busting silos, boosting communities

Busting Silos

Boosting Communities Models of Engagement on a Connected Planet

Peter Coffee

VP for Strategic Research – Salesforce

@petercoffee

Stolen From BMW’s Winter Olympics Ad

Trying to predict the future is a discouraging and hazardous occupation,

because the prophet invariably falls between two stools.

• If his prediction sounds at all reasonable, you can be quite sure that in 20 or at most 50

years the progress of science and technology has made him seem ridiculously

conservative.

• If a prophet could describe the future exactly as it was going to take place, his

predictions would sound so absurd, so farfetched, that everybody would laugh him to

scorn.

If what I say now seems to be very reasonable, then I’ll fail completely.

Only if what I tell you appears absolutely unbelievable, have you any chance of

visualizing the future as it really will happen.

- Sir Arthur C. Clarke, 1964

The Best Way To Be Unreasonable – Believably

Facts – what we can see is true right now

Observations – selected facts and calculations

Consequences – projections, scenarios, boundary cases

Actions – what we can do right now

Long View – what to watch; what would change our plan

By no accident at all, this turns out to have an acronym;

So far as I know, no one else is calling their process FOCAL

Personally, I Plan to Be Here to See This Happen

What they’ll say, in 30 years, about 2014:

You could pick almost any category

Add some AI

Put it on the cloud

Few devices had more than one or two sensors,

medium.com/message/you-are-not-late-b3d76f963142

Kevin Kelly, Founding Editor of Wired, 27 July 2014

Mobility: 1/5 of world owns a smartphone, 1/17 a tablet (15Dec’13)

Connectivity: 10B+ devices already generating data (8Aug’14)

“Cloud” Cuts Complexity;

Connection Creates Community

Mobility: 1/5 of world owns a smartphone, 1/17 a tablet (15Dec’13)

Connectivity: 10B+ devices already generating data (8Aug’14)

“Cloud” Cuts Complexity;

Connection Creates Community

Social Interaction:

757M people are on

Facebook daily (4Feb’14)

Communities Confront New Challenges

“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.”

Old Customers:

• Prospects get content from Marketing

• Buyers negotiate terms with Sales

• Customers raise issues with Support

Connected Customers:

• Prospects seek insights from customers

• Buyers collaborate on competitor research

• Customers tell the world when they’re not happy

Companies need new organizations & processes

• Every employee/contractor/partner is a spokesperson/avatar

• Power to address issues must be pushed to edge of organization

• Collaborative response must be available on demand

Connected Customers Rewrite the Rules

Connected Customers Rewrite the Rules

Old Customers:

• Limited knowledge of realities of risk

• Coarse pooling of risk based on gross and inaccurate data

• Limited opportunities for risk diversification


• 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


• 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


• 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

When Connection Becomes 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

What Used to be “Personal Computing”… is now Multi-Device Community Engagement

“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

apps… Enterprise apps boost worker

productivity by more than 34%.”

Apps on Mobile Devices Become the Norm…

What is an “application” anyway?

Old “applications”: • Data captured as by-product of business activity

• Function driven by familiar business tasks

• User experience an afterthought

• Built by programmers; judged on cost & efficiency

New “apps”: • Data captured through algorithms of discovery

• Function driven by customer delight

• User experience a top priority

• Apps built by front-line business units; judged on ROI

Increasingly, The Experience Is The Product

In two years, 90% of companies expect to compete almost entirely on the basis of customer experience up from 36% two years ago. – Laura McLellan, Gartner, quoted in Ad Age Sept. 2014

“We’re not in the basketball business.” - Mark Cuban

“Do what you do so well that they will want to see it again and bring their friends.”

- Walt Disney

What Should Be in Your App?

White Pages world

• Prospect looks up your company

Yellow Pages world

• Prospect reads the ads in your category

Connected Customers world:

• Prospect Googles for help with the problem

• If you don’t come up on first page, you don’t exist

• If network doesn’t validate you, you don’t get called

• Prospect searches the App Store

• Your app needs to solve problems…

…not just sell products

• Why give them a chance to forget you?

The Goal is a Conversation

Marketing is no longer asymmetric • Not a “Mad Men” model of broadcasting a generic message

• Not about “content bombing” an audience

The customer demands to have one identity

• Across all channels

• Independent of device

• Not silo’d by business activity

• Not isolated from advisors or advisees

• Influencer networks

• External authorities

• Family members or others who depend on advice

“360-degree customer” lives in Flatland – a single plane

“Fully connected customer” inhabits a 4-dimensional space

hubaisms.com/2013/08/08/data-scientist-big-data/

Value from Mobile Apps and Wearable Devices Poses Challenges of Science – Wrapped in Compliance


• “People making calls or sending text messages originating at the

Kericho tower were making 16 times more trips away from the area

than the regional average. What’s more, they were three times more

likely to visit a region northeast of Lake Victoria that records from the

health ministry identified as a malaria hot spot. The tower’s signal

radius thus covered a significant waypoint for transmission.”

