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Social Enterprise: Trust; Vision; Revolution


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Becoming a social enterprise is not a technical evolution, but a business transformation. Technologies enable it, but only a cultural commitment will achieve it. Doing it is not optional, unless going out of business is also considered an OK option.

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Social Enterprise: Trust; Vision; Revolution

  1. 1. Toward the Social Enterprise: Trust; Vision; Revolution <ul><li>Peter Coffee </li></ul><ul><li>VP & Head of Platform Research </li></ul><ul><li> inc. </li></ul>
  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, 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 products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report and on our Form 10-Q for the most recent fiscal quarter: these documents 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., inc. assumes no obligation and does not intend to update these forward-looking statements. In Other Words: Everything That You See Here is Real
  3. 3. Social Revolution: Social Networking Surpasses Email So what? Source: Comscore , June 2011 Social Users Email Users 2007 2008 2009 2010 2011 1.1 billion social users
  4. 4. More Than Just “Sum of the People” (Arcs Represent Number • Distance of Facebook ‘Friend’ Links) Pop quiz: where is Beijing?
  5. 5. Finally Catching Up With Peter Drucker <ul><li>“ 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.” </li></ul><ul><li>“ It will be a knowledge-based organization .” </li></ul><ul><li>Peter F. Drucker, in The New Realities </li></ul><ul><li>… in 1989 </li></ul>
  6. 6. <ul><li>Complex legacy IT portfolios made the simplest data integrations an overwhelming task </li></ul><ul><li>Cumbersome, brittle integrations demoted end users to information consumers </li></ul><ul><li>Path of least resistance then over-emphasized rear-view mirror views of historical data – or deep inspection of recent past </li></ul><ul><li>This is what “IT vendors” are still selling </li></ul>Old IT Did Not Connect Our Knowledge
  7. 7. ’ 60s Mainframe Computing ’ 90s Desktop Cloud Computing ’ 00s Mobile Cloud Computing ’ 70s Mini Computing ’ 80s Client/Server Computing Ten Year Computing Cycles 10X more users with each cycle – but this time, with a difference Data Management Apps Business Logic Apps Process Automation Apps Web Apps Mobile Apps Social Apps ’ 10s Social Revolution “ Whereas earlier entrepreneurs looked at the Internet and saw a network of computers, Zuckerberg saw a network of people.” – Time , 15 Dec. 2010
  8. 8. A Critical New Role for “Cloud” <ul><li>Old Cloud: Centralization + Automation  Cost Reduction </li></ul><ul><ul><li>Distant resources: considered to be a tolerable nuisance </li></ul></ul><ul><ul><li>Security: assumed to be a challenge, and compliance a barrier </li></ul></ul><ul><ul><li>‘ Cloudwashing’ of legacy products: tempting and easy </li></ul></ul><ul><li>New Cloud: Connection + Simplification  Acceleration </li></ul><ul><ul><li>Data and process in cloud are closer to everything else you need </li></ul></ul><ul><ul><li>Security is part of the service; audit trails are easy to provide </li></ul></ul><ul><ul><li>You can’t ‘connectwash’ a server, no matter how much virtualization you apply or how many ‘private clouds’ you proclaim </li></ul></ul><ul><ul><li>In false clouds, you pay for resources… …in true clouds, you pay for opportunities </li></ul></ul>
  9. 9. 2010 2011 Social Revolution: The WAWKI* is Shrinking Sources: Ben Elowitz, Wetpaint / comScore
  10. 10. Facebook mobile users are 2X more active than desktop users. - 81 minutes per day Social Revolution: Mobile Apps Used More than Web Browsers Source: comScore, Alexa, Flurry Analytics Mobile Apps Browser
  11. 11. 1,100 tweets per day handled by agents Automatic conversion of tweet-to-case Fast Resolution with case routing Bank of America ’ s New Branch is Twitter on the Salesforce Service Cloud
  12. 12. <ul><li>Where are key players already having conversations? </li></ul><ul><li>What facilities exist for tapping that stream? </li></ul><ul><li>What are the cultural norms of that community? </li></ul><ul><li>When should you be present? </li></ul><ul><li>How should you participate? </li></ul><ul><li>Who will represent you? </li></ul><ul><li>How will that process scale ? </li></ul><ul><li>What will you learn ? </li></ul><ul><li>How will you change ? </li></ul>Beyond Just ‘Being Social’
