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

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 demand demand demand demand you.

What makes “today’s What makes “today’s What makes “today’s What 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)

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to take care of them. That’s

the problem.”

- George Friedman

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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)



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 HarborSafe 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 now Buy what we sell now Buy what we sell now Buy 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



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



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.



Connected Communities Demand

Collaboration

MarketingSales

Shipping

Billing

Support

MarketingSales

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/orhighly 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



• 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 gamifiedapplications will fail to meet business objectives, primarily due to poor design’”

- Janaki KumarGamification at Work: Designing Engaging Business Software



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 Universitywww.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 Psychologydigest.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



Magic Glass Today�Looks Like “Brick Phone” Tomorrow Magic Glass Today�Looks Like “Brick Phone” Tomorrow

Pebble

Samsung Gear

Google Glass

Moto360

MyoNymi

Even Today’s Hottest Devices Are Tomorrow’s Legacies Even Today’s Hottest Devices Are Tomorrow’s Legacies



We’ll Expect Environment to Obviate Device

3. EngageSend Proactive Alerts to Customers and

Engage Channel in New Ways

2. ControlManage Health and Connectivity of Devices

at Customer Locations in Real-Time

1. ConnectRemote 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 Networksreadwrite.com/2015/08/13/five-types-data-internet-of-things



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



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



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 WillMake 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



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



A Connection Platform for Extreme InnovationNot a Migration of Legacy Stacks – but Integration by Default

2,700+ Partner Apps2,700+ Partner Apps

Open EcosystemOpen Ecosystem

WorkflowWorkflowData & ObjectsData & Objects IdentityIdentityAnalyticsAnalyticsCollaborationCollaborationMobile UIMobile UI

Scalable Metadata PlatformScalable Metadata Platform

Complete CRMComplete CRM

AnalyticsCommunityMarketingServiceSales Apps

Trusted Multitenant CloudTrusted Multitenant Cloud

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?


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




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


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.



20. Privacy Theorists and Ethicists33. Genetic Modification Designers43. Operator Certification Specialists60. 3D Printer “Ink” Developers70. Augmented Reality Architects78. 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