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Enterprise Transformation Strategic Innovation Day

Registration & Breakfast Welcome & Introductions Transformation: The KONE Way EVP Central & North Europe, Ari Lehtoranta, KONE Corporation (Leader of the Customer Experience Development Programme) Transformation in the Enterprise SVP Enterprise Transformation, Kevin Bandy, salesforce.com Coffee & Networking Break Agile and Efficient Selling MD Nordic CRM Service Line, Kari Kaario, Accenture Management Consulting Panel discussion with industry leaders EVP Central & North Europe, Ari Lehtoranta, KONE Corporation SVP Enterprise Transformation, Kevin Bandy, salesforce.com Country MD, Frank Korsström, Accenture Finland & Nordics Moderated by Kari Kaario, Accenture Management Consulting Lunch & Networking

Transformation: The KONE Way Ari Lehtoranta 28.8.2013

Contents

Starting change 2005

KONE’s way to develop competitiveness

Customer Experience Development in KONE

Situation 2/2005 • Global market share 9% • Strong in Europe, weak in Asia and

North America

• EBIT 8%

We decided the key direction for change in 2/2005

FROM TO Technology Customers & technology

Europe mindset Europe, North America & Asia Pacific mindset

Profit Profitable growth

Differentiation Differentiation & cost competitiveness

High fixed cost level Streamline and use fixed cost base for competitive advantage

Relatively slow Fast

Functional Cross-functional collaboration

We defined a new strategy 2/2005

KONE gives a performance edge to its customers with innovative services and

solutions.

Simultaneously, KONE’s products and services are cost competitive and its processes

characterized by globally aligned operational excellence.

We decided the 5 Must–Win Battles in order to put our strategy alive

CUSTOMER FOCUS 1 PRODUCT/SERVICE PORTFOLIO 2

OPERATIONAL EXCELLENCE 3 GLOBAL SOURCING 4

PRESENCE IN ASIA-PACIFIC 5

KONE WAY

We defined KONE Way process architecture 5/2005

KONE’s way to develop competitiveness

Development Programs support our continuous renewal

2005 2006 2007 2008 2009 2010 2011

Process optimization

Development of culture

Common vision

Agility and speed

Challenging industry leadership

Service Leadership

Innovative Solutions for People Flow™

Employee Engagement

Customer Experience

Delivery Chain Excellence

Environmental Excellence

Operational Excellence

People Flow Solutions

Customer Focus

People Leadership

Sourcing

Operational Excellence

Product and Service Excellence

Customer Focus

Focus in Asia

2012 2013

Phase 4: Customer Experience development Value selling Sales development Customer interactions development

Customer experience development in KONE

Phase 3: Tools integration and further development

Phase 2: Tools to support the process

Phase 1: Processes One common customer process Customer segment model Customer loyalty survey (NPI)

2006 2007 2008 2009 2013

Global CRM Process and tools training Customer data quality and KPIs

New KONE.com, integrated to CRM New tender and order tool (KTOC), integrated to CRM and SAP

Development of profitability

Me

Liikevoitto poislukien kertaluonteiset erät. Vertailutiedot vuodelta 2012 on oikaistu uudistetun IAS 19, Työsuhde-etuudet –standardin mukaisesti.

243

160

0

20

4060

80

100

120140

160

180

200

220240

260

280

Q4 Q3 Q2 Q1

15,5 %

19,2 %

2005 2013

13 ©KONE Oyj | 19. heinäkuuta 2013 | Osavuosikatsaus tammi–kesäkuulta 2013

2005 2013

Kevin F. Bandy SVP, Enterprise Transformation

Become a Customer Company Connect With Your Customers In A Whole New Way

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.

1960s Mainframe Computing

1970s Mini

Computing

1980s Client Server

Computing

x 10x 100x 1,000x 10,000x 100,000x

2010s Social

Revolution

1990s Cloud

Computing

2000s Mobile

Computing

Connected Customers

Connected Products

Connected Employees

Connected Partners

Social New ways to connect

Trust New ways to

build relationships

Mobile New ways to

reach customers

Big Data New ways to

discover insight

Community New ways to collaborate

Apps New ways to build apps

Cloud Computing New ways to connect everything

Consumer Packaged

Goods

High Margin Bundled Services

Greater Variety/Regional Relevance

Speed of Product Development

Automotive &

Manufacturing

Innovative Value Added Offerings

Simplify the Buying Process

Customer / Distributors Connections

Media &

Telecommunications

Virtual is Reality

À la carte Services

Loyalty via Customer Experience

Quick Service Restaurant Franchisors

Great Ideas From Customers

Social Feedback is Reality

Consistency Across Franchise

Retail & Commercial

Banking

Intra-Bank Client Lifetime Value

Mobile Banker-Client Interaction

Multi-Channel Client Marketing

Business Process

Outsourcing

Every Agent is a Salesperson

Management by Service Level

Contractual Resource Reporting

CSC Study " The Growing Importance of Sustainable Supply Chain Management: Creating a Supply Chain Strategy”

