The Business Case for SaaS Analytics for Salesforce.com

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Webinar presentation on April 16th with THINKstrategies industry analyst Jeff Kaplan.

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  • The Business Case for SaaS Analytics for Salesforce.com

    1. 1. The Business Case for On-Demand Analytics for Salesforce.com Customers Jeff Kaplan Managing Director THINKstrategies [email_address] Darren Cunningham Product Marketing Director LucidEra [email_address]
    2. 2. Today’s Agenda <ul><li>Introduction and Overview </li></ul><ul><li>The Business Case for On-Demand Analytics </li></ul><ul><li>Putting it All Together </li></ul><ul><li>Q & A </li></ul>Copyright © 2008 LucidEra – All rights reserved David Myron Editorial Director CRM Magazine
    3. 3. Polling Question <ul><li>What is your perception of Business Analytics? </li></ul><ul><ul><li>A critical initiative that will drive bottom-line performance </li></ul></ul><ul><ul><li>An expensive IT project tied to data warehousing </li></ul></ul><ul><ul><li>Something for big companies only </li></ul></ul><ul><ul><li>I don’t have one </li></ul></ul>Copyright © 2008 LucidEra – All rights reserved
    4. 4. Agenda <ul><li>Introduction and Overview </li></ul><ul><li>The Business Case for On-Demand Analytics </li></ul><ul><li>Putting it All Together </li></ul><ul><li>Q & A </li></ul>Copyright © 2008 LucidEra – All rights reserved Jeff Kaplan Managing Director, THINKstrategies [email_address] 781-431-2690
    5. 5. The World Is Changing <ul><li>Changing Competitive Environment </li></ul><ul><li>Changing Workers/Work Environment </li></ul><ul><li>Changing Economic Climate/Pressures </li></ul><ul><li>Changing Technology Environment </li></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    6. 6. Top 10 Business/ Technology Priorities ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    7. 7. Business Can No Longer Be A Slave To Technology ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    8. 8. The Shortcomings of Legacy, On-Premise Apps <ul><li>Deployment Challenges </li></ul><ul><ul><li>31.1% of SW projects cancelled before completed. </li></ul></ul><ul><ul><li>52.7% of projects cost nearly 190% of original estimates. </li></ul></ul><ul><ul><li>30-50% of SW costs spent on integration. </li></ul></ul><ul><li>Operational Costs </li></ul><ul><ul><li>Maintenance & management costs >10x original license fee. </li></ul></ul><ul><ul><li>Escalating hardware & staff support costs. </li></ul></ul><ul><ul><li>Over provisioning and under-utilization of SW licenses </li></ul></ul><ul><li>Economic/Budgetary Pressures </li></ul><ul><ul><li>Need to reduce IT costs and increase business benefits. </li></ul></ul><ul><ul><li>Need to increase utilization to gain greater ROI. </li></ul></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    9. 9. Changing Customer Expectations <ul><li>Old, </li></ul><ul><li>Capital Investment </li></ul><ul><li>Complexity, Customization </li></ul><ul><li>Reactive Maintenance </li></ul><ul><li>Response Time </li></ul><ul><li>Customer Support </li></ul><ul><li>Limited Responsibility </li></ul><ul><li>Outsourcing Alternatives </li></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide <ul><li>New, </li></ul><ul><li>Operating Expense </li></ul><ul><li>Simplicity, Utilization </li></ul><ul><li>Proactive Management </li></ul><ul><li>Ongoing Monitoring </li></ul><ul><li>Automated Delivery </li></ul><ul><li>Higher Accountability </li></ul><ul><li>Out-Tasking Options </li></ul>Enterprises Seeking to Generate Greater ROI at Lower TCO.
