The Future of Social in the Enterprise - by Alan Lepofsky and Dion Hinchcliffe

The Future of Social Inside the Enterprise Thought Leader PerspectiveDion Hinchcliffe Alan LepofskyExecutive Vice President, Dachis Group VP Principal Analyst, Constellation Research@dhinchcliffe @alanlepo Kuntal Vahalia Senior Director, Salesforce.com @kuntalvahalia Karthik Chakkarapani, Senior Solution Architect, Salesforce.com @kchakkarpani

Safe harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-Q for the most recent fiscal quarter ended July 31, 2012. This documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward- looking statements. #DF12Social

Safer harbor #DF12Social

Agenda: The Evolution of Social Business§  The Journey – What led us to where we are today?§  Today – From simply sharing to getting work done§  What’s Next – The future of social business #DF12Social

Part 1:The Journey To Social Business#DF12Social

Groupware? Collaboration? Social Software? Goal: To help people get their jobs done… … and help their organization be successful People need to be able to: •  Create, discover and share information •  Find the colleagues/communities that can help them (and vice versa) Wha whic ts in a n •  Build strong relationships with external h a other we call a me? that name ros communities swee woul e by any t - Sh ds akes mell as pear •  At any time from a variety of devices e #DF12Social

Social Software Is Not A New Idea Until now, most PC software was designed for individuals using individual PCs. But today, more and more people are working in teams on networked PCs that require a new kind of software. Software that lets them quickly share ideas and information no matter where, when or how they work. Enter Lotus Notes. The first software than actually thrives on the fact that people need to work together to be effective. Lotus Notes creates a new communications environment where users can develop applications - for sales tracking, project management, customer service, and free form discussions of all kinds - and routinely access and share this information from their desktop to anyone, anywhere in the world. In fact, no other software maximizes your investments in networked PCs like Lotus Notes. After all, helping people work together is what Lotus does best. ` #DF12Social

How we got where we are today... Majority of The shake-out:1.0 era companies now Most large companies select tactically engage a few large social suites in social media “Cambrian Explosion” Centralization: (internal, external McAfee Coins of social enterprise 1st notable wave of enterprise- The Rise of Facebook or both) “Enterprise 2.0” vendors wide social business and “big” social networks transformations begin 2006 2007 2008 2009 2010 2011 2012 2013 Critical mass of social Rise of Social HR “Web 2.0” Blogs, wikis, and business success Peaks As online communities stories is achieved (100+) Rise of Social CRM A Term enter the workplace Most public communication is now through social channels (July, 2009) #DF12Social

The Perfect Storm Has Brought Us To Where We Are Process People Moving beyond the org chart Internal groups “Social” is connecting Business & People processes (CRM, HCM, etc.) External communities Work is more transparent Recognition/Reputation is built in New user experiences Mobile Access Analytics / Big Data Application Stores Cloud / In-Memory Industry Standards Technology #DF12Social

What We’ve Learned: The Benefits of Social BusinessSelf-Reported Average Industry Improvements From Large Organizations 25-30% faster access to expertise! 10-20% reduction in travel 30% faster customer care Increased Productivity Revenue Creation processes! and communication costs! Overcoming distance and Shorter external time zone support cycles 10-15% reduction in ! barriers to collaboration 18% higher customer satisfaction! communication costs!10% decrease in operational 10% higher customer! Self- loyalty! costs! service Faster location Increased customer content of experts satisfaction & sharing retention More rapid Better new hire business ramp-up decisions Improved connections Less time between Improved spent departments 20-30% increase in access looking for and internal global 15% increase in successful sales to expertise! information teams processes innovations & ideas! 30% increase in speed of Cost Reduction Connected Culture 10% increased revenue! access to! knowledge! 35% increase in collaboration! 20% lower communication costs! Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data. #DF12Social

Fully social organizations get outsized benefits How orgs will claim their share of the $1.3 Trillion Source: 2011 McKinsey Web 2.0 Survey Social Business Proposition #DF12Social

Part 2: Where We Are Today #DF12Social

Social Business projects are more strategic   and  growing faster than ever before#DF12Social

Virtually all data continue to show sustained real-world beneﬁts (McKinsey, IBM, Frost and Sullivan, AIIM) #DF12Social

Everything is becoming social!Social features are appearing in virtually all new user experiences #DF12Social

The predicted social data explosion: It happened #DF12Social

Social business moves into the C-Suite #DF12Social

Burberry’s Social Business Transformation To The Bottom Line 21% Increase•  6,600+ Workers•  10M+ Facebook Fans•  15,000 Partners Burberry CEO Angela Ahrendts Explores Their Social Enterprise Vision With Salesforce CEO Marc Benioff at Dreamforce 2011 #DF12Social

