Fusion Trumps Confusion Making the most of tomorrow

Peter Coffee

VP for Strategic Research

Salesforce

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Safe Harbor

It’s Hard to Find a Single Norm of the ’90s That Isn’t Considered Obsolete

Chaos Is All Around Us

• PCs

• Browsers

• Applications on CDs

• Music on CDs

• Cellphone $/minute

• Ads on TV / print

• Ownership aspiration • Car

• Home

faster growth than

smartphone revolution

Annualized Growth (%)

Smartphones Wearables

100% 100% 108%

5X

Wearable Growth Rate - BI Intelligence Estimates, IMS Research, ABI Research Smartphone Growth Rate - en.wikipedia.org/wiki/Smartphone#Historical_sales_figures_.28in_millions_of_units.29

Year 1 Year 2

Year 3

Wearables Are Already a Breaking Wave of New Mobility

Too often labeled as obstacle, rather than opportunity

“Chaos” Gets a Bum Rap “No skill is more important

than the corporate capacity

to change per se. The most

urgent task is to learn to

welcome—beg for,

demand—innovation from

everyone. This is the

prerequisite for continuous

improvement.” – Tom Peters

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

Pervasive Tech: Value for Field Service Applications

“Wearable technologies have

been found to boost

employee productivity by

8.5%, experts from

Goldsmiths, University of

London have found.” - gold.ac.uk

“Augmented reality apps like

Aurasma could help field

service organizations equip

techs in the field… product

information with the point of a

camera.” - thesmartvan.com

“In the next 3-5 years, the

industry likely to experience

the greatest benefit from

smartglasses is field service,

potentially increasing profits

by $1 billion annually.” – gartner.com

Old Customers:

• Limited knowledge of realities of risk

• Coarse pooling of risk based on gross and inaccurate data

• Limited opportunities for risk diversification

Connected Customers:

• Enormously greater visibility of comparable customers

• Real-time information available to all

• Superior data trumps economy of scale

Financial Services differentiate with:

• Exceptional domain-specific expertise

• Superior ability to analyze (and price) risks

• Proven advantage in first-call responsiveness

Financial Services: Coming to Grips With Customer Control

Old Customers:

• The brand controls the messaging and defines the offering

• Only the most informed customers bargain from knowledge

• Profit margins opaque to customers

Connected Customers:

• The customer community becomes “the brand”

• Customers can engage in real-time research in-store

• Generics/“off brands” compete with name brands

Retailers and brand names differentiate with:

• Aspirational image and associations (e.g., Burberry World)

• Effective shift of conversation from price to value

• Positioning as superior solution: customers Google the problem, not the product

Retail and CPG: Assume The Customer Knows Everything

Old Customers:

• Current research and cost information accessible only to professionals

• Geographic monopolies of care providers and payment services

• Employer-paid group plans with coarse pooling of risk groups

Connected Customers:

• Freedom to explore alternative therapies and providers

• Ever more individualized knowledge of health record and risk

• Given perfect knowledge, what is “insurance”?

Health Services differentiate with:

• Superior preventive and lifestyle counseling and assistance

• Pricing options reflecting broad range of customer preference

• Leading-edge adoption of informatics technologies reducing non-value-adding costs

Health Care: Graying Societies in ACA (“Obamacare”) Era

Connection Is The Differentiating Asset

Old Competitors:

• Recognized by customers and prospects as rival brands

• Defined by comparable capital assets and subject matter expertise

• Bigger threaten with scale; Smaller threaten with agility

Connection Competitors:

• Discovered by customers and prospects as viral services

• Defying category definitions with lifestyle positioning

• Empowered by data across multiple spheres of behavior

Who’s Your Competitor Now?

• If Google, Amazon, Walmart, PayPal, Square and eBay aren’t on the list…

…you need a wider and longer list

Connection Is The Differentiating Asset

Old Competitors:

• Recognized by customers and prospects as rival brands

• Defined by comparable capital assets and subject matter expertise

• Bigger threaten with scale; Smaller threaten with agility

Connection Competitors:

• Discovered by customers and prospects as viral services

• Defying category definitions with lifestyle positioning

• Empowered by data across multiple spheres of behavior

Who’s Your Competitor Now?

• If Google, Amazon, Walmart, PayPal, Square and eBay aren’t on the list…

…you need a wider and longer list

How Will You Add Value in the Future of Enterprise IT?

Genuine Customer Focus

• Not customer as endpoint of siloed activities

• Services interacting with single representations

Marketing Sales

Shipping

Billing

Support

How Will You Add Value in the Future of Enterprise IT?

Genuine Customer Focus

• Not customer as endpoint of siloed activities, but services interacting with single representations

• Social listening to understand the group, but manifesting in 1:1 conversations at scale

Awareness of the Environment

• Not merely discrete mobile devices, but pervasive connection to enable proactive engagement

How Will You Add Value in the Future of Enterprise IT?

Genuine Customer Focus

• Not customer as endpoint of siloed activities, but services interacting with single representations

• Social listening to understand the group, but manifesting in 1:1 conversations at scale

Awareness of the Environment

• Not merely discrete mobile devices, but pervasive connection to enable proactive engagement

Analytics That Look Forward, Not Backward

• Instantaneous exploration of immense, heterogeneous data sets/streams – anywhere

• Integrated collaboration to turn "what happened?" into "what next?"

How Will You Add Value in the Future of Enterprise IT?

Genuine Customer Focus

• Not customer as endpoint of siloed activities, but services interacting with single representations

• Social listening to understand the group, but manifesting in 1:1 conversations at scale

Awareness of the Environment

• Not merely discrete mobile devices, but pervasive connection to enable proactive engagement

Analytics That Look Forward, Not Backward

• Instantaneous exploration of immense, heterogeneous data sets/streams – anywhere

• Integrated collaboration to turn "what happened?" into "what next?"

Cloud-Native Thinking

• Deep-dyed trust as absolute necessity

• Innovation at unprecedented speed

• Non-value-adding complexities? You have people for that.

Thank you

Peter Coffee

VP for Strategic Research

pcoffee@salesforce.com

@petercoffee

in/petercoffee

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