The Future of Social                                   #D
                                                                                F1
                    Inside the Enterprise                                          2   So
                                                                                            cia
                      Thought Leader Perspective                                                  l

Dion Hinchcliffe                                    Alan Lepofsky
Executive Vice President, Dachis Group              VP Principal Analyst, Constellation Research
@dhinchcliffe                                       @alanlepo


                       Kuntal Vahalia
                       Senior Director, Salesforce.com
                       @kuntalvahalia

                              Karthik Chakkarapani, Senior Solution
                              Architect, Salesforce.com
                              @kchakkarpani
Safe harbor
 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
 intellectual property and other litigation, risks associated with 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-Q for the most recent fiscal quarter ended July 31, 2012. This 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.




                                                               #DF12Social
#DF12Social
Agenda: The Evolution of Social Business

  The Journey – What led us to where we are today?


  Today – From simply sharing to getting work done


  What’s Next – The future of social business




                                #DF12Social
Part 1:
The Journey To Social Business




#DF12Social
Groupware? Collaboration? Social Software?
           Goal: To help people get their jobs done…
          … and help their organization be successful

      People need to be able to:
        •  Create, discover and share information
        •  Find the colleagues/communities that can help
        them (and vice versa)
                                                           Wha
                                                        whic t's in a n
        •  Build strong relationships with external          h           a
                                                        other we call a me? that
                                                              nam        rose
        communities                                       swee e would by any
                                                               t - Sh      s
                                                                      akes mell as
                                                                          pear
        •  At any time from a variety of devices                               e




                            #DF12Social
Social Software Is Not A New Idea
              Until now, most PC software was designed for individuals using
              individual PCs. But today, more and more people are working in
              teams on networked PCs that require a new kind of software. Software
              that lets them quickly share ideas and information no matter where,
              when or how they work.

              Enter Lotus Notes.

              The first software than actually thrives on the fact that people need to
              work together to be effective. Lotus Notes creates a new
              communications environment where users can develop applications -
              for sales tracking, project management, customer service, and free
              form discussions of all kinds - and routinely access and share this
              information from their desktop to anyone, anywhere in the world.
              In fact, no other software maximizes your investments in networked
              PCs like Lotus Notes.

              After all, helping people work together is what Lotus does best. `



           #DF12Social
How we got where we are today...
                                                                              Majority of            The shake-out:
1.0 era                                                                       companies now          Most large companies select
                                                                              tactically engage      a few large social suites
                                                                              in social media
                             “Cambrian Explosion”
                                                  Centralization:             (internal, external
          McAfee Coins       of social enterprise                                                     1st notable wave of enterprise-
                                                  The Rise of Facebook        or both)
          “Enterprise 2.0”   vendors                                                                  wide social business
                                                  and “big” social networks
                                                                                                      transformations begin



             2006             2007           2008           2009           2010             2011          2012           2013


                                                                        Critical mass of social            Rise of Social HR
                       “Web 2.0”     Blogs, wikis, and                  business success
                       Peaks As      online communities                 stories is achieved (100+)
                                                                                                           Rise of Social CRM
                       A Term        enter the
                                     workplace                      Most public
                                                                    communication is now
                                                                    through social channels
                                                                    (July, 2009)


                                                          #DF12Social
The Perfect Storm Has Brought Us To Where We Are


 Moving beyond the org chart
       Internal groups                                “Social” is connecting Business &
                                                      People processes (CRM, HCM, etc.)
   External communities
                                                          Work is more transparent
                                                       Recognition/Reputation is built in




                                       w?
            New user experiences

                                     Ho
               Mobile Access                 Analytics / Big Data
             Application Stores              Cloud / In-Memory
                                             Industry Standards




                                   #DF12Social
What We’ve Learned: The Benefits of Social Business
Self-Reported Average Industry Improvements From Large Organizations
                                                                                              25-30% faster access to expertise!

