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Cloud Crunch Podcast: 2020 Enterprise Cloud Trends

How are enterprises responding to the COVID 19 pandemic and how is it affecting their cloud usage? We take a look at 6 key findings from 2nd Watch’s “Enterprise Cloud Trends” survey and discuss what the survey indicates and what we‘re seeing from our own clients. Listen now on Spotify, iTunes, iHeart Radio, Stitcher, or wherever you get your podcasts.

We’d love to hear from you! Email us at CloudCrunch@2ndwatch.com with comments, questions and ideas.

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3 Ways McDonald’s France is Preparing their Data for the Future

Data access is one of the biggest influences on business intelligence, innovation, and strategy to come out of digital modernization. Now that so much data is available, the competitive edge for any business is derived from understanding and applying it meaningfully. McDonald’s France is gaining business-changing insights after migrating to a data lake, but it’s not just fast food that can benefit. Regardless of your industry, gaining visibility into and governance around your data is the first step for what’s next.

1. No More Manual Legacy Tools

Businesses continuing to rely on spreadsheets and legacy tools that require manual processes are putting in a lot more than they’re getting out. Not only are these outdated methods long, tedious, subject to human error, and expensive in both time and resources – but there’s a high probability the information is incomplete or inaccurate. Data-based decision making is powerful, however, without a data platform, a strong strategy, automation, and governance, you can’t easily or confidently implement takeaways.

Business analysts at McDonald’s France historically relied on Excel-based modeling to understand their data. Since partnering with 2nd Watch, they’ve been able to take advantage of big data analytics by leveraging a data lake and data platform. Architected from data strategy and ingestion, to management and pipeline integration, the platform provides business intelligence, data science, and self-service analytics. Now, McDonald’s France can rely on their data with certainty.

2. Granular Insights Become Opportunities for Smart Optimization

Once intuitive solutions for understanding your data are implemented, you gain finite visibility into your business. Since completing the transition from data warehouse to data lake, McDonald’s France has new means to integrate and analyze data at the transaction level. Aggregate information from locations worldwide provides McDonald’s with actionable takeaways.

For instance, after establishing the McDonald’s France data lake, one of the organization’s initial projects focused on speed of service and order fulfilment. Speed of service encompasses both food preparation time and time spent talking to customers in restaurants, drive-thrus, and on the online application. Order fulfilment is the time it takes to serve a customer – from when the order is placed to when it’s delivered. With transaction-level purchase data available, business analysts can deliver specific insights into each contributing factor of both processes. Maybe prep time is taking too long because restaurants need updated equipment, or the online app is confusing and user experience needs improvement. Perhaps the menu isn’t displayed intuitively and it’s adding unnecessary time to speed of service.

Multiple optimization points provide more opportunity to test improvements, scale successes, apply widespread change, fail fast, and move ahead quickly and cost-effectively. Organizations that make use of data modernization can evolve with agility to changing customer behaviors, preferences, and trends. Understanding these elements empowers businesses to deliver a positive overall experience throughout their customer journey – thereby impacting brand loyalty and overall profit potential.

3. Machine Learning, Artificial Intelligence, and Data Science

Clean data is absolutely essential for utilizing machine learning (ML), artificial intelligence (AI), and data science to conserve resources, lower costs, enable customers and users, and increase profits. Leveraging data for computers to make human-like decisions is no longer a thing of the future, but of the present. In fact, 78% of companies have already deployed ML, and 90% of them have made more money as a result.

McDonald’s France identifies opportunity as the most important outcome of migrating to a data lake and strategizing on a data platform. Now that a wealth of data is not only accessible, but organized and informative, McDonald’s looks forward to ML implementation in the foreseeable future. Unobstructed data visibility allows organizations in any industry to predict the next best product, execute on new best practices ahead of the competition, tailor customer experience, speed up services and returns, and on, and on. We may not know the boundaries of AI, but the possibilities are growing exponentially.