  13. 13. Gatorade Social Monitoring Center Engaging athletes on social media 7% increase in sales 250% traffic increase in product education Gatorade Joins Customer Conversations on Social Media
  14. 14. Social Revolution: Device Choice Indicates New Use Cases Source: Gartner Research; Smartphone, Tablet, and PC Forecast, December 2010. 2013E 16 billion mobile devices by 2013 Desktop 2007 2008 2009 2010 2011E 2012E 2006 Laptops Smartphones Tablets
  15. 15. Number of Apps 750,000 Apps 7/08 10/08 4/09 7/09 11/09 4/10 9/10 6/11 Social Revolution: Apple / Android App Store Volume Exploding
  16. 16. Social Revolution: Employees Forcing the Pace of Change 2006 ...fastest ramping mobile device ever. “ ” CIOs Surveyed on Tablet Usage 2010 2011 Morgan Stanley, “ Tablet Demand and Disruption ” , February 14, 2011. Purchased for Employees Employee-owned Not Allowed
  17. 17. Cloud leverage empowers innovators Rapid iPad Deployment for Patient Prescreening One developer with no prior training built a mobile app in just 4 days Deploying to Medical Directors, Program Directors in hospitals on iPhones and iPads Eliminates paper forms, workflow cuts response time by more than 60% Cut processing time from 18 hrs to less than 60 min “ We’re blown away by how we built a mobile healthcare application on with one person in just 4 days … The same app built in [previous models] would have taken over 3 months ”
  18. 18. <ul><li>Collaborative process creation & maintenance </li></ul><ul><li>Best practice sharing </li></ul><ul><li>Integration with feeds and other social channels </li></ul><ul><li>Social process monitoring </li></ul>‘ Social’ is a model , not an app 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.
  19. 19. Products Become Participants <ul><li>Instant updates, not limited by human speed or attention </li></ul><ul><li>Effective integration of hardware speed & human judgment </li></ul><ul><li>The next new application opportunity </li></ul>public String CloudThoughts{ get; set;} Mike Leach,
  20. 20. Facebook, Twitter, and Chatter notifications Users receive alarms and alerts Enables rapid response Reduces system downtime Network congestion in Asia. Enterasys Devices Are Now Social
  21. 21. What are your customers saying? 200 million tweets/day 1.5 billion Facebook posts/day Billions of blogs & communities Difficult to Track Conversations Across Customer Social Networks
  22. 22. From Data to Information
  23. 24. Toyota Social Enterprise Dealers/Distributors Chatter for 320,000 Employees Toyota Friend Website 1-800-4-My-Toyota Toyota Friend on Youtube Toyota Friend on Twitter Toyota Friend on mixi Manufacturing/ Finance Toyota Friend on Facebook Toyota Friend Mobile Toyota Vehicles Social Customer Profile
  24. 25. Objections Are Being Addressed <ul><li>Security: American Bankers Association blog says an enterprise should “verify that any outsourcing partner meets its standards. However, once verified, a cloud partner can actually provide greater security . ” </li></ul><ul><li>Availability: </li></ul><ul><ul><li> now routinely exceeding 500M transactions/day </li></ul></ul><ul><ul><li>In June 2011, achieved 100% of planned availability </li></ul></ul><ul><li>Compliance: United States’ National Institute of Standards and Technology says cloud-resident data “can be more available, faster to restore, and more reliable … [and] less of a risk than having data dispersed on portable computers or removable media.” </li></ul>
  25. 26. <ul><li>Data protection regulations </li></ul><ul><ul><li>Where can it be stored? </li></ul></ul><ul><ul><li>Who’s allowed to see it? </li></ul></ul><ul><li>Peel the onion of ‘compliance’ </li></ul><ul><ul><li>Anonymize/encrypt/partition specific fields </li></ul></ul><ul><ul><li>Cloud disciplines can enhance auditability </li></ul></ul><ul><ul><ul><li>Role-based privilege assignment </li></ul></ul></ul><ul><ul><ul><li>Actions taken using granted privileges </li></ul></ul></ul><ul><li>Looking beyond the FUD </li></ul><ul><ul><li>USA PATRIOT Act sometimes causes concern about powers of US government to access data </li></ul></ul><ul><ul><li>Limited to information-gathering related to matters of urgent national security </li></ul></ul><ul><ul><li>Use of USA PATRIOT Act requires involvement by all three branches of the US government </li></ul></ul><ul><ul><li>Many other countries, including in Europe, have very similar powers </li></ul></ul>Data Stewardship is a Practice, not a Technology
