Forces of the Future That's Now - Peter Coffee at SoTeC 2015

Forces of the Future That’s Now – Peter Coffee Keynote at SoTeC 2015

Creative Commons Attribution-NoDerivatives 4.0 International

Connection

Collaboration

Acceleration

AI-ification

+ Connection+ Collaboration+ Acceleration+ AI-ification

Forces of the Future That’s NowPeter Coffee

VP for Strategic Research

Salesforce

Safe harbor statement under the Private Securities Litigation Reform Act of 1995:

This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if

any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-

looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of

product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of

management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments

and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our

service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of

growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and

any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain,

and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling

non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the

financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form

10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the

Investor Information section of our Web site.

Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may

not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently

available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995:

This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if

any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-

looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of

product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of

management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments

and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our

service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of

growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and

any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain,

and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling

non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the

financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form

10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the

Investor Information section of our Web site.

Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may

not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently

available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Safe Harbor

We sell many things.We sell many things.We sell many things.We sell many things.

I might talk about others;I might talk about others;I might talk about others;I might talk about others;

Buy what we sell now Buy what we sell now Buy what we sell now Buy what we sell now

Risks, uncertainties:Risks, uncertainties:Risks, uncertainties:Risks, uncertainties:

These might cause our projectionsThese might cause our projectionsThese might cause our projectionsThese might cause our projections

to be incorrect.to be incorrect.to be incorrect.to be incorrect.

Safe HarborSafe HarborSafe HarborSafe Harbor

in 34 syllablesin 34 syllablesin 34 syllablesin 34 syllables



The Future is Enabled by

Connection

We lived in little bubbles of privately connected storage and computation

Going “outside” was a complex, risky, therefore intermittent exercise

Content was exchanged in batches: episodic logins, emails, and “documents”

We Used to Live in Habitat Domes of Local Bandwidth

It Took a While"But We Have Connected the Planet It Took a While"But We Have Connected the Planet



It Took a While"But We Have Connected the Planet And Then: Connection Becomes Expectation

Connection Defines the New Context

• 1 billion daily active users (24 August ’15)• 844 million mobile daily active users (avg June ’15)• 83.1% of daily active users outside US & Canada







What Does This Mean To You?

Media and Entertainment Community-created content; on-demand viewing; multi-screen experiences – what’s still urgent?

Manufacturing and Logistics Big Data matches demand with (“free”) capacity; 3D printing redefines inventory – what’s worth owning?

Health Care and Elder Care Gatekeepers lose power; payment evolves toward results; elderly = growth market – what differentiates?

Financial Services Asset-light individuals don’t borrow to buy big; data-rich individuals don’t pay just to play – what has value?

Pink-Collar and Gray-Collar Jobs

If a robot arm can pick it up, an autonomous vehicle can transport it, an algorithm can price it, a bit stream can copy it, and/or a collaborative community can teach each other how to use it, then innovators are finding ways to add value with fewer people: Kodak’s 140,000 were displaced by Instagram’s thirteen.

Connected Communities Demand

Collaboration

MarketingSales

Shipping

Billing

Support

MarketingSales

Shipping

Billing

Support

Connection Enables & Mandates Customer Focus

Silos arose from activity-centered automation of serial business processes

Connected customers won’t accept being treated as multiple personæ

Different people and processes get different subsets of data – but it’s a shared truth



Connected Customers Will Participate – Like It or Not

Innovation “goes rogue” when:

• Products are open-source and/orhighly configurable/customizable

• Some users have incentive to innovate

• Some innovators have incentive to share

• Diffusion of innovations is inexpensive

The conversation will take place

• Customers/clients can find each other

• They turn to each other for affirmation,as well as for assistanceL

Lbut you can host the conversation

• Customers:engaged

• Process:transparent

• Priorities:quantified

• Managers:accountable

Social Selling Addresses Social Customers

When customers form collaborative communities, you need to be in and of a community – not on the outside, selling in

• Geography stops defining access

• What matters most is “Who knows someone there?”