Now it’s Time to Start Preparing Your Data

Organizations worldwide are revolutionizing their customer experience based on data they already collect. Now is the time to look at your data and use it to reach new goals. 2nd Watch Data and Analytics Services uses a five-step process to build a modern data management platform with strategy to ingest all your business data and manage the data in the best fit database. Contact Us to take the next step in preparing your data for the future.

-Ian Willoughby, Chief Architect and Vice President

Listen to the McDonald’s team talk about this project on the 2nd Watch Cloud Crunch podcast.

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McDonald’s France Gains Business-Changing Insights from New Data Lake

McDonald’s is famous for cheeseburgers and fries, but with 1.5 million customers a day, and each transaction producing 20 to 30 data points, it has also become a technology organization. With the overarching goal to improve customer experience, and as a byproduct increase conversion and brand loyalty, McDonald’s France partnered with 2nd Watch to build a data lake on AWS.

Customer Priorities Require Industry Shifts

As is common in many industries today, the fast-food industry has shifted from a transaction centric view to a customer centric view. The emphasis is no longer on customer satisfaction, but on customer experience. It’s this variable that impacts conversion rate and instills loyalty. Consequently, McDonald’s wanted to build a complete perspective of a customer’s lifetime value, with visibility into each step of their journey. Understanding likes and dislikes based on data would give McDonald’s the opportunity to improve experience at a variety of intersections across global locations.

McDonald’s is a behemoth in its size, multi-national reach, and the abundance of data it collects. Making sense of that data required a new way of storing and manipulating it, with flexibility and scalability. The technology necessary to accomplish McDonald’s data goals has significantly reduced in cost, while increasing in efficiency – key catalysts for initiating the project within McDonald’s groups, gaining buy-in from key stakeholders, and engaging quickly.

From Datacenter to Data Lake

To meet its data collection and analysis needs, McDonald’s France needed a fault-tolerant data platform equipped with data processing architecture and a loosely coupled distribution system. But, the McDonald’s team needed to focus on data insights rather than data infrastructure, so they partnered with 2nd Watch to move from a traditional data warehouse to a data lake, allowing them to reduce the effort required to analyze or process data sets for different properties and applications.

During the process, McDonald’s emphasized the importance of ongoing data collection from anywhere and everywhere across their many data sources. From revenue numbers and operational statistics to social media streams, kitchen management systems, commercial, regional, and structural data – they wanted everything stored for potential future use. Historical data will help to establish benchmarks, forecast sales projections, and understand customer behavior over time.

The Data Challenges We Expect…And More

With so much data available, and the goal of improving customer experience as motivation, McDonald’s France wanted to prioritize three types of data – sales, speed of service, and customer experience. Targeting specific sets of data helps to reduce the data inconsistencies every organization faces in a data project. While collecting, aggregating, and cleaning data is a huge feat on its own, McDonald’s France also had to navigate a high level of complexity.

As an omnichannel restaurant, McDonald’s juggles information from point of sales systems with sales happening online, offline, and across dozens of different locations. Data sources include multiple data vendors, mobile apps, loyalty programs, customer relationship management (CRM) tools, and other digital interfaces. Combined in one digital ecosystem, this data is the force that drives the entire customer journey. Once it’s all there, the challenge is to find the link for any given customer that transforms the puzzle into a holistic picture.

Endless Opportunities for the Future

McDonald’s France now has visibility into speed of service with a dedicated dashboard and can analyze and provide syntheses of that data. National teams can make data-based, accurate decisions using the dashboard and implement logistical changes in operations. They’re able to impact operational efficiency using knowledge around prep time to influence fulfilment.

The data lake was successful in showing the organization where it was losing opportunities by not taking advantage of the data it had. McDonald’s also proved it was possible, affordable, and advantageous to invest in data. While their data journey has only begun, these initial steps opened the door to new data usage possibilities. The models established by McDonald’s France will be used as an example to expand data investments throughout the McDonald’s corporation.

If your organization is facing a similar of issue of too much data and not enough insight, 2nd Watch can help. Our data and analytics solutions help businesses make better decisions, faster, with a modern data stack in the cloud. Contact Us to start talking about the tools and strategies necessary to reach your goals.

