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Peter Schwartz
SVP, Strategic Planning
Salesforce
pschwartz@salesforce.com
@peterschwartz2
Innovation and Survival: How to
avoid getting Ubered
Basecamp, Copenhagen, 11/10/17
Forward-Looking Statements
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.
Statement under the Private Securities Litigation Reform Act of 1995
Tectonic events over the last year
Science and Technology
Embedded
Intelligence
Technology revolutions: accelerating the pace of change
The Mainframe
Source: WEF - Digital Transformation, Jan 2016
Technology revolutions: accelerating the pace of change
PCs put power in everyone’s hands
Source: WEF - Digital Transformation, Jan 2016
Technology revolutions: accelerating the pace of change
Smartphones–anywhere, anytime information
Source: WEF - Digital Transformation, Jan 2016
Technology revolutions: accelerating the pace of change
Converging tech means a new age of discontinuity
Source: WEF - Digital Transformation, Jan 2016
Technology revolutions: accelerating the pace of change
The beginnings of Artificial Intelligence
Source: WEF - Digital Transformation, Jan 2016
AI Mythology
General AI is still science
fiction
Machine intelligence applied to a narrow specialty,
taking the friction out of the everyday
What is Narrow AI?
Embedded
Intelligence
Clara
Calendaring
Assistant
Apple Watch
What will the future look like?
The Age of the Customer
Connect to your customers in a whole new way
Predictive
Marketin
g
Guided
Sales
Connected
Products
Conversational
Service
Actionable
Analytics
Intelligent
Communitie
s
Smart
Apps
Unified
Commerc
e
Customer
Single view
of the
Intelligent Customer Success Platform
Sales Service Marketing AnalyticsCommunity Apps Commerce IoT Quip
force.com
Heroku
Component
Exchange
Data Management
Platform
CRM Data
IoT & Social
Data
Platform
Applications
AppExchange
Predictive
Analytics
Machine &
Deep Learning
Natural Language
Processing
Mobile devices will remain
a vital hub…
What will the future look like?
…at the center of an
increasingly connected life
What will the future look like?
Stratospheric
Balloons
Solar-powered
Drones
Micro-satellites Light-based
New channels for connectivity
Here One combines the
latest in speaker tech with
augmented auditory
capabilities
AR Round 2
Autism Glass uses AR to
teach children how to
identify emotion
Therapy Glasses Hearables
ODG, ASUS, Sony,
Samsung, Google,
Microsoft, etc. 11+
releasing 2018
The Growing Set of Wearables
Brain Control
New User Interfaces
The neural control of machines
Everything around us will
be connected and awake
From personal to intimate computing
You know your
computer
Your computer knows
you
Service Sector Revolution: Digital Assistants for All
Prioritize & optimize
Prompt, as well as respond
Span personal & professional lives
Continuously learn
How interoperable will digital assistant ecosystems be?
Sensors in all aspects of our lives
Connected
Person
Connected
home
Connected
city
Connected
car
Connected
workplace
Home assistant
BREAKFAST
A day in the life of the interconnected world
Self-driving car
COMMUTE
A day in the life of the interconnected world
Connected office
OFFICE
A day in the life of the interconnected world
VR shared experience
A day in the life of the interconnected world
ENTERTAINMENT
Intimate computing depends on
machine intelligence advances
Source: Gartner
Maturity curve of analytics
BASECAMP CPH: Peter Schwartz, Salesforce
Tools, Talent, Treasure
Artificial Intelligence as a service
Machine Learning
Google Cloud Platform
Can machines replicate human tastes and sensibilities?
Man-Machine systems
Human-Machine symbiosis:
Intelligence augmentation
Man-Machine systems
Experts and algorithms
working together
Personal Data/Info
Economy
Source: FTC.gov
Source: FTC.gov
Data is the New Oil...We are the Wells
1.5k+
On over 200MM
Americans
Pieces of info
per consumer
While beneficial to both parties, there is
increasingly an imbalance of power.
Powerful ML algorithms are using our data
to make decisions about us and for us
What does this mean for
work and life?
Industries and jobs will always evolve
Source: U.S. Bureau of Labor Statistics, Sep 2016
Job activities, not entire occupations, will be automated
Source: McKinsey Global Institute, Jul 2016
v
New industries will continue
to emerge
AI will make this reality more likely
The rise of the independent workforce
Sources: MBO Partners: State of Independence in America – Jun 2016; Upwork: Freelancing in America – Oct 2015
‘11-‘16 < ‘16-‘21
2X growth rate
Drivers of the Independent Workforce
Business
Increasingly
competitive global
economy
Looking for
increased
flexibility
More cost efficient
to hire project
basis only
Workers
Jaded after
layoffs/pay cuts
Increasing workloads
and decreasing job
security
Greater work/life
balance; be your own
boss flexibility
Enablers
Cheaper, more
powerful/accessible
technology
Vastly improved
networks driven by
social platforms
The Peer Economy
Netflix AlgorithmNumer.AI Algorithmia
Turning big data into a valuable asset
Algorithm Economy
The Crowd Economy
The manufacturing revolution
The community revolution
Hyperchain Polychain CapitalCOIN - a new kind of AI service
What comes after Blockchain?
