Sharing Securely SIMposium 2010

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Peter Coffee of salesforce.com summarizes the state of the cloud after a decade of enterprise assimilation, and lays out the upside value opportunities of the reconceived Cloud 2 -- combining cloud economy with connected community

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  • Any purchase decisions customer make should be made based on currently available technology.
  • Comprehensive reviews, and cost-effective amortization of security costs across multiple tenants enables superior trust at competitive prices
  • Starbucks is a great example of a very unique challenge that the force.com platform was well suited to address. They wanted to deploy a new web application to allow for seamless collaboration with their millions of customers.
    Using the force.com platform they built and deployed mystarbucksideas.com. Mystarbucks ideas makes it easy for starbucks unleash the power of their community. By creating an interactive Ideas forum where customers can vet their best ideas, they have uncovered new opportunities and instilled sense of co-ownership with their most passionate evangelists.
    The best ideas bubble to the top as people can post new ideas or vote and comment on existing ideas. Harnessing the wisdom of crowds has never been easier. For IT this was a huge win in delivering truly transformation innovation to the business all with no infrastructure and no software.
  • In 2009, we witnessed a seminal moment in a shift to social networking. In July, 2009, Social Networking users surpassed email users. And that is AMAZING. What does it mean?
    If you go to colleges or high schools, they don’t use email. They look at email as antiquated. They use facebook,twitter, and lots of other social apps. They are logging in multiple times a day.
    This is the future and this is the way people expect to communicate with others. This is the new norm for communications and will only get more powerful over time.
  • Within the organization, there are also social systems that should be channeled toward useful ends instead of becoming pathways to faction and dissent.
  • At all points in the process, the question should be, not “How do we use this cool technology?” but “How do we solve these long-standing business problems?”
    Web 2.0 is not a technical initiative – it should be, instead, a recognition that new technologies are relevant to solving problems in far more interesting ways at far lower cost than ever before.
  • At all points in the process, the question should be, not “How do we use this cool technology?” but “How do we solve these long-standing business problems?”
    Web 2.0 is not a technical initiative – it should be, instead, a recognition that new technologies are relevant to solving problems in far more interesting ways at far lower cost than ever before.
  • In 1999, we asked a simple question: why isn’t all enterprise software like Amazon.com? I don’t install anything, I don’t upgrade anything, it scales. It was amazing. It was a killer app.
    But now, in 2010 we ask a different question: why isn’t all enterprise software like Facebook?
    It’s easy. It’s fun. It’s entertaining. It’s informational.
    We learn all these things about the people we care about.
    What if we could share and collaborate like this within our company? What if you knew about all of your employees, your customers or your systems as well as you new your friends and family on Facebook?
  • Absent reliable data, CRM would be a definitive case of GIGO. Jigsaw has already proven to be an effective combination of the cloud’s communities and incentives with the enterprise capabilities of CRM; the salesforce.com acquisition takes nothing away from that community, but adds valuable ease of comparison and correction within the salesforce.com application context
  • Before Salesforce, our customers all had a common problem.
    When their customers wanted customer service and an answer to their question, they don’t want to pick up the phone today. Instead, they jump onto Google and type in their question. Or they go to Twitter to reach out to the community for an answer. They are looking for faster ways than sitting on hold on the phone with someone that may not have the right answer.
    Unfortunately, yestersday’s call centers don’t work with Google, Twitter, Facebook or community sites. Companies are struggling with how to bridge the gap between their existing call center technology and The Cloud, where their customers are today.
  • Bank of America is a great example of a company that has joined the Service Cloud. Bank of America recognized a year ago that many of its customers were on Twitter, having conversations about BofA on Twitter. People were asking questions if BofA was better than Chase and how good the interest rates were at BofA. Some customers were complaining and some were just talking about their experiences at BofA.
    Using Salesforce for Twitter, BofA joined these conversations in the cloud and brought these tweets into Salesforce so agents could manage and respond to them. Today the company manages over 1,100 tweets per day and has over 6,000 followers. They have had very positive results in being able to quickly resolve customer questions that probably would have been unanswered without Salesforce for Twitter.
