e c l003 hansen 091707

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The Agile Enterprise: Enabling Business Results & Innovation through SaaS Jeff Hunter, Electronic Arts Eric Hansen, salesforce.com Executives: C-Level Strategy

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Page 1: E C L003  Hansen 091707

The Agile Enterprise: Enabling Business Results & Innovation through SaaS

Jeff Hunter, Electronic Arts

Eric Hansen, salesforce.com

Executives: C-Level Strategy

Page 2: E C L003  Hansen 091707

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.

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• INDUSTRY: Digital Entertainment

• Revenue: Over $3 Billion in 2007

• EMPLOYEES: 8,000

• # USERS: 300 Users Globally

• PRODUCT(S) USED: Custom Recruiting and

Vendor Management Applications

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Innovation and the Agile Enterprise

Jeff Hunter

Senior Director, HR Business [email protected]

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The Blue Dress Incident

How do I avoid the cost and risk of this problem in the future?

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What to Learn About The Blue Dress Incident

“A picture is worth a thousand words, but an

experience is worth a thousand pictures”

Question: How do you “experience” software?

Answer: Prototypes

Insight: Rapidly iterating prototypes with real clients

generates outstanding results.

…. and next time I went with my wife to Macy’s

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Adventures at Euphorion

Euphorion

Speed between strategy and software

IT agility

Special Sauce: Innovation = Prototype For Play

Increased Agility = Decreased Cost of Change

“The faster and cheaper it becomes to experiment,

the more it makes sense to try a different way”

Page 8: E C L003  Hansen 091707

Cost of Change

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Iterating Prototypes to Reduce the Cost of Change

In 1997 Michael Schrage of MIT wrote in Serious Play

“Increasingly, prototypes are the key platforms and models are the core media for managing risk and creating value. They allow for cost-effective creativity, encourage profitable improvisation, and inspire organizations to collaborate in unexpected ways”

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Evaluating BPI Prototyping

Not all business processes should be innovated

Payroll vs. Recruiting

How do you know when to use BPI?

Relationship Based

Risk / Reward

Clear Results

Clear Clients

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The Ideal Prototyping Platform

SaaS

Configurable

Ease of Integration

Speed of Change

Relationship Based At Its Core

Efficient for business process models

Ecosystem

Efficient to share components of solution

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SaaS as Platform for BPI

• Key Features Already Enabled

• Data Sharing

• Security

• Workflow Approval & Notification

• API’s

• Reporting & Dashboards

• Business Process Configuration does not required

traditional Development effort

Page 14: E C L003  Hansen 091707

The EA Opportunity – People Management

Problem: Can’t Find Right People

Reason: Buyer’s Market

Impact: Top and Bottom Line

Real Business Impact

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The Initial EA Analysis

BIG PROBLEMS

1. Talent Sourcing – Top Line Problem

2. Contractor / Contract Management – Bottom Line

Problem

Evaluated these problems against BPI criteria

Showed it made sense to innovate, but how?

Page 16: E C L003  Hansen 091707

The EA Approach – BPI on Salesforce

Step 1 –SME’s Make Educated Guesses

ROI

Approach

Early Adopters

Step 2 – Prototype on Salesforce

1 Month to Launch

2 Weeks between Cycles

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Innovation Leads to Discovery

Initial Innovation Leads to:

Talent Tracking

Talent Planning

University Relations Management

Event Planning and Management

Repeated Process

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Innovating – The Results

We started seeing business results even as we were

innovating

1. Innovating Gets People Excited

2. Real Data Uncovers Problems Faster

3. Prototypes Become Common Language

Page 19: E C L003  Hansen 091707

Business Results

300% Increase in Response Rate

50% Reduction in Research Cost

User Time to Value Significantly Increased

Reduced Time and Cost of Initial Release from 9

Months to 2 Months

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Key Take-Aways

1. Assume the Best

2. Look for the Relationships First

3. Start Small to Grow Big

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Session FeedbackLet us know how we’re doing!

Please score the session from 5 to 1 (5=excellent,1=needs improvement) in the following categories:

Overall rating of the session Quality of content Strength of presentation delivery Relevance of the session to your organization

We strive to improve, thank you for filling out our survey.

Additionally, please score each individual speaker on: Overall delivery of session

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QUESTION & ANSWER