like
real-time AB testing. You could start to
encourage more interaction. You can start to modify
the content based on who’s looking at the
sign, and tailor that content to whoever happens to be there. Things that you can only
do if that sign is digital. And you can actually then see
an uplift in sales as a result. The next thing is
engagement tracking. So let’s say somebody is
engaging with the product. How do you know that people
are stopping and looking at a product? Or are they just
walking right by and they’re just not
interested in this? And so you can
start to use sensors to get anonymized data
to be able to see, are people stopping? Are people not stopping? Are they engaging
with the product? And be able to then
adjust your product set and adjust where you
put things in the store as a result of
that, as well, too. And it allows smart
screens, as well, to display relevant
product information as a result of the data
you’re having in real time. So you can get that data. That You can analyze it. And you can push the
right information out to the smart signs
as a result of this. The next one is virtual reality. And so for example,
a lot of stores sell things that you
can’t necessarily experience in the store. So for example, you
may go into a store that sells vacation packages. How do you sell somebody
on a vacation package when you just have
a set of brochures? A better way to
do this is if you can use things like
virtual reality to have them experience
a place like Hawaii, or the Bahamas, or
Europe, and then be able to judge for
themselves, is that a place that they want to go? In addition to
that, you can take products that are
in the store and be able to have people
experience that in context. So for example, a surfboard. How does that surfboard work? And does it work the
way that you wanted to? Make it so that you’re
able to actually see that in the context before
you buy it in the store. And so for example,
one of the places we see this used a
lot is with furniture. Figuring out how does
a piece of furniture look in a particular room and
how the different colors look with different backgrounds. Things like that. Another area– this
is more experimental, but we think can be very
powerful in the future– is indoor location tracking. And so we’re experimenting with
the same kinds of technologies that we have in Google
self-driving cars, called LIDAR, to be able
to actually figure out the flow of people
throughout a store. So by doing this you can
actually take a look at a store and be able to see where
are people actually going? And in aggregate,
where are people going? So you may end up
finding, for example, there’s an aisle that
nobody ever goes to. And you could
start to then adapt the store to make that better. Or put products in that you
want to sell in the places where people do end up going. And then of course,
then taking this data, then you can start to push
more information back out to the store and adjust things
real time, as well, too. And augmented reality is
one of the other areas we’re really exploring. And again, this
really makes it so that you can take something
and actually put it in context. How do you look in a
particular sweater, for example, or in a
particular pair of jeans, or how does a piece of furniture
look in a particular place? This, we think can be
really, really powerful. As much as virtual
reality is powerful, this is a very, very
powerful because it puts new products in context in
the places that you want them. And then last but
not least is the idea of smart instrumented products. How do you actually make it such
that the products themselves are passing information back
to this connected network? And so you know, for
example, are people picking up the product? You know, for example,
where a product might have gone within the store. And then be able to display
contextual information based on, for example, a product
that somebody might be holding at that particular time. So many of these things
are possible now. Many of these things
are things that are going to be
possible down the line. But we really believe that this
is where Google can really help with the products that we have. One of the ones we’re
working on quite a bit here, and we’re starting to
see customers do, is– you’ve heard much about the
Vision API that Google has. And you’re hearing about what
we’re doing with smart signs. What if you connect
the two together? You can actually
have a sign where you’re able to understand the
sentiment of the people that are in front of it. When they look at that
sign, are they happy? Are they confused? And based on that you
can then push content. You can also then start to do
things like AB testing as well, too, with this, to be able to
see whether people really like what they’re seeing
or whether they don’t. And so you think
about things like, that you can really
get to kind of a deeper level of granularity, at
a deeper level of data than was ever possible before. So I’m going to
hand it off to Greg. Greg is a group director
at Coca Cola, who’s been working on trying to
figure out how to utilize this technology with Coca Cola. And the thing that’s amazing
about Coca Cola, that all of us know what Coca Cola does. But they’ve put a lot of time,
and effort, and expertise into figuring out how best to
position products in the store, and how best to actually sell
