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Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Hello, we’re
Salesforce.
We help make
your customers
love you.
Hello, we’re
Salesforce.
We help make
today’stoday’stoday’stoday’s customers
demanddemanddemanddemand you.
What makes “today’sWhat makes “today’sWhat makes “today’sWhat makes “today’s
customers” so different?customers” so different?customers” so different?customers” so different?
•Connected 24×7
Mobile #s outnumber people
•Informed
24-hour cycle; citizen reporters
•Skeptical
Declining faith in institutions
•Collaborative
Co-creation in open networks
•Value- and values-driven
Tired of the race to the bottom
In a system of differential
equations used to
describe a time-
dependent process,
a forcing function is a
function that appears in
the equations and is only
a function of time, not of
any of the other variables.
en.wikipedia.org/wiki/Forcing_function_(differential_equations)
“It’s not the falling
population that’s the
problem…worst of all, it’s a
falling and aging population
in which the older people
live for an extended period
of time while suffering
debilitating diseases and the
younger people are too few
to take care of them. That’s
the problem.”
- George Friedman
macromon.wordpress.com/2012/10/01/stratfor-demography-and-geopolitics/
In a system of differential
equations used to
describe a time-
dependent process,
a forcing function is a
function that appears in
the equations and is only
a function of time, not of
any of the other variables.
en.wikipedia.org/wiki/Forcing_function_(differential_equations)
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Connection
Collaboration
Acceleration
AI-ification
+ Connection
+ Collaboration
+ Acceleration
+ AI-ification
Forcing Functions: Reconceiving Everything
Peter Coffee
VP for Strategic Research
Salesforce
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 any litigation, risks associated with completed and
any 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-K for the most recent fiscal year and in our quarterly report on Form
10-Q for the most recent fiscal quarter. These 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.
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 any litigation, risks associated with completed and
any 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-K for the most recent fiscal year and in our quarterly report on Form
10-Q for the most recent fiscal quarter. These 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.
Safe Harbor
We sell many things.We sell many things.We sell many things.We sell many things.
I might talk about others;I might talk about others;I might talk about others;I might talk about others;
Buy what we sell nowBuy what we sell nowBuy what we sell nowBuy what we sell now
Risks, uncertainties:Risks, uncertainties:Risks, uncertainties:Risks, uncertainties:
These might cause our projectionsThese might cause our projectionsThese might cause our projectionsThese might cause our projections
to be incorrect.to be incorrect.to be incorrect.to be incorrect.
Safe HarborSafe HarborSafe HarborSafe Harbor
in 34 syllablesin 34 syllablesin 34 syllablesin 34 syllables
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
The Future is Enabled by
Connection
It Took a While But We Have Connected the Planet
It Took a While But We Have Connected the Planet It Took a While But We Have Connected the Planet
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Connection Defines the New Context
• 1 billion daily active users (24 August ’15)
• 844 million mobile daily active users (avg June ’15)
• 83.1% of daily active users outside US & Canada
Connection Defines the New Context
• 1 billion daily active users (24 August ’15)
• 844 million mobile daily active users (avg June ’15)
• 83.1% of daily active users outside US & Canada
Connection Defines the New Context
• 1 billion daily active users (24 August ’15)
• 844 million mobile daily active users (avg June ’15)
• 83.1% of daily active users outside US & Canada
• In 2013, global mobile M2M traffic was 20,736 Tbytes/month
• It is projected to grow to 907,472 terabytes per month in 2018
– www.statista.com/statistics/267310/data-volume-of-non-internet-ip-traffic-by-category/
What Does This Mean To You?
Media and Entertainment
Community-created content; on-demand viewing; multi-screen experiences – what’s still urgent?
Manufacturing and Logistics
Big Data matches demand with (“free”) capacity; 3D printing redefines inventory – what’s worth owning?
Health Care and Elder Care
Gatekeepers lose power; payment evolves toward results; elderly = growth market – what differentiates?
Financial Services
Asset-light individuals don’t borrow to buy big; data-rich individuals don’t pay just to play – what has value?
