Busting Silos Boosting Communities Models of Engagement on a Connected Planet Peter Coffee VP for Strategic Research – Salesforce @petercoffee
Jun 12, 2015
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
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
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
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
hubaisms.com/2013/08/08/data-scientist-big-data/
• “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
Value from Mobile Apps and Wearable Devices Poses Challenges of Science – Wrapped in Compliance
hubaisms.com/2013/08/08/data-scientist-big-data/
Value from Mobile Apps and Wearable Devices Poses Challenges of Science – Wrapped in Compliance
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
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