their products in the store. And so they’ve been working
with [? Krumm ?] Digital Signs and DoubleClick
to really optimize this. So I’ll hand it off to Greg. GREG CHAMBERS: Thank
you so much, sir. Like he said, I’m
from Coca Cola. My name is Greg Chambers. I’m a group director of digital
innovation for Coca Cola, which basically means I’m
in charge of driving change at a 130-year-old
conservative southern company. Not the most fun
thing to do sometimes. But ultimately, I’m a guy
who’s spent most of my career in the startup community. And now I work for
a company that’s 130 years old that has
this amazing history to it. And every single day
that I work at Coke I learn some new
piece of history. And one of the biggest things
that we see with our history is the history of
signage, right? I grew up in Atlanta. And there’s one thing that
you knew about in Atlanta. You knew how to find a
good barbecue restaurant if you look for the Coke sign. And signage is really just
built into the DNA of Coca Cola. So we took this as
an amazing challenge to be able to
restart a tradition at a 130-year-old company, and
do it within a digital realm. Now, it took a lot of work. We started this journey
about two years ago. Coca Cola approached Google
with a radical proposition on how to do
something different. But the first thing that
we started out doing was immediately going
to rapid iteration. So in spring in 2015 we
started this journey. By fall of 2015 we had
the first prototype. And I will be clear about
the first prototype. There was actually a
picture of the alpha there, which you don’t see
on there because of the lovely positioning
of the cameras. The duct tape that is
actually holding that screen onto that cooler. We’re a 130-year-old
company, but we still know how to duct tape
stuff in the South. Moving down the
road, we moved down into several
different iterations of this, different things
that we were trying to do. The first alpha that we
produced out in the marketplace really didn’t do much
but play a video, right? And it played the
same video that you’ve seen 150 million times
every single day. A video of a Coke pouring. The kind of content that
we don’t even see anymore. It fades into the background. We’ve seen it so many times. And don’t get me wrong, I love
my company, I love Coca Cola, and I love the
content we produce. We moved down into the beta
prototype that we produced. We started getting
interactive with it. And we’ll talk more
about that in a second. But this is what we
call an OBBO rack. Or an Orientation-Based
Bundle Offer. That’s fancy marketing
speak for selling Coke with something else. In this case, Mission Foods. This was a partnership
in-market with Mission Foods. Where you walked up
to this rack and you were able to see a
video of Coke pouring. And you were able to
get a taco recipe. And then seamlessly from that it
would broadcast the ingredients for your taco that you
picked to your phone and show you the location
throughout the store that you were able to get them. The final thing that we
landed on within Q3 of 2016 is what’s called the
Coca Cola iconic endcap. I didn’t give it that name. That’s a pretty bold name
to give something when you use the word iconic in there. But that’s the
company I work for. This endcap sits within
the grocery store sector and channel. Allows you to walk up to it. And it shows you customized and
personalized content based off of who you are. The other thing that
we’re able to do with that is bring in localized content. So at my kid’s
elementary school, Coca Cola sponsors the
scoreboard that’s there. They, frankly, did it before
my kid went to school there. And when you’re able to
take a picture of that, we’re able to scrape social
media, bring in those imagery, and show that in the
local supermarket. So even my son, when he goes
and scores a goal at soccer, the first thing he wants to
do is go to the grocery store and see it on the iconic
endcap that’s there. But I get to talk to you
today about the Rev 2.0 stuff that we’ve done. I’m really proud of
all these prototypes. I think they’re amazing. And they produced amazing
results for the company. But I’m absolutely
blown away about what we’ve been able to do now. I am an architect. I do write code, which
means any presentation that I give I am required
to show a block diagram. And that’s exactly what
I’m going to do here now. We started out with Chrome. And the reason why
we picked Chrome as an operating system for this
is not that it’s easy to use, yes. It’s web standards based, yes. But really, at the
end of the day, it’s the security
model of Chrome that we were after, right? Chrome has an amazing
security model that keeps us rock
solid and rock secure, especially within
our retail customers, and retail environments. And that’s something
really important. When you start and look at
cyber-security and start to realize that the average
take off a stolen credit card number’s about
$4.50 at this point, how much longer do you think
it is before we start hacking coupons? $0.50 Coke coupons,
and different things. If a stolen credit card only
gets me $4.50 as a black hat, it’s not too much longer before
I’m going to go after Coke coupons. So start with Chrome
as an operating system. Obviously we extend
in to the Chrome app, and we go to the
screen at that point. That’s a pretty simple device
