Google Cloud NEXT '17 - News and Updates

Connected Retail & Devices (Google Cloud Next ’17)

NEXT '17
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(Video Transcript)
[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]

 

Read the video

With the changing buying patterns of consumers, retailers have had to rethink how they reach and engage their customers. In this video, Nick King takes you through how Google’s connected workspace solutions can uniquely benefit retail. From store operations and optimization to employee training and insights, all ultimately creating the best customer experience both online and in-store.

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