You need vigorous buy-in across the stack –so a “no” doesn’t drown out mere “maybe”s

“The number of people involved in a large technology purchase increased from five in 2010 to seven in 2012.”

– “Social Selling in B2B Sales” (hootsuite.com)

Modern Customer Service

January 2015

We can’t all beabove average

Most Companies Overestimate User-Experience Leadership



How Do You Engage Everyone?

“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.”

Connection is a capability

Collaboration is a process

Co-creation is an outcome

Old Customers:

• Current research & cost info 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

• Informatics technologies reducing non-value-adding costs

For Example: Rethinking Healthcare

This Is Not Yet an S-Curve: Expect

Acceleration

Every Transition Resets Expectations of Speed

• It took landline telephone 73 years to go from 10% to 90% ubiquity

• PCs did it in 30 years

• Smartphones/tablets

are on track to make that same climb in less

than eight…

…and don’t start

thinking that’s fast



faster growth than smartphone revolutionfaster growth than smartphone revolution

Annualized Growth (%)

Smartphones Wearables

100% 100%108%

5X5X

Wearable Growth Rate - BI Intelligence Estimates, IMS Research, ABI ResearchSmartphone Growth Rate - en.wikipedia.org/wiki/Smartphone#Historical_sales_figures_.28in_millions_of_units.29

Year 1Year 1Year 2Year 2

Year 3Year 3

Wearables Are Already a Breaking Wave of New Mobility

“A study commissioned by salesforce.com 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 appsL Enterprise apps boost worker

productivity by more than 34%.”

Mobile Apps Are Already the Dominant Medium

Mobile Apps Are Already the Dominant Medium

But “Mobile”Is Not a Monoculture



Magic Glass Today"Looks Like “Brick Phone” Tomorrow Magic Glass Today"Looks Like “Brick Phone” Tomorrow

Pebble

Samsung Gear

Google Glass

Moto360

MyoNymi

Even Today’s Hottest Devices Are Tomorrow’s Legacies For Goodness’ Sake, Think Big (Which Means Small)

Transistors just started collecting Social Security

“The first transistor was about the size of the palm of a hand; it had the depth of two stacked matchbooks” - computerworld.com/

“Estimote” beacon is about 25 mm across:

• ARM processor

• Memory

• Bluetooth

• Temperature/motion sensors

Proteus ingestible sensor, the size of a poppy seed, activated by stomach acid, will report measured effects of medication. Already in approval as part of an actual therapy



We’ll Expect Environment to Obviate Device Every Environment Will Be Defined By Connection

The Challenge: Think Through “Device”"to “Experience”

3. EngageSend Proactive Alerts to Customers and

Engage Channel in New Ways

2. ControlManage Health and Connectivity of Devices

at Customer Locations in Real-Time

1. ConnectRemote Sites and Equipment on

Widely Deployed Solutions



ROI (estimated)

• $100K new revenue in year 1

• $50K ROI in year 1

• $250K profit expected in year 2

ATEK Business Value

• New recurring revenue stream

• Preventative maintenance model

• Safer solution

Many Kinds of Data; Many Kinds of “Net” What’s wrong with “Internet of Things”? Two words: ‘Internet’ and ‘Thing’

www.automationworld.com/industrial-internet-things/standards-and-protocols-industrial-internet-things

There are at least four kinds of “thing” data

• Status• Location• Automation• Actionable data

They present different tradeoffs of

• Update interval• Accuracy• Downside risk• Post-collection complexity

David Friedman, CEO, Ayla Networksreadwrite.com/2015/08/13/five-types-data-internet-of-things

Smart driving assistant tracks driving, parking and vehicle performance

Developers focus on feature development, using Heroku Add-ons to provide infrastructure services

Product improvements deployed frequently to delight early adopters

Help people drive smarter; power of connectivity to every car

Admittedly “obsessive about creating great user experiences in well-engineered products,” Automatic knew the Heroku platform would provide the flexibility their product requires while allowing them to focus less on infrastructure and more on user experience.

