Opportunities in broken systems

Uber shows how opportunities arise when systems are broken

“Taxi drivers are good people, they are just treated badly”, Uber founder Travis Kalanick told Salesforce CEO Marc Benioff at Dreamforce last week.

Kalanick flagged how in most cities around the world the taxi industry is broken. Nowhere is that more true than in Australia and a piece I wrote for Business Spectator about the disruption to the nation’s taxi industry illustrates that well.

The success of Uber in disrupting those markets – although it should be noted the company is far from becoming profitable – shows the real opportunities lie where existing markets are broken or distorted.

If you’re benefiting from a broken market then this is a risk to your business. For outsiders, it’s an opportunity.

Marc Benioff’s five key business questions

There are five key questions every business leader has to answer for their venture to be successful says Salesforce founder Marc Benioff

Probably the best regular session of the annual Dreamforce conference is the final session where Salesforce founders Marc Benioff and Parker Harris answer questions from the attendees.

As with any open microphone session, some of the questions are silly but many highlight frustrations Salesforce’s customers have and some give the opportunity for an insight into Parker and Benioff’s thoughts away from the scripted glitz of the main keynotes.

One questioner asked Benioff and Parker what their advice would be to someone in their position of 16 years ago with a new business.

Forget the tech

“Don’t think about the tools or the technology,” said Harris. “Thing about the problems you can solve. Stay focused and work hard and build a great company.”

While Parker also emphasised a great team is another important element, Benioff flagged an element of luck in building a successful business, “we got the timing right.”

Ultimately though it came down to making the jump from a comfortable, if frustrating, corporate job to a risky startup.

“I remember I was working in a big company for a long time, very unhappy.” Benioff recalled and noted the decision to strike out on your own is very much a personal decision, that can only be done when you are convinced it is time.

The five questions of business

Knowing when that time has arrived comes down to five questions, Benioff believes.

“It all starts with you, you have to get clear about what is it that you really want, what is really important to you, how are you going to get it, how will you know when you’ve got it and what is preventing you from having it.”

“When you can answer all those five questions you’ll have clarity in your direction. The problem with most small businesses – and big businesses – is they can’t answer those questions.”

“If you can answer those questions then you can break out.”

Ultimately Benioff and Parker flag focus as the key individual attribute and being able to focus on answering those five questions is a very good first step to having a successful business.

Reinventing Microsoft in the age of cloud computing

Microsoft’s CEO Satya Nadella seems genuine in his push for cloud services and alliances, but there’s still a lot of marketing speak wrapped up

“Why does Microsoft exist?” Asked the company’s founder Satya Nadella at the Dreamforce 2015 conference.

Nadella has asked this question before and his answer at the San Francisco event was that Microsoft exists to empower people through technology, something that Bill Gates and Paul Allen envisaged in the mid 1970s when they founded new startup.

To show how he sees Microsoft’s position in the modern workplace, Nadella gave a not completely flawless demonstration of Microsoft’s integration with Salesforce.

The products Nadella pushed were Windows Phone and Windows 10, which he claims to be part of a major change in businesses with data transforming the way we work.

Interestingly, he framed the Windows 10 IoT strategy around endpoint security. While there are millions of vulnerable devices, it’s not clear shipping them with Microsoft’s firmware will resolve the problem.

“What’s the big technology shift? It’s how we use the data.” Nadella proclaimed in laying out how he sees a data culture transforming the places we work.

A Grand Pivot

Microsoft itself is dealing with a cultural transformation with the company shifting across to cloud based subscription services. “The thing that it’s done for us is it’s not a one-for-one move. It’s not like we’re just moving Exchange on premise to Exchange as a Service, it changes the value proposition for the customers.”

Nadella sees those cloud services as an opportunity to sell more products – and add more value – to customers, particularly small businesses.

The CEO’s role

A business’ success relies upon its culture and Nadella sees the role of the CEO as being about curating that culture, “I always ask what it is that defines us.”

Part of that culture is about becoming customer focused which involves thinking outside of one company’s products or silos, “how is our industry going to succeed? It’s going to succeed if we can add value our customers. Our customers are going to make choices that aren’t homogenous.”

Those varied choices are what’s driving Microsoft’s current push into alliances.  “If we are going to realise the power of technology, then these partnerships will amplify that,” says Nadella.