A Shift Is Taking Place #DF12Social `

From Simply Sharing, To Getting Work Done SOCIALConnected Sharing, Transparency, Ge4ng Work Done Enterprise Discovery Core Business Processes BUSINESS #DF12Social

Integrating Social Into Core Business Processes Unstructured Structured Sales Human •  Status Updates Resources •  Sharing Marketing Supply •  Q&A Chain •  Exception Handling Engineering Support/ •  Expertise Location Service Learning #DF12Social

Type 1: Stream Level Integration Can help information reach a broad audience CRM Enables discussion Links or ideally embedded objects ERP Context is lost, as comments are not part of the system of record HR Contributes to information overload #DF12Social

Type 2: Embedded Experiences #DF12Social

We’ve learned what social business looks like•  Cross-divisional•  Top-to-bottom•  Involves key areas•  Executives•  Subject matter experts•  HR & Legal•  Middle Management•  Workers•  Community Managers #DF12Social

And that a certain skill is essential for best results... #DF12Social

Warning: Let’s Not Get Carried Away! #DF12Social

So What’s Missing From The Current Solutions? Social Business has provided organizations with many benefits… …but it has also created a new set of technological and cultural challenges. #DF12Social

Part 3: The Future Of Social Software #DF12Social

Theme: Soci Helping People al Ta Get Work Done sk M a nage men t Perso nal W orkflo w Au toma tionCollab orativ e App licatio ns #DF12Social

Salesforce Do.com #DF12Social

Personal/Team Workflow AutomationConnecting multiple services /websites together via a single then Take actionrules engine. If event Take action Take action Take action(s)Enable conversations aroundthese event. then Broadcast into activity stream for SalesBusiness use-cases New lead is created everyone to discuss New collateral is then Post a link in the sales training group Marketing posted and schedule a webinar New feature then Add a task to the team’s task Development request management board #DF12Social

Collaborative (Micro) Applications Not just adding social to existing business process, blogs but creating new wikis applications for: forums communities Sales, Marketing activity streams HR, Engineering Finance #DF12Social

Social business is one unified ecosystem #DF12Social

Reconciliation of existing transaction systems withengagement systems #DF12Social

Social + Mobile = Future of User Experience 1 bill ion s mar tph ones ( 2012) Smart Mobile Converged “SoMo” 2012) u sers ( m edia billio s l n ocia 1.4 Social Media + Location-based services + All apps mobile + All apps with social features + Disposal mobile social networks + Sensors, NFC + social = possibilities #DF12Social

Theme:Turning Insights Into Action #DF12Social

Analytics / Big Data•  Intelligent filtering •  Streams Data •  Search Data•  Recommendations •  People Data •  Pages •  Communities•  Sentiment Analysis •  Internal •  External Decisions #DF12Social

Social + data analytics = business intelligence #DF12Social

Does Your Organization Have A Data Scientist? #DF12Social

Big data + social media = business value #DF12Social

GamificationThe R’s… Behavioral Dynamics Rank/Reputation: Leaderboards Role: How people work today Gamification Reward: next How people are Incentives connected Route: How people work Quests/Missions together #DF12Social

Marketing: The Next Vertical For Social Business 2011 = SCRM 2012 = HCM 2013 = Marketing #DF12Social

Big ROI:Engagement at scale #DF12Social

Cost-effective scale:Strategic mobilization enterprise advocates #DF12Social

Stronger foundations for social business... ...dealing with regulatory, legal, and other issues seamlessly! #DF12Social

Enterprise-wide organization around social business •  CMO? •  Corporate Communications? •  Human Resources? •  IT Dept? Where then? •  Social Business Office •  Triumvirate #DF12Social

A C-level role for social media #DF12Social

This role will enable social across the entirebusiness #DF12Social

Social as an integrated part of digital strategy #DF12Social

Conclusion The future of social business is….. Business! #DF12Social

Dion Hinchcliffe Alan LepofskyExecutive Vice President VP and Principal Analyst Dachis Group Constellation Research @dhinchcliffe @alanlepo #DF12Social

#DF12Social

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The Future of Social in the Enterprise - by Alan Lepofsky and Dion Hinchcliffe

by Alan Lepofsky on Sep 20, 2012

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The Future of Social in the Enterprise - by Alan Lepofsky and Dion Hinchcliffe Presentation Transcript