After three days of cloudwashing, cloud-in-a-box and erector set private cloud musings at Oracle OpenWorld in San Francisco this week, CEO Larry Ellison chose day four to take the wraps off a legitimate move into cloud computing.
Oracle Public Cloud is the unification of the company's long-struggling software-as-a-service (SaaS) portfolio with its Fusion applications transformation, all atop Oracle VM and Sun hardware. While Ellison spent much of his keynote taking pot shots at his former sales executive and now SaaS nemesis, Salesforce CEO Mark Benioff, the actual solution being delivered is more of a direct competitor to Amazon Web Services than Force.com. The strongest evidence is in Oracle's stance on multitenancy. Ellison adamantly shunned a tenancy model built on shared data stores and application models, which are key to the profitability of Salesforce.com (and most true SaaS and PaaS solutions), stating that security comes only through application and database isolation and tenancy through the hypervisor. Oracle will no doubt use its own Xen-based hypervisor, OracleVM rather than the enterprise standard VMware vSphere, but converting images between these platforms is quickly proving trivial.
It has been a few years since Forrester delved deeply into the issues surrounding consumer privacy, and in that time, an awful lot has changed:
Facebook Connect, Google ID, Yahoo Identity, and Sign In With Twitter have emerged as a wholenew way of being recognized across a myriad of websites across the Net. As little as a decade ago, most adults online couldn’t have imagined the convenience of single sign-on.
At the same time, data capture methods have not only proliferated, they’ve become exceptionally sophisticated. Tactics like Flash-based cookies and deep packet sniffing surreptitiously collect behavioral data about online consumers, while loyalty and membership cards provide more insight into consumers’ purchasing habits at the line item level than ever before.
All that extra data is hard to protect without big changes to governance policies and technology stacks, and when data breaches happen, they're public and ugly.
Finally, legislators have forged ahead with regulations to protect consumer data. Europe's answer is the Data Protection Directive – a regulatory framework that governs the capture, management and use of consumer data, while in the US, congressional leaders, egged on by consumer advocacy groups, are introducing bills designed to limit data capture and to provide remediation in cases of data and security breach.
The statistics that salesforce.com broadcast at Dreamforce last week are impressive: a $2.2 billion annual run rate; 104,000 customers; and 35 billion transactions per quarter (see Benioff's keynote slides here). The conference was attended by 40,000 users, with a further 35,000 joining online. Salesforce.com’s cloud messaging is mature and no longer a focal point. However, what was most interesting from a customer service/CRM standpoint was the focus on the “social customer” and the way that CRM applications need to adapt to accommodate them.
Traditionally, CRM software has been anything but focused on the customer. It has been positioned as software aimed at the business user to increase their productivity and efficiency as they interact with customers, clients, and sales prospects.
Salesforce.com’s new CRM messaging spotlights the customer and the way that customers interact today using the new social channels and loose social processes to research and select products to purchase and get answers to their questions. Customers are also company employees and want to use these channels to collaborate with other employees at work in the same way they use these channels in their personal lives. This means that these social channels and processes need to also extend inside the enterprise. Check out salesforce.com’s interaction map for the social customer:
We all know that companies are trying to leverage social channels for customer service. But how can they be deployed in a way that adds value to an organization? Here are my thoughts:
You can’t implement social technologies in a silo within your contact center because you have to be able to deliver a consistent experience across the communication channels you support: voice, the electronic ones, and the social ones. Read my blog post on how you can do this.
Once you get the basics right, you are ready to add social media capabilities. Best practices include:
Start by listening to customer conversations. These conversations can surface general issues with products, services, and company processes. Make sure you create workflows to route surfaced issues to the correct organization so they can be worked on.
Flag and address social inquiries. Understand the general sentiments expressed in these conversations, but also identify specific customer inquiries and route them to the right agent pool for resolution.
Extend your customer service ecosystem with communities. This allows your customers to share information, best practices, and how-to tips with each other, as well as get advice without needing to interact with your agents. But don’t implement them in a technology silo; they should be well-integrated with current contact center processes.
Today’s contact center ecosystem is complex, and comprised of multiple vendors who provide the critical software components. Read my blog post on what these critical software components are. Customers are looking for a simpler technology ecosystem to manage from both a systems perspective and a contractual perspective.
Suite solutions, available from unified communications (UC), CRM, and workforce optimization (WFO) vendors, are evolving and include comprehensive feature sets. These vendors have either built these capabilities out or acquired them via M&A activity. And we expect more M&A to happen.
Forrester’s book Groundswell made the power of social media tangible with real-world examples and laid out a framework to help onboard organizations. However, many companies today still struggle to benchmark their social media journey, manage bottom-up social activities, and prove the ROI of social media activities. The new chapters published in the just-released expanded and revised edition of Groundswell highlight some best practices. Here are some of them:
Understand why you are embarking on the social journey, and connect social media objectives to the company strategy. Ask hard questions like “Will my social presence help move the customer satisfaction needle?”, “Will it help sell more products?”, and “Will it deflect costs from my service center?”.
Treat social media as another channel in which to engage customers. Customers still want to call you (a surprising 67% of the time), email you, and chat with you. Make sure that your processes, policies, and communicated information are the same across all channels — traditional and social.
Connect your social media efforts. There may be many social media technologies used within your company. Ensure that there is some level of coordination between internal organizations so that you can uphold a consistent experience and brand for your customers.
Start small and staff social media initiatives with existing employees who understand your customers and your business. This is important to help extend your brand — your DNA — to your social channels.
The Customer’s Bill of Rights: The Right to Choose
Customers know what good service is and expect it from every interaction they have with a company’s customer service organization, over all the interaction channels that the company supports. More often that not, they are disappointed, and are quick to voice their disappointment. And in this world of social media, this disappointment gets amplified — which leads to brand erosion.
Let’s focus on the way customers want to interact with your customer service organization:
Customers expect to interact over all the channels that customer service organizations offer, including the traditional ones like phone, email, and chat, and the new social ones like Faceboook and Twitter.
Customers expect the same experience over all the communication channels that they use.
Customers expect the same information to be delivered to them over any channel.
Customers expect to be able to start a conversation on one channel and move it to another channel without having to start the conversation over.
Customers expect you to know who they are, what products they have purchased, and what prior interactions they’ve had with you.
Customers expect you to add value every time they interact with you.
Customers expect you to offer them only new products and services that make sense to them and fit with their past purchase history.
NetSuite was kind enough to invite me to the analyst day at its SuiteWorld 2011 user conference — an event packed with product, strategy, customer, and partner information. The focus was clearly on its platform and ERP solutions. Here are my thoughts and takeaways:
NetSuite wants to ride the SaaS wave into the enterprise. NetSuite is the only SaaS-based ERP suite of scale. It reports that its data centers get 2.2 million unique logins and 4 billion customer requests a month. However, NetSuite wants to do better. It wants to take its well-tested and well-adopted solution in the midmarket and extend into the enterprise. The timing is right, as Forrester reports that enterprises are ready to consider SaaS-based ERP solutions. In fact, NetSuite reports that sales to enterprise customers increased 37% between 2009 and 2010.
NetSuite has a solution package targeted at the enterprise. NetSuite announced a new “Unlimited” package for about $1 million, which includes all modules, unlimited storage, applications, SuiteCloud customizations, subsidiaries, and unlimited users. The exact pricing is based on functionality and number of users (which starts at 500), and scales up from there. It is a package targeted to compete with traditional on-premise ERP vendors as well as SAP’s on-demand solution, Business ByDesign.