While there were nuggets of truth in Nadella’s presentation, there was also a lot of truisms and somewhat meaningless slogans. While Microsoft’s push onto the cloud and into alliances that were once considered unholy might be genuine, it’s hard not to think there’s still a lot of marketing speak wrapped around it.

Connecting people to spaces

Smartphones, beacons and smart software are the key to future retail success believes Proximity Insight’s Steve Orell

Beacon technologies are one of the hottest items in the Internet of Things with retailers, sports stadiums and hotels looking at how they  can use these devices to improve their operations and customer experiences.

At Dreamforce 2014 Proximity Insight’s Steve Orell spoke on the event’s wearable panel about how their service plugs into beacon technology and customer service.

Proximity Insight was born out of the 2013 Dreamforce Hackathon where Orell and his team were finalists. From that, the company set up operations in New York with a focus on customer relationship management in the retail industry.

Retail isn’t the only the field that Orell sees for Proximity Insight with the hotel and casino industries as being other targets.

“With the hotel, why check-in? Why not walk in and let your smartphone do it for you?” Orell asks.

“It’s all about making live so much more seamless and slick,” Orell adds. “There’s opportunities in every sector.”

For businesses looking at rolling out beacon technologies the key is to be adding value to enhance the customer experience, Orell believes.

“You have to be delivering something to the customer beyond tracking them, it’s about making the whole retail or hospitality experience better. It has to benefit the customer.”

With beacon technologies now becoming common and the supporting hardware being built into all smartphones, we can expect to see more applications coming onto the market. It’s worth considering how your business can use them to enhance the customer experience.

Paul travelled to Dreamforce 2014 as a guest of Salesforce

Abolishing the service visit

Will the internet of things change the way we service our cars and industrial equipment?

“Service used to be an act of damage control,” said Salesforce’s Peter Coffee at the recent Dreamforce conference. “You are bleeding brand equity until that problem is fixed.”

Coffee’s view is that the internet of things is an opportunity to delight the customer with proactive service that allows companies to fix customers’ problems before they happen.

Zero planned maintenance

Taking this idea further is GE’s Chief Economist, Marco Annunziata, who sees the internet of things as an opportunity to introduce the concept of Zero Planned Downtime where there is no need to stop machines for scheduled repairs and maintenance.

“A lot of the maintenance work is done on a fixed schedule,” Annunziata. “You end up wasting time and money servicing machines that are perfectly fine.”

“On the other hand you might miss that something is about to go wrong between two maintenance periods.”

“The idea of the industrial internet is that by gathering so much data from these machines themselves – plus having the software to analyse this data – you will have information that flags to you when intervention is needed.”

Annunziata’s view is that connected machines won’t need to have regular service intervals, instead of insisting a car has  an inspection every ten thousand kilometers where the tyres are replaced and the oil changed, often unnecessarily, the vehicle need only be called in for maintenance when its sensors flag that a part or consumable needs attention.

Finding the benefits

While that can mean big savings for car owners, it’s in fields such as aviation, mining and logistics where the greatest benefits of Zero Planned Downtime would be found.

For businesses it’s another example of how they will fall behind if they don’t invest in modern technology as those who invest in newer, connected equipment will be able to reduce downtime and maintenance cost.

How achievable Zero Planned Downtime is in many fields remains to be seen, not least because of regulatory hurdles in sectors like aviation, however the idea does promise to change the business model of companies that depend upon service revenue.

Delighting the customer – the new business normal

Peter Coffee, Salesforce Vice President for Strategic Research discusses the new business normal where mobile services, collaboration, community and understanding your data are essential tasks for every manager.

Salesforce’s Executive Vice President of Strategic Reserach, Peter Coffee joined the Decoding The New Economy channel at last week’s Dreamforce conference to discuss the new normal — delighting the customer.

Coffee’s role at Salesforce is to help the company’s potential clients understand the new normals of business life. “It’s a lot of listening,” he says.

In describing the new normal, Coffee is in tune with Salesforce’s CEO Marc Benioff in seeing mobile services as being one of the key parts of how business will look in the near future.

“The fundamental statement is your mobile device is no longer an accessory,” says Coffee. “It’s the first thing you reach for in the morning and it’s the last thing you touch at night.”

“Fundamentally people are mobile centric so we need to rethink our operations.”

Continuing the social journey

It’s not just mobile services that are changing the way we do, social media continues to be companies’ weak points in Coffee’s opinion.

“There’s research that’s come out of places like MIT that shows traditional print and broadcast media are still valuable for creating awareness of your brand but the final step of turning someone from knowing who you are into deciding to do business with you is now made today only when a trusted network confirms it.”

