B P G002 Oconnor 091707
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Transcript of B P G002 Oconnor 091707
Domain 1: Vision and Strategy
Daniel Sieff, Sprint Corporation
Matt O’Connor, salesforce.com
Best Practices: Global Enterprise
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.
Alice: Would you tell me, please, which way I ought to go from here?
The Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cat: Then it doesn't much matter which way you go.
Vision and Strategy Definition
Vision – the desired end-state of your initiative
“Customer loyalty is our highest priority. Personalized service for all customers. Provide the communication channels the customer wants.”
Strategy – the roadmap for how you will achieve your vision
Why are Vision and Strategy Important?
Source: Europe Gartner end user survey. N=344, October 2004From “Predicts 2005: How CRM Will Help to Grow Revenue Again”, J an. 7, 2005.
0 50 100 150 200 250
Other
Reduce sales costs
Increase profit margins
opportunities
Increase sales revenues
Increase customer loyalty
Increase customer retention
Increase customer satisfaction
Enhance cross/up-sell
Acquire new customers
Reduce service costs
Increase profit per customer
Revenue Enhancement
Cost Reduction
Number of Responses
CustomerLoyalty &Satisfaction
0 50 100 150 200 250
Other
Reduce sales costs
Increase profit margins
opportunities
Increase sales revenues
Increase customer loyalty
Increase customer retention
Increase customer satisfaction
Enhance cross/up-sell
Acquire new customers
Reduce service costs
Increase profit per customer
Revenue Enhancement
Cost Reduction
Number of Responses
CustomerLoyalty &Satisfaction
“Almost every company that has benefited from a
customer relationship management initiative
has done so after developing a coherent
CRM strategy”
-Gartner
“Almost every company that has benefited from a
customer relationship management initiative
has done so after developing a coherent
CRM strategy”
-Gartner
Your vision and strategy helps the organization articulate the desired end state and how to get there
Without a Vision and Strategy
Lack of clear purpose
Difficult changes can become barriers
Lack of results or unmeasured results
Long-term commitment is a challenge
All About Sprint Nextel
• INDUSTRY: Communications
• EMPLOYEES: 64,600
• REVENUE: $41 Billion
• GEOGRAPHY: Global
• # USERS: 4,952
• PRODUCTS USED: Salesforce SFA & PRM, Force.com Mobile, 7
AppExchange applications
“Salesforce.com represents a significant resource commitment on the part of Sprint’s leadership team. We are committed to providing the integrated and standardized tools needed to stay competitive and provide a superior customer experience.”
Mark Angelino, President, Sales & Distribution
Key Challenges
• Lack of sales pipeline and sales activity visibility
• Inconsistent sales processes
• High-turnover and associated ramp-up costs
• Lack of intellectual property
• Sprint / Nextel Merger
• Enabling Sprint Powered Workplace
The Solution
• Implement standardized sales and account planning process
• Capture key account data and sales history
• Implement accounts teams and sharing rules to facilitate
collaboration
• Integrate with Hoover’s, First Research
• Implement Cases for internal support
Deployment Details• SFA, PRM, AppExchange, Force.com Mobile • Users – 2,500 > 5,000• Training – face-to-face• Multiple segments and channels• 4.5 months
Critical Success Factors
Defining the vision and strategy
through a business case
High-touch
DeploymentCrawl > Walk > Run Continuous
Innovation
PlanPlan
Act
Evaluate
Defining Vision through a Business Case
Objective Define the vision, build executive support and obtain
commitment
Challenges Numerous executives to communicate with – Sprint and Nextel
Inconsistent expectations across groups
Approach Keep it simple – executives want the bottom line
There is no one size fits all
Recognizing it will change with the business
Crawl > Walk > Run Strategy
Objective
Build adoption and application value
incrementally
Challenges Saying no is difficult Multiple teams with different needs
Approach Complete prioritization of features and functions
Detailed review sessions with the end users – focus on pains
80/20 rule – biggest bang for the buck
High-touch Deployment Strategy
Objective Drive adoption (addiction) through as many human touches and
interactions as possible before, during and after
Challenges Cost – each touch has a cost ($$$) Geographies – national and international Keeping everyone happy
Approach Face-to-face training and support for every user Change management Post deployment on site help desk for each site Support SLA - dedicated support team with < 24 hour response
time
4,000+ Users
157 Offices
46 Cities
30+ Countries
4 Continents
Continuous Innovation Strategy
Challenges Balancing continual
improvement and stability Keep the good users happy Make under-performing users
good users
PlanPlan
Act
Evaluate
Objective Continually increase application value and work towards achieving the vision
Approach
Create a feedback loop
Speed to implementation
Face-to-face interviews/
surveys with all stakeholders
Data driven decisions
Continuous Improvement Strategy
What were the results?
• >90% Addiction from Sales Users
• >700,000 Leads Routed in 2006
• Ramp up time reduced by 33%
• Reduction in Admin time for Sales Reps
• Reduction in customer churn
“I wouldn’t know what to do if you took salesforce.com away- it would be a step backward” – Manager of Sales, Pacific Northwest
“My new reps are up and running 30% faster because of using Salesforce” –Branch Manager of Sales, LA Metro
The Road Ahead…
Never rest on your laurels
Continue to promote
champions and success stories
Make Salesforce the ‘one-stop-
shop’
Mash-ups and interfaces to
continue to drive value
Additional channels
Key Takeaways…
Don’t be Alice – invest in developing a vision and a
strategy
Crawl > Walk > Run – take small steps to achieve you
vision
High-touch – recognize the human side of change and
don’t stop at deployment
Continuous improvement – establish processes to
maintain momentum, engagement and value
Session FeedbackLet us know how we’re doing!
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Daniel Sieff
Senior Manager for Sales CRM
Matt O’Connor
Engagement Manager
QUESTION & ANSWER