Pink-Collar and Gray-Collar Jobs
If a robot arm can pick it up, an autonomous vehicle can transport it, an algorithm can
price it, a bit stream can copy it, and/or a collaborative community can teach each
other how to use it, then innovators are finding ways to add value with fewer people:
Kodak’s 140,000 were displaced by Instagram’s thirteen.
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Connected Communities Demand
Collaboration
Marketing
Sales
Shipping
Billing
Support
Marketing
Sales
Shipping
Billing
Support
Connection Enables & Mandates Customer Focus
Silos arose from activity-centered automation of serial business processes
Connected customers won’t accept being treated as multiple personæ
Different people and processes get different subsets of data – but it’s a shared truth
Connected Customers Will Participate – Like It or Not
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 conversation will take place
• Customers/clients can find each other
• They turn to each other for affirmation,
as well as for assistanceO
Obut you can host the conversation
How Do You Engage Everyone?
“The game, called EteRNA, allows players
to remotely carry out real experiments to
verify their predictions of how RNA
molecules fold. The first big result: a study
published this week in the Proceedings of
the National Academy of Sciences,
bearing the names of more than 37,000
authors – only 10 of them professional
scientists.”
Connection is a capability
Collaboration is a process
Co-creation is an outcome
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
• Customers:
engaged
• Process:
transparent
• Priorities:
quantified
• Managers:
accountable
• Customers:
engaged
• Process:
transparent
• Priorities:
quantified
• Managers:
accountable
What People Really, Really, Really Like
Elements of Gamification
• This is not the same thing as “game theory” – which is too bad, because that’s a lot of fun
• Decision optimizationOwith incomplete informationOin the presence of an active opponent
• Gamification seeks leverage from well-known human drives and desires, including
• Socialization: most people like to do things with other people
• Mastery: most people take pleasure in doing things well
• Competition: some people take pleasure in doing things better than others
• Achievement and Status: most people seek measures of accomplishment; some crave recognition
• Self-expression: most people like to feel that they can control their personal environment
• Altruism: many people enjoy the feeling of being of value to others
• If you’re not appealing to any of those desires, you have a problem
“If it’s not excellent it won’t be profitable or fun, and if you’re not in business for
fun or profit, what the hell are you doing here?” – Robert Townsend, former CEO, Avis Rent-a-Car
Like Any Good Game – A Challenge to Do It Well
“In its November 2012 press release, Gartner
predicted that ‘by 2015, 40% of Global 1000
organizations will use gamification as the
primary mechanism to transform business
operations.’”
“In the same report, Gartner also predicted
that ‘by 2014, 80% of current gamified
applications will fail to meet business
objectives, primarily due to poor design’”
- Janaki Kumar
Gamification at Work: Designing EngagingBusiness Software
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Competition – “I’m (We’re) Better than You (The Other Guys)”
It’s obvious: we try harder in competitive situations. Sometimes it’s true.
“Cyclists thought they were competing
against someone else on an
ergometer; actually racing against own
best performanceO The tendency
was that the first 1000 meters were
similar, but a higher power was
maintained from 1000-1750 meters.”
– Brock University
www.active.com/cycling/articles/
does-science-prove-that-competition-improves-performance
“Students playing under the more
competitive prize rules didn't complete
any more mazes than students in the
control group, they just cheated more.”
- Journal of Economic Psychology
digest.bps.org.uk/2010/06/does-greater-competition-improve.html
This Is Not Yet an S-Curve: Expect
Acceleration
“A study commissioned by salesforce.com
suggests that 60% of British employees now
use apps on mobile devices for work-related
activity and nearly a quarter (21%) use
dedicated department-specific business
appsO Enterprise apps boost worker
productivity by more than 34%.”