-Ian Willoughby, Chief Architect and Vice President

Listen to the McDonald’s team talk about this project on the 2nd Watch Cloud Crunch podcast.

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Cloud Crunch Podcast: Data, AI & ML on Google Cloud

If you’re trying to run your business smarter, not harder, chances are you’re utilizing data to gain insights into the decision-making process and gain a competitive advantage. In the latest episode of our podcast, we talk with data and AI & ML expert, Rui Costa at Google Cloud, about why and when to use cloud data offerings and how to make the most of your data in the cloud. Listen now on Spotify, iTunes, iHeart Radio, Stitcher, or wherever you get your podcasts.

We’d love to hear from you! Email us at CloudCrunch@2ndwatch.com with comments, questions and ideas.

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Top Enterprise IT Trends for 2021

Between the global pandemic and the resulting economic upheaval, it’s fair to say many businesses spent 2020 in survival mode. Now, as we turn the page to 2021, we wonder what life will look like in this new normalcy. Whether it is employees working from home, the shift from brick and mortar to online sales and delivery, or the need to accelerate digital transformation efforts to remain competitive, 2021 will be a year of re-invention for most companies.

How might the new normal impact your company? Here are five of the top technology trends we predict will drive change in 2021:

  1. The pace of cloud migration will accelerate: Most companies, by now, have started the journey to the public cloud or to a hybrid cloud environment. The events of 2020 have added fuel to the fire, creating an urgency to maximize cloud usage within companies that now understand that the speed, resilience, security and universal access provided by cloud services is vital to the success of the organization.

“By the end of 2021, based on lessons learned in the pandemic, most enterprises will put a mechanism in place to accelerate their shift to cloud-centric digital infrastructure and application services twice as fast as before the pandemic,” says Rick Villars, group vice president, worldwide research at IDC. “Spending on cloud services, the hardware and software underpinning cloud services, and professional and managed services opportunities around cloud services will surpass $1 trillion in 2024,”

The progression for most companies will be to ensure customer-facing applications take priority. In the next phase of cloud migration, back-end functionality embodied in ERP-type applications will move to the cloud. The easiest and fastest way to move applications to the cloud is the simple lift-and-shift, where applications remain essentially unchanged. Companies looking to improve and optimize business processes, though, will most likely refactor, containerize, or completely re-write applications. They will turn to “cloud native” approaches to their applications.

  1. Artificial intelligence (AI) and machine learning (ML) will deliver business insight: Faced with the need to boost revenue, cut waste, and squeeze out more profits during a period of economic and competitive upheaval, companies will continue turning to AI and machine learning to extract business insight from the vast trove of data most collect routinely, but don’t always take advantage of.

According to a recent PwC survey of more than 1,000 executives, 25% of companies reported widespread adoption of AI in 2020, up from 18% in 2019. Another 54% are moving quickly toward AI. Either they have started implementing limited use cases or they are in the proof-of-concept phase and are looking to scale up. Companies report the deployment of AI is proving to be an effective response to the challenges posed by the pandemic.

Ramping up AI and ML capabilities in-house can be a daunting task, but the major hyperscale cloud providers have platforms that enable companies to perform AI and ML in the cloud. Examples include Amazon’s SageMaker, Microsoft’s Azure AI and Google’s Cloud AI.

  1. Edge computing will take on greater importance: For companies that can’t move to the cloud because of regulatory or data security concerns, edge computing is emerging as an attractive option. With edge computing, data processing is performed where the data is generated, which reduces latency and provides actionable intelligence in real time. Common use cases include manufacturing facilities, utilities, transportation, oil and gas, healthcare, retail and hospitality.

The global edge computing market is expected to reach $43.4 billion by 2027, fueled by an annual growth rate of nearly 40%, according to a report from Grand View Research.

