Bluewolf | The State of Salesforce 2012


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Bluewolf | The State of Salesforce 2012

  1. 1. the state ofsalesforce 2012-2013 annual review
  2. 2. fo r ov e r a d e c a d eBluewolf has been delivering on the promise ofcloud technology, bringing agility and innovationto companies around the world. Our work spansa wide variety of industries, company sizes,and geographies. As a PlatinumConsulting Partner we have completed thousandsof projects globally and innovate on hundreds oflive Salesforce instances every M e th o do logyData Sources Respondents MethodologyBluewolf sourced data Our first survey Using Bluewolf’sfrom two locations. included the insight proprietary knowledgeThe first was a survey from 300 global database we focuseddirected at Salesforce Salesforce customers. on distilling insightsusers and the second A wide variety of from projectwas data from roles, titles, and managers, as well asBluewolf’s proprietary companies from SME data from projectsknowledge database. to enterprise were completed in 2011 represented. and 2012.Salesforce, Sales Cloud, Service Cloud, AppExchange,, Chatter, and Radian6 are all registered trademarks of Inc.
  3. 3. Ta b le of C o nte nt sO2 10The Rise of Social The Case for Cloud’s Growthand Budget Trends 8 Key Elements of Cloud GovernanceO4Current Priorities 12 5 Post-Launch MistakesBluewolf’s Perspective How to Measure AdoptionO6Current and Planned 14Integrations Staffing for Salesforce InnovationSalesforce CustomersReact to the Social The Elastic WorkforceEnterprise 16O8 Bluewolf SolutionsThe True Cost of CloudHow Much Value Are YouGetting from Salesforce?
  4. 4. th e r ise of Soc i a l L o u F o x • CTO • B l u e w o l f b l u e w o l f. c o m / p e o p l e / l o u - f o x Since Dreamforce 2009, has been focused on driving a new market: social. What does social mean? A social organization embraces change and supports collaboration, understanding that its most valuable assets are people and human interaction. Becoming social involves leveraging technology to unlock the collective brainpower of people in order to drive productivity. Before becoming social an organization must first become agile. An agile enterprise establishes processes that promote continuous innovation, leaves room for a little chaos, trains on an ongoing basis, leverages elastic resources, and embraces flexible technology. Many of the companies with which Bluewolf interacts aspire to become more social. Beyond this aspiration, we also see clients challenged with: keeping Salesforce aligned with their changing business needs, understanding how to budget and staff resources dedicated to innovating Salesforce, and how to best serve diverse constituents. The rate of change that Salesforce enables requires a new and continuously evolving strategy. Bluewolf has built a fast growing global consulting organization and we believe in the promise of social. But creating a new market is different than measuring success within the current market. This report aims to separate the two, and bring grounding to the current state of Salesforce.2 The State of Salesforce
  5. 5. sa’s g row th on fire steady app- sales serviceexchange cloud cloudDespite a strong launch, Chatter adoption has yet to explode. Giventhe potential business value that cross-enterprise collaboration offers,and recent growing interest from Salesforce users, we predict Chatteruse to rapidly accelerate as companies iterate on their employeeengagement strategies. Expected budget trendsBudget for Salesforce in 2013 31% 29% 29% 11%no change increase not sure decreaseCompanies are struggling with who owns the budget for ongoing Salesforceinnovation: the business or IT? They also are increasing experimentationwith resources that can be turned on as needed rather than hiring ortraining full time staff. The True Cost of the CloudAre you resourcing for innovation or stagnation? Page 8. 2012-2013 Annual Review 3
  6. 6. Cu r r ent Pr io r iti e s on fire steady cooling off Current future Efficiency Customer Service Adapting to Growth Internal Collaboration Cost reduction T r a n s pa r e n c y Social media mobile Where are resources being dedicated? 15% 25% 40% 5% 5% 5% 5% Ongoing business data cleaning, adoption, Configuration development process third-party integrations, customer portals/ Dedicating only a small amount of resources to data cleaning and adoption often results in diminishing Salesforce ROI. To maximize Salesforce’s value, employers need to provide incentives to drive adoption and executives must trust that their dashboards reflect accurate data.4 The State of Salesforce
  7. 7. b lu e wolf’s pe r s pe c ti v ecurrent customer social Efficiency service mediaCompanies are gaining on their efficiency challenges due to thededication of ongoing resources. The next big opportunity includes thetransformation of customer service desks to the cloud, which shouldinclude a social media strategy.future internal socialcollaboration mobile mediaSocial media and mobile are coming together to help deliver on theproductivity promise of cloud technology. Companies have realized thattheir workforces are not at their desks, and tools to support field sales andservice are planned.bluewolf customer storyERM, a leading global provider of sustainability consultingwith over 4,500 employees, leveraged Salesforce to provideinsight into key global accounts. Collaboration and centralizedaccount information helps ERM deliver seamless solutionsacross geographies to their clients. 2012-2013 Annual Review 5