Mobile Apps Are Already the Dominant Medium
But “Mobile”
Is Not a
Monoculture
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Magic Glass Today Looks Like “Brick Phone” Tomorrow Magic Glass Today Looks Like “Brick Phone” Tomorrow
Pebble
Samsung Gear
Google Glass
Moto360
Myo
Nymi
Even Today’s Hottest Devices Are Tomorrow’s Legacies Even Today’s Hottest Devices Are Tomorrow’s Legacies
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
We’ll Expect Environment to Obviate Device
3. Engage
Send Proactive Alerts to Customers and
Engage Channel in New Ways
2. Control
Manage Health and Connectivity of Devices
at Customer Locations in Real-Time
1. Connect
Remote Sites and Equipment on
Widely Deployed Solutions
ROI (estimated)
• $100K new revenue in year 1
• $50K ROI in year 1
• $250K profit expected in year 2
ATEK Business Value
• New recurring revenue stream
• Preventative maintenance model
• Safer solution
Many Kinds of Data; Many Kinds of “Net”
What’s wrong with “Internet of Things”? Two words: ‘Internet’ and ‘Thing’
www.automationworld.com/industrial-internet-things/standards-and-protocols-industrial-internet-things
There are at least four kinds of “thing” data
• Status
• Location
• Automation
• Actionable data
They present different tradeoffs of
• Update interval
• Accuracy
• Downside risk
• Post-collection complexity
David Friedman, CEO, Ayla Networks
readwrite.com/2015/08/13/five-types-data-internet-of-things
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Even a Silo in Your Hand is Still a Silo
The “Search” feature tells
you something’s wrong
Tomorrow’s “app”
extends a lexicon of APIs
Any dedicated UI is just a
“serving suggestion”
Mobile Platforms are Evolving → Service Brokers
blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/
dzone.com/articles/android-60-marshmallow-and-ios-9
Mobile Platforms are Evolving → Service Brokers
blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/
dzone.com/articles/android-60-marshmallow-and-ios-9
Data + Direction := ++Performance
One hundred years ago, Frederick Taylor measured workers’
behavior – and found that effective use of data improved both
their performance and their health.
He noticed that workers used the same
shovel for all materials. He determined that
the most effective load was 21½ lb, and
found or designed shovels that for each
material would scoop up that amount.
en.wikipedia.org/wiki/Frederick_Winslow_Taylor
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
It’s About Human Performance in Context
McLaren Applied Technologies works on evidence-based
systems to maximize human efficiency. Internally the
company has been exploring how to get its Formula One
teams to recover from jet lag most effectively.
“Our teams are travelling around the world a lot. Some of
them have to change wheels in the pit stop and be alert and
fit, while others have to look at reams of data and need to be
cognitively alert,” explains Duncan Bradley, Head of High-
Performance Design.
By plotting data relating to travel schedules with heart
rate variability monitors and tests to monitor cognitive
alertness, the company was able to reorganize journey
times and teams to suit the way different individuals
coped with jet lag and stress.
http://www.bloomberg.com/news/articles/2015-08-12/wearable-biosensors-bring-tracking-tech-into-the-workplace
Scalable Personalization Needs
Intelligent Automation
Because People Won’t Tolerate Complexity: Adaptive
Make it easier to use
• Nest thermostat learns your pattern of
temperatures versus time
• It doesn’t feel like you’re “programming”
the device.
Make it data-driven and goal-oriented
• Thermostat displays a symbol of a leaf
when the user makes a change that lowers
energy consumption
Consider the task of assisting pilot in flight
“Automatic pilot” assists, but disengages pilot
“Crossbar” flight director displayed deviations
“V-Bar” flight directors indicated needed action
The more the device is doing, the more
important it is to know
what was done
why it was done
how to stop it or undo it
vs.
Because “You’re Wrong” is Not Helpful: Assistive
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Because People Are Bored by Mere Data: Narrative Because People Are Bored by Mere Data: Narrative
“What we're doing here is
on 40,000 people. It's
unprecedented in scale,
and this is just the first
example we're sharing
about the type of work
we're doing.”
– Andrew Rosenthal, Jawbone
(slashgear.com, March 2014)
Intelligence Overcomes the Friction of Multiple Devices
“Taking the connected
devices curve, and
subtracting the one for
A.I., we see…the point
where A.I. becomes so
capable that this friction
flips around and quickly
disappears.”