  10-20% reduction in travel                                                                                                     30% faster customer care
                                            Increased Productivity                               Revenue Creation                processes!
  and communication costs!
                                                       Overcoming
                                                       distance and                                    Shorter external
                                                         time zone                                     support cycles
       10-15% reduction in !                            barriers to
      communication costs!
                                                       collaboration                                                               18% higher customer satisfaction!
10% decrease in operational                                                                                                        10% higher customer!
                                              Self-                                                                                loyalty!
                     costs!                  service                       Faster location                  Increased customer
                                             content                         of experts                        satisfaction &
                                             sharing                                                             retention
                                                              More rapid                        Better
                                                               new hire                        business
                                                               ramp-up                         decisions

                                                                                Improved
                                                                               connections
                                                         Less time               between                   Improved
                                                           spent               departments
  20-30% increase in access                             looking for            and internal
                                                                                                             global                 15% increase in successful
                                                                                                             sales
                to expertise!                          information                teams                    processes
                                                                                                                                    innovations & ideas!

   30% increase in speed of                    Cost Reduction                                  Connected Culture                    10% increased revenue!
                  access to!
                knowledge!                                                         35% increase in collaboration!
                                                                                   20% lower communication costs!

                     Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data.


                                                                       #DF12Social
Fully social organizations get outsized benefits




                                                            How orgs
                                                            will claim their
                                                            share of the
                                                            $1.3 Trillion
       Source: 2011 McKinsey Web 2.0 Survey                 Social Business
                                                            Proposition




                                              #DF12Social
Part 2: Where We Are Today




                    #DF12Social
Social Business projects are
          more strategic 

               and

     growing faster than ever
              before




#DF12Social
Virtually all data continue to show sustained

real-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM)




                              #DF12Social
Everything is becoming social!
Social features are appearing in virtually all new user experiences




                                         #DF12Social
The predicted social data explosion: It happened




                      #DF12Social
Social business moves into the C-Suite




                     #DF12Social
Burberry’s Social Business Transformation




                                                                                                     To The Bottom Line
                                                                                                       21% Increase
•  6,600+ Workers

•  10M+ Facebook
   Fans

•  15,000 Partners

                     Burberry CEO Angela Ahrendts Explores Their Social Enterprise Vision With 
                                Salesforce CEO Marc Benioff at Dreamforce 2011	





                                             #DF12Social
A Shift Is Taking Place




                      #DF12Social   `
From Simply Sharing, To Getting Work Done




 SOCIAL
Connected
   Sharing,	
  Transparency,	
                     Ge4ng	
  Work	
  Done	
  



Enterprise
         Discovery	
                             Core	
  Business	
  Processes	
  



BUSINESS
                                   #DF12Social
Integrating Social Into Core Business Processes

  Unstructured                                 Structured

                                          Sales           Human
 •  Status Updates
                                                         Resources
 •  Sharing
                                   Marketing                 Supply
 •  QA
                                                             Chain
 •  Exception Handling                 Engineering
                                                           Support/
 •  Expertise Location                                     Service
                                              Learning



                         #DF12Social
Type 1: Stream Level Integration

                      Can help information reach a broad
                      audience
      CRM
                      Enables discussion
                      Links or ideally embedded objects
    ERP
                      Context is lost, as comments are not part
                      of the system of record
     HR
                      Contributes to information overload



                     #DF12Social
Type 2: Embedded Experiences




                   #DF12Social
We’ve learned what social business looks like

•    Cross-divisional
•    Top-to-bottom
•    Involves key areas
•    Executives
•    Subject matter experts
•    HR  Legal
•    Middle Management
•    Workers
•    Community Managers



                              #DF12Social
And that a certain skill is essential for best results...




                        #DF12Social
Warning: Let’s Not Get Carried Away!




                     #DF12Social
So What’s Missing From The Current Solutions?

                            Social Business has provided
                              organizations with many
                                     benefits…

                          …but it has also created a new
                          set of technological and cultural
                                     challenges.




                    #DF12Social
Part 3: The Future Of Social Software




                      #DF12Social
Theme:
           Soci                              Helping People
                  al Ta                      Get Work Done
                          sk M
                               a   nage
                                          men
                                                t
    Perso
             nal W
                  orkflo
                             w Au
                                       toma
                                            tion
Collab
         orativ
               e App
                       licatio
                                  ns


                    #DF12Social
Social Task Management




    Constellation Research 2012 All Rights Reserved




                                                      #DF12Social
Salesforce Do.com




                    #DF12Social
Personal/Team Workflow Automation
Connecting multiple services /
websites together via a single
                                                                          then              Take action
rules engine.                                           If event                             Take action
                                                                                              Take action
                                                                                              Take action(s)
Enable conversations around
these event.