  8. 8. Cu r r ent&Pl a n n ed I nte g r atio n s Many companies are moving toward becoming social by integrating their customer service applications with Salesforce. on fire steady cooling off Current future data cleaning tools 36% information & business intelligence tools 36% Customer satisfaction survey/monitoring 31% call center system 30% collaboration tools 20% expense management 15% compensation 13% management Master data management strategies are still maturing and need to find a home within a large number of enterprises, however, data management and cleaning tools (such as those available on the AppExchange) will continue to rise in popularity and have become essential to successful integrations.6 The State of Salesforce
  9. 9. S a lesfo custom er sr e ac t to Soc i a l 24% 31% 18% 13% 10% 4% We think We aren’t We aren’t social there yet, familiar is a fad but we with social believe that We believe We are it represents We believe that social is currently an important social is important, working on shift important but aren’t becoming for some sure how to social businesses, proceed but not for us 76% of Salesforce customers need help bringing social to life in their organizations. What does social mean? Social means leveraging Twitter to some and using profits for social good to others. No single definition has risen above the rest.’s social message is largely geared to a C-level audience. More work needs to be done at a department level to get executives to understand that, at its core, social really is about helping their teams sell more, engage customers, and drive demand. Technology is an enabler, but more importantly companies must shift their business culture to encourage opportunities for collaboration and knowledge sharing. 2012-2013 Annual Review 7
  10. 10. th e tr u e C ost o f C lou d LICENSING FEES IMPLEMENTATION, has done its CUSTOMIZATION & TRAINING customers a huge favor: removing the burden of paying up to ten times the amount of self-hosted CRM license fees in hardware and staffing TRUE costs. The innovation conversation is no longer focused on IT resources, but instead on executive vision and how an COST ONGOING INNOVATION enterprise CRM program enables growth. Still, it is a big mistake to think that there are no costs beyond the purchase of licenses and consulting services to an enterprise achieving success with Salesforce. TWO DYNAMIC FACTORS IMPACT THE TRUE COST OF SUCCESS: #1 SALESFORCE RELEASES #2 THE PACE OF ORGANIZATIONAL CHANGE As long as executive time is reserved to align program vision to prioritizing new feature adoption, Salesforce will propel the company toward becoming social. An important strategy for success includes budgeting for ongoing costs around innovation, resourcing, and training. There are different models to choose from, and companies need to individually evaluate the right approach for themselves. The Elastic Workforce Find the right strategy for ongoing innovation. Page 14.8 The State of Salesforce
  11. 11. H ow m u ch va lu e a r e you g e tti n gf rom sa le s fo rc e?Over the past decade we have seen clients fall into three typical Salesforceprofiles—REACTIVE, STEADY, OR AGILE. The three key elements of each are:Vision: Executive leadership has defined the role of Salesforce.Process: What is the level of business process maturity?Ability: Is there a resourcing strategy for executing ongoing innovation? vision & process method to execute & sustainFocused on core  Building cross-  CRM program is  CRM department CRM a core businessHuge backlogs  Has a backlog  strategyLimited or no  management Agile backlog  resources process managementAdoption is a  Access to diverse  process challenge resources Innovation through Not integrating  Internal  cloud governance new features collaboration  Engaging theNot using  a focus elastic workforce 2012-2013 Annual Review 9
  12. 12. Th e C a se for c lou d Gov e r n a n c e “Our cloud governance strategy enables us to deliver change as fast as users can absorb it, faster than we ever have before, without sacrificing controls and quality.” –James Hindes • Director, Enterprise CRM • The Standard Put simply, cloud governance is the policies, processes, and framework for continuing to innovate Salesforce. The objective is to establish system stability and ensure changes with clear business benefits are rapidly made. Without cloud governance, the organization will strain to keep pace with user requests, adoption, market shifts, and new releases—all of which remove focus and resources from the original goals of Salesforce. Up to 80% of Salesforce customers are not achieving maximum ROI and 15% of those customers are experiencing diminishing ROI by failing to keep their application in step with business changes. The crux of Salesforce’s flexibility is the need for real-time evaluation of the infinite changes possible in terms of business value. In order to fully utilize Salesforce’s benefits, prioritization is absolutely necessary. Without the means to measure the value of change on an organization, and a method to execute change in a planned manner, there is the potential for the system to either stagnate (too little innovation) or break down (too much innovation). Cloud governance is critical—enabling a strategy for ongoing innovation is essential to delivering on the promises of Salesforce. bluewolf customer story The Standard, a leading provider of financial products and services to 7.5 million customers, worked with Bluewolf on a cloud governance strategy prior to implementing Salesforce. Having it in place during the initial rollout made the transition to ongoing agile innovation much easier.10 The State of Salesforce