– “How Artificial Intelligence Will
Make Technology Disappear”
(Rand Hindi, June 2015)
• The average organization estimates 22% of its contact
data is inaccurate, up from 17% Y-on-Y*
• 42% say inaccurate contact data is the biggest barrier to
multichannel marketing*
• “Bad data costs US companies $700 billion/year”**
* Ecoconsultancy Ltd., March 2014
** Madan Sheina, Ovum
Enterprise data is notoriously inaccurate and/or retrospective – therefore ignored
Your Data Just Sits There, Lying to You
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Mandate for Forward Motion: Become Truly Data-Driven Old Ideas But It Took Us a While to Connect the World
“A way of life in an integrated domain
where hunches, cut-and-try, intangibles,
and the human ‘feel for a situation’
usefully coexist with powerful concepts,
streamlined terminology and notation,
sophisticated methods, and
high-powered electronic aids.”
Douglas Engelbart, 1962
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
A Connection Platform for Extreme Innovation
Not a Migration of Legacy Stacks – but Integration by Default
2,700+ Partner Apps2,700+ Partner Apps
Open EcosystemOpen Ecosystem
WorkflowWorkflow
Data &
Objects
Data &
Objects IdentityIdentityAnalyticsAnalyticsCollaborationCollaborationMobile UIMobile UI
Scalable Metadata PlatformScalable Metadata Platform
Complete CRMComplete CRM
AnalyticsCommunityMarketingServiceSales Apps
TrustedMultitenantCloudTrustedMultitenantCloud
Fast App Dev & Customization
What’s still urgent? Leadership based on superior
execution enabled by experience, learning,
optimization, and automation
What’s worth owning? If there’s not a good reason
to own it (something more than habit, preference, or
turf protection) – don’t
What differentiates? There’s no point spending
money to do it better, once you’re doing it well
enough that no one cares about improvement
What has worth? No one cares how hard you
worked to build it, learn it, or deliver it. All they care
about isOwhy should they care?
Questions Worth Asking and Answering
It’s our job to give you the time and bandwidth to ask and answer questions like these.
Not questions like, “How can we do that upgrade?” or “How will we gather that data?”
We’ll worry about that stuff – so you can think about being awesome.
Someone Asked Me For Three Key CIO Questions
1. Which of these do you consider most important to
advance during the coming year?
- mobile engagement with customers
- collaborative capability within company
- recognition/exploitation of business value in
customer data
- conversion of “shadow IT” (e.g., spreadsheets) to
secure and compliant/governed applications?
Someone Asked Me For Three Key CIO Questions
2. Which concern about “cloud computing” poses
the greatest challenge to broader adoption within
your company?
- security generally
- nation of data residency specifically
- need for new developer and administrator skills
- sharing of resource control with service provider
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
Someone Asked Me For Three Key CIO Questions
3. Which of these would be the strongest business
case for your broader use of “cloud computing”?
- rising cost of talent for on-premise administration
- growing scale and elasticity of resources needed to
cope with “big data” initiatives
- need for modern environment of BYOD and social
tools required to maintain next-generation workforce
- rising costs and slowing pace of innovation in legacy-
encumbered on-premise IT stacks
Someone Asked Me For Three Key CIO Questions
1. What’s Most Important to Advance?
2. What’s Most Likely to Get in the Way?
3. What’s The Driving Business Case for Change?
I’m fascinated by your answers, but I’m even more
interested in your questions
Beginning with the introduction of
modern artillery on the battlefield, all
through the first World War, the
standard artillery crew was five men.
During a demonstration in France
around the middle of WW II, an
American general received a
demonstration of artillery crew
operations. He asked, “Why is the fifth
man there?”
The artillery crew was redefined as four
men in the late 1980s.
Beginning with the introduction of
modern artillery on the battlefield, all
through the first World War, the
standard artillery crew was five men.
During a demonstration in France
around the middle of WW II, an
American general received a
demonstration of artillery crew
operations. He asked, “Why is the fifth
man there?”
The artillery crew was redefined as four
men in the late 1980s. They no longer
need someone to hold the horses.
Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015
Creative Commons Attribution-NoDerivatives 4.0 International
20. Privacy Theorists and Ethicists
33. Genetic Modification Designers
43. Operator Certification Specialists
60. 3D Printer “Ink” Developers
70. Augmented Reality Architects
78. Crypto Currency Bankers, Regulators,
and Lawyers
But There Will Be Net Job Creation The Awesomeness Is Just Beginning
This is not about replacing people
It’s about complementing talent
with technology
“Weak human + machine + better process was superior to a
strong computer alone and, more remarkably, superior to a strong
human + machine + inferior process” – Garry Kasparov
The Awesomeness Is Just Beginning
This is not about replacing people
It’s about complementing talent
with technology
I’m here today to give you an
unfair advantage. Run with it.