  • Because you don’t have to worry about servers, software stacks, or building a lot of these common application components yourself, you can build apps much faster and less expensively on Force.com.
    IDC recently conducted and in-depth, groundbreaking study that found customers were able to build apps about 5 times faster at about half the cost compared to traditional platforms like .NET. IDC interviewed many Force.com customers as the basis for this study and compared what they could do on Force.com vs. other platforms like .net.
    You can see the time and cost savings here from the IDC study. Without having to develop and maintain infrastructure and reinvent the wheel and build analytics, mobile, search and other enterprise components, Force.com offers a better way.
  • Qualcomm, is an $11B developer of advanced wireless technologies and mobile data solutions. They make the chips in most of our mobile phones. Their customers are 10’s of thousands of engineers who use their specs to design mobile phones and related products.
    These engineers need access to lots of technical engineering documents and they expect it to be available on the web in real time.
    Before salesforce, Qualcomm had over 40 servers and 11 databases that tried to deliver this information to the engineers. It was a mess with no single place for engineers to go and an IT nightmare to manage.
    Qualcomm chose the Service Cloud.
    It took one person less than a week to customize, brand, and fully deploy the Salesforce Customer Portal, retiring the 40 servers and 11 databases.
    Qualcomm also uses the Service Cloud contact center capabilities for case assignment, escalation, and auto response email capabilities.
    * Salesforce saved Qualcomm an estimated $100,000 in hardware costs to upgrade existing, out-of-date on-premise solutions.
    * The lack of hardware to buy and maintain allowed Qualcomm to reduce required support staff by 60%.
    * Qualcomm increased their user adoption over 100%, from 30-40% to over 80%.
    Changes are now deployed in minutes, hours and days compared to a 10 to12 week release cycle for the previous on-premise CRM system--and with no system downtime required.
  • With Force.com, it’s easy to build Cloud 2 apps.
    Any app you build on Force.com can immediately take advantage of Chatter for collaboration, with no code required. Just select what applications and data (objects and fields) you want to enable, and updates to them will automatically appear in followers’ feeds, so your users will never again miss important information they need to be successful.
  • Force.com customers are building 4 different type of custom apps.
    First, many customers are looking to migrate from legacy platforms such as lotus notes, to a modern web-based platform. For example, Lawson, the 2nd largest convenience store chain replaced 5000 seats of Lotus Notes, and built a new store development app 5x faster at 1/5 the cost.
    Second, customers are also building departmental apps like the franchise management app that Haagen Dazs built for a 1/3 of the cost of .Net.
    Third, customers are building public web sites that capture or deliver data such as leads, products, or events. For example, Starbucks built a website to manage volunteering events and pledges in 4 weeks, and it easily scaled to 2M visitors in the first week after their CEO announced the campaign on the Oprah show..
    And finally, customers are building all types of apps to manage a range of business processes such as medical research at Genentech. Genentech used their medical research app to add 11 new products in just 12 months.
  • Sharing Securely SIMposium 2010

    1. 1. Sharing Securely: Enterprise Applications of Social Tools Presented by: Peter Coffee, Head of Platform Research, salesforce.com inc.
    2. 2. 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 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, 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, 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: this document and others 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 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.