  13. 13. 8 k e y e le m e nt s o f c lo u d gov e r n a n c e #1 #5D e s i g n i n g a C lo u d t e s ti n gG ov e r n a n c e b oa r d Maintain strict qualityThe board is comprised of both executive and standards when updatingdepartmental stakeholders. Executive stakeholders work and configuring Salesforce.on high level innovation and strategy, while departmental For clients, Bluewolf usesstakeholders ensure enhancements add value. a system called BUTR (build, upload, test, and report), a cyclical iteration process that ensures quality #2 standards are met.tic keting systemsThe ticketing system collects inputs from #6across the organization. This processdetermines how user requests are c hange m anagementbrought in, organized, and prioritized. It is The cloud governance board should holdessential that this system be scalable to fit roundtables with power users and topthe changing needs of the organization. team players to decide how changes will be communicated, including management tactics such as classroom training, videos, newsletters, and monthly meetings. #3m a s te r data #7m a n ag e m e nt ta l e n tChoosing what data to collect, who owns it, and the The cloud governanceprocess for adding fields requires consistent rules. Each board dictates whatbusiness unit should have its own requirements but they mixed resourcingmust be consolidated into an enterprise wide plan. strategy the organization would benefit from. Most #4 #8 importantly what key skills will come from managedd e v e lo p m e n t r u l e s release service providers,Continuously innovating on the process consulting firms, staffSalesforce platform is key to augmentation, and Owned by the permanent hires.ensuring that the business is getting cloud governancethe maximum ROI. A business board and andevelopment strategy should take individual releaseinto consideration business unit manager, this is the process in which releasesneeds, resource allocation, and are introduced to both the business andgrowth projections. Salesforce. 2012-2013 Annual Review 11
  14. 14. 5 p ost- l au n c h m i sta k e s It’s not enough to simply address users’ Not requests; users must be convinced of Gamifying the value the Salesforce application Ongoing brings to the organization. Take the Adoption time to explain new features and use game mechanics to influence behavior. Not giving Embrace user driven innovation. Make users a way sure users have an easy way to share to provide what they like and want next. feedback Composed of leaders across business units, the board must meet regularly to Not discuss the overall strategic direction of creating a Salesforce. Members of the board may governance bring specific feature requests from their board teams, but should work closely with IT staff to prioritize enhancements. As Salesforce’s appearance and functionality change, it is important Training that training continues so that that ends individual users understand how the changes benefit them. Salesforce is a sophisticated enterprise application requiring ongoing resources Thinking to stay aligned with your business Salesforce goals. Treating it like another software is Simple application will result in accelerating negative returns that correlate to the speed of an organization’s growth.12 The State of Salesforce
  15. 15. how to m e a su r e a do p tio n director ofkate hagemann • change strategyb l u e w o l f. c o m / p e o p l e / k a t e - h a g e m a n nWhat is the objective when implementing or innovating on Salesforce?Hint: the answer is never get more employees to login daily. All too often,tracking logins is the default metric, when in reality the number of logins ismerely a superficial benchmark. What businesses really need to track, andwhat drives organizational change, is employee engagement.Successful adoption is achieved by providing meaningful objectives toindividual employees that tie back to the enterprise’s Salesforce goals. 3 q u e s ti o n s to a s k w h e n i m p le m e nti n g i n n ovati o n s Know what’s expected. Do employees know know what’s expected of them? Can complete. Do employees have the skills can or knowledge to meet expectations? Will complete. Are there positive benefits to the will individual, which incentivize them to use Salesforce?bluewolf customer storyAs part of a global adoption initiative at TEConnectivity, an organization with over100,000 employees in 50 countries, Bluewolfinterviewed end users to understand howSalesforce was supporting them in their daily work. The resultswere then used to prioritize Salesforce innovations and definesmart objectives to end users. 2012-2013 Annual Review 13
  16. 16. sta ffi n g fo r sa le s fo rc e i n n ovatio n How do you innovate your Salesforce instance at the speed of business? It starts with having the right team. Whether you are five days or five years post-implementation, you need access to a variety of skill sets that can be scaled to meet demand. key: level of impact on your organization Outsourcing and the elastic workforce Welcome to the new outsourcing. CIOs, directors, and managers are shifting away from traditional staffing methodologies and looking towards the elastic workforce—the broader community of independent experts, external services providers, and partners—to access not only more talent, but also a specialized pool of workers at the top of their game that can offer an outsider’s perspective. Multi-Sourcing is The Strategy When sourcing talent for Salesforce projects and initiatives, leadership must not only think about what activities to outsource, but also HOW to outsource. Consider the overall cost to the organization, the measurable impact the resource strategy can bring, and the ability to control/customize resources quickly to the tasks at hand.14 The State of Salesforce
