New Services, No Silos: The Next 15 Years

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New Services, No Silos A Vision for the Next 15 Years Peter Coffee VP for Strategic Research inc.

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The cloud is now the mainstream. Congratulations. That means it’s no longer special to be cloudy. What’s needed now is a re-thinking of what IT does. Let legacy IT incumbents relocate the past century’s silos to the past decade’s server farms. The community is already re-inventing business processes, around the informed and elevated expectations of cloud-native collaborative customers and their connected things. Peter Coffee shares a global perspective on present facts, near-term implications, and the opportunities and challenges of continued leadership above the cloud. Presented as opening keynote at Midwest Dreamin' 2014 in Chicago by Peter Coffee of inc.

Transcript of New Services, No Silos: The Next 15 Years

  • New Services, No Silos A Vision for the Next 15 Years Peter Coffee VP for Strategic Research inc.
  • Good Morning Lets review exactly what you were promised The cloud is now the mainstream. Congratulations. That means its no longer special to be cloudy. Whats needed now is a re-thinking of what IT does. Let legacy IT incumbents relocate past centurys silos to past decades server farms. The community is already re-inventing business processes around the informed and elevated expectations of cloud-native collaborative customers and their connected things. The present facts, the near-term implications, and the opportunities and challenges of continued leadership above the cloud
  • The cloud is now the mainstream...
  • Ten Years After the IPO The cloud is no longer a niche its how companies do business.
  • Remember Those Things Called Personal Computers? Negative slope
  • This Revolution Will Be Tabletized
  • What Does It MeanWhen People Prefer the 2009 Release?
  • Theyre Not Asking for a Portable Desktop What did we get from a desktop metaphor? Direct manipulation WYSIWYG authoring Work on computers the way we work in real life?
  • Theyre Asking For Todays Way of Work in Their Hand In 2014, we dont shuffle documents on desktops What youre doing Whoelse is doing it Whats valued by the team Whats already been done Whats new to share Whats new to show Whats now to decide What should happen next?
  • The cloud is now the mainstream. Congratulations* * After you win the revolutionyou have to govern
  • The Cloud Was About IT: Connection Is About Customers
  • Connection Creates New Communitiesand New Behaviors 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 theyre 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
  • 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 For Example: Financial Services in Era of 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
  • In an announcement on Thursday, Salesforce and Philips, the Dutch electronics maker, are jointly announcing what they call an open cloud-based, health care platform. The foray into health care is a significant step by Salesforce into a specific industry, as opposed to supplying offerings that span industries, like customer relationship management software as a service There have been other high-profile cloud entries in health care, notably Google Health, a personal health records initiative, which opened in 2008 and was shut in 2011. But Salesforce is an enterprise cloud company and it is taking a very different approach. Its initial move, with Philips, is to focus on a specific target in health care using technology to manage chronic ailments. Breaking News
  • Whats needed now is a re-thinking of What IT Does
  • 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
  • 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 dont come up on first page, you dont exist If network doesnt validate you, you dont get called Prospect searches the App Store Your app needs to solve problems not just sell products Dont let them forget you between transactions
  • A study commissioned by 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 Arent Just for Customers
  • Let legacy IT incumbents relocate the past centurys silos to the past decades server farms. The community is already re-inventing business processes
  • 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: thats a application begging you to write it Ask how many representations you have for each customer: why not get that down to one? Redefining Platform: Customers Will Decide
  • Why Settle for MigratingYesterdays Disappointments? Multiple Independent Studies Agree: is a 5 Faster Path from Idea to App Idea Build App with modern frameworks Idea buy & setup hardware install complex software define user access build & test security make it mobile & social setup reporting & analytics build app Legacy Platforms (wherever they are) App 6-12 Months? Connected Mobile Apps
  • Latest IDC Study: Build Apps 70% Faster with Salesforce1 Platform February 2014 Platform 75%Lower infrastructure costs 80%More apps launched per year Faster time to market 70% ROI 520% 7 Customers analyzed across 5 different industries 31 custom apps built (average) 2,700 internal employee users representing 89% of employee base (average) 100K external customer & partner users(average) IDC White Paper, sponsored by, Salesforce1 Platform: Accelerate App Dev with Huge ROI, Doc #246505, Feb 2014.
  • Details Intentionally Redacted (Besides, Theyre in French) With over 30 countries to consider, the team knew that speed, repeatability and flexibility would be key to their success. As a large customer of AWS, the company also know that IaaS alone wouldnt solve their problems: it simply takes too long to set up all the AWS plumbing required for such an expansive project. What the customer needed was a platform that would enable them to build highly customized, highly immersive sites, leveraging the technologies they know and would need to use in order for the sites to launch successfully. The first is already live. This is just the beginning; the company has already started development for the remaining 29 sitesslated to go live on Heroku next year, along with several additional countries in the pipeline.
  • Salesforce1 Platform: The Leverage of Openness Weve always enabled options Runlocal code and integrate RunJava or LAMP onAWS Treatus as an adjunct tool for Integration of multi-vendor IT Access to handheld devices Wecome as liberators Openness is a commitment Agile deployment forRuby, Python, PHP, Java, Node.js, Clojure, Scala and Play Getup & running in minutes; deploy instantly with git Neveragain thinkaboutservers, instances,VMs because PaaS leverage is essential
  • Not Another Turn of the Crank. Readiness to Scale. The citys investment can go further than just merely paying for a new system. Itll be able to take advantage of other apps that work on the Salesforce platform.