Even a Silo in Your Hand"is Still a Silo

The “Search” feature tells you something’s wrong

Tomorrow’s “app”extends a lexicon of APIs

Any dedicated UI is just a“serving suggestion”



Mobile Platforms are Evolving → Service Brokers

blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/dzone.com/articles/android-60-marshmallow-and-ios-9

Mobile Platforms are Evolving → Service Brokers

blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/dzone.com/articles/android-60-marshmallow-and-ios-9

Wearables Already Entering 2nd Generation

“The demand for basic wearables, those

that do not run third party apps, has been

absolutely astounding. Vendors like Fitbit

and Xiaomi have helped propel the market

with sub-$100 bands.”

“We expect smart wearables, those capable

of running third party apps, to take the lead

in 2016. The transition from basic to smart

wearables opens up a slew of opportunities

for vendors, app developers, and accessory

makers.”

www.idc.com/getdoc.jsp?containerId=prUS25696715

Data + Direction := ++Performance

One hundred years ago, Frederick Taylor measured workers’ behavior – and found that effective use of data improved both their performance and their health.

He noticed that workers used the same shovel for all materials. He determined that the most effective load was 21½ lb, and found or designed shovels that for each material would scoop up that amount.

en.wikipedia.org/wiki/Frederick_Winslow_Taylor



It’s About Not Getting in the Way

“Truck drivers at Rio Tinto's coal

mines in Hunter Valley, Australia,

for example have been using

a device called ‘SmartCap’ which

looks like a regular baseball cap but

has sensors to detect the alertness.

“It provides an early warning for

when a driver is approaching a

‘microsleep,’ designed to reduce

fatigue-related accidents.”

www.bloomberg.com/news/articles/2015-08-07/wearable-technology-creeps-into-the-workplace

Mining giant Rio Tinto is running pits

at its Yandicoogina and Nammuldi

mine sites, with workers controlling

the driverless trucks largely from an

operations centre in Perth, 1,200

kilometres away.

“It is quite challenging to get

repeatability out of a human; one of

the advantages we have had with

autonomous haulage, particularly in

the truck fleet we notice we are getting

consistency in terms of the way the

machines are operating,” said Josh

Bennett, who manages the mining

operations at Yandicoogina.

mobile.abc.net.au/news/2015-10-18/rio-tinto-opens-worlds-first-automated-mine/6863814

It’s About Human Performance in Context

McLaren Applied Technologies works on evidence-based systems to maximize human efficiency. Internally the company has been exploring how to get its Formula One teams to recover from jet lag most effectively.

“Our teams are travelling around the world a lot. Some of them have to change wheels in the pit stop and be alert and fit, while others have to look at reams of data and need to be cognitively alert,” explains Duncan Bradley, Head of High-Performance Design.

By plotting data relating to travel schedules with heart rate variability monitors and tests to monitor cognitive alertness, the company was able to reorganize journey times and teams to suit the way different individuals coped with jet lag and stress.

http://www.bloomberg.com/news/articles/2015-08-12/wearable-biosensors-bring-tracking-tech-into-the-workplace

• Chatter deployed in 2010

• Platform for innovation• Event-driven

• Non-hierarchical

• Automatable

• Measurable

“I learned more about my company in a few months through Chatter than I had in the last three years”

- Marc Benioff, CEO, Salesforce

Collaboration Culture ⇒⇒⇒⇒ Innovation Environment



Pacing the “Twelve-Quarter Year”

At Salesforce, we tell newly hired employees that “we run on a twelve-quarter year”

What this means is that we look at numbers, compare them to goals, and initiate corrective action at least three times more frequently than most companies

Why is this necessary, today, in every field? Because the “half-life of facts” (the time required for half of what you “know” to become untrue) is shrinking

Philippe Kruchten examined

1988 issues of IEEE Software

and evaluated which ideas

“are still important or at least

recognizable.” He estimated

that the half-life of software

engineering ideas is likely

not much more than 5 years.