“People don’t make that final step of buying from you until they’ve consulted their trusted advisors.”

“Another fundamental change that’s happened is that the connectivity of the customer is such that if you have a customer that’s unhappy with you for even five or ten minutes there’s a tweet or a Facebook post or a LinkedIn update just begging to leak out and damage your brand,” says Coffee.

“The closer you can get to instantaneous resolution to the issue, the better.”

Internet of machines

With the internet of machines, the ability to resolve customers’ problems instantaneously becomes more more achievable in Coffee’s opinion.

“Connecting devices is an extraordinary thing,” says Coffee. “It takes things that we used to think we understood and turns them inside out.”

“If you are working with connected products you can identify behaviours across the entire population of those productslong before they become gross enough to bother the customer.”

“You can proactively reach out to a customer and say ‘you probably haven’t noticed anything but we’d like to come around and do a little calibration on your device any time in the next three days at your convenience.'”

“Wow! That’s not service, that’s customer care. That’s positive brand equity creation.”

Delighting the customers

All of these mobile, social and internet of things technologies will give businesses the tools to delight their customers and Coffee sees that as the great challenge in the new business normal.

While many businesses will meet the challenges presented by mobile customers and their connected machines Coffee warns those who don’t are in for a painful time.

“If you do not have delighted customers you have no market.” States Coffee, “the way that you delight customers is by making sure every interaction with you leaves them happier than they were before.”

“Traditional silos of sales, service, support and marketing must be dissolved into one new entity which is proactive customer connection.”

“Companies that neglect to adopt it will discover they have customers who are sensitive to nothing but price,” warns Coffee.

Paul travelled to Dreamforce in San Francisco as a guest of Salesforce.

The real thing behind the internet of things

We need to think beyond technology to get value the real value from the internet of things says Alicia Asin, the CEO and co-founder of Spanish sensor company Libelium.

We need to think beyond technology to get value the real value from the internet of things says Alicia Asin, the CEO and co-founder of Spanish sensor company Libelium.

Libelium and its CEO Alicia Asin has been covered previously on this blog and we had the opportunity to record an interview with Alicia at the 2013 Dreamforce conference.

Alicia told us about her vision for how she sees cities and governments evolving in an era of real time accessible information, in many ways it’s similar to where the Deputy Lord Mayor of Barcelona sees his city being at the end of this decade.

“I would say the biggest legacy the internet of things can bring is transparency,” says Alicia. “In the smart cities movement the IoT gives an opportunity for have a dashboard for cities.”

“You can see the investment made for reducing traffic investment downtown, the carbon footprint reduced and the return on investment,” says Alicia. “You can have very objective facts to supply to the citizens and they can make better decisions.”

For this vision to become true, it means government data has to open to the community which is something that challenges many administrations, however Alicia also told the story of how her company supplied Geiger counters to volunteers monitoring the radiation fallout around the damaged Fukushima nuclear reactor in Japan.

“We made a project in Fukushima when the nuclear accident happened where we sent some Geiger counters to the hacker space,” says Alicia. “Suddenly all the people with the Geiger counters started to publish the data onto the internet.”

“They were keeping a totally independent radiation map made by the activist citizens.”

Alicia raises an important point of how citizens can be using technology independently of governments. This was most notable in the Occupy movements across the United States that sprung up in late 2011 where hackers set up independent communications networks and recorded events outside the control of mainstream media and government agencies.

While citizens can use these tools to get around official restrictions, governments play an important role in developing new industries around these technologies, Alicia sees the smart city investments made by Spanish cities as creating the start of a Spanish Silicon Valley.

“Despite the economy, we are seeing a number of projects in Spain around smart cities,” Alicia observes. “In fact, I’m saying Spain is becoming the Silicon Valley for smart cities.”

“In terms of attracting big companies to look at what’s going on in Spain and to build a bigger brand around the Internet of Things, I think that really helps.”

With government and citizens working together, Alicia sees the Internet of Things delivering great changes to society as it enables citizens and makes governments more accountable.

“It’s the real thing, it’s beyond technology.”

Becoming an all mobile executive

Salesforce CEO Marc Benioff says he’s gone completely mobile, will other executives follow?

“I don’t want to use a laptop again,” Marc Benioff told the closing Dreamforce 2013 customer Q&A. “The desktop remains the biggest security threat to corporations — it’s a nightmare. The PC and laptop we never designed to be connected to a network.”