                                                                   then      Broadcast into activity stream for
                     Sales
Business use-cases




                                   New lead is created
                                                                                  everyone to discuss


                                    New collateral is              then    Post a link in the sales training group
                     Marketing         posted                                    and schedule a webinar


                                      New feature                  then          Add a task to the team’s task
                     Development        request                                      management board



                                                          #DF12Social
Collaborative (Micro) Applications



                                        Not just adding social to
                                       existing business process,
            blogs                           but creating new
            wikis                            applications for:
           forums
       communities                         Sales, Marketing
      activity streams                     HR, Engineering
                                               Finance




                         #DF12Social
Social business is one unified ecosystem




                     #DF12Social
Reconciliation of existing transaction systems with
engagement systems




                      #DF12Social
Social + Mobile = Future of User Experience


                         1 bill
                               ion 	

                                   s  mar tph
                                                     ones	

(
                                                               2012)	



      Smart Mobile	

                                                             Converged
                                                                                   “SoMo”	

                                                                          2)	

                                                                      (201
                                                         edia users	

                                                     m
                                         	

 ocial
                                          s
                        1.4 billion



      Social Media	

                                                             + Location-based services	

                                                                                  + All apps mobile	

                                                                                  + All apps with social features	

                                                                                  + Disposal mobile social networks	

                                                                                  + Sensors, NFC + social = possibilities	



                                          #DF12Social
Theme:
Turning Insights Into Action




                      #DF12Social
Analytics / Big Data
•  Intelligent filtering
  •    Streams                                   Data
  •    Search
                                         Data
•  Recommendations
  •    People                                   Data
  •    Pages
  •    Communities
•  Sentiment Analysis
  •    Internal
  •    External                           Decisions

                           #DF12Social
Social + data analytics = business intelligence




                      #DF12Social
Does Your Organization Have A Data Scientist?




                     #DF12Social
Big data + social media = business value




                      #DF12Social
Gamification

    R   ’s…
The                                                   Behavioral Dynamics
   Rank/Reputation:
   Leaderboards                                       Role:
                                                      How people work
                      today


   Reward:                    Gamification




                                               next
                                                      How people are
   Incentives                                         connected

   Route:                                             How people work
   Quests/Missions                                    together




                                 #DF12Social
Marketing: The Next Vertical For Social Business




   2011 = SCRM      2012 = HCM       2013 = Marketing




                     #DF12Social
Big ROI:
Engagement at scale




                      #DF12Social
Cost-effective scale:
Strategic mobilization enterprise advocates




                      #DF12Social
Stronger foundations for social business...




      ...dealing with regulatory, legal, and other issues seamlessly!

                          #DF12Social
Enterprise-wide organization around social business

                           •  CMO?
                           •  Corporate Communications?
                           •  Human Resources?
                           •  IT Dept?
                          Where then?
                           •  Social Business Office
                           •  Triumvirate




                     #DF12Social
A C-level role for social media




                       #DF12Social
This role will enable social across the entire
business




                       #DF12Social
Social as an integrated part of digital strategy




                       #DF12Social
Conclusion


      The future of social business is…..


                  Business!




                   #DF12Social
Dion Hinchcliffe             Alan Lepofsky
Executive Vice President    VP and Principal Analyst
    Dachis Group            Constellation Research
     @dhinchcliffe                @alanlepo




                     #DF12Social
#DF12Social

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Dreamforce 12: The Future of Social in the Enterprise with Dion Hinchcliffe and Alan Lepo