design, at the end of the day. But then we start
getting fancy with it, and we start adding
into the Cloud. The first thing we did
was pretty straightforward and pretty simple. Looking at Chrome
Device Management. Now, Chrome Device Manager
brings back amazing diagnostics and analytics. Things you get like
processor utilization, memory utilization. And it was invaluable to us
during this prototype process as we were looking for memory
leaks and different things that would keep it from running. But I think the
coolest thing about it, especially from a remote
management standpoint, is Chrome Device
Manager’s ability to bring back screenshots. I can’t even begin to tell you
how useful that is when you’re flighting content to 500, 1,000,
1,500 screens at grocery stores across the country,
and you want to make sure the right
content is playing. There’s nothing more
embarrassing than walking into a grocery store in March
and seeing Christmas content on your displays, right? And that ability with
Chrome Device Manager lets us be able to do that. The next piece that
we brought into this was Google Cloud, right? The power of the Cloud
to be able to drive real-time targeting and
real-time personalization down into that device. That’s what really gave us
that rich experience, what we like to call that Coca Cola
quality experience, that we wanted to be able to drive. It’s really that edition
of GCP into the middle. The next thing we did though
was a little un-traditional. And we flight our content into
these systems with DoubleClick. Why would we use
DoubleClick, you might ask. Well, at the end of
the day, DoubleClick gives us a ton of advantages
that we’re really looking for. One of which is the targeting
engine inside of DoubleClick. The next one that’s in
there is the ability to collaborate with people. And DoubleClick’s
enormous ability to be able to flight content,
do approvals for that content, do brand management
for that content, and output the correct
analytical reports to all the stakeholders correctly. I kind of get on my soapbox
with Coke a little bit, sometimes when we
talk about content. Coca Cola is a great company
that I’m very, very proud to work for, but sometimes
I have to remind them that we’re not really a content
company, at the end of the day. WebMD is a content company. Wikipedia is a content company. What Coca Cola is doing is
called advertising, all right? When you’re moving,
trying to get someone to stop doing what
they’re currently doing, and do the thing that you want,
that is called advertising. And when you have that level
of honesty around what you’re doing you’re able to go get the
right tool for the right job. And that’s really what we
found with DoubleClick. One of the other enormous
benefits of DoubleClick, which we’ll show you
in a little while, is the analytical
capability of it. The amount of data
we can get back from these systems and
understanding who is actually standing in front of
our racks is absolutely astounding to people. Screens are no fun if you
can’t play with them, right? Who wants to just stand in front
of a screen and see something? So one of the other
big goals that we had was to be able to bring
in second string content. One of the other big goals
that we needed from a marketing and ROI perspective
was the ability to show conversion among
the investment, right? So if I put a screen
in, what does it do? What benefit does it
bring to Coca Cola? What benefit does it
bring to the retailer? And we found our
conversion with Eddystone. Chrome devices all
have a Bluetooth radio. Google was nice enough to
post right up on GitHub how to turn any Chrome device
into an Eddystone beacon. And that’s exactly what we did. We took and lifted the code
straight out of their examples and put it into our design,
so that every single one of those screens that’s
broadcasting in there can broadcast Eddystone
content directly to the phone without an app. We have become so
incredibly powerful. In a world where we’re so
used to app heavy engagements, being able just to simply
broadcast a URL over to a phone without an app. Now, on the other
side of the fence for places where
we did have an app, and we wanted to play
inside of a customer’s app, we also found
Eddystone extremely useful in being able to
broadcast deep links directly into that app so that
I could direct people into that customer’s app,
to the promotions page, to the Coke special page,
or wherever I actually needed them to broadcast to. And because all of this was
linked up with Google Cloud I could change every single
bit of that instantaneously on the fly to suit
whatever promotion, whatever event was
actually happening. But no solution is
complete without analytics. And I’m a huge numbers guy. And I’m a huge believer
in data-driven marketing. So this is where it gets
super, super interesting. Being able to pull
data in from BigQuery into– if you guys haven’t
played with Google Data Studio yet, oh my god, what
an amazing product. It’s almost like someone
went back to the 90s and found Crystal
Reports and made it actually work correctly. I’m serious. It’s like, I wish
it was around then. One of the other
things that we did is, because we’re Coca Cola,
and we work with so many people, right? We have our customer. We have that customer’s agency. We have that customer’s
