Delighting the Customer - The New Business Normal

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Keynote presentation to the Toronto CIO Executive Summit, 12 December 2013, by Peter Coffee of salesforce.com inc.

Keynote presentation to the Toronto CIO Executive Summit, 12 December 2013, by Peter Coffee of salesforce.com inc.

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  • 1. Delighting the Customer: The New Business Normal Peter Coffee VP for Strategic Research salesforce.com inc.
  • 2. 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”?
  • 3. Knowledge is the Currency of Connection “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?
  • 4. IT Has Not Been a Medium of Knowledge  Complex legacy portfolios: difficult integrations  Focus on historical data  High cost, high risk  Long payback Imagine… Focus on Connection, not “Computing”
  • 5. 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
  • 6. Connected Customers Rewrite the Rules  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
  • 7. Products are Also Connected 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.
  • 8. ‘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
  • 9. Mobile Data Sources: Where the Puck is Going  Android and iOS combined market share approaching 2/3  Windows at ~1/5…and shrinking
  • 10. Not Merely ‘Mobile Device’ – but Multi-Device
  • 11. 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”
  • 12. 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
  • 13. A Connected Feed is not a Rip/Replace Systems of Engagement Mash-ups from Web and AppExchange Native Desktop Connectors Integration Tools Systems of Record AppExchange Apps ERP Any System Finance
  • 14. Reality of Integration: Siemens Customer Master Invoicing/Billing Master Order Master Pricing Master Product Master Cast Iron Integration Appliance
  • 15. 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/
  • 16. 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
  • 17. Connect with Customers in a Whole New Way Communities Connect customers, partners, products and collaborative teams Heroku1 ExactTarget Fuel Build distinctive Take customers on apps that engage a journey of value customers and empower employees
  • 18. ‘Cloud’ Connects Machines/Processes/People  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$1.2M/year added revenue  Connecting People – Asics delivers RFID-triggered messages to marathoners
  • 19. Canada’s Premier Brands are Connecting  Connecting for Health – Shoppers Drug Mart schedules flu vaccinations across 1,200 locations and over 2,000 pharmacists: public community deployed in just 7 weeks  Connecting for Logistics – Purolator Courier: booking ~20k packages/day with multi-lingual, multi-channel, & massively integrated SAP & telephone capability  Connecting for…Connections – Rogers National Reservation System secured high-demand inventory for new product launches (e.g. iPhone 4 & 5) to minimize customer churn: multi-million$ revenue impact from a 6-week deployment
  • 20. 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 SAPModern Canada: Part of the Portrait of & telephone • More than 6,000 Canada customers capability  • Banking Connecting for…Connections • Insurance • Telco – Rogers National Reservation System secured high-demand inventory for new product • Industry (e.g. iPhone 4 & 5) to launches • More than 1,000 Canada employees minimize customer churn: multi-million$ revenue impact from a (500 people on Bay Street) 6-week deployment • More than 1,000 Canada attendees at Dreamforce
  • 21. Dreamforce ’13 Demonstrated the Reality Over 143,000 registrations – World’s Largest Software Conference Visionary speakers 1,200+ breakout sessions 350+ partner sponsors 480,000 Webcast viewers
  • 22. Not a Technology Roadmap… …but a “Start Your Engines” Salesforce1: Application, Platform, Post-PC Business App Ecosystem Visionary speakers 1,200+ breakout sessions 350+ partner sponsors Gala featuring Green Day at AT&T Park
  • 23. The Community We Used to Call “Cloud”… …is Embarked on a Drive Toward Connection 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 Visionary speakers more powerful smartphones.” – eWEEK 1,200+ breakout sessions • “Salesforce.com says it now has 1.4 million registered developers, 350+ partner year ago, almost double the number it had asponsors a growth spurt one Gala featuring Green Day analyst called “stunning.” – PCWorld at AT&T Park
  • 24. Enterprise Cloud, Next-Gen CRM: Just the Beginning #1 Innovation World’s #1 CRM Cloud Computing Market Leader 2011 2012 2013 Enterprise, MidMarket, SMB & Sales Force Automation
  • 25. Proven Leader for Modern App Development Recognized & Used #1 PaaS for Developers #1 PaaS for Business Experts #1 PaaS for ISVs Customer Success Capacity and Assurance Trust.salesforce.com Leading Cloud Platform 3 Million+ apps 1 Million+ installs on AppExchange 1 Billion transactions/day 50% of transactions via API
  • 26. Salesforce1 is The Customer Platform Sales Cloud Service Cloud ExactTarget Marketing Cloud AppExchange Salesforce1 App Salesforce1 Platform APIs Force.com Heroku1 Salesforce1 Platform Services ExactTarget Fuel
  • 27. “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.
  • 28. WELCOME TO THE INTERNET OF CUSTOMERS
  • 29. Peter Coffee VP for Strategic Research salesforce.com inc. pcoffee@salesforce.com @petercoffee in/petercoffee Creative Commons Attribution-NoDerivatives 4.0 International