Salesforce Embraces The Social Customer — Deploying This Business Model Will Be Harder Than Deploying The Software

Kate Leggett

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:

Read more

Prediction: HP Cuts Loose Their Networking Hardware And Transforms Into A True Networking Alternative

Andre Kindness

HP’s startling announcement, two weeks ago, to discontinue Touchpad and all webOS-based products, purchase Autonomy Corporation, and split off its PC divisions, caught the market off-guard. Hewlett-Packard Chief Executive Officer Leo Apotheker feels the company could be the next Polaroid in the consumer products and mobile device war — a business that requires companies to be “much faster than a conglomerate can move in most circumstances.” The reality is this new strategic direction should not have surprised anyone who has read Leo’s résumé; it was the board’s intention to hire a strategic thinker who could evolve the company into a software and services organization by leveraging HP high-margin assets coupled with a few acquisitions. HP has one of the strongest orchestration software portfolios in the industry, which encapsulates everything from enhancing user experience through its APM solution all the way down to controlling Layer 2 through the Intelligent Management Center (IMC). With strategy toward creating and servicing cloud infrastructures, HP should examine what it has and figure out if its current networking portfolio differentiates the company, changes the way networking is done, and aligns HP’s networking division to HP’s strategic goals.

Three things I&O teams should think about when it comes to HP:

Read more

Categories:

Define Your Social Ecosystem

Nigel Fenwick

One of the many interesting topics of discussion we get into in our Social Business Strategy workshops is around the social ecosystem. This is the name I have given the collection of business capabilities potentially enhanced by one or more social technologies.

First let me define social technologies. Note I’m using the word “technology” quite deliberately in place of the more common term “social media” because social media is too often associated with consumer-facing technology as deployed in support of marketing. In defining the entire social ecosystem I prefer the more generic “technology”. I define social technology as “any technology that enables one-to-many communications in a public forum (or semi-public if behind a security firewall)”.

Read more

Dreamforce 2011 Notes: Salesforce Wants To Be The Collaborative Interface Between Your Business And The Market

TJ Keitt

While the Metallica concert and guest appearances by MC Hammer and Neil Young during Marc Benioff's opening keynote made Saleforce.com's Dreamforce 2011 entertaining, my principle reason for venturing out to San Francisco was to hear Salesforce's vision for how it was going to turn Chatter into an enterprise-wide collaboration platform. What they showed was an elegant, natural extension of their core value proposition as a CRM and platform-as-a-service (PaaS) provider. In a nutshell, Salesforce wants you to use Chatter to connect internal business processes to the external social web in which your partners and customers live. This is not a new vision, of course. We've argued the importance of external collaboration for purposes of product management and marketing and even profiled a company that has rolled out technology and changed its corporate culture to embrace intercompany collaboration. What makes Salesforce's story compelling is how it intertwines Chatter with its database, social listening, CRM and PaaS capabilities. Mr. Benioff presented this as a three part story:

  1. Create a social profile of the customer. The Radian6 acquisition is brought to bear here. Salesforce proposes using this technology not only to understand customer sentiment, but to take a snapshot of indivdual customers by using their interactions with social media to learn who they are. This information is used to build a "social database" which can round out a customer record in the CRM system.
Read more

Goodbye Yellow Brick Road?

George Lawrie

Most Forrester readers certainly understand the importance of empowering their employees to contend with highly informed and increasingly demanding customers. But I’m often asked just how to overcome the process and data integrity challenges of apps or services that empower employees and/or drive continuity of experience for consumers across channels. With the rise of mobile as well as web and call center interactions and with a proliferation of new tools for managing distributed processes and data, most application development and delivery professionals as well as their business process and applications colleagues have to absorb all the arguments before they make decisions that could be critical to their firms’ futures – to say nothing of their own careers.

One pioneer whom I interviewed was immensely proud of his lightning rollout of a guerilla app to support his firm’s front office in advising clients on complex product choices. I asked him about future plans and sheepishly he admitted they would be starting again from scratch because the guerilla app was unable to leverage enterprise services exposing critical data about product offerings. He remarked ruefully that sometimes you do have to follow the IT standards “yellow brick road” rather than just head for the hills, but wouldn’t it be great to have the best of both worlds, with both agile deployment and full advantage taken of enterprise assets and data?

If you need a deeper understanding of the issues and options, then I’d like to invite you to join us at Forrester's Application Development & Delivery Forum, where my colleague Clay Richardson and I will discuss in practical terms how to deliver integrated experiences across multiple touchpoints.

IT Services Industrialization 2.0

Fred Giron

Mobility, cloud, and smart computing will drive tremendous growth and significant changes in the IT industry over the next few years. My fellow analysts have brilliantly covered these topics in the past few months.