    10. 10. Converting Software Products Into Services <ul><li>“ A hundred years ago, companies stopped generating their own power with steam engines and dynamos and plugged into the newly built electric grid…Today, a similar revolution is under way.” </li></ul><ul><li>- Nicholas Carr </li></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    11. 11. Software-as-a-Service (SaaS) Defined <ul><li>One-to-many SW distribution model delivered and managed by a vendor/service provider. </li></ul><ul><li>Delivered to customers via a network, typically the Internet. </li></ul><ul><li>Customers acquire SW on a pay-as-you-go basis. </li></ul><ul><li>Also referred to as “ASP”, “On-Demand”, “Hosted”, “Managed Services”, etc. </li></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    12. 12. Polling Question <ul><li>Other than CRM, what SaaS applications has your company implemented or considered? </li></ul><ul><ul><li>Business Analytics </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Human Capital Management </li></ul></ul><ul><ul><li>Other </li></ul></ul>Copyright © 2008 LucidEra – All rights reserved
    13. 13. SaaS Adoption Today ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007
    14. 14. SaaS Deployment Plans ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007
    15. 15. Shifting Adoption Patterns ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Unilateral End-User, SBU Adoption of SaaS Solutions Enterprise-Wide Acceptance and Adoption of SaaS
    16. 16. On-Premise vs. On-Demand Business Intelligence ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide On-Premise Pre-deployment IT planning/design costs Upfront, perpetual license fee Additional hardware/database investments Additional SI/consulting costs Extensive customization required Limited availability beyond firewall Batch processing, standardized reporting Limited adoption, unable to measure
    17. 17. On-Premise vs. On-Demand Business Intelligence ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide On-Premise Pre-deployment IT planning/design costs Upfront, perpetual license fee Additional hardware/database investments Additional SI/consulting costs Extensive customization required Limited availability beyond firewall Batch processing, standardized reporting Limited adoption, unable to measure SaaS Business planning & analysis focus Pay-as-you-go subscription fee No additional servers, database, etc. Embedded APIs, web services User-friendly configurations available Secure, web access anywhere, anytime Real-time & batch, user-config’d reporting High adoption, easily measured
    18. 18. Summary & Conclusions <ul><li>Business challenges escalating. </li></ul><ul><li>BI requirements changing. </li></ul><ul><li>Legacy applications cannot respond. </li></ul><ul><li>SaaS designed to meet changing needs. </li></ul><ul><li>SaaS BI generating measurable results. </li></ul>©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide
    19. 19. Agenda <ul><li>Introduction and Overview </li></ul><ul><li>The Business Case for On-Demand Analytics </li></ul><ul><li>Putting it All Together </li></ul><ul><li>Q & A </li></ul>Copyright © 2008 LucidEra – All rights reserved Darren Cunningham Product Marketing Director LucidEra [email_address] www.lucidera.com
    20. 20. The Right Analytics Drive Competitive Advantage Copyright © 2008 LucidEra – All rights reserved <ul><ul><li>An analytical competitor is an organization that uses analytics extensively and systematically to out-think and out-execute the competition . </li></ul></ul>“ ”
    21. 21. When Used Correctly Copyright © 2008 LucidEra – All rights reserved
    22. 22. But Measuring the ROI is not Always Easy Copyright © 2008 LucidEra – All rights reserved <ul><ul><li>How do you understand that somebody used information to make a decision that then improved a particular business process? How do you go about quantifying that in some sort of direct financial terms? That's where it gets more difficult, as there are no ready-made sets of metrics for measuring improved decision-making capabilities. </li></ul></ul>“ ” Bill Hostmann Lead Gartner BI Analyst 2008
    23. 23. And Historically the Costs Have Been Extreme Copyright © 2007 LucidEra – All rights reserved Connectors Cleansing Integration Storage Analysis You own the system – you own the problem! $1Million+
    24. 24. Business Analytics as a Service Has Arrived Copyright © 2008 LucidEra – All rights reserved 2. LucidEra helps you get Value “OUT” of both salesforce.com and ERP Systems! 1. Salesforce.com helps you get Data “IN” With LucidEra, I get visibility across the CRM and accounting systems to get quick and easy insights that help my team achieve forecasted goals. ” “ Sales Director, 3PAR
    25. 25. What is Knowing This Information Worth? <ul><li>Which deals are worth competing for – AND worth winning? </li></ul>Copyright © 2008 LucidEra – All rights reserved <ul><li>What makes “A” reps such superstars? </li></ul><ul><li>What stalls deals at each stage? </li></ul><ul><li>What’s the impact of closing one more deal in terms of gross revenue and profitability?  </li></ul>
    26. 26. 1) Know Your Requirements <ul><li>What metrics do you want to track and measure? </li></ul><ul><ul><li>Pipeline performance, fluctuation, velocity? </li></ul></ul><ul><ul><li>Top and bottom performing industries, products, sales reps? </li></ul></ul><ul><ul><li>New vs. repeat customer acquisition trends? </li></ul></ul>Copyright © 2008 LucidEra – All rights reserved Building the Business Case What metrics are critical to your sales success?