Thank y u
@petercoffee
/petercoffeeCreative Commons Attribution-NoDerivatives 4.0 International

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Forcing Functions: Reconceiving Everything - Peter Coffee at AITP San Diego CloudCon 2015

  • 1. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Hello, we’re Salesforce. We help make your customers love you. Hello, we’re Salesforce. We help make today’stoday’stoday’stoday’s customers demanddemanddemanddemand you. What makes “today’sWhat makes “today’sWhat makes “today’sWhat makes “today’s customers” so different?customers” so different?customers” so different?customers” so different? •Connected 24×7 Mobile #s outnumber people •Informed 24-hour cycle; citizen reporters •Skeptical Declining faith in institutions •Collaborative Co-creation in open networks •Value- and values-driven Tired of the race to the bottom In a system of differential equations used to describe a time- dependent process, a forcing function is a function that appears in the equations and is only a function of time, not of any of the other variables. en.wikipedia.org/wiki/Forcing_function_(differential_equations) “It’s not the falling population that’s the problem…worst of all, it’s a falling and aging population in which the older people live for an extended period of time while suffering debilitating diseases and the younger people are too few to take care of them. That’s the problem.” - George Friedman macromon.wordpress.com/2012/10/01/stratfor-demography-and-geopolitics/ In a system of differential equations used to describe a time- dependent process, a forcing function is a function that appears in the equations and is only a function of time, not of any of the other variables. en.wikipedia.org/wiki/Forcing_function_(differential_equations)
  • 2. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Connection Collaboration Acceleration AI-ification + Connection + Collaboration + Acceleration + AI-ification Forcing Functions: Reconceiving Everything Peter Coffee VP for Strategic Research Salesforce 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 any litigation, risks associated with completed and any 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-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These 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. 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 any litigation, risks associated with completed and any 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-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These 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. Safe Harbor We sell many things.We sell many things.We sell many things.We sell many things. I might talk about others;I might talk about others;I might talk about others;I might talk about others; Buy what we sell nowBuy what we sell nowBuy what we sell nowBuy what we sell now Risks, uncertainties:Risks, uncertainties:Risks, uncertainties:Risks, uncertainties: These might cause our projectionsThese might cause our projectionsThese might cause our projectionsThese might cause our projections to be incorrect.to be incorrect.to be incorrect.to be incorrect. Safe HarborSafe HarborSafe HarborSafe Harbor in 34 syllablesin 34 syllablesin 34 syllablesin 34 syllables
  • 3. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International The Future is Enabled by Connection It Took a While But We Have Connected the Planet It Took a While But We Have Connected the Planet It Took a While But We Have Connected the Planet
  • 4. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Connection Defines the New Context • 1 billion daily active users (24 August ’15) • 844 million mobile daily active users (avg June ’15) • 83.1% of daily active users outside US & Canada Connection Defines the New Context • 1 billion daily active users (24 August ’15) • 844 million mobile daily active users (avg June ’15) • 83.1% of daily active users outside US & Canada Connection Defines the New Context • 1 billion daily active users (24 August ’15) • 844 million mobile daily active users (avg June ’15) • 83.1% of daily active users outside US & Canada • In 2013, global mobile M2M traffic was 20,736 Tbytes/month • It is projected to grow to 907,472 terabytes per month in 2018 – www.statista.com/statistics/267310/data-volume-of-non-internet-ip-traffic-by-category/ What Does This Mean To You? Media and Entertainment Community-created content; on-demand viewing; multi-screen experiences – what’s still urgent? Manufacturing and Logistics Big Data matches demand with (“free”) capacity; 3D printing redefines inventory – what’s worth owning? Health Care and Elder Care Gatekeepers lose power; payment evolves toward results; elderly = growth market – what differentiates? Financial Services Asset-light individuals don’t borrow to buy big; data-rich individuals don’t pay just to play – what has value? Pink-Collar and Gray-Collar Jobs If a robot arm can pick it up, an autonomous vehicle can transport it, an algorithm can price it, a bit stream can copy it, and/or a collaborative community can teach each other how to use it, then innovators are finding ways to add value with fewer people: Kodak’s 140,000 were displaced by Instagram’s thirteen.