    3. 3. Drucker Had It Right  “The typical large organization, twenty years hence, will be composed largely of specialists who direct and discipline their own performance through organized feedback from colleagues and customers.”  “It will be a knowledge-based organization.” Peter F. Drucker, in The New Realities …in 1989
    4. 4. Barriers to Becoming Knowledge-Based  Complex legacy IT portfolios can make the simplest data integration an overwhelming task  Cumbersome, brittle integrations demote end users to information consumers  Path of least resistance over-emphasizes rear- view mirror views of historical data
    5. 5. “Why aren’t enterprise apps as easy to use as Amazon.com?” – Straightforward to discover and evaluate – Negligible cost of adoption – Non-disruptive upgrades – World-class infrastructure robustness and security for all Myths require busting – Multi-tenancy does not preclude top-tier security – Packaged services can still enable deep customization – Remotely operated systems can integrate with legacy assets – Individual customers can still accept or defer upgrades at will These cloud truths are still “new news” – If you have to buy new hardware, it is not a cloud – If you have to install, patch, and disruptively update software, it is not a cloud Cloud Apps Enable Knowledge-Centered Systems
    6. 6. Trust Attainment Enables Cloud Adoption  Robust infrastructure security  Rigorous operational security  Granular customer controls – Role-based privilege sets – Convenient access control & audit  “Sum of all fears” scrutiny and response – Multi-tenancy reduces opportunities for error – The most demanding customer sets the bar
    7. 7.  It’s hard to add security to a tool that shares by default  It’s possible to add social tools to a proven trust model Enterprise Clouds Enable Secure Communities
    8. 8.  What is the organization’s mission?  What information supports that mission?  Where does it originate?  Who holds it?  Who can see it?  What events change it?  When is that important?  How do people know?  How can people act? The Map to “Securely Social”
    9. 9. Social Business Processes  Collaborative process creation & maintenance  Best practice sharing  Integration with feeds and other social channels  Social process monitoring Steve Wood. Great – I can help with the case escalation by linking in the Apple Escalation Process. New process created: iPad Tier 1 Support Process (Goals: Run time, 5 min) Andrew Leigh. I need to create a new customer service process for the iPad, can you guys help? Varadarajan Rajaram. Yes, I know this product well – there are a bunch of solutions I can build into this process.
    10. 10. Whose Knowledge Is It, Anyway?  Innovation “goes rogue” when: – Products are open-source and/or highly configurable/customizable – Some users have incentive to innovate – Some innovators have incentive to share – Diffusion of innovations is inexpensive  The user conversation will take place – Users can readily find each other – Users turn to each other for affirmation as well as for assistance – You can host the conversation
    11. 11. Are Your Customers Pulling Their Weight? Ideas has been an unbelievable home run. We are loving it―the voice of the customer is totally present at Starbucks in a brand new way, thanks to the Force.com platform. “ ”Chris Bruzzo CTO, Starbucks
    12. 12. The Map to “Securely Social”  Where are key players already having conversations?  What facilities exist for tapping that stream?  What are the cultural norms of that community?  When should you be present?  How should you participate?  Who will represent you?  How will that process scale?  What will you learn?  How will you change?
    13. 13. 2009: Social Networking Surpasses Email Email Users Social Networking Users GlobalUsers(MM) Social Networking Users Surpass Email Users in 7/09 Source: Morgan Stanley Internet Mobile Report, December 2009 Data is for unique, monthly users of social networking and email usage.
    14. 14. The New Conversation  Take the workplace from Newton to Einstein – Not a static space defined by an org chart – A dynamic space, continually redefined by relationships of people and events  Enable a social component in every Force.com app – Current apps simply acquire the new behavior
    15. 15. What Should Drive Your New Initiatives?  Goals: – Collaboration – Creation – Knowledge Identification – Talent Motivation/Retention  Methods – Knowledge Capture – Publication/Subscription – Peer Tagging/Rating – Social Networking – Social Metrics
    16. 16. Sir, Your Cyborgs Are Ready: How We’ll Change  Impact on Individuals – New staff • Better informed • Sooner engaged – Experienced staff • More available • More influential  Impact on Organizations – Onboarding process • Dashboards • Groups – Promotion and retention • Measures of contribution • Measures of influence Aimee Mullins photo © Howard Schatz (www.aimeemullins.com)
    17. 17. www.networkworld.com/news/2008/102908-bechtel.html “If you take the ideal world, everything is done as a service: computing, storage, software and operations.” “The risk for enterprises that don't start a SaaS migration strategy soon is that their IT organizational structures will be a competitive disadvantage.” Geir Ramleth CIO, Bechtel Corp.
