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Community Blog Five Steps for Traditional Retailers to Find Digital Success in the Cloud

Five Steps for Traditional Retailers to Find Digital Success in the Cloud

Learn how Kopi Kenangan overcame various challenges to provide a seamless O2O experience for its customers.

Find out how our customers are leveraging the cloud for success in multiple markets in the Best Practices of Cloud Adoption in Indonesia whitepaper.

To find digital success in today’s market, retailers in Southeast Asia are pivoting to embrace offline to online (O2O) business models. But the move to O2O is not an easy undertaking where database and network performance issues, compliance and data security issues must all be managed.

One of our customers, Kopi Kenangan, overcame these challenges to provide a seamless O2O experience for its customers. Kopi Kenangan also migrated its applications to Alibaba Cloud within one week and without any disruption to its business operations. Let’s find out more how they achieved this.

Introducing Kopi Kenangan

Founded in 2017, Kopi Kenangan makes fresh, high-quality and affordable coffee for its Indonesian customer base.

With more than 400 branches, the company has a large physical footprint – but it started to integrate its online and offline retail markets, making use of on-demand services like Go-Jek (GoFood) and Grab (GrabFood).

By the end of 2019, Kopi Kenangan’s online transactions accounted for an estimated one-third of its orders, and its online business continues to show widespread growth.

Kopi Kenangan is now a pioneer in the O2O space – let’s look at the challenges it faced, the steps it took to address these issues and how other retail businesses could find similar digital success.

Challenge #1: Boost Database Performance

Issue: Slow database performance, largely due to its increasing number of transactions and volume of analytics.

Solutions: Elastic Compute Service (ECS), Auto Scaling and Alibaba Cloud Container for Kubernetes (ACK).

Alibaba Cloud is a world-class public cloud provider with a strong local presence in Indonesia and data centers in Jakarta. Our suite of cloud-based database products helped Kopi Kenangan achieve the high scalability and availability required to meet its business requirements.

Challenge #2: Unlock Omnichannel Data

Issue: Data insights were limited, often separating online and office customers and preventing data-driven decisions.

Solutions: AnalyticDB for PostgreSQL, PolarDB, and DataWorks.

Kopi Kenangan focused on optimizing its data lifecycle. By adopting AnalyticDB, PolarDB, DataWorks, and integrating 3rd party solutions such as Tableau, the company built a real-time data warehouse. Through our Database Transmission Service (DTS) database operation tool, a single source of data is stored in PolarDB, which can be synchronized into AnalyticDB within seconds.

PolarDB also supports high concurrent technologies, with data storage up to 100TB. AnalyticDB for PostgreSQL is a massively parallel processing (MPP) data warehousing service, which supports high-performance interactive queries and seamlessly handles end-to-end analytics workflows.

Coupled with our DataWorks data management tool, Kopi Kenangan reinforced its business intelligence capabilities and streamlined its decision-making processes.

Challenge: #3 Achieve Low Latency

Issue: High network latency hampered access to backend systems.

Solution: Object Storage Service (OSS)

OSS is an encrypted and secure cloud storage service. It allows end users to store, process and access massive amounts of data – from anywhere in the world. Used in conjunction with Alibaba Cloud’s other cloud-based solutions, Kopi Kenangan achieved low latency and a superior end-user experience, which is vital for its burgeoning e-commerce business.

OSS is also a cost-effective solution, with proven savings on systems operation and maintenance, which is important in the event of ever-growing data volumes.

Challenge: #4 Increase Network Reliability

Issue: Unreliable network connections affected the productivity of remote users and the end-user experience.

Solution: Cloud Enterprise Network (CEN).

CEN delivers a hybrid and distributed global network, providing stable transmission and a next-generation network environment. As a result, Kopi Kenangan’s end users benefited from high transmission speeds and low latency networks.

CEN can facilitate communication between VPC to VPC and VPC to IDC. Routing information in CEN can be learned and distributed automatically, which also allows fast routing convergence and improved network quality and security. This was advantageous for Kopi Kenangan, which has maintenance users working in Indonesia and Beijing.

Challenge: #5 Ensure Regulatory Compliance

Issue: Compliance with global, local and industry regulations is required across the business and, in particular, for online transactions.

Solutions: Security & Privacy Compliance service and local expertise.

With local data centers in Jakarta, Kopi Kenangan can now store its data in Indonesia, helping it meet local compliance requirements. Our dedicated local and global compliance expertise also helped Kopi Kenangan gain compliance across all the necessary regulations.

To summarize, Alibaba Cloud is an expert in the retail market and has helped many businesses shift to an O2O offering. Kopi Kenangan is just one of our success stories, now benefiting from real-time data analytics and seamless omnichannel customer experiences.

Alibaba Cloud is a world-class cloud provider with a strong local presence in Indonesia. We can help your retail business setup, launch and succeed with O2O business models – and more. To find out more about our work, download Best Practices of Cloud Adoption in Indonesia whitepaper today.

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