  • 5. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Connected Communities Demand Collaboration Marketing Sales Shipping Billing Support Marketing Sales Shipping Billing Support Connection Enables & Mandates Customer Focus Silos arose from activity-centered automation of serial business processes Connected customers won’t accept being treated as multiple personæ Different people and processes get different subsets of data – but it’s a shared truth Connected Customers Will Participate – Like It or Not 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 conversation will take place • Customers/clients can find each other • They turn to each other for affirmation, as well as for assistanceO Obut you can host the conversation How Do You Engage Everyone? “The game, called EteRNA, allows players to remotely carry out real experiments to verify their predictions of how RNA molecules fold. The first big result: a study published this week in the Proceedings of the National Academy of Sciences, bearing the names of more than 37,000 authors – only 10 of them professional scientists.” Connection is a capability Collaboration is a process Co-creation is an outcome
  • 6. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International • Customers: engaged • Process: transparent • Priorities: quantified • Managers: accountable • Customers: engaged • Process: transparent • Priorities: quantified • Managers: accountable What People Really, Really, Really Like Elements of Gamification • This is not the same thing as “game theory” – which is too bad, because that’s a lot of fun • Decision optimizationOwith incomplete informationOin the presence of an active opponent • Gamification seeks leverage from well-known human drives and desires, including • Socialization: most people like to do things with other people • Mastery: most people take pleasure in doing things well • Competition: some people take pleasure in doing things better than others • Achievement and Status: most people seek measures of accomplishment; some crave recognition • Self-expression: most people like to feel that they can control their personal environment • Altruism: many people enjoy the feeling of being of value to others • If you’re not appealing to any of those desires, you have a problem “If it’s not excellent it won’t be profitable or fun, and if you’re not in business for fun or profit, what the hell are you doing here?” – Robert Townsend, former CEO, Avis Rent-a-Car Like Any Good Game – A Challenge to Do It Well “In its November 2012 press release, Gartner predicted that ‘by 2015, 40% of Global 1000 organizations will use gamification as the primary mechanism to transform business operations.’” “In the same report, Gartner also predicted that ‘by 2014, 80% of current gamified applications will fail to meet business objectives, primarily due to poor design’” - Janaki Kumar Gamification at Work: Designing EngagingBusiness Software
  • 7. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Competition – “I’m (We’re) Better than You (The Other Guys)” It’s obvious: we try harder in competitive situations. Sometimes it’s true. “Cyclists thought they were competing against someone else on an ergometer; actually racing against own best performanceO The tendency was that the first 1000 meters were similar, but a higher power was maintained from 1000-1750 meters.” – Brock University www.active.com/cycling/articles/ does-science-prove-that-competition-improves-performance “Students playing under the more competitive prize rules didn't complete any more mazes than students in the control group, they just cheated more.” - Journal of Economic Psychology digest.bps.org.uk/2010/06/does-greater-competition-improve.html This Is Not Yet an S-Curve: Expect Acceleration “A study commissioned by salesforce.com suggests that 60% of British employees now use apps on mobile devices for work-related activity and nearly a quarter (21%) use dedicated department-specific business appsO Enterprise apps boost worker productivity by more than 34%.” Mobile Apps Are Already the Dominant Medium But “Mobile” Is Not a Monoculture
  • 8. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Magic Glass Today Looks Like “Brick Phone” Tomorrow Magic Glass Today Looks Like “Brick Phone” Tomorrow Pebble Samsung Gear Google Glass Moto360 Myo Nymi Even Today’s Hottest Devices Are Tomorrow’s Legacies Even Today’s Hottest Devices Are Tomorrow’s Legacies