A working engineer needs

~7½ hours’ study per week,

48 weeks/year, to stay as

current as at time of first

college degree.spectrum.ieee.org/riskfactor/computing/it/an-engineering-career-only-a-young-persons-game

Scalable Personalization Needs

Intelligent Automation

Because People Won’t Tolerate Complexity: Adaptive

Make it easier to use

• Nest thermostat learns your pattern of temperatures versus time

• It doesn’t feel like you’re “programming” the device.

Make it data-driven and goal-oriented

• Thermostat displays a symbol of a leaf when the user makes a change that lowers energy consumption

Consider the task of assisting pilot in flight

� “Automatic pilot” assists, but disengages pilot

� “Crossbar” flight director displayed deviations

� “V-Bar” flight directors indicated needed action

The more the device is doing, the more important it is to know

� what was done

� why it was done

� how to stop it or undo it

vs.

Because “You’re Wrong” is Not Helpful: Assistive



Because People Are Bored by Mere Data: Narrative Because People Are Bored by Mere Data: Narrative

“What we're doing here is on 40,000 people. It's unprecedented in scale, and this is just the first example we're sharing about the type of work we're doing.”

– Andrew Rosenthal, Jawbone(slashgear.com, March 2014)

Intelligence Overcomes the Friction of Multiple Devices

“Taking the connected devices curve, and subtracting the one for A.I., we see…the point where A.I. becomes so capable that this friction flips around and quickly disappears.”

– “How Artificial Intelligence WillMake Technology Disappear”

(Rand Hindi, June 2015)

Mandate for Forward Motion: Become Truly Data-Driven



Old Ideas"But It Took Us a While to Connect the World

“A way of life in an integrated domain

where hunches, cut-and-try, intangibles,

and the human ‘feel for a situation’

usefully coexist with powerful concepts,

streamlined terminology and notation,

sophisticated methods, and

high-powered electronic aids.”

Douglas Engelbart, 1962

A Connection Platform for Extreme InnovationNot a Migration of Legacy Stacks – but Integration by Default

2,700+ Partner Apps2,700+ Partner Apps

Open EcosystemOpen Ecosystem

WorkflowWorkflowData & ObjectsData & Objects IdentityIdentityAnalyticsAnalyticsCollaborationCollaborationMobile UIMobile UI

Scalable Metadata PlatformScalable Metadata Platform

Complete CRMComplete CRM

AnalyticsCommunityMarketingServiceSales Apps

Trusted Multitenant CloudTrusted Multitenant Cloud

Fast App Dev & Customization



What’s still urgent? Leadership based on superior execution enabled by experience, learning, optimization, and automation

What’s worth owning? If there’s not a good reason to own it (something more than habit, preference, or turf protection) – don’t

What differentiates? There’s no point spending money to do it better, once you’re doing it well enough that no one cares about improvement

What has worth? No one cares how hard you worked to build it, learn it, or deliver it. All they care about isLwhy should they care?

Questions Worth Asking and Answering

It’s our job to give you the time and bandwidth to ask and answer questions like these.

Not questions like, “How can we do that upgrade?” or “How will we gather that data?”

We’ll worry about that stuff – so you can think about being awesome.

The Awesomeness Is Just Beginning

This is not about replacing people

It’s about complementing talent with technology

“Weak human + machine + better process was superior to a strong computer alone and, more remarkably, superior to a strong

human + machine + inferior process” – Garry Kasparov

The Awesomeness Is Just Beginning

This is not about replacing people

It’s about complementing talent with technology

I’m here today to give you an unfair advantage. Run with it.

Thank y u

@petercoffee/petercoffeeCreative Commons Attribution-NoDerivatives 4.0 International

Forces of the Future That's Now - Peter Coffee at SoTeC 2015

Technology

Transcript of Forces of the Future That's Now - Peter Coffee at SoTeC 2015