• “This is the future of epidemiology. If we are to eradicate malaria,

this is how we will do it.”

– Caroline Buckee


Connection’s Concerns are Real

“A lot of the web services allow unauthenticated or

unencrypted communication between the devices,

so we’re able to alter the info that gets fed into the

medical record … so you would get misdiagnosis

or get prescriptions wrong.”

“The physician is taught to rely on the information

in the medical records … [but] we could alter the

data that was feeding from these systems, due to

the vulnerabilities we found.”

Without Trust, Nothing Else Matters

If you think people are touchy

about their money, wait ’til you

know where they were parked

and who else was in the car,

with what kind of music playing

on the radio.

It’s essential to reduce

complexity and to narrow the

scope of privileges – rather

than compounding complexity

and enabling more superusers.

ISO 27001 Certification

SOC-1 (SSAE 16 – Audit Report)

SOC-2 (Trust Principles Report)

SOC-3 ‘SysTrust’ Audit Report

GSA moderate level ‘Authority to Operate’

PCI DSS Compliance

JIPDC (Japan Privacy Seal)

TUV Certificate (German Data Protection)

TRUSTe

If It’s Going to be This Big, It Had Better be Safe Complying with Security and Government Regulations Worldwide Simplified

Data Is Begging To Be Discovered

Yes, people are constantly connected…

…and billions of devices likewise…

…but there’s a

Estimote Beacons

and Stickers have an

ARM processor,

memory, Bluetooth,

and temperature and

motion sensors.

Smart devices in

range receive the

signals; compatible

installed apps can

then respond.

…that’s still widening

Legacy Platform (wherever it sits):

• Application development suite defined by a legacy IT vendor

• Specific languages, libraries, operating systems and software stacks

• Chosen by technologists; consumed by developers and sysadmins

Connection Platform (intrinsically cloud):

• Marketplace of services, interacting via non-proprietary protocols

• Mandate to add value to in-place investments while enabling innovation

• Adopted by business units as side effect of getting stuff done

• Consumed by “power users” and line-of-business experts

Opportunities for Action

• Look for a spreadsheet/database/document with email wrapped around it: that’s a Force.com application begging you to write it

• Ask how many representations you have for each customer: why not get that down to one?

The Meaning of “Platform”? Yours to Decide

“Simple” is Still Easy. “Complex” is Straightforward.

Less Stagnation. More Innovation.

Eurostar has rolled out Salesforce CRM to improve customer service for

passengers, replacing a number of applications…The high speed rail service

previously relied on up to 13 applications for call centre staff to deal with customer

complaints, during and after a call.

One of the main drivers…was the upgrade cycle for the software, which

could have resulted in customised features of the software being lost.

“There were no guarantees that the customisations would live through the

upgrade.”

Another is the ability to make changes to the system once it is live. “With

Salesforce, from the idea until it was done, took less than two days. There is

no way you can do that with other systems, because they are not designed to

do that – Salesforce is a cloud system and it is able to be extended.”

By Matthew Finnegan | Computerworld UK |

Published 10:29, 27 May 14

http://www.computerworlduk.com/author/matthew-finnegan/

http://www.computerworlduk.com/

Trusted. Results. Today.

Legacy IT approach “was overloading the

project with software, overcomplicating the

site with CPU and memory taxing

applications. Servers were constantly

needing to be restarted… Any replacement

for the current software will need to be

vastly more simple.”

"Salesforce has been an incredible tool for

us... We purchased on June 1st, and within

8 hours we actually had published an iPad

application... In about a month, we have

something we can use as a platform that

can evolve with us... rapidly deployable,

works on different devices, highly

configurable..."

looks at Salesforce – and sees more than CRM “We asked whether a company had made strides in the past year that will define its field.”

To Win, You Have To Know You’re Playing

In the world that we’re creating, we’ll see

• More things that look like science fiction

• Fewer things that look like jobs

• Autonomous cars: fewer truck drivers.

• Siri + Watson: less customer service.

• Robots lugging goods around warehouses: fewer people to work the shelves.

To Win, You Have To Know You’re Playing

In the world that we’re creating, we’ll see

• More things that look like science fiction

• Fewer things that look like jobs

• Autonomous cars: fewer truck drivers.

• Siri + Watson: less customer service.

• Robots lugging goods around warehouses: fewer people to work the shelves.

These are not the crowning achievements

These are just the warmup acts. – Andy McAfee, MIT

Opportunity > Threat

Communities turn fickle

customers into loyal fans

Collaboration wins the

war for talent

Connected products

replace guesswork with data-driven insights

Thank you Peter Coffee

VP for Strategic Research [email protected]

@petercoffee

in/petercoffee

Creative Commons Attribution-NoDerivatives 4.0 International

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