  • 9. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International We’ll Expect Environment to Obviate Device 3. Engage Send Proactive Alerts to Customers and Engage Channel in New Ways 2. Control Manage Health and Connectivity of Devices at Customer Locations in Real-Time 1. Connect Remote Sites and Equipment on Widely Deployed Solutions ROI (estimated) • $100K new revenue in year 1 • $50K ROI in year 1 • $250K profit expected in year 2 ATEK Business Value • New recurring revenue stream • Preventative maintenance model • Safer solution Many Kinds of Data; Many Kinds of “Net” What’s wrong with “Internet of Things”? Two words: ‘Internet’ and ‘Thing’ www.automationworld.com/industrial-internet-things/standards-and-protocols-industrial-internet-things There are at least four kinds of “thing” data • Status • Location • Automation • Actionable data They present different tradeoffs of • Update interval • Accuracy • Downside risk • Post-collection complexity David Friedman, CEO, Ayla Networks readwrite.com/2015/08/13/five-types-data-internet-of-things
  • 10. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Even a Silo in Your Hand is Still a Silo The “Search” feature tells you something’s wrong Tomorrow’s “app” extends a lexicon of APIs Any dedicated UI is just a “serving suggestion” Mobile Platforms are Evolving → Service Brokers blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/ dzone.com/articles/android-60-marshmallow-and-ios-9 Mobile Platforms are Evolving → Service Brokers blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/ dzone.com/articles/android-60-marshmallow-and-ios-9 Data + Direction := ++Performance One hundred years ago, Frederick Taylor measured workers’ behavior – and found that effective use of data improved both their performance and their health. He noticed that workers used the same shovel for all materials. He determined that the most effective load was 21½ lb, and found or designed shovels that for each material would scoop up that amount. en.wikipedia.org/wiki/Frederick_Winslow_Taylor
  • 11. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International It’s About Human Performance in Context McLaren Applied Technologies works on evidence-based systems to maximize human efficiency. Internally the company has been exploring how to get its Formula One teams to recover from jet lag most effectively. “Our teams are travelling around the world a lot. Some of them have to change wheels in the pit stop and be alert and fit, while others have to look at reams of data and need to be cognitively alert,” explains Duncan Bradley, Head of High- Performance Design. By plotting data relating to travel schedules with heart rate variability monitors and tests to monitor cognitive alertness, the company was able to reorganize journey times and teams to suit the way different individuals coped with jet lag and stress. http://www.bloomberg.com/news/articles/2015-08-12/wearable-biosensors-bring-tracking-tech-into-the-workplace Scalable Personalization Needs Intelligent Automation Because People Won’t Tolerate Complexity: Adaptive Make it easier to use • Nest thermostat learns your pattern of temperatures versus time • It doesn’t feel like you’re “programming” the device. Make it data-driven and goal-oriented • Thermostat displays a symbol of a leaf when the user makes a change that lowers energy consumption Consider the task of assisting pilot in flight “Automatic pilot” assists, but disengages pilot “Crossbar” flight director displayed deviations “V-Bar” flight directors indicated needed action The more the device is doing, the more important it is to know what was done why it was done how to stop it or undo it vs. Because “You’re Wrong” is Not Helpful: Assistive
  • 12. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Because People Are Bored by Mere Data: Narrative Because People Are Bored by Mere Data: Narrative “What we're doing here is on 40,000 people. It's unprecedented in scale, and this is just the first example we're sharing about the type of work we're doing.” – Andrew Rosenthal, Jawbone (slashgear.com, March 2014) Intelligence Overcomes the Friction of Multiple Devices “Taking the connected devices curve, and subtracting the one for A.I., we see…the point where A.I. becomes so capable that this friction flips around and quickly disappears.” – “How Artificial Intelligence Will Make Technology Disappear” (Rand Hindi, June 2015) • The average organization estimates 22% of its contact data is inaccurate, up from 17% Y-on-Y* • 42% say inaccurate contact data is the biggest barrier to multichannel marketing* • “Bad data costs US companies $700 billion/year”** * Ecoconsultancy Ltd., March 2014 ** Madan Sheina, Ovum Enterprise data is notoriously inaccurate and/or retrospective – therefore ignored Your Data Just Sits There, Lying to You
  • 13. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Mandate for Forward Motion: Become Truly Data-Driven Old Ideas But It Took Us a While to Connect the World “A way of life in an integrated domain where hunches, cut-and-try, intangibles, and the human ‘feel for a situation’ usefully coexist with powerful concepts, streamlined terminology and notation, sophisticated methods, and high-powered electronic aids.” Douglas Engelbart, 1962