  26. 27. <ul><li>What is the organization’s mission? </li></ul><ul><li>What information supports that mission? </li></ul><ul><li>Where does it originate? </li></ul><ul><li>Who holds it? </li></ul><ul><li>Who can see it? </li></ul><ul><li>What events change it? </li></ul><ul><li>When is that important? </li></ul><ul><li>How do people know? </li></ul><ul><li>How can people act? </li></ul><ul><li>These are not new questions: NSA IAM introduced 2004 </li></ul>Becoming ‘Securely Social’
  27. 28. Continued Availability Improvement <ul><li>Winter ’12 release: downtime reduced to 2 hours </li></ul><ul><li>Further reduction of maintenance downtime in FY13 </li></ul>“ Great work reducing the pain of the quarterly upgrade so dramatically. The difference to our business between 2 or 3 minutes of downtime and 2 or 3 hours can’t be overstated.” Spring ‘11 Summer ‘11 Winter ‘12
  28. 29. Trust is Enabled by Transparency
  29. 30. “ Do it yourself” vs. “Who you gonna call?” <ul><li>Potential benefits from transitioning to a public cloud computing environment: </li></ul><ul><ul><li>Staff Specialization </li></ul></ul><ul><ul><li>Platform Strength </li></ul></ul><ul><ul><li>Resource Availability </li></ul></ul><ul><ul><li>Backup and Recovery </li></ul></ul><ul><ul><li>Mobile Endpoints </li></ul></ul><ul><ul><li>Data Concentration </li></ul></ul>
  30. 31. Cloud Credibility: Option of First Resort
  31. 32. Culture & Education Political Campaigns & Advocacy Economic Development Defense & Public Safety Health & Human Services General Government Transportation Science & Environment Public Clouds of Public Trust: The End of ‘Forbidden Zones’
  32. 33. The Upsides Become Compelling <ul><li>Innovation: </li></ul><ul><ul><li>Old: It’s taken 10 yrs. to migrate even half the world’s PCs beyond WinXP </li></ul></ul><ul><ul><li>New: In 16 mos. from Win 7 v1 to SP1, users adopted six upgrades </li></ul></ul><ul><li>Collaboration: </li></ul><ul><ul><li>Organizations adopting Chatter routinely see 30%+ reduction of email </li></ul></ul><ul><ul><li>When people are given a choice, they choose the social model </li></ul></ul><ul><li>Competitive Advantage: McKinsey Global Institute finds that </li></ul><ul><ul><li>“ fully networked enterprises…[use] collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization’s reach to customers, partners, and suppliers” </li></ul></ul><ul><ul><li>“ [they] are not only more likely to be market leaders or to be gaining market share , but also to use management practices that lead to margins higher than those of companies using the Web in more limited ways.” </li></ul></ul>
  33. 34. Facebook Evolves at the Speed…of Facebook on
  34. 35. Next-Gen Apps Demand IT’s Top Talent
  35. 36. Cloud Connection  Margin Growth and Brand Differentiation <ul><li>“ One automaker’s chief financial officer told Sun COO Jonathan Schwartz that his company could give a car away for free, if it could charge a customer $220 per month for a subscription.” </li></ul><ul><li> </li></ul>“ CE device margins are razor thin, and the promise of maintaining an always-on connection to the customer after the point of sale is mighty enticing… Simply put, connected devices make connected customers.” Richard Schwartz, President and CEO, Macheen
  36. 37. <ul><li>‘ Cloud’ is the things that you want someone else to do, but: </li></ul><ul><ul><li>‘ Social’ describes what your workers and customers want </li></ul></ul><ul><ul><li>‘ Mobile’ describes what they need </li></ul></ul><ul><ul><li>‘ Open’ describes the freedom to do it the way that works for them </li></ul></ul><ul><li>Cost reduction is not the path to leadership </li></ul><ul><ul><li>Cloud models make it easier to match IT costs against business tasks </li></ul></ul><ul><ul><li>Superior ROI, and compelling improvement in time-to-market, change the terms of debate surrounding IT investments and resources </li></ul></ul><ul><li>The job of the ‘IT professional’ is changing </li></ul><ul><ul><li>Integrator of services, rather than buyer and operator of technologies </li></ul></ul><ul><ul><li>Instigator and manager of innovative tools and processes </li></ul></ul><ul><ul><li>Enabler and custodian of relationships and insights </li></ul></ul>In Conclusion
  37. 38. Peter Coffee VP & Head of Platform Research [email_address] Q & A?