Delighting the Customer:

The New Business Normal

Peter Coffee

VP for Strategic Research

salesforce.com inc.

It’s So Past Time to Talk About “The Cloud”

The verb, “to cloud,” does not

have a single positive meaning

The cloud is always a symbol

of things that people don’t

want to do themselves, or

even necessarily have at all: of

annoying enablers that add no

real value of their own

Suppose we’d called it…

“connected computing”?

“Twenty years hence, the typical company

will be a knowledge-based organization.”

Peter Drucker, in The New Realities

…in 1989

What happened to the future?

Knowledge is the Currency of Connection

Complex legacy portfolios: difficult integrations

Focus on historical data

High cost, high risk

Long payback

Imagine…

Focus on Connection, not “Computing”

IT Has Not Been a Medium of Knowledge

Knowledge + Connection: Close the Loop

Customers: records become communities

Employees: appraisals transform to collaborations

Partners: supply chain grows into value network

Financials: transactions evolve to scenarios

The combat pilot’s “OODA Loop”:

Observe, Orient,

Decide, Act

Old Customers:

– Prospects get content from Marketing

– Buyers negotiate terms with Sales

– Customers raise issues with Support

Connected Customers:

– Prospects seek insights from customers

– Buyers collaborate on competitor research

– Customers tell the world when they’re not happy

Companies need new organizations & processes

– Every employee/contractor/partner is a spokesperson/avatar

– Power to address issues must be pushed to edge of organization

– Collaborative response must be available on demand

Connected Customers Rewrite the Rules

TECH 5/06/2013 @ 8:39PM | 5,338 views

10 Ways Cloud Computing Is Revolutionizing Manufacturing

Designing in services is now becoming commonplace, making cloud

integration expertise critical for manufacturers.

From simplistic services integration on iPhones to the full implementation

of voice-activated controls including emergency assistance in the latest

luxury cars, adding in services integrated to the cloud is redefining

the competitive landscape of industries today.

Revising a product or launching a new product generation with

embedded services can mitigate price wars, which is why

many manufacturers are pursing this strategy today.

Products are Also Connected

‘Cloud’ is Where the Puck Used to Be

“Big Data” gives the cloud something to do

– Elastic capacity for high peak/average ratios

– Connectivity to real-world, real-time…reality

Mobile Data Sources: Where the Puck is Going

Android and iOS combined market share approaching 2/3

Windows at ~1/5…and shrinking

Not Merely ‘Mobile Device’ – but Multi-Device

But a Desktop Is Not an OODA Environment

What you’re doing

Who else is doing it

What’s valued by the team

What’s already been done

What’s new to share

What’s new to show

What’s now to decide

What should happen next?

We Call This “the Feed”

Reality of Connection: Meritage Homes

Meritage constructs single-family homes across the U.S., with

70,000+ homes constructed to date. Meritage configuration

app on Force.com has unified front- and back-office systems

Reduced number of documents to create a sales contract

from 3,400 to fewer than 500

Meritage no longer requires a dedicated headcount for

tracking, managing and creating sales documents

Legal now has control over any document that requires a

customer signature

98 percent of customer-specific fields in a sales contract are

now dynamically populated vs. manually edited

Mash-ups from

Web and

AppExchange

Native

Desktop

Connectors

Integration Tools

AppExchange Apps

ERP

Any System

Finance

Systems of Record

Systems of

Engagement

A Connected Feed is not a Rip/Replace

Reality of Integration: Siemens

Product Master

Pricing Master

Invoicing/Billing Master

Order Master

Invoicing/Billing Master

Product Master

Cast Iron Integration Appliance

Customer Master Customer Master

Value from Feeds of “Big Data”

Demands Disciplines of Discovery, not Query

“By combing through 7.2

million of our electronic

medical records, we have

created a disease network to

help illustrate relationships

between various conditions

and how common those

connections are. Take a look

by condition or condition

category and gender to

uncover interesting

associations.”

visualization.geblogs.com/visualization/network/

What is an “application” anyway?