    18. 18. Cloud Computing Shrinks IT’s Carbon Footprint On-premise Software CO2 Emissions (grams CO2 per transaction) 0.2 0.03 1.35 * “Cloud Computing Emissions Comparison,” Nucleus Research, 2 Sept 2010 Watt-hrs per transaction statistics converted to CO2 / transaction by salesforce.com using U.S. carbon output ratios computed by region by EPA
    19. 19. If we talk about cost reduction, the most I can do for you is cut your IT spending by 100%. Then we’re done. If we talk about value creation, I can keep on delivering value with no upper bound. That’s a much more interesting conversation. The Cloud’s Lower Cost is Compelling. So What? If you want cheap IT, go ahead. You won’t be in business next year. Your competitors will do projects with attractive ROI, while you spend less, and you won’t be competitive in service or performance. Demand curves slope downwards. Better apps at lower cost will expand demand and grow total IT spending. And that’s OK.
    20. 20. 1999: Why isn’t all enterprise software like Amazon.com? 2010: Why isn’t all enterprise software like Facebook?
    21. 21. True Cloud Storage as a Service – No one can sell you a hard drive that tells you when your data’s out of date – In the cloud, your storage can be self-cleaning True Cloud Customer Support as a Service – No one can build you a call center that knows everything your customers know…and everything they’re saying to each other about you – In the cloud, your service center can embrace and interact with social nets True Cloud Application Platform as a Service – No one can give you a local development platform that automatically deploys your applications onto every new portable device – In the cloud, apps can acquire new features and support new devices at zero cost to the developer Let’s Not Settle for Parity
    22. 22. Addressing Data Quality: A Cloud that Maintains the Cloud Largest, Most Accurate Database: 22 million+ B2B contacts Massive, Engaged Community: 1.2 million+ community adds 36,000 new contacts per day Real-time Updates: Community updates 12,000 contacts per day
    23. 23. Today’s Contact Centers Can’t Connect with Customers But customers have moved to Cloud 2:Built for this: Contact Center Community Sites
    24. 24. Bank of America Joins the Twitter Conversation Responds in real-time to customer tweets (average 1,100 tweets per day) 6,000 Twitter followers Personalized Service: each twitter agent has a picture and name Operationalizes Twitter as formal customer service channel David Knapp Customer Service Bank of America
    25. 25. You Don’t Need to Do it Yourself  Cloud partner ecosystems offer broad expertise  Don’t choose the least unsatisfactory service – Schumacher Group worked with Astadia to transform ER management – Salesforce CRM + Workday HRIS + Google Apps + GE Centricity…  Orchestrate, optimize, integrate Customer service is moving quickly to the cloud and we're helping contact centers take advantage of the move. Gartner says that by 2013 at least 75% of customer service organizations will be using a form of cloud computing, and Astadia plans to be a strategic leader in adoption for the industry. “ ” Ron Goldman Service Cloud Director Astadia
    26. 26. Measured Results: Far Superior to Process Migration 2009 IDC Research Report Savings with Force.com Staffing 76%-85% Development Time 76% Time to Make Changes 75% Total Cost 54%
    27. 27. Qualcomm Opens New Support Channel In One Week Mark Silber IT Systems Architect $11B Chip Manufacturer 20,000 customers (engineers) that require 24/7 support Deployed first customer portal in 1 week Retired 40 servers and 11 databases Reduced IT CRM support costs by 60% 100,000 self-service portal users
    28. 28. New Capabilities Added At Will… …Not When the Capital Budget Allows Chatter PlatformChatter Platform Profiles Check to Enable Feeds Status Updates Groups Apps Document Sharing Social Apps
    29. 29. Customers Building Cloud Apps: 5X Faster at Half the Cost Franchise Management App 1/3 the cost of .Net Departmental Apps Medical Research Apps Added 11 New Products in 12 Months Business Process Apps Data-Driven Web Sites Community Web Site 10 Million Users Built in 3 Weeks Replaced 5,000 Notes Seats 5X Faster 1/5 the Cost Lotus Notes Replacement
    30. 30. NO SOFTWARE. NO HARDWARE. COMPETE.
    31. 31. Peter Coffee Head of Platform Research pcoffee@salesforce.com facebook.com/peter.coffee twitter.com/petercoffee Q&A?

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