analytical agency. We have this customer’s
blah blah blah. We use Google Cloud as a
proxy for Google Analytics. And basically that means
that the information that we would normally be
broadcasting to DGA directly we send to the Cloud. And then I can
spider it off into multiple analytical accounts. So typically what
we’ll do is we’ll have one that the
customer is operating in, one the customer’s
agency is operating in. And then one that we might
be doing aggregate AB testing with for content. Things that we want
to keep to ourselves. Or with my group, things are
extraordinarily experimental and might catch on
fire at any moment. One of the great things
about using DoubleClick is the unification that happens
with the DoubleClick cookie. Now, we do this all
day long on the web. Every single day today, right? We use the DoubleClick cookie to
be able to unify our analytics and understand
who our users are. But we’ve never actually
been able to see this without spending an
enormous amount of money to agencies that provide this
information actually done in the physical world. And so what that means
is when you walk up to one of these racks, one
of these endcaps that I just showed you a picture of, right? Without an email
address, without a login, without asking what
your Twitter handle is, or your Facebook handle,
or whatever social network login there is, we get real-time
information about who you are. Anonymous information. I don’t really care what
your name is at that point. But I understand
your age bracket. I understand your sex. And I understand your
standard affinity categories. And what’s really powerful
about these tools is even with that information
I can turn around and do real-time
targeting against that. And what we find with
that is that a lot of the misconceptions
that we had about who our shopper
actually just got completely blown
out of the water. Even for a 130-year-old
company to really start to understand who exactly
is it doing the shopping. So here is my required
block diagram. I’ll be sending
a text to my boss and let her know that
this has been checked off for my performance review now. Click. Did you guys move over to the– there we go. We advance the slide? AUDIENCE: [INAUDIBLE] GREG CHAMBERS: Ha! Technology demos
are like NASCAR. They’re no fun until
somebody crashes. AUDIENCE: [INAUDIBLE] GREG CHAMBERS: No. AUDIENCE: OK. [INAUDIBLE] GREG CHAMBERS: Oh, here we go. Yeah. There we go. Thank you. Please come to every
presentation I do. So here’s an
illustration of the cap. Now, here’s the really great
thing about this endcap, and this really great thing
about being a part of Coke. This endcap actually
lifts all ships on what’s called the CSD aisle. For those of you who don’t
work for a soda company, the CSD aisle is the
Carbonated Soft Drink aisle within the
grocery store, right? So not only did this endcap
produce a less than one year ROI for us, all
right, it actually doubled that ROI for the
retailer in something that we call category lift. So it’s one thing
when I approach a customer, like a grocery store
and say, hey, I’m Coca Cola, and I want to put an
end cap in your store. And they’re like, great. That’s going to benefit you. How does it help me? At the end of the
day this endcap produces such a dramatic
category lift it’s actually one month ROI in category left. And what that ultimately means
is not only did this endcap help sell more
Coca Cola products, it helped sell every other soda
product that was in that aisle at a rate that produced
a one month ROI. That’s absolutely incredible. And it makes it a much
easier proposition when Coca Cola goes to
a retailer and says, hey, we’d like to do this,
to be able to tell what that value for you actually is. So at that point we felt
really, really confident that Coca Cola had a really,
really great digital signage solution, right? We were really happy with it. We were really
happy with the ROI. But I’ll tell you,
one of the things I love about working
at Coke is Coke is really all about
bringing people together. That’s not marketing fluff. That’s really part
of our culture. We’re southern guys, and
we’re a southern company, and we’re really
happy about when we get to bring people together. And so we didn’t want to stop
with just a solution for us, right? What fun is that? We wanted to get
to the playground where we could actually
all play together. And that was one of
the big gaps that we saw in the marketplace was, how
do we get brands, consumers, and retailers to all play
together on the same playground and do so in an
incredibly effective way? And that’s the next step
and the next iteration that we took with us. So if you think about
digital endcaps, right? I’m a developer. I write code. And I think about things
in terms of classes and inheritance, right? So you think about digital
signage as a generic class. How do you inherit
down from that and start to get
to the specifics? And one of the next
big ones for Coca Cola, obviously, is
digital menu boards. You guys all know
digital menu boards. You walk into your favorite
quick serve restaurant and you see the TVs
up on the wall, right? And I know what you’re thinking. You’ve probably
thought the same thing that I thought
when you saw them. It’s just for TVs. That system’s pretty cheap. Actually, no. Not so much. Gartner and Forrester
put the average cost of a four-panel digital menu