    27. 27. 2) Identify & Quantify Benefits Building the Business Case “ Improved decision making” is not enough… Revenue Generation Improve win rates Increase market share Improve pipeline velocity Increase sales productivity Increase quota attainment New channels, opportunities Improve lead conversion Improve retention
    28. 28. 2) Identify & Quantify Benefits Building the Business Case “ Improved decision making” is not enough… Revenue Generation Improve win rates Increase market share Improve pipeline velocity Increase sales productivity Increase quota attainment New channels, opportunities Improve lead conversion Improve retention Cost Savings Reduce cost of sales Reduce discount rates Reduce time spent in Excel Improve data quality Improve data integration Reduce IT burden Phase out legacy systems Improve sales operations
    29. 29. 3) Know Your Options Copyright © 2008 LucidEra – All rights reserved Building the Business Case Traditional CRM Stay in Excel On-premise Tactical Difficult to set up Difficult to maintain Can be difficult to use Some analytical power Can handle multi-source
    30. 30. 3) Know Your Options Copyright © 2008 LucidEra – All rights reserved Building the Business Case Traditional CRM Stay in Excel On-premise Tactical Difficult to set up Difficult to maintain Can be difficult to use Some analytical power Can handle multi-source On-premise Tactical Difficult to set up Difficult to maintain Specialized skills No analytical power Optimized for 1 source Production Reporting
    31. 31. 3) Know Your Options Copyright © 2008 LucidEra – All rights reserved Building the Business Case Traditional CRM Stay in Excel On-premise Tactical Difficult to set up Difficult to maintain Can be difficult to use Some analytical power Can handle multi-source On-premise Tactical Difficult to set up Difficult to maintain Specialized skills No analytical power Optimized for 1 source Production Reporting On-demand Tactical Easy to set up Easy to maintain Should be easy to use Limited analytical power Single source Native Applications
    32. 32. The LucidEra Approach Copyright © 2008 LucidEra – All rights reserved With LucidEra, all I have to do now is login and see where we were at a given time and to do some trending on what deals have changed …. ” “ 5-Star AppExchange customer review 100% on-demand Focused strategic analytics Simple to set up Simple to maintain Simple to use Apps on a powerful platform Analyze multiple sources LucidEra
    33. 33. 4) Measure, Measure, Measure <ul><li>Snapshot of life before SaaS analytic app </li></ul><ul><ul><li>Time and resources spent pulling together data </li></ul></ul><ul><ul><li>Cost of not having current and historical information </li></ul></ul><ul><li>Track and measure performance over time </li></ul><ul><ul><li>Average deal size, win rate, quota attainment, order discount %, days to close, etc. </li></ul></ul>Building the Business Case
    34. 34. 5) Don’t Wait to Get Started <ul><li>Make it a business initiative </li></ul><ul><ul><li>Determine the metrics that matter and build a plan </li></ul></ul><ul><li>Make it about business process </li></ul><ul><ul><li>Sales analytics and the lead-to-cash cycle is a great place to start </li></ul></ul><ul><li>Make it a business priority </li></ul><ul><ul><li>Don’t wait until next quarter…your competition isn’t! </li></ul></ul>Copyright © 2007 LucidEra – All rights reserved Information is power in today’s economy!
    35. 35. Resources Copyright © 2008 LucidEra – All rights reserved www.lucidera.com THINKstrategies Whitepaper Available Today!
    36. 36. Agenda <ul><li>Introduction and Overview </li></ul><ul><li>The Business Case for On-Demand Analytics </li></ul><ul><li>Putting it All Together </li></ul><ul><li>Q & A </li></ul>Copyright © 2008 LucidEra – All rights reserved
    37. 37. Discussion <ul><li>David Myron </li></ul><ul><ul><li>CRM Magazine </li></ul></ul><ul><li>Jeff Kaplan </li></ul><ul><ul><li>Managing Director, THINKstrategies </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Darren Cunningham </li></ul><ul><ul><li>Product Marketing Director, LucidEra </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul>Copyright © 2008 LucidEra – All rights reserved <ul><ul><li>www.lucidera.com </li></ul></ul>

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