The underpinning of edge computing is IoT, the instrumentation of devices (everything from autonomous vehicles to machines on the factory floor to a coffee machine in a fast-food restaurant) and the connectivity between the IoT sensor and the analytics platform. IoT platforms generate a vast amount of real-time data, which must be processed at the edge because it would too expensive and impractical to transmit that data to the cloud.

Cloud services providers recognize this reality and are now bringing forth specific managed service offerings for edge computing scenarios, such as Amazon’s new IoT Greengrass service that extends cloud capabilities to local devices, or Microsoft’s Azure IoT Edge.

  1. Platform-as-a-Service will take on added urgency: To increase the speed of business, companies are shifting to cloud platforms for application development, rather than developing apps in-house. PaaS offers a variety of benefits, including the ability to take advantage of serverless computing delivering scalability, flexibility and quicker time to develop and release new apps. Popular serverless platforms include Amazon Lambda and Microsoft’s Azure Functions.
  2. IT Automation will increase: Automating processes across the entire organization is a key trend for 2021, with companies prioritizing and allocating money for this effort. Automation can cut costs and increase efficiency in a variety of areas – everything from Robotics Process Automation (RPA) to automate low-level business processes, to the automation of security procedures such as anomaly detection or incident response, to automating software development functions with new DevOps tools.

Gartner predicts that, through 2024, enhancements in analytics and automatic remediation capabilities will refocus 30% of IT operations efforts from support to continuous engineering. And by 2023, 40% of product and platform teams will use AIOps for automated change risk analysis in DevOps pipelines, reducing unplanned downtime by 20%.

Tying it all together

These trends are not occurring in isolation.  They’re all part of the larger digital transformation effort that is occurring as companies pursue a multi-cloud strategy encompassing public cloud, private cloud and edge environments. Regardless of where the applications live or where the processing takes place, organizations are seeking ways to use AI and machine learning to optimize processes, conduct predictive maintenance and gain critical business insight as they try to rebound from the events of 2020 and re-invent themselves for 2021 and beyond.

Where will 2021 take you? Contact us for guidance on how you can take hold of these technology trends to maximize your business results and reach new goals.

-Mir Ali, Field CTO

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Cloud Crunch Podcast: How McDonald’s France is Using Data Lakes to Improve Customer Experience

Adrien Sieg, Head of Data at McDonald’s Global Technology France, Christina Moss, Director of AWS Cloud Services at McDonald’s, and Mathieu Rimlinger, Director of Global Technology France at McDonald’s, talk about their latest technological advancements in the cloud and how McDonald’s is using data lakes to set customer expectations and improve satisfaction. Listen now on Spotify, iTunes, iHeart Radio, Stitcher, or wherever you get your podcasts.

We’d love to hear from you! Email us at CloudCrunch@2ndwatch.com with comments, questions and ideas.

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The Most Popular and Fastest-Growing AWS Products of 2020

The Most Popular and Fastest-Growing AWS Products of 2020

Enterprise IT departments are increasing cloud usage at an exponential rate. These tools and technologies enable greater innovation, cost savings, flexibility, productivity and faster-time-to-market, ultimately facilitating business modernization and transformation.

Amazon Web Services (AWS) is a leader among IaaS vendors, and every year around this time, we look back at the most popular AWS products of the past year, based on the percentage of 2nd Watch clients using them. We also evaluate the fastest-growing AWS products, based on how much spend our clients are putting towards various AWS products compared to the year before.

We’ve categorized the lists into the “100%s” and the “Up-and-Comers.” The 100%s are products that were used by all of our clients in 2020 – those products and services that are nearly universal and necessary in a basic cloud environment. The Up-and-Comers are the five fastest-growing products of the past year. We also highlight a few products that didn’t make either list but are noteworthy and worth watching.

The “100%s” Club

In 2020, there were 12 AWS products that were used by 100% of our client base:

  • AWS CloudTrail
  • AWS Key Management Service
  • AWS Lambda
  • AWS Secrets Manager
  • Amazon DynamoDB
  • Amazon Elastic Compute Cloud
  • Amazon Relational Database Service
  • Amazon Route 53
  • Amazon Simple Notification Service
  • Amazon Simple Queue Service
  • Amazon Simple Storage Service
  • Amazon CloudWatch

Why were these products so popular in 2020? For the most part, products that are universally adopted reflect the infrastructure that is required to run a modern AWS cloud footprint today.