  • 1. The Future of Social #D F1 Inside the Enterprise 2 So cia Thought Leader Perspective l Dion Hinchcliffe Alan Lepofsky Executive Vice President, Dachis Group VP Principal Analyst, Constellation Research @dhinchcliffe @alanlepo Kuntal Vahalia Senior Director, Salesforce.com @kuntalvahalia Karthik Chakkarapani, Senior Solution Architect, Salesforce.com @kchakkarpani
  • 2. Safe harbor 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 intellectual property and other litigation, risks associated with 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-Q for the most recent fiscal quarter ended July 31, 2012. This 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. #DF12Social
  • 4. Agenda: The Evolution of Social Business   The Journey – What led us to where we are today?   Today – From simply sharing to getting work done   What’s Next – The future of social business #DF12Social
  • 5. Part 1: The Journey To Social Business #DF12Social
  • 6. Groupware? Collaboration? Social Software? Goal: To help people get their jobs done… … and help their organization be successful People need to be able to: •  Create, discover and share information •  Find the colleagues/communities that can help them (and vice versa) Wha whic t's in a n •  Build strong relationships with external h a other we call a me? that nam rose communities swee e would by any t - Sh s akes mell as pear •  At any time from a variety of devices e #DF12Social
  • 7. Social Software Is Not A New Idea Until now, most PC software was designed for individuals using individual PCs. But today, more and more people are working in teams on networked PCs that require a new kind of software. Software that lets them quickly share ideas and information no matter where, when or how they work. Enter Lotus Notes. The first software than actually thrives on the fact that people need to work together to be effective. Lotus Notes creates a new communications environment where users can develop applications - for sales tracking, project management, customer service, and free form discussions of all kinds - and routinely access and share this information from their desktop to anyone, anywhere in the world. In fact, no other software maximizes your investments in networked PCs like Lotus Notes. After all, helping people work together is what Lotus does best. ` #DF12Social
  • 8. How we got where we are today... Majority of The shake-out: 1.0 era companies now Most large companies select tactically engage a few large social suites in social media “Cambrian Explosion” Centralization: (internal, external McAfee Coins of social enterprise 1st notable wave of enterprise- The Rise of Facebook or both) “Enterprise 2.0” vendors wide social business and “big” social networks transformations begin 2006 2007 2008 2009 2010 2011 2012 2013 Critical mass of social Rise of Social HR “Web 2.0” Blogs, wikis, and business success Peaks As online communities stories is achieved (100+) Rise of Social CRM A Term enter the workplace Most public communication is now through social channels (July, 2009) #DF12Social
  • 9. The Perfect Storm Has Brought Us To Where We Are Moving beyond the org chart Internal groups “Social” is connecting Business & People processes (CRM, HCM, etc.) External communities Work is more transparent Recognition/Reputation is built in w? New user experiences Ho Mobile Access Analytics / Big Data Application Stores Cloud / In-Memory Industry Standards #DF12Social
  • 10. What We’ve Learned: The Benefits of Social Business Self-Reported Average Industry Improvements From Large Organizations 25-30% faster access to expertise! 10-20% reduction in travel 30% faster customer care Increased Productivity Revenue Creation processes! and communication costs! Overcoming distance and Shorter external time zone support cycles 10-15% reduction in ! barriers to communication costs! collaboration 18% higher customer satisfaction! 10% decrease in operational 10% higher customer! Self- loyalty! costs! service Faster location Increased customer content of experts satisfaction & sharing retention More rapid Better new hire business ramp-up decisions Improved connections Less time between Improved spent departments 20-30% increase in access looking for and internal global 15% increase in successful sales to expertise! information teams processes innovations & ideas! 30% increase in speed of Cost Reduction Connected Culture 10% increased revenue! access to! knowledge! 35% increase in collaboration! 20% lower communication costs! Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data. #DF12Social
  • 11. Fully social organizations get outsized benefits How orgs will claim their share of the $1.3 Trillion Source: 2011 McKinsey Web 2.0 Survey Social Business Proposition #DF12Social
  • 12. Part 2: Where We Are Today #DF12Social
  • 13. Social Business projects are more strategic 
 and
 growing faster than ever before #DF12Social
  • 14. Virtually all data continue to show sustained
 real-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM) #DF12Social