  17. 17. th e e l a stic wo r k fo rc eManaged Service Consulting FirmsProviders Need to transform, how doFree up internal resources or you get started?outsource ongoing innovation— Sometimes the best solution forall at a predictable monthly cost. companies is to outsource entireIn this outsourcing model projects to consulting firms withcompanies engage with partners on proven methodologies. In this set-a clearly defined set of IT services. up the consulting firm becomes aMost managed service providers partner to the company and hasbill an upfront set-up fee and an all the necessary competenciesongoing flat or near-fixed monthly to complete the project. Not allfee, which benefits their clients by consulting firms are created equal:providing them with predictable IT make sure the firm has domaincosts and a fair amount of control. experience and deep business process and technology expertise.Partial outSourcingTurn over a specific IT operation, Offshore Providersrather than the entire IT function. Access a highly skilled low-costInstead of outsourcing an entire IT global workforce.function, organizations that prefer Decades ago, companies beganto retain a certain level of expertise relocating IT infrastructures fromin-house can identify skill gaps that the US to India, China and Easterncan be easily separated into smaller Europe. The business modelprocesses. These “parts of projects” seemed simple. Take advantageare outsourced, and the chosen of the best and the brightest inpartner has direct responsibilities developing nations for a fractionand obligations to the company. of the cost. As the offshore outsourcing market matured, mixed results have CIOs re-evaluatingStaff Augmentation the IT services and functions theyGain access to a full range of highly choose to outsource this way.skilled local experts on demand.Using this sourcing model, Outsourcing shares by IT functioncompanies can add contractors to 2012-2013 application services it infrastructure services 26%increase their output at pace with Application Maintenance IT Security 15% 23% Data Center Operationsdemand. This is the least expensive 46% 12% Help Deskand most flexible approach to Application 17% 28% Development Disaster Application Hosting 39% 17% Recovery Web Database 16%outsourcing that allows you to add Development Administration Share of Application Development Network 12 The State of IT Outsourcing Operations Sources: 1. 2012-2013 Bluewolf IT Outsourcing Benchmark Survey, May 2012 2. 2011-2012 Bluewolf Technology Outlook 3. 2012 Bluewolf IT Salary Guideexpertise to your team withoutincreasing overall headcount. With For Bluewolf’s complete guidethis set-up, organizations maintain to the elastic workforce visitcontrol of all resources. 2012-2013 Annual Review 15
  18. 18. b lu e wolf so lutio n s bl u e w ol m • 866.455.WOLF Managed Services Bluewolf Beyond is focused on post-implementation consulting, matching ongoing technology innovation to the pace of your business. With access to Beyond’s in-house team of cloud application, marketing automation, adoption, and database management experts, you stay ahead of change and extract the maximum value from your technology. Consulting Bluewolf is your guide to Agile Business Transformation. We partner with clients to sync business and IT to achieve new levels of business performance with cloud computing technologies. Our agile consulting solutions include: business process & strategy, cloud implementation, customer lifecycle consulting (marketing, sales, service), change management, and technology adoption. CHANGE STRATEGY & TRAINING In today’s competitive business environment, it is essential that a company remain agile and iterative. Bluewolf has built the strongest training and change management organization in the industry. User adoption is a key success metric for technology implementations, and Bluewolf can help prepare your employees by providing them with a foundation for professional development. Technology Staffing Bluewolf provides staff augmentation to companies with immediate needs for deep expertise in specific technologies and software development processes. We cut placement times in half, delivering the resumes of the top three candidates within 24 hours. We can staff any project, for any technology position—contract, contract-to-hire, or permanent placement. New York ∞ San Francisco ∞ Atlanta ∞ Boston ∞ Chicago ∞ Dallas ∞ Denver Long Island ∞ Philadelphia ∞ Washington, D.C. ∞ London ∞ Sydney ∞ Melbourne16 The State of Salesforce
  19. 19. for salesforce, radian6, eloqua, and marketo Let Bluewolf assist with the discovery and prioritization of cloud projects. Walk away with a strategy to start reducing your backlog and align applications to company goals. position, new contracts 40 hours or more sign up for our salesforce admin training and get the google nexus 7 free* * while supplies last
  20. 20. contact us B l u e w o l f. c o m 8 6 6 . 4 5 5 . WOLF @bluewolf © 2012. All rights reserved by Bluewolf.