system at about $40,000, all right? Now, I don’t know if you’ve
been TV shopping lately, but four TVs and a Honda
Civic do not cost $40,000. Now, here’s the other great
thing about digital menu boards to understand. For some reason, and I’m still
wondering what this reason is, but I’ve seen the
research up, down, forwards, and backwards
to be able to see it, is digital menu boards drive
the sales of a restaurant, whether it’s a multi-billion
dollar chain or a single mom and pop, by about 4%, all right? Now, that may not
sound like a lot, but it actually is
a lot, all right? That is a huge margin as
it comes into restaurants. So we, as Coca
Cola, wanted to be able to find a solution
that was cheaper on the marketplace, that
was better, more robust, and really had the features
that modern day restaurants were really looking for. And we found all the
help we needed in order to produce that with Google. So from a digital menu
board perspective, we’ve taken all the
intelligence, everything that we baked into
that Albertson’s endcap, and that iconic
endcap, and built it into a digital
menu board product that we’re now putting out into
the marketplace for about 10% of the cost of the
existing solutions. Why? Because we believe
all restaurants should have all the
advantages of the big boys. We don’t believe
that you should have to be the biggest
chain in the world to have all the advantages. And we want to make sure that
every restaurant pours Coke, of course, but also has every
advantage they could possibly have to be able to succeed. This digital menu
board system is designed in the
same architecture that I showed you in
the block diagram. And the only requirement
that we have with it– and you might be thinking, like,
OK, Coke, where is the catch? Like, right? There’s going to be something. You’re going to beam soda
into my mouth from it. Something weird is going
to happen here, right? The only catch is that
what we do is we make sure our products are represented
correctly on the screen. So we make sure that the
nutritional information is posted there so
consumers make educated choices about our products. We make sure that the latest
branding images are there. And the latest optimization
around how that digital menu board system works. For us, it’s bringing back
the tradition of Coke signage, but in an amazing digital way. And we really have
Google to thank for helping us restore that
tradition to the company. So now let’s get even
more interesting with it. So again, inheriting down
from digital signage. You think about posters. It’s not much. I know what you’re thinking. You know, fat guy on the stage. He was talking about code. He probably doesn’t like
movies at all, does he? You’re going to be wrong there. So I love going to the cinema. There’s nothing much more than
I love than going to the movies and having a Coke. But the number one
thing that drops me from being able to go to
the cinema is when I pull up and there’s that
enormous line out front. Especially if it’s raining
or something like that. So when we think about
the cinema and we think about all that
amazing real estate that’s out front that’s being used with
paper posters and light bulbs right now, right? What could we do with
that amazing real estate with the technology that we’ve
been able to create here? We’ve created that with what
we call the digital poster. All right, the digital poster
is a very simple application built on the same
technology that we just discussed in the block diagram. Allows you to walk up to
it, be able to purchase, understand this trailer,
understand show times, and purchase tickets for any
movie that’s playing there. Further, With that DoubleClick
cookie and that customization that’s there, that
poster is smart enough to understand that
for the love of god, do not show me “Bridget
Jones’ Baby,” because I do not want to see that movie. That Greg is much
more interested in “Guardians of the
Galaxy” and “Rogue One” than he is even
“Hidden Figures.” So we’re able to show
people customized content. We’re able to show
them the actual things that they want to see. And take all that
benefit that we’re used to online from
e-commerce and bring it directly to
the physical world where you can touch it,
and feel it, and have the tactical sensation
of it in your hands. But wait, there’s more. Number one thing that I enjoy at
a movie is popcorn and a Coke. But again, the
concession line inside. And I know from
personal experience and my own
experiences, but I also have research to back
this up, because we’re the kind of company
that funds research like this, that has kind
of like duh moments to it, but when the line’s
long at the concession stand people don’t go
to the concession stand. So ultimately within
that same thing, using the magic of
Google Cloud, and being able to do simple web
hooks inside of there, we’re able to broadcast
in and bring the ability to order your Coke and popcorn
and have it sent directly over to the POS of
the concession stand where you pick it up
with no wait, which means I can go to the movies now. I don’t wait in line out front. I don’t wait in line
for my Coke and popcorn. I don’t have to remember
to do it ahead of time. I don’t have to do
that mad scramble on my phone in the parking lot
to be able to purchase tickets. I walk up like a leisurely