*

Old Supply Chain

New Supply Chain New Demand Chain

Sequential Processes Discrete Teams

Geographically constrained competition Few : Few communication

Old Demand Chain

Iterative Processes Connected Team

Global Competition - Global Customers Many : Many communication

• Volume of Connections are Increasing

• Time per Connection is Decreasing • Connections Own The Value Chain

Source

Return Return

Deliver Make

Source

Return Return

Deliver Make Source

Return Return

Deliver Make

Plan Plan

Supplier Company Retailer

Plan

Sell-Through %

Rate of Return Improved Inventory

Accuracy

Lower Fulfillment Costs

Improved Inventory Turnover

Lower out of Stock Rate

Increase in Perfect Order Rate

Days Sales Outstanding Back Order Rates

KP

I Im

pact

ed v

ia S

ocia

l

Increase % of truckload capacity utilized Increase in Truck turnaround time

Reduction in Percentage of defects

SCOR Model

Systems Of Differentiation

CORE Finance, ERP

Systems Of

Record

CRM

Systems Of Innovation

Contracts & Compliance

HR Apps

Mobile Apps E-Commerce

Site

IT Helpdesk

Connected Things

Connected Partners Connected

Employees

Connected Consumers

Departmental Apps

ERP Extension Apps

Project Management

Apps

✔ ✔ ✔

sms

Connected Things

Connected Partners Connected

Employees Connected Consumers

✔

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The Gartner Magic Quadrant is copyrighted 2013 by Gartner, Inc., and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from salesforce.com.

Magic Quadrant for the CRM Customer Engagement Center May 13, 2013 Analyst(s): Michael Maoz

The CRM customer engagement center (CEC) refers to a logical set of technologies and business

applications that are engineered to provide customer service and support, regardless of the

interaction (or engagement) channel

Gartner May 2013

- Maintain customer context regardless of interaction channel, including Social Media, Communities and traditional channels -The Agent has full context and knows what the customer has done leading up to current engagement - Deliver the appropriate business rule, next best action or information to meet the customer at the point of need

Increase Revenue Decrease Business OpEx


Increase Revenue Decrease Business OpEx Decrease Business OpEx



Decrease IT OpEx

Keep Perspective Understand where you were, where you are, and where you are heading

! First Significant Investment?

! Scope Shrink vs. Creep?

! Exogenous Effects?

! Learning Curve vs. Mature Use?

! Point in vs. Trend over Time?

! Measuring Consistently?

! New Business Insights?

! Unforeseen Network Effects?

! Qualified vs. Quantified Value?

! Solution Evolving with Users?

Business Value

Go to Market Desired

Capabilities

Competitive Differentiation

Increase Revenue

Reduce Assets

Reduce Costs

Execution & Compliance

Run Reliably

Supply Chain Risk Sensing

Supplier Community

Reduced Fallout

New Product Sensing

R6 Demand Sensing

Chatter Demand Planning

Enhanced Collaboration

Upstream and Downstream Visibility

Execution Excellence & Risk Mitigation

How do you sell as a team? How do you service customers everywhere?

How do you create customer, partner, vendor, distributor and employee communities?

How do you connect your products? How far do you extend the applications to become a customer company?

How do you listen to every customer?

How do you engage on every channel?

5 3

4

6

7

1

2

Connected Customers Connected

Products Connected Partners

Connected Employees

Agile and Efficient Selling • Entreprise Transformation

• August 28,2013

• Kari Kaario

• Accenture Management Consulting

Copyright © Accenture 2013 All Rights Reserved

Several Enterprise Transformation Triggers indicate that we need to look beyond incremental change

Turbulent Industry

Significant Economic Opportunity

No Clear Change Direction

Aggressive Expansion Plans

Outdated Business Model

Pre-existing Call to Action

1

3

5

2

4

6

FACT 1 2 3


The demand for more complex solutions is changing the way sales operates and engages with clients

FACT 1 2 3


Existing sales models slow down the flow of information and compromise the sales

force’s effectiveness and responsiveness

FACT 1 2 3


Enterprise Transformation consist of multiple Themes. Agile and Efficient Selling is driving several of them.