I would like to build on these views and focus more specifically on the productivity race that the IT services industry and its clients have been in during the past 10 years or so. While IT services vendors have managed to improve their output levels in order to protect margins in a market of severely eroding price points, I believe they will rapidly reach a plateau if they continue to use traditional methods. Instead, the most successful IT services firms of tomorrow will increasingly leverage disruptive methods in order to fulfill the client expectations to always “do more with less.”

Ever since the Internet bubble burst a decade ago, clients have pushed their providers to find ways to provide them with continued price decreases for similar or greater output levels. This was achieved thanks to two main levers to decrease the amount of resources required to run IT systems by end user firms:

  • Fewer resources: Optimizing the utilization of resources in order to reduce their consumption. For example, most projects around asset management, infrastructure standardization, consolidation, and virtualization yield the most evident returns as sources of productivity improvement. This is the case in particular in developed countries where companies need to cope with multi-layered legacy technologies that render IT systems as complex and expensive to maintain.
Read more

IBM To Acquire Algorithmics... GRC And Financial Risk Management Get A Little Closer

Chris McClean

Today IBM announced plans to acquire the Fitch Group’s Algorithmics, a heavy-hitter in financial risk management software and services market, for $387 million.

 Here are my initial thoughts about today’s announcement:

  • IBM is making a (relatively safe) bet that operational and financial risk functions will continue to comes together. Regulatory pressures from Basel III, Dodd-Frank, and Solvency II, as well as the competitive realities of the global market, are pushing for banks and insurance companies to have more comprehensive oversight of exposure across all domains of risk. In fact, analytics should be a top priority of any compliance program. It will be some time before IBM (or any other vendor) can deliver a single platform to manage operational, credit, market, liquidity, etc. in one place; however, the addition of Algo’s subject matter expertise and even basic integration of data for a single source of reporting offers customers attractive benefits.
  • IBM still faces heavy competition in financial services for both operational risk with its OpenPages product and financial risk with its new Algo offerings... however. there are very few significant competitors that have strength in both. IBM’s announcement today was a strong move against these other few, most notably Oracle and SAS.
Read more

3 (New) Predictions For The Future Of Carbon And Energy Management Software

Chris Mines
Eighteen months ago, I wrote a market overview report, "The Advent of Enterprise Carbon and Energy Management Systems." Returning from vacation last week, I was sifting through the recent news from suppliers in this nascent market, and thought it would be an opportune time to revisit the principal predictions I made in that report. It's actually something that we in the industry analyst world do not do often enough -- take a look back at our predictions and see how events have or have not conformed with our forecast.

So here goes:

  • Prediction No. 1: IT is the buyer of ECEM systems. "During the next few years [I wrote in December 2009] we believe that enterprise IT organization will emerge with the clear ownership role [for] ECEM systems. IT will bring its expertise in data analysis, data integrity, network connectivity, and overall systems architecture to bear on the corporate sustainability challenge. The faster that data sources for ECEM become more instrumented, more granular, [and] more real-time … the faster IT will move to the center of ECEM system evaluation, implementation, and operation."
Read more

Plea For Sanity. Ban The *-As-A-Service Moniker

Mike Gualtieri

Guilty! You will find SaaS, IaaS, and PaaS terms in my past research documents and blogs posts. But I have decided to stop using the *-as-a-service moniker because it is a redundant pleonasm like horseless carriage, wireless phone, and absolutely necessary - meaningless because it is excruciatingly redundant.

 Does “as-a-service” merely mean that “it”:

  • Resides in the cloud?
  • Is pay-per-use?

Stop the insanity.

Join me in pledging to eliminate-as-a-service (EaaS) the *-as-a-service term. Darn. There I go again.

Avoid The 70% Failure Rate Of Change Management Initiatives

Claire Schooley

You read that number right: seventy percent, a dramatically high rate of failure. It could happen to you unless you take into account that any business process change is strongly related to personal change — that means your people — and this is often the component that gets shortchanged. Organizations fail to realize the impact of change on the employees it will affect and do not plan and execute carefully enough to address the people issues through all phases of business process change management. Today’s business environment is constantly changing as companies work to stay competitive. But change only happens when workers change their thinking, beliefs, and behaviors. This is hard and requires constant effort from employees and executives.

Change management methodologies abound. Look carefully at ADKAR from Prosci and John Kotter’s The 8-Step Process for Leading Change; read Crucial Conversations by Patterson et al. They are rich in change theory and suggestions. Choose one methodology or components of many methodologies. What’s critical is that you do not miss any of the following six principles:

 

The change manager (managing the people change) and the project manager (managing the technology change) must plan together; they work in parallel but have constant interaction to make sure the initiative is moving ahead on both fronts.

To make your change management efforts work, follow these best practices:

  • Get project sponsorship from a leader who understands people change management.
  • Make sure you have the change management resources and a budget.
  • Communicate constantly with employees by engaging them in discussions and keeping them informed.
Read more