human being that I am, be able to walk
up to any poster, be able to execute
my transaction, and enjoy my experience. This is something
really powerful we’re really, really
proud of, and we’ll be unveiling more of this
at Cinemacon coming up this month in Las Vegas. So let’s get to analytics. This is where it gets
super interesting. I love my brand. I love my company. But I also like to pick
on them a little bit. My company is one of
those companies that thinks they know everything. We’re a 130-year-old company. We know exactly who
our shopper is, right? The power of these
analytics that we get back from that DoubleClick
cookie, and being able to serve
content from there, are incredible, all right? This is actual analytical
data that we mocked up for this screen from an actual
Google Analytics account. And my marketers swore to me
that the number one demographic that was engaging within
this retail environment where this data’s from was
a boomer generation mom. Swore to me. On their life, swore to it. You know what we
came out of here? Millennial males. Kid you not. We print up all our marketing
material completely focused at the wrong shopper. Analytical data
gives us this ability to be able to understand
this in real time. Further, we get the ability
with native Google tools, stuff that’s out there
today, to be able to target to those people directly. So that I can send different
content for the millennial, to the boomer generation,
to male, to female, and even into the affinity
categories where I can do real-time AB
testing to understand the validity of my content. Now, something really
great about Coke is we learn an awful lot
from our campaigns, right? And I think everyone
knows Share A Coke is one of our great
pillar summer campaigns. Huge fan of it. I think it’s amazing. But at the end of the day,
being able to understand our consumers like
this means that we start to flop our learnings
on a weekly basis, instead of a seasonal basis. So everything that we learn
from a campaign like Share A Coke, that might run for
three or four months, we’re now able to learn those
kinds of things in a week, and start to flip it
over faster, and faster, and faster, which means
our marketers get smarter, our technology get smarter,
and our products ultimately get to refresh more
people that way. So one of my big speeches
that I really love is I love this reconverging
of e-commerce and commerce. For the longest time we had
these two separate tracks that were like cats and dogs
that didn’t get along, right? So much so they even had to
have their own sale days. They’re separated by a weekend. You know, the commerce
world had Black Friday. The e-commerce world
had Cyber Monday. So at the end of the day,
what we really believe is that these worlds
are converging. Now, the research supports this. Generation Z is much,
much more into being able to shop in store
than they are online. And everybody has their own
affinity when it comes to this. But we also really believe
with these tools from Google we’re able to merge
these worlds and we can get back to just
plain old commerce again. And we don’t have to have
these two separate tracks that are running through there. This is the big one that I’m
really, really proud about. We’ve taken all of this
information that we’ve done. And we’re compiling this into
a product called Google Retail Cloud. And ultimately what that means
is all these fragmented sensors that are out there, all these
amazing technologies that all these ecosystem providers
are being able to do, is we built a simple environment
for all of these things to be able to interact
with together. A simple environment to take
the output of your beacons, or your thermocouple sensors,
or even your LIDAR sensor, and be able to tie
that directly back to signage in an
easy automated way. You know, we’re Coca Cola,
and with the exception of a few exceptions in the
world, like the Las Vegas strip, and our World of
Coca Cola in Atlanta, we don’t really have
a Coke store, right? We sell our products inside
of everybody else’s store. So when you think about
fractured retail environments and fractured retail
technology, this is a problem that
overwhelms us at Coca Cola. We’re Coca Cola,
we’re sold everywhere, which means I’ve got to work
with everybody’s technology stack. And there are people out there
still running like Windows 3.1 on this stuff,
believe it or not. But what Google Retail Cloud
gives us the ability to do is to have a common
playground for these things. A common place for brands
to be able to flight this content, that makes it a
brand-friendly environment so that Coca Cola, Clorox,
Campbell’s Soup, all of these guys can
flight their content into a common safe
repository, which means that all the content
being served down to consumers can be verified from a single
domain, which means my cyber security concerns start
to melt away a little bit. Cyber security concerns
never go away completely, but they melt away a little bit. And I don’t get so concerned
that my consumers are going to have a bad experience. The other thing that
we’re able to create is truly dynamic and truly
personalized environments. By standardizing the
technology layer that sits within the
retail store I can take all these amazing
hardware innovations, all these amazing things
that people are producing and actually have
them in a place where I can utilize them