Old “applications”:

– Data captured as by-product of business activity

– Function driven by familiar business tasks

– User experience an afterthought

– Built by programmers; judged on cost & efficiency

New “apps”:

– Data captured through algorithms of discovery

– Function driven by customer delight

– User experience a top priority

– Apps built by front-line business units; judged on ROI

Connect with Customers in a Whole New Way

Connect customers,

partners, products and

collaborative teams

Build distinctive

apps that engage

customers and

empower employees

Take customers on

a journey of value

Communities Heroku1 ExactTarget Fuel

Connecting Machines

– ‘OnStar’ network daily handles 150k human requests…

…and 130k machine-originated requests

– Some are critical, e.g. air-bag deployments

– Others may be infotainment, e.g. mileage ‘leader board’

Connecting Processes

– General Electric wind-farm management: 123 turbines

– Field-wide speed optimization, anti-icing behaviors

– 3% output increase US$1.2M/year added revenue

Connecting People

– Asics delivers RFID-triggered messages to marathoners

‘Cloud’ Connects Machines/Processes/People

Connecting for Health

– Shoppers Drug Mart schedules flu vaccinations across 1,200

locations and over 2,000 pharmacists: public community

deployed in just 7 weeks

Connecting for Logistics

– Purolator Courier: booking ~20k packages/day with multi-lingual,

multi-channel, & massively integrated SAP & telephone

capability

Connecting for…Connections

– Rogers National Reservation System secured high-demand

inventory for new product launches (e.g. iPhone 4 & 5) to

minimize customer churn: multi-million$ revenue impact from a

6-week deployment

Canada’s Premier Brands are Connecting

Connecting for Health

– Shoppers Drug Mart schedules flu vaccinations across 1,200

locations and over 2,000 pharmacists: public community

deployed in just 7 weeks

Connecting for Logistics

– Purolator Courier: booking ~20k packages/day with multi-lingual,

multi-channel, & massively integrated SAP & telephone

capability

Connecting for…Connections

– Rogers National Reservation System secured high-demand

inventory for new product launches (e.g. iPhone 4 & 5) to

minimize customer churn: multi-million$ revenue impact from a

6-week deployment

Canada’s Premier Brands are Connecting

Part of the Portrait of Modern Canada:

• More than 6,000 Canada customers

• Banking

• Insurance

• Telco

• Industry

• More than 1,000 Canada employees

(500 people on Bay Street)

• More than 1,000 Canada attendees at Dreamforce

Dreamforce ’13 Demonstrated the Reality

Visionary speakers

1,200+ breakout sessions

350+ partner sponsors

480,000 Webcast viewers

Over 143,000 registrations – World’s Largest Software Conference

Visionary speakers

1,200+ breakout sessions

350+ partner sponsors

Gala featuring Green Day at AT&T Park

Salesforce1: Application, Platform, Post-PC Business App Ecosystem

Not a Technology Roadmap…

…but a “Start Your Engines”

The Community We Used to Call “Cloud”…

…is Embarked on a Drive Toward Connection

Visionary speakers

1,200+ breakout sessions

350+ partner sponsors

Gala featuring Green Day at AT&T Park

Global Coverage Snapshot

• “A year from now Salesforce1’s greatest contribution to Salesforce

customers could be making their applications easier to use,

especially on mobile devices.” – Forbes

• “Viewed simplistically, Salesforce1 is delivering a more powerful

mobile app and a bunch of new APIs, but that would undersell the

platform's importance in a connected world.” – InformationWeek

• “The concept [Salesforce1] is valid and in tune with a business

world quickly abandoning its desktop PCs for tablets and ever

more powerful smartphones.” – eWEEK

• “Salesforce.com says it now has 1.4 million registered developers,

almost double the number it had a year ago, a growth spurt one

analyst called “stunning.” – PCWorld

Enterprise Cloud, Next-Gen CRM: Just the Beginning

#1 World’s #1

CRM

Cloud

Computing

2011

2012

2013

Market Leader

Enterprise,

MidMarket, SMB &

Sales Force

Automation

Innovation

Proven Leader for Modern App Development

Recognized & Used Customer Success Capacity and Assurance

#1 PaaS for Developers #1 PaaS for Business Experts

#1 PaaS for ISVs

Leading Cloud Platform

3 Million+ apps

1 Million+ installs on AppExchange

1 Billion transactions/day

50% of transactions via API

Trust.salesforce.com

Salesforce1 is The Customer Platform

Salesforce1 Platform APIs

Salesforce1 App

Salesforce1 Platform Services

Force.com Heroku1 ExactTarget

Fuel

Sales Cloud Service Cloud ExactTarget

Marketing Cloud AppExchange

“The Cloud”? You’ll Get What You Ask For

If you treat the cloud as merely a way to

modernize your IT, that’s all you’ll get.

No matter how creatively and competently that

modernization is done, it will not be enough.

Broadening perspective requires enlarging

community of stakeholders and lengthening the

list of criteria for success.

WELCOME TO THE

INTERNET OF CUSTOMERS

Peter Coffee

VP for Strategic Research

salesforce.com inc. pcoffee@salesforce.com

@petercoffee

in/petercoffee

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