Growth and New Business

International Expansion

Science & Technology

Value Maximization

Operating Model

Restructuring

Strategic Cost Reduction

Growth Focused Cost Focused

Agile and Efficient Selling Agile and Efficient Selling


Sales and management processes are optimized for reporting rather

than selling

ISSUE 3 4 5 1 2 6


Professionals have unclear roles and responsibilities

ISSUE 3 4 5 1 2 6


Companies are organized in departmental silos and sales are supported by stand

alone systems, not integrated to marketing & customer service

ISSUE 3 4 5 1 2 6


Decision making is hierarchical and slow

ISSUE 3 4 5 1 2 6


Generating Leads &

Researching Accounts

Selling (Phone or Face-to-

Face)

Meetings & Administrative

Tasks

Account Service Calls &

Training

Source: CSO Insights - 2012 Sales Performance Optimization Study (over UDS 1B revenue)

ISSUE

Your sales people are using less than half of their time selling

3 4 5 1 2 6


Complexity of touch points and globalization are Driving Growth at accelerated pace

Information

StoreOffice

Gym

Concert Pub / Lounge

Parking

Library

School Web

Mobile

Radio

TV

Airport

Station Hotel

Restaurant/ Café

In the street

Home

Museum

Outdoor

Oil station

Theatre Cinema

Catalogue

Newspaper

Leaflet

Store window Vending machine

Sales AssistantLoyalty card

Kiosk

Contact center

E-mailSocial Network

Website

Bluetooth

SMS/ MMS

Videogames

TV/Radio advertisement

TV/Radio shows

Movie

Billboard

Promoter

News

Socialization Networking

Sample

Promotion

Emotion

Participation

The Touchpoint Explosion

New channels New devices

Anywhere, anytime Difficult to control

Globalization

Consolidation Growth & Innovation from

Emerging Markets Economic turbulence in Euro area

ISSUE 3 4 5 1 2 6


We need to manage the whole ecosystem not just our value chain

Source: Kaario, K. (2009). Transformation Kaleidoscope

FUTURE, Agile & Efficient Sales 1 2 3

Co-production between firms and their customer and their suppliers

Using IT to create new bridges between producers and customers

New forms of B2B commerce including the emergence of specialist “horizontal” players Consumer–to–consumer content sharing Peer-to-Peer markets operating outside the traditional value chain

Cooperative consumption by group of end–consumer

Changes in traditional B2B business models

Joint go to market

B2B Companies

B2C Companies

End- Consumer

Intermediaries

4

5 6

1

2 2

3

2

7

1

1

2

3

4

5

6

7

B2C Companies

8

8


Ad-hoc Systematic

Centralized

Local

3. Process employed

4. Entrepreneurship 1. On Your Own

2. Manage by Numbers

Sales & Channel mgmt

Dec

isio

n m

akin

g

FUTURE, Agile & Efficient Sales 1 2c 3

We need to dare to define and manage sales


You need to learn and benefit from Social Media tools

New client visit

Check calendar &

route

Ask for references from co-workers

Follow GPS and check-in at client

Announce about a

new deal

Update customer database

FUTURE, Agile & Efficient Sales 1 2 3a

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Client / opportunity

attractiveness

Our ability to win Low

Low

High

High

FUTURE, Agile & Efficient Sales 1 2 3b



Client / opportunity

attractiveness

Our ability to win Low

Low

High

High

Clear Bid

Clear No Bid

FUTURE, Agile & Efficient Sales 1 2 3b



Clients are expecting aligned sales and service operations

Break the silos to enable solution selling

Future processes and tools need to empower and benefit

the users

The logic of social media needs to be adopted to sales

management

SUMMARY

[email protected] 050-375 2671


Panel Discussion

Kevin Bandy is a senior executive at Salesforce.com with global experience in development of strategies, assets and tools that help companies improve their sales and operational capacities in pursuit of large-scale transformations or diversified growth efforts.

Ari Lehtoranta EVP Central & North Europe for KONE. He is also leading the Customer Experience Development Programme for the whole of KONE. Ari has extensive experience in managing sales and large scale transformations.

Frank Korsström is Managing Director Accenture Finland and Nordics. He has been supporting numerous clients from many industries over the years.

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Panel Discussion

How has your value chain changed? How does your ecosystem look like?

Where is your sales culture?

Which Enterprise Transformation themes are most relevant in your

business?

Are your customers demanding more complex and comprehensive

solutions?

What is the readiness of your sales force / rest of the organization in

relation to modern sales management?

How do you manage innovation? What are your capabilities related to

fast implementation?


Panel Discussion

How to motivate the use of new tools?

How much integration is needed?

What is the level of your organizations social media skills?

How to move from task completion to outcome creation?

Who should sponsor a agile sales program? The CEO? The

CSO? The CIO? All?