  • 14. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International A Connection Platform for Extreme Innovation Not a Migration of Legacy Stacks – but Integration by Default 2,700+ Partner Apps2,700+ Partner Apps Open EcosystemOpen Ecosystem WorkflowWorkflow Data & Objects Data & Objects IdentityIdentityAnalyticsAnalyticsCollaborationCollaborationMobile UIMobile UI Scalable Metadata PlatformScalable Metadata Platform Complete CRMComplete CRM AnalyticsCommunityMarketingServiceSales Apps TrustedMultitenantCloudTrustedMultitenantCloud Fast App Dev & Customization What’s still urgent? Leadership based on superior execution enabled by experience, learning, optimization, and automation What’s worth owning? If there’s not a good reason to own it (something more than habit, preference, or turf protection) – don’t What differentiates? There’s no point spending money to do it better, once you’re doing it well enough that no one cares about improvement What has worth? No one cares how hard you worked to build it, learn it, or deliver it. All they care about isOwhy should they care? Questions Worth Asking and Answering It’s our job to give you the time and bandwidth to ask and answer questions like these. Not questions like, “How can we do that upgrade?” or “How will we gather that data?” We’ll worry about that stuff – so you can think about being awesome. Someone Asked Me For Three Key CIO Questions 1. Which of these do you consider most important to advance during the coming year? - mobile engagement with customers - collaborative capability within company - recognition/exploitation of business value in customer data - conversion of “shadow IT” (e.g., spreadsheets) to secure and compliant/governed applications? Someone Asked Me For Three Key CIO Questions 2. Which concern about “cloud computing” poses the greatest challenge to broader adoption within your company? - security generally - nation of data residency specifically - need for new developer and administrator skills - sharing of resource control with service provider
  • 15. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International Someone Asked Me For Three Key CIO Questions 3. Which of these would be the strongest business case for your broader use of “cloud computing”? - rising cost of talent for on-premise administration - growing scale and elasticity of resources needed to cope with “big data” initiatives - need for modern environment of BYOD and social tools required to maintain next-generation workforce - rising costs and slowing pace of innovation in legacy- encumbered on-premise IT stacks Someone Asked Me For Three Key CIO Questions 1. What’s Most Important to Advance? 2. What’s Most Likely to Get in the Way? 3. What’s The Driving Business Case for Change? I’m fascinated by your answers, but I’m even more interested in your questions Beginning with the introduction of modern artillery on the battlefield, all through the first World War, the standard artillery crew was five men. During a demonstration in France around the middle of WW II, an American general received a demonstration of artillery crew operations. He asked, “Why is the fifth man there?” The artillery crew was redefined as four men in the late 1980s. Beginning with the introduction of modern artillery on the battlefield, all through the first World War, the standard artillery crew was five men. During a demonstration in France around the middle of WW II, an American general received a demonstration of artillery crew operations. He asked, “Why is the fifth man there?” The artillery crew was redefined as four men in the late 1980s. They no longer need someone to hold the horses.
  • 16. Forcing Functions: Reconceiving Everything – Peter Coffee at AITP San Diego Cloud & Beyond Conference 2015 Creative Commons Attribution-NoDerivatives 4.0 International 20. Privacy Theorists and Ethicists 33. Genetic Modification Designers 43. Operator Certification Specialists 60. 3D Printer “Ink” Developers 70. Augmented Reality Architects 78. Crypto Currency Bankers, Regulators, and Lawyers But There Will Be Net Job Creation The Awesomeness Is Just Beginning This is not about replacing people It’s about complementing talent with technology “Weak human + machine + better process was superior to a strong computer alone and, more remarkably, superior to a strong human + machine + inferior process” – Garry Kasparov The Awesomeness Is Just Beginning This is not about replacing people It’s about complementing talent with technology I’m here today to give you an unfair advantage. Run with it. Thank y u @petercoffee /petercoffeeCreative Commons Attribution-NoDerivatives 4.0 International