E C L003 Hansen 091707
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The Agile Enterprise: Enabling Business Results & Innovation through SaaS
Jeff Hunter, Electronic Arts
Eric Hansen, salesforce.com
Executives: C-Level Strategy
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Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
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• INDUSTRY: Digital Entertainment
• Revenue: Over $3 Billion in 2007
• EMPLOYEES: 8,000
• # USERS: 300 Users Globally
• PRODUCT(S) USED: Custom Recruiting and
Vendor Management Applications
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The Blue Dress Incident
How do I avoid the cost and risk of this problem in the future?
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What to Learn About The Blue Dress Incident
“A picture is worth a thousand words, but an
experience is worth a thousand pictures”
Question: How do you “experience” software?
Answer: Prototypes
Insight: Rapidly iterating prototypes with real clients
generates outstanding results.
…. and next time I went with my wife to Macy’s
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Adventures at Euphorion
Euphorion
Speed between strategy and software
IT agility
Special Sauce: Innovation = Prototype For Play
Increased Agility = Decreased Cost of Change
“The faster and cheaper it becomes to experiment,
the more it makes sense to try a different way”
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Cost of Change
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Iterating Prototypes to Reduce the Cost of Change
In 1997 Michael Schrage of MIT wrote in Serious Play
“Increasingly, prototypes are the key platforms and models are the core media for managing risk and creating value. They allow for cost-effective creativity, encourage profitable improvisation, and inspire organizations to collaborate in unexpected ways”
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Prototype & Model Examples
And now…. IT: Business Process Innovation
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Evaluating BPI Prototyping
Not all business processes should be innovated
Payroll vs. Recruiting
How do you know when to use BPI?
Relationship Based
Risk / Reward
Clear Results
Clear Clients
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The Ideal Prototyping Platform
SaaS
Configurable
Ease of Integration
Speed of Change
Relationship Based At Its Core
Efficient for business process models
Ecosystem
Efficient to share components of solution
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SaaS as Platform for BPI
• Key Features Already Enabled
• Data Sharing
• Security
• Workflow Approval & Notification
• API’s
• Reporting & Dashboards
• Business Process Configuration does not required
traditional Development effort
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The EA Opportunity – People Management
Problem: Can’t Find Right People
Reason: Buyer’s Market
Impact: Top and Bottom Line
Real Business Impact
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The Initial EA Analysis
BIG PROBLEMS
1. Talent Sourcing – Top Line Problem
2. Contractor / Contract Management – Bottom Line
Problem
Evaluated these problems against BPI criteria
Showed it made sense to innovate, but how?
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The EA Approach – BPI on Salesforce
Step 1 –SME’s Make Educated Guesses
ROI
Approach
Early Adopters
Step 2 – Prototype on Salesforce
1 Month to Launch
2 Weeks between Cycles
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Innovation Leads to Discovery
Initial Innovation Leads to:
Talent Tracking
Talent Planning
University Relations Management
Event Planning and Management
Repeated Process
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Innovating – The Results
We started seeing business results even as we were
innovating
1. Innovating Gets People Excited
2. Real Data Uncovers Problems Faster
3. Prototypes Become Common Language
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Business Results
300% Increase in Response Rate
50% Reduction in Research Cost
User Time to Value Significantly Increased
Reduced Time and Cost of Initial Release from 9
Months to 2 Months
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Key Take-Aways
1. Assume the Best
2. Look for the Relationships First
3. Start Small to Grow Big
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Session FeedbackLet us know how we’re doing!
Please score the session from 5 to 1 (5=excellent,1=needs improvement) in the following categories:
Overall rating of the session Quality of content Strength of presentation delivery Relevance of the session to your organization
We strive to improve, thank you for filling out our survey.
Additionally, please score each individual speaker on: Overall delivery of session
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QUESTION & ANSWER