to their full potential. There’s nothing that’s
disappointing to Coca Cola like somebody
taking a good technology, putting it in their store in
a bad implementation, right? You guys, you’re all
technologists here at Google Next. You all understand this
the same way that I do. You see the tech, and you
know the value of the tech, and you look at
the implementation, and you’re like, oh man, why
did you guys do it like that? Ultimately what Google
Retail Cloud gives us the ability is to have that
standardized environment so that we can be able to flight
our content, flight our offers, do things that take the
technology hurdle out of the way and get back to
doing more of what we love, surprise and delight,
experiences that enlighten and refresh our consumers. The next thing, obviously
we are at Google Next. That cloud is Google-powered. There’s no other
company out there in the world who produces
the kind of cloud technology that Google does. I promise you I’m
the kind of architect who doesn’t believe most the
time in using one vendor, right? I’ve never been
the guy that took the entire suite from a
company and be able to use it. And we didn’t set out to
blow smoke up Google’s skirt to be able to build
it in this way. We set out to build it with
the best tools and the best components on the marketplace. And that just ended up happening
to be the Google tools. We never really wanted it
to be all from one company, at the end of the day. But what we found
time and time again as we looked at each individual
component of the solution was that Google made the best
powered products that really made the situation work for us. So getting to my playground. Getting to the playground
where we can all play together. An ecosystem is no
fun by yourself. So we’ve lined up
some amazing partners to be able to work
within this ecosystem. It’s not just Coke’s
ecosystem, right? What we want is we just
want the ability to refresh our consumers at the
end of the day, right? And we want to leave the
heavy lifting around hardware, and software, and
Cloud to the experts. Like NEC, Aopen, and
LG, as well as Google, so that we can have real tools
that are available out there. Displays that are custom
built for these environments. Menu board products that
go up with four screws. Things that we can
easily start to change. One of the things that has me
the most excited about this is that a lot of implementations
of retail technology that we see at Coca
Cola, it’s really hard to figure out what
you should put where. So what we end up doing is
kind of watering down the tech mix to make a generic to
work across the entire United States, or even in my sector,
the entire globe, right? What we really have the
ability to do with this is customize the
mix of technology to each individual environment. Because I’ll tell you, I don’t
know how much you guys travel, but a store is kind of
different in Nebraska than it is downtown Manhattan. That’s not necessarily
a bad thing. Doesn’t mean that one’s
better than the other. But they’re a little different. And they’re different
in California than they are New Zealand,
than they are Australia, than they are Western Europe,
than they are Asia Pacific. So this really gives
the ability not to have to have that
one technology solution, that one mix that everything
goes into there with. Now, here’s the other thing
about this revolution that’s coming. It’s going to take a
lot of wrench turners. You got a lot of
screens that need mount. You’ve got a lot
of service provider work that needs to go into
there to be able to do it. And we’ve lined up some great
partners for that as well. One of which I want to
give a really big shout out to Radius Networks. They’ve been a partner of
ours since pretty much day one in this, and I’ve
been amazing sports as we went down this journey,
as we went through especially, some of the early alpha
prototypes that, you know, it’s fine if they’re alphas. They did what alphas. Are supposed to do. So I want to give a big shout
out to Mark Wallace and Radius Networks for helping us there. Within that ecosystem we also
have another great partner that we’ve used in Process. And [INAUDIBLE] in PROCESS
has been absolutely amazing in being able to help
us realize a lot of these dreams and get this stuff
off the ground. Within there, the next
piece that everybody needs is creative agencies. And we’ve lined up some
amazing creative agencies here to be able to see, flight
content directly to this. But here’s another great
thing about this, though. We’re at Coca Cola, I
work with literally, this is not a made-up number
or hyperbole here, 200 different creative agencies. 200, all right? You know what’s great
about 200 agencies? Is every single
one of them already knows how to flight content
to double DoubleClick. Every single one of them. No learning curve. No training. No videos. No nothing. They already know how to use it. That’s a huge advantage to us. So that’s a little bit of
the story around how we got to this point to do this. But let’s get hands-on with
it, and let’s go to the demo and actually see this in action
so we can see it work and play. So here we have
our lovely, I think we named this Burger
Barn, real creative name. The three-panel menu
board that we’re able to put our products within. Now, you have a couple