Benioff was walking his talk in promoting his company’s Salesforce One mobile platform, claiming at the Dreamforce conference opening that he hadn’t used a PC or laptop or nine months as he’s moved over to tablet and smartphone apps.

That push to move the company and its customers onto mobile services was emphasised by Peter Coffee, Salesforce’s Vice President for Strategic Research.

“Your mobile device is no longer an accessory,” says Coffee. “It’s the first thing you reach for in the morning and it’s the last thing you touch at night.”

Salesforce’s push into into the post-PC market follows Google and Apple’s lead, much to the distress of Microsoft and its partners.

“We saw the phenomenal engineering work of Scott Forstall at Apple and the visionary work of the late, great Steve Jobs,”  Benioff told his cutomers at the final Dreamforce Q&A. “When we saw the iPhone we sat up and thought ‘wow, what are we going to do about this?'”

“This is a paradigm shift, we’re moving from the desktop world to the mobile phone world and then of course we saw the iPad world emerge and that amplified it.”

Salesforce’s impressions were shared by much of the business community as senior executives, board members and company founders quickly embraced the first version of the iPad, which on its own triggered the Bring Your Own Device (BYOD) trend in enterprise computing.

In a mobile age, Benioff now sees three key priorities for Salesforce; “we want to be feed first, we want to be mobile first and we want to be social first.”

Regardless of Benioff’s vision, not everyone will go mobile which is something that Peter Coffee acknowledges.

“The laptop will occasionally be used to author creative work like a presentation or to deal with something that needs a large screen like pipeline analysis,” says Coffee.

Marc Benioff though is adamant. “Honestly I don’t ever want to use a laptop again,” he told his audience.

It will be interesting to see how many business leaders follow him in abandoning their desktops and portable computers as the post-PC era of computing develops.

Salesforce’s place in the web’s walled gardens

Can Salesforce take a place alongside Apple, Facebook, Amazon and Google?

“Did he just say we’re at the half-way mark?” Whispered the ashen faced journalist beside me as Mark Benioff’s Dreamforce keynote reached the 90 minute mark.

Benioff did and the presentation did indeed go three hours because Salesforce.com had a lot to announce with launches of new mobile apps, customer service programs and HR services.

At the press conference later in the day, Benioff said “we are interested in collaboration and the customer. the reason we’re in marketing is because our customers want us to be in marketing.”

An interesting part of this is the Facebook relationship, with the Buddy Media acquisition 10% of Facebook’s advertising revenue comes through  Salesforce. This in itself makes Salesforce a key Facebook partner.

Facebook’s relationship goes deeper with Salesforce, at the media conference Marc Benioff mentioned that the company’s purchase of Rypple came about because of urging from Tim Capos, Facebook’s CIO.

That deep relationship was on show in the opening keynote where Facebook were one of the strategic partners showcased by Benioff.

Of the products showcased, one of the important points that kept being raised was Salesforce’s role as the enterprise social media identity service.

A partnership between Salesforce and Facebook to provide online identity validation would effectively kill  Eric Schmidt’s aim of Google being the Internet’s identity service although Benioff was at pains in the media conference to emphasise there was room for more than one player.

Google are also being challenged by Benioff’s announcement of Chatterbox, a secure online file storage and sharing service.

While the focus with the Chatterbox announcement was on the threat this presents to Dropbox and Box.net, the bigger targets are Google Drive, Apple iCloud and Microsoft’s SkyDrive.

Salesforce’s move into the various fields of HR, marketing, file storage and collaboration are part of the company staking its own position among the various web empires.

With a strong enterprise position, it’s quite possible Salesforce could establish itself as the fifth of the Internet’s great empires.

Every empire needs an army and a particularly strong claim Salesforce would have are the ranks of developers and supporters gathering around the service’s open APIs.

The move to establish an independent position on the web would also explain Benioff’s commitment to HTML5 as this avoids locking the company into an Apple, Google or Microsoft dominated app environment.

We’ll see over time how Salesforce establishes their position among the internet empires, right now though their range of services, customer base and partner ecosystem means they are well placed to compete with the big four currently dominating the web.

Paul travelled to the San Francisco Dreamforce conference courtesy of Salesforce.com

Redefining the social business

Salesforce.com announce a range of new products at Dreamforce 2012

Over the last two years Salesforce.com have been one of the more aggressive buyers of cloud computing and social media startups with acquistions of companies like Rypple, Desk.com, Buddy Media and Radian6.