  • Trusted. Results. Today. LegacyIT approach was overloading the project with software, overcomplicating the site with CPU and memory taxing applications. Servers were constantly needing to be restartedAny replacement for the current software will need to be vastly more simple. "Salesforcehas 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 canevolve with us... rapidly deployable, works on different devices, highly configurable..."
  • Less Stagnation. More Innovation. Eurostar has rolled out Salesforce CRM to improve customer service for passengers, replacing a number of applicationsThe 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 driverswasthe upgradecycle 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, fromthe idea until it was done, took less than two days. There is no wayyou 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
  • Let legacy IT incumbents relocate the past centurys silos to the past decades server farms. The community is already re-inventing business processes around the informed and elevated expectations of cloud-native collaborative customers and their connected things.
  • Who will take the lead on an Internet of Customers? Companies who connect to machines? Or teams and communities who relate to people? The winners will be those who see the stories in the data
  • looks at and sees more than CRM We asked whether a company had made strides in the past year that will define its field.
  • While many other companies on this list are building ways for connected devices to impact industrial and commercial operations, salesforce.comsays that the IoT presents a new opportunityfor marketers to glean deeper insights into their prospects and customers. Connecteddevices allow chief marketing officers (CMOs)to learn how their products are being evaluated and used, what stage of the process the prospects are in and potentially what factors influence buying behaviour. Salesforce.comsays IoT is not just about connected machines;its about connected products and marketing, too.
  • SAN FRANCISCO June 10, 2014 (NYSE: CRM), the worlds #1 CRM platform, today launched Salesforce Wear, the industry's first initiative for wearable computing in the enterprise. The company also launched the new Salesforce Wear Developer Pack, empowering developers to kick-start their ability to connect companies with their customers through apps for wearables in entirely new ways. In addition, ARM, Fitbit, Google Glass, Pebble, Philips, Samsung and others have joined the Salesforce Wear initiative to accelerate adoption of wearables in the enterprise. A Month Ago, This Was News
  • 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. Whats 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 towers 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
  • Value from Mobile Apps and Wearable Devices Poses Challenges of Science Wrapped in Compliance
  • Connections Concerns are Real Alot of the web services allow unauthenticated or unencrypted communication between the devices, so were 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.
  • Trust: Without Which 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. Its essential to reduce complexity and to narrow the scope of privileges rather than compounding complexity and enabling more superusers.
  • Password security policies Rich Sharing Rules User Profiles SSO/2-factor solutions Bottom-Up Design to be Shared and Secure Login Authenticate Apply Data Security Rules View Filtered Content
  • the opportunities and challenges of leadership above the cloud.
  • Shared spreadsheets and documents Problem to be solved is already acknowledged Business logic is already written app replaces an email thread with a real workflow Plus mobile capability Plus structured collaboration Plus superior governance, auditability and integration Desktop databases Data dictionary is already established app adds improved user experience, mobile access and automatic backup Line-of-business users have wish lists Problems theyve had so long, theyve gotten numb to the pain Hero points for IT: empower the citizen developer, start solving new things every week Where Do You Find the Apps in Waiting?
  • We Need to Create New Value In 2010 58% of surveyed U.S. consumers said theyd pay a higher price if they had a strong expectation of superior service. On average, 9% premium would be OK. In 2012, 66% willing to pay +13%... and 75% said theyd already spent more with a companyin response to superior service, up from 57% in 2010. Connected products can elevate service, from damage control to proactive customer care
  • Do Not Think of Cloudsas Products Sales Cloud, Service Cloud and Marketing Cloud are not merely cloud- based replacements for on-premise products Each of them is a serving suggestion of a portfolio of services; whatever you want to change, add, or integrate is at your option Virtualization of old technology extends the time that you think in terms of that technology: virtual servers keep you thinking in terms of servers We are discovering sound: You can study vibrating molecules for years You wont anticipate what happens when they bump into each other You totally wont imagine music
  • Do Not Design for Incremental Improvement Scott McNealy: I dont want to carry a battery, keyboard, display, storage device, and radio transmitter when I just want to check my mail. Where were going: all we actually carry is proof of our identity and the environment knows what well want to know and do Architect your solutions for Universal, high-speed connectivity Ubiquitous processing power Unlimited, intelligently indexed storage then adjust to limits of present technology The zeros and infinities will never be reachedbut you wont need to rip up your design and start from scratch every three years
  • What got us to where we are wont take us where were going
  • What will be the scarcest, and hence the most valuable, resource in the second machine age? It will be neither ordinary labor nor ordinary capital but people who cancreate new ideas and innovations. andrew-mcafee-and-michael-spence/new-world-order
  • The Challenge Isnt News. The Answers Are. No U.S. pick-and-shovel laborer can compete with the work of a steam shovel. The modern industrial revolution is similarly bound to devalue the brain, in its simpler and more routine decisions. Taking the second revolution as accomplished, the average human being of mediocre attainments or less has nothing to sellworth anyone's money to buy. Norbert Wiener, 1948 Welive and work longer; knowledge lifetime is shorter Communication costs less; ignorance costs more Jobs need more knowledge; employability takes more time Our shared mission: to enable tomorrows attainments
  • Peter Coffee VP for Strategic Research inc. [email protected] @petercoffee in/petercoffee Creative Commons Attribution-NoDerivatives 4.0 International