  • 15. Everything is becoming social! Social features are appearing in virtually all new user experiences #DF12Social
  • 16. The predicted social data explosion: It happened #DF12Social
  • 17. Social business moves into the C-Suite #DF12Social
  • 18. Burberry’s Social Business Transformation To The Bottom Line 21% Increase •  6,600+ Workers •  10M+ Facebook Fans •  15,000 Partners Burberry CEO Angela Ahrendts Explores Their Social Enterprise Vision With Salesforce CEO Marc Benioff at Dreamforce 2011 #DF12Social
  • 19. A Shift Is Taking Place #DF12Social `
  • 20. From Simply Sharing, To Getting Work Done SOCIAL Connected Sharing,  Transparency,   Ge4ng  Work  Done   Enterprise Discovery   Core  Business  Processes   BUSINESS #DF12Social
  • 21. Integrating Social Into Core Business Processes Unstructured Structured Sales Human •  Status Updates Resources •  Sharing Marketing Supply •  QA Chain •  Exception Handling Engineering Support/ •  Expertise Location Service Learning #DF12Social
  • 22. Type 1: Stream Level Integration Can help information reach a broad audience CRM Enables discussion Links or ideally embedded objects ERP Context is lost, as comments are not part of the system of record HR Contributes to information overload #DF12Social
  • 23. Type 2: Embedded Experiences #DF12Social
  • 24. We’ve learned what social business looks like •  Cross-divisional •  Top-to-bottom •  Involves key areas •  Executives •  Subject matter experts •  HR Legal •  Middle Management •  Workers •  Community Managers #DF12Social
  • 25. And that a certain skill is essential for best results... #DF12Social
  • 26. Warning: Let’s Not Get Carried Away! #DF12Social
  • 27. So What’s Missing From The Current Solutions? Social Business has provided organizations with many benefits… …but it has also created a new set of technological and cultural challenges. #DF12Social
  • 28. Part 3: The Future Of Social Software #DF12Social
  • 29. Theme: Soci Helping People al Ta Get Work Done sk M a nage men t Perso nal W orkflo w Au toma tion Collab orativ e App licatio ns #DF12Social
  • 30. Social Task Management Constellation Research 2012 All Rights Reserved #DF12Social
  • 31. Salesforce Do.com #DF12Social
  • 32. Personal/Team Workflow Automation Connecting multiple services / websites together via a single then Take action rules engine. If event Take action Take action Take action(s) Enable conversations around these event. then Broadcast into activity stream for Sales Business use-cases New lead is created everyone to discuss New collateral is then Post a link in the sales training group Marketing posted and schedule a webinar New feature then Add a task to the team’s task Development request management board #DF12Social
  • 33. Collaborative (Micro) Applications Not just adding social to existing business process, blogs but creating new wikis applications for: forums communities Sales, Marketing activity streams HR, Engineering Finance #DF12Social
  • 34. Social business is one unified ecosystem #DF12Social
  • 35. Reconciliation of existing transaction systems with engagement systems #DF12Social
  • 36. Social + Mobile = Future of User Experience 1 bill ion s mar tph ones ( 2012) Smart Mobile Converged “SoMo” 2) (201 edia users m ocial s 1.4 billion Social Media + Location-based services + All apps mobile + All apps with social features + Disposal mobile social networks + Sensors, NFC + social = possibilities #DF12Social
  • 37. Theme: Turning Insights Into Action #DF12Social
  • 38. Analytics / Big Data •  Intelligent filtering •  Streams Data •  Search Data •  Recommendations •  People Data •  Pages •  Communities •  Sentiment Analysis •  Internal •  External Decisions #DF12Social
  • 39. Social + data analytics = business intelligence #DF12Social
  • 40. Does Your Organization Have A Data Scientist? #DF12Social
  • 41. Big data + social media = business value #DF12Social
  • 42. Gamification R ’s… The Behavioral Dynamics Rank/Reputation: Leaderboards Role: How people work today Reward: Gamification next How people are Incentives connected Route: How people work Quests/Missions together #DF12Social
  • 43. Marketing: The Next Vertical For Social Business 2011 = SCRM 2012 = HCM 2013 = Marketing #DF12Social
  • 44. Big ROI: Engagement at scale #DF12Social
  • 45. Cost-effective scale: Strategic mobilization enterprise advocates #DF12Social
  • 46. Stronger foundations for social business... ...dealing with regulatory, legal, and other issues seamlessly! #DF12Social
  • 47. Enterprise-wide organization around social business •  CMO? •  Corporate Communications? •  Human Resources? •  IT Dept? Where then? •  Social Business Office •  Triumvirate #DF12Social
  • 48. A C-level role for social media #DF12Social
  • 49. This role will enable social across the entire business #DF12Social
  • 50. Social as an integrated part of digital strategy #DF12Social
  • 51. Conclusion The future of social business is….. Business! #DF12Social
  • 52. Dion Hinchcliffe Alan Lepofsky Executive Vice President VP and Principal Analyst Dachis Group Constellation Research @dhinchcliffe @alanlepo #DF12Social