Today, ahead of the company’s annual Dreamforce conference in San Francisco, Salesforce.com announced a revamped product range that brings together the social media and big data tools from these acquisitions along with some in house innovations.

Salesforce expect nearly a hundred million enterprise tablet computer users and smartphones by 2016, so like all web based services, they have to make their platform available as an app. Salesforce’s new Touch iOS App allows users to use Salesforce.com as an app on the iPhone.

Despite Mark Zuckerburg’s disavowal of HTML5 last week, Salesforce remains committed to the standard despite developing an app for the iPhone.

“Initially we’re rolling out Touch in a way we’ve made sure works the way people want it to work on an iPad,” Peter Coffee, Vice President of Platform Research at Salesforce.com, says.

“We are reiterating our commitment to HTML 5 as a device and platform neutral cluster of standards.

“As HTML5 begins to clearly coalesce we’re making a major commitment to that and we’re going to lead the way while the opposition is still trying to work on one browser.”

Salesforce continues their focus on social media with their Chatter service becoming a key part of their Force.com cloud applications platform. Chatter itself is being extended with a new feature to enable companies to create their own branded communities.

That social integration continues as the company rolls out Social Key, an application which, as Andy MacMillan, senior vice president and general manager of Data.com says “will empower companies to derive value from social data for the first time.”

If Social Key does achieve a real measure of value from retweets and Facebook posts it may well mean many social media experts will have to return to multi-level marketing or real estate sales. This in itself is not a bad thing.

The new Salescloud platform uses Chatter to build business intelligence on customers, bringing data across a business to help sales teams target their efforts more effectively.

While sales is by definition the focus of Salesforce they are also launching a similar Chatter service for support teams. This compliments the acquisition of Assist.ly at the beginning of the year.

Marketing too is being targeted by Salesforce with the launch of Marketing Cloud that combines the Buddy Media Facebook marketing service and the Radian6 social media monitoring platform.

While already the leader in business cloud applications, Salesforce are making a strong bid to dominate the sector in a way that Microsoft did in the desktop computer industry twenty years ago.

Browsing through the 400 partner stands at the Dreamforce Expo shows Cloudforce  are building a deep ecosystem around their products that will make it hard for competitors to break into the space.

Whether Salesforce achieve this dominance remains to be seen, but they are certainly giving a new set of tools for businesses to understand their customers.

Pricing and Availability
Salesforce Touch is generally available today on iOS devices, and included in all Salesforce editions.

Sales Cloud Partner Communities is currently scheduled to be available in limited pilot in Fall 2012.

Sales Cloud Partner Communities is currently scheduled to be generally available the second half of 2013.

Data.com Social Key is currently scheduled to be generally available the second half of 2013.

Pricing of Sales Cloud Partner Communities and Data.com Social Key will be announced at general availability.

Living the Salesforce dream

Dreamforce showcases Salesforce.com’s vision of cloud computing, big data and social media’s future.

The history of Salesforce.com tracks the evolution of cloud computing. Founded by Marc Benioff and Parker Harris in a San Francisco apartment at the 1999 peak of the dot com boom, today the company has over 100,000 customers with a market capitalisation of 21 billion dollars.

While founded as a sales Customer Relationship Manager (CRM) service, Salesforce’s range of products has extended across a number of other business functions such as business intelligence and customer support.

Dreamforce is the company’s international major conference which in 2012 is expected to attract 90,000 attendees to hear what is planned for the platform as they expand into new fields.

Along with Salesforce are 350 partners exhibiting their services that plug into Salesforce’s system. As we saw at the Xero conference, the community of developers and support companies are as important to a software company’s success as its products.

One of the notable things about Salesforce is the company’s hunger for acquisitions having taken over twenty-four companies in the last few years. It will be interesting to see how Salesforce are integrating those startups.

Salesforce are probably the company at the forefront at adopting social media into their products as seen with the acquisitions of companies like Facebook advertising platform Buddy Media and the Rypple  social performance review service.

The move to mobile is changing how businesses interacts with customers, this is one of the challenges for Salesforce.

Just as Salesforce has tracked the rise of cloud computing, the company is now tracking the evolution of Big Data and social media.

The Dreamforce 2012 conference should give some insight into how the company, and other industries, are adapting to the challenges presented by the mobile web, big data and the social workplace.

Paul travelled to the Dreamforce conference courtesy of Cloudforce.