Toward the Social Enterprise:Trust; Vision; Revolution

Peter CoffeeVP & Head of Platform Researchsalesforce.com inc.

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In Other Words:

Everything That You See Hereis Real

Social Revolution:Social Networking Surpasses EmailSo what?

Source: Comscore, June 2011

Social Users

Email Users

2007 2008 2009 2010 2011

1.1 billionsocial users

More Than Just “Sum of the People”(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)

Pop quiz: where is Beijing?

Finally Catching Up With Peter Drucker

“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

Complex legacy IT portfolios made the simplest data

integrations an overwhelming task

Cumbersome, brittle integrations demoted end users to

information consumers

Path of least resistance

then over-emphasized

rear-view mirror views of

historical data – or deep

inspection of recent past

This is what “IT vendors” are still selling

Old IT Did Not Connect Our Knowledge

’60s Mainframe Computing

’90s Desktop

Cloud Computing

’00s Mobile Cloud

Computing

’10s SocialRevolution

’70s Mini Computing

’80s Client/Server Computing

Ten Year Computing Cycles10X 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

“Whereas earlier entrepreneurs looked at the Internet and saw a network of computers, Zuckerberg saw a network of people.” – Time, 15 Dec. 2010

A Critical New Role for “Cloud”

Old Cloud: Centralization + Automation Cost Reduction– Distant resources: considered to be a tolerable nuisance

– Security: assumed to be a challenge, and compliance a barrier

– ‘Cloudwashing’ of legacy products: tempting and easy

New Cloud: Connection + Simplification Acceleration– Data and process in cloud are closer to everything else you need

– Security is part of the service; audit trails are easy to provide

– You can’t ‘connectwash’ a server, no matter how much

virtualization you apply or how many ‘private clouds’ you proclaim

– In false clouds, you pay for resources…

…in true clouds, you pay for opportunities

2010

2011

Social Revolution:The WAWKI* is Shrinking

Sources: Ben Elowitz, Wetpaint / comScore

Facebook mobile users are 2X more active than desktop users.

- facebook.com

81minutes

per day

Social Revolution:Mobile Apps Used More than Web Browsers

Source: comScore, Alexa, Flurry Analytics

Mob

ile A

pps

Bro

wse

r

1,100 tweets per day handled by agents

Automatic conversion of tweet-to-case

Fast Resolution with case routing

twitter.com/Bofa_Help

Bank of America’s New Branch is Twitter on the Salesforce Service Cloud

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?

Beyond Just ‘Being Social’

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

Social Revolution:Device Choice Indicates New Use Cases

Source: Gartner Research; Smartphone, Tablet, and PC Forecast, December 2010.

2013E

16 billionmobile devices by 2013

Desktop

2007 20082009 2010 2011E 2012E

Laptops

Smartphones

Tablets

Number of Apps

750,000Apps

7/0810/08

4/097/09

11/094/10

9/106/11

Social Revolution:Apple / Android App Store Volume Exploding

Social Revolution:Employees Forcing the Pace of Change

...fastest ramping mobile

device ever.“

”

CIOs Surveyed on Tablet Usage

2010

2011

Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011.

Purchased for EmployeesEmployee-ownedNot Allowed

Cloud leverage empowers innovatorsRapid 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 Force.com with one person in just 4 days…

The same app built in [previous models] would have taken over 3 months”

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.

‘Social’ is a model, not an app

Products Become Participants

Instant updates, not

limited by human

speed or attention

Effective integration

of hardware speed

& human judgment

The next new

application

opportunity

public String CloudThoughts{ get; set;}Mike Leach, www.embracingthecloud.com

Facebook, Twitter, and Chatter notifications

Users receive alarms and alerts

Enables rapid response

Reduces system downtime

Network congestion

in Asia.

Network congestion

in Asia.

Enterasys Devices Are Now Social

What are your customers saying?

200200 millionmillion tweets/day

1.5 billion1.5 billionFacebook Facebook posts/dayposts/day

BillionsBillionsof blogs & of blogs & communitiescommunities

Difficult to Track Conversations Across Customer Social Networks

From Data to Information

Toyota Social Enterprise

Dealers/Distributors

Chatter for 320,000 Employees

Toyota Friend Website1-800-4-My-

Toyota

Toyota Friend on Youtube

Toyota Friend on Twitter

Toyota Friend on mixi

Manufacturing/Finance

Toyota Friend on Facebook

Toyota Friend Mobile

Toyota VehiclesSocial Customer

Profile

Social Customer Profile

Objections Are Being Addressed

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.”

Availability:– Salesforce.com now routinely exceeding 500M transactions/day

– In June 2011, achieved 100% of planned availability

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.”

Data protection regulations– Where can it be stored?

– Who’s allowed to see it?

Peel the onion of ‘compliance’– Anonymize/encrypt/partition specific fields

– Cloud disciplines can enhance auditability

• Role-based privilege assignment

• Actions taken using granted privileges

Looking beyond the FUD– USA PATRIOT Act sometimes causes concern about powers of US

government to access data

– Limited to information-gathering related to matters of urgent national security

– Use of USA PATRIOT Act requires involvement by all three branches of the

US government

– Many other countries, including in Europe, have very similar powers

Data Stewardship is a Practice, not a Technology

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?

These are not new questions: NSA IAM introduced 2004

Becoming ‘Securely Social’

Continued Availability Improvement

Winter ’12 release: downtime reduced to 2 hours Further reduction of maintenance downtime in FY13

“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

Trust is Enabled by Transparency

“Do it yourself” vs. “Who you gonna call?”

Potential benefits from transitioning to a public cloud computing environment:

• Staff Specialization• Platform Strength• Resource Availability• Backup and Recovery• Mobile Endpoints• Data Concentration

Cloud Credibility: Option of First Resort

Culture & EducationPolitical 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’

The Upsides Become Compelling

Innovation:– Old: It’s taken 10 yrs. to migrate even half the world’s PCs beyond WinXP

– New: In 16 mos. from Win 7 v1 to SP1, Force.com users adopted six upgrades

Collaboration:– Organizations adopting Chatter routinely see 30%+ reduction of email

– When people are given a choice, they choose the social model

Competitive Advantage: McKinsey Global Institute finds that

– “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”

– “[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.”

Facebook Evolves at the Speed…of Facebookon Force.com

Next-Gen Apps Demand IT’s Top Talent

Cloud Connection Margin Growth and Brand Differentiation

“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.”

www.zdnet.com/news/sun-puts-java-into-gear-for-cars/136886

“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

‘Cloud’ is the things that you want someone else to do, but:

– ‘Social’ describes what your workers and customers want

– ‘Mobile’ describes what they need

– ‘Open’ describes the freedom to do it the way that works for them

Cost reduction is not the path to leadership

– Cloud models make it easier to match IT costs against business tasks

– Superior ROI, and compelling improvement in time-to-market, change the terms of debate surrounding IT investments and resources

The job of the ‘IT professional’ is changing

– Integrator of services, rather than buyer and operator of technologies

– Instigator and manager of innovative tools and processes

– Enabler and custodian of relationships and insights

In Conclusion

Peter CoffeeVP & Head of Platform Research

pcoffee@salesforce.comfacebook.com/peter.coffee

twitter.com/petercoffeecloudblog.salesforce.com

Q&A?