of different choices in how you do this. You can actually layer
these in as single images if you want to design them
in a tool like Photoshop. Or you can layer
them in a individuals that come within there. Now, we do a lot of research at
Coca Cola, a lot of research. Like, we have actually spun
up an entire million dollar research stream around
what’s called the twinkle. The twinkle is how that product
actually displays itself to on that menu board. And this product that we’ve
developed in conjunction with Google that displays
them is ultimately able to take advantage
of all of that research. So layering in, this is just
simply the output of it. Let’s look at the backend. The backend is
very, very simple. Allows you to
manage all of this. This is all hosted
inside of Google Cloud. So it’s all cloud-based. It’s all extremely responsive. And it was designed and built
with Google Material Design. So at the end of the
day you’re able to group your displays into
various groups, however you want to group them. That can be by department
within a grocery store. It can be by store if you’re
a multi-source portfolio. It can also be however you want
to put those things together and be able to group them
together from a content perspective. The next thing that
we’re able to look at is how to configure schedules. Now, anyone who’s been in
a food service or retail for more than five
minutes understands the power and the benefit
of dayparting, right? You don’t want to show consumers
the same advertisements in the morning that you’re going
to show them in the evening. For Coca Cola that’s
a very simple thing. We advertise juice
in the morning. We advertise carbonated soft
drinks in the afternoon. For different retailers, this
varies all over the place. This system allows you to be
able to do that scheduling, and that dayparting
very easily, very simply and migrate your screens around. The other thing that I
really love about this system too is the ability to
repurpose screens, right? When you think of digital menu
boards today, they’re static. They might be digital. They might have the twinkle. They might have all the fun
graphics and everything. But it’s a menu board. And that’s what it does, right? But think about the
cinema example, again. You have certain days within
the cinema, like, I don’t know, the day the new Star
Wars movie comes out, it’s a lot busier than others. What you have the
ability to do is instantly and on the fly
repurpose screens with this. So you can take a screen,
plug a Chrome device into it, and on Monday it can be
a digital menu board, on Tuesday it can
be a digital poster. And you have the
ability to repurpose it as that individual retail
environment sees fit. That, to us, is a really,
really powerful feature of this. And not having screens that
get locked individually. Looking at the
different layouts we have several layouts
that we’ve put in the initial release of this. But this is also
extensible where we can start to add new
multiple layouts with it. And this is where
Coca Cola starts to contribute to this, is we do
our shopper marketing research. We do our focus group
research to understand which one of these layouts
is actually moving product at the end of the day. Now, there’s visual layouts that
are done for visual aesthetic. There’s also layouts within
the retail environment that are optimized to
actually move product. And that’s where you start to
see things like that 4% lift and I talked about. The next thing that we’re able
to click through into here is actually being able to
see that content actually move in real time. This becomes immensely
powerful in being able to understand
exactly what this is going to look like at any given time. And then also helps
you move back and forth between those environments
of using it as a digital menu board, or as a poster, or
other various different aspects of it. The final thing that I
wanted to show you guys is the analytics from this. This is the thing that
has me the most excited from a Coca Cola perspective. I won’t name them, but
we spend a lot of money with these research
agencies that are supposed to be supplying
us with information about who our consumer is. And honestly, what we see
with DoubleClick and Google Analytics completely
dust those guys. We are able to– at zero cost, I might
add, except for the fees that we pay to DoubleClick,
and the peanuts that we end up paying
to Google Cloud– we’re able to understand
exactly who our consumer is. We’re able to understand
age brackets, sex, and male female
splits within there. That helps us get the right
content, and the right message, to the right person,
at the right time. And that provides
utility to people. Not only does it help
us sell our product. It helps us drive an
amazing experience, whether that happens within
a retail environment, a food service environment, or
even on-premise locations like universities,
or theme parks. [MUSIC PLAYING]

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3 thoughts on “Connected Retail & Devices (Google Cloud Next ’17)

  1. The guy behind Rajen needs a wardrobe makeover big time! I cannot believe that Google would allow someone to be on stage
    that dressed like that!

  2. I've been trying to explain this to my managers. It doesn't have to be a guessing game when it comes to retail.

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