Products in the 100%s club also demonstrate how AWS has made a strong commitment to the integration and extension of the cloud-native management tools stack, so external customers can have access to many of the same features and capabilities used in their own internal services and infrastructure.

The “Up-and-Comers” Club

The following AWS products were the fastest growing in 2020:

  • AWS Systems Manager
  • Amazon Transcribe
  • Amazon Comprehend
  • AWS Support BJS (Business)
  • AWS Security Hub

The fastest-growing products in 2020 seem to be squarely focused on digital application in some form, whether text/voice translation using machine learning (Comprehend and Transcribe) or protection of those applications and ensuring better security management overall (Security Hub). This is a bit of a change from 2019, when the fastest-growing products were focused on application orchestration (AWS Step Functions) or infrastructure topics with products like Cost Explorer, Key Management Service or Container Service.

With a huge demand for data analytics and machine learning across enterprise organizations, utilizing services such as Comprehend and Transcribe allows you to gather insights into customer sentiment when examining customer reviews, support tickets, social media, etc. Businesses can use the services to extract key phrases, places, people, brands, or events, and, with the help of machine learning, gain an understanding of how positive or negative conversations were conducted. This provides a company with a lot of power to modify practices, offerings, and marketing messaging to enhance customer relationships and improve sentiment.

Worth Watching

The following products were new to our Most Popular list in 2020 and therefore are worth watching:

AWS X-Ray allows users to understand how their application and its underlying services are performing to identify and troubleshoot the root cause of performance issues and errors. One factor contributing to its rising popularity is more distributed systems, like microservices, being developed and traceability becoming more important.

Amazon Athena is an interactive query service that makes it easy to analyze data in Amazon S3 using standard SQL. Athena is serverless, so there is no infrastructure to manage, and you pay only for the queries that you run. Increased use of Athena indicates more analysis is happening using a greater number of data sources, which signifies companies are becoming more data driven in their decision making.

A surge in the number of companies using EC2 Container Service and EC2 Container Registry demonstrates growing interest in containers and greater cloud maturity across the board. Companies are realizing the benefits of consistent/isolated environments, flexibility, better resource utilization, better automation and DevOps practices, and greater control of deployments and scaling.

Looking Ahead

For 2021, we expect there to be a continued focus on adoption of existing and new products focused on security, data, application modernization and cloud management. In our own client interactions, these are the constant topics of discussion and services engagements we are executing as part of cloud modernization across industries.

-Joey Yore, Principal Consultant

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Cloud Crunch Podcast: How Customers are Maximizing AWS Managed Services (AMS)

Michael Eshoo, Sr. Manager, WW AMS Specialist SA at AWS, joins us to talk about how customers are using AWS Managed Services (AMS). We look at the challenges these customers are facing and how they’re overcoming them to maximize the benefits they’re getting from AMS.

We’d love to hear from you! Email us at CloudCrunch@2ndwatch.com with comments, questions and ideas. Listen now on Spotify, iTunes, iHeart Radio, Stitcher, or wherever you get your podcasts.

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Cloud Crunch Podcast: Take Aways from AWS re:Invent 2020

Welcome to Season 2 of Cloud Crunch! We’re back and better than ever with all new topics, opinions and an all-star lineup of exciting industry expert guests. We kick off our first episode looking back at AWS re:Invent 2020 with Solutions Architect pro and re:Invent veteran, Joe Conlin. Being a 3-week event, there is a lot to cover, so get the scoop on what AWS announced, what we found exciting, and what you might’ve missed. Listen now on Spotify, iTunes, iHeart Radio, Stitcher, or wherever you get your podcasts.

Thanks for listening! If there are issues or topics you’d like to hear about, we’d love to hear your suggestions. Email us at cloudcrunch@2ndwatch.com.

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