A wave of new FinTech is already here
Further develop
uniquely human skills
Polanyi’s Paradox:
We know more than we can tell
The most important skill:
How to learn (and relearn)
“The illiterate of the 21st
Century will not be those who
cannot read and write, but
those who cannot learn,
unlearn, and relearn”
— Alvin Toffler
New sources of learning
Fun and easy way to learn to be your best
New Learning Model
Product
Knowledge
HR &
Culture
Leadership &
Management
2.5M+ Badges
completed 200+ Badges
available
Visit trailhead.salesforce.com
and get started today
Future of Work Scenarios
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
New Jobs
Emerge Quickly
New Jobs
Emerge Slowly
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
New Jobs
Emerge Quickly
New Jobs
Emerge Slowly
Jobs Crisis
Focused investment in
training/re-training
Public sector intervention, UBI;
private sector automation tax
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
New Jobs
Emerge Quickly
New Jobs
Emerge Slowly
False Alarm
Jobs Crisis
Slow, manageable
change; non-urgent
Focused investment in
training/re-training
Public sector intervention, UBI;
private sector automation tax
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
New Jobs
Emerge Quickly
New Jobs
Emerge Slowly
False Alarm Labor Shortage
Jobs Crisis
Slow, manageable
change; non-urgent
Training investment & public-
private sector collaboration
on incentives
Focused investment in
training/re-training
Public sector intervention, UBI;
private sector automation tax
Future of Work Scenarios
Current Jobs
Displaced Quickly
Current Jobs
Displaced Slowly
New Jobs
Emerge Quickly
New Jobs
Emerge Slowly
New Economy
False Alarm Labor Shortage
Jobs Crisis
Slow, manageable
change; non-urgent
Training investment & public-
private sector collaboration
on incentives
Focused investment in
training/re-training
Public sector intervention, UBI;
private sector automation tax
“…not just number of jobs lost to more efficient
machines, but automation may prevent the
economy from creating enough new
jobs…automation is beginning to move in
and eliminate service and office jobs too”
The Automation Jobless
“…not just number of jobs lost to more efficient
machines, but automation may prevent the
economy from creating enough new
jobs…automation is beginning to move in
and eliminate service and office jobs too”
The Automation Jobless
- February 24, 1961
Peter Schwartz
SVP, Strategic Planning
Salesforce
pschwartz@salesforce.com
@pschwartz2

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BASECAMP CPH: Peter Schwartz, Salesforce

  • 1. Peter Schwartz SVP, Strategic Planning Salesforce pschwartz@salesforce.com @peterschwartz2 Innovation and Survival: How to avoid getting Ubered Basecamp, Copenhagen, 11/10/17
  • 2. Forward-Looking Statements 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. Statement under the Private Securities Litigation Reform Act of 1995
  • 3. Tectonic events over the last year
  • 5. Technology revolutions: accelerating the pace of change The Mainframe Source: WEF - Digital Transformation, Jan 2016
  • 6. Technology revolutions: accelerating the pace of change PCs put power in everyone’s hands Source: WEF - Digital Transformation, Jan 2016
  • 7. Technology revolutions: accelerating the pace of change Smartphones–anywhere, anytime information Source: WEF - Digital Transformation, Jan 2016
  • 8. Technology revolutions: accelerating the pace of change Converging tech means a new age of discontinuity Source: WEF - Digital Transformation, Jan 2016
  • 9. Technology revolutions: accelerating the pace of change The beginnings of Artificial Intelligence Source: WEF - Digital Transformation, Jan 2016
  • 10. AI Mythology General AI is still science fiction
  • 11. Machine intelligence applied to a narrow specialty, taking the friction out of the everyday What is Narrow AI? Embedded Intelligence
  • 14. What will the future look like?
  • 15. The Age of the Customer Connect to your customers in a whole new way Predictive Marketin g Guided Sales Connected Products Conversational Service Actionable Analytics Intelligent Communitie s Smart Apps Unified Commerc e Customer Single view of the
  • 16. Intelligent Customer Success Platform Sales Service Marketing AnalyticsCommunity Apps Commerce IoT Quip force.com Heroku Component Exchange Data Management Platform CRM Data IoT & Social Data Platform Applications AppExchange Predictive Analytics Machine & Deep Learning Natural Language Processing
  • 17. Mobile devices will remain a vital hub… What will the future look like?
  • 18. …at the center of an increasingly connected life What will the future look like?
  • 20. Here One combines the latest in speaker tech with augmented auditory capabilities AR Round 2 Autism Glass uses AR to teach children how to identify emotion Therapy Glasses Hearables ODG, ASUS, Sony, Samsung, Google, Microsoft, etc. 11+ releasing 2018 The Growing Set of Wearables
  • 21. Brain Control New User Interfaces The neural control of machines
  • 22. Everything around us will be connected and awake
  • 23. From personal to intimate computing You know your computer Your computer knows you
  • 24. Service Sector Revolution: Digital Assistants for All Prioritize & optimize Prompt, as well as respond Span personal & professional lives Continuously learn
  • 25. How interoperable will digital assistant ecosystems be?
  • 26. Sensors in all aspects of our lives Connected Person Connected home Connected city Connected car Connected workplace
  • 27. Home assistant BREAKFAST A day in the life of the interconnected world
  • 28. Self-driving car COMMUTE A day in the life of the interconnected world
  • 29. Connected office OFFICE A day in the life of the interconnected world
  • 30. VR shared experience A day in the life of the interconnected world ENTERTAINMENT
  • 31. Intimate computing depends on machine intelligence advances
  • 35. Artificial Intelligence as a service Machine Learning Google Cloud Platform
  • 36. Can machines replicate human tastes and sensibilities? Man-Machine systems
  • 37. Human-Machine symbiosis: Intelligence augmentation Man-Machine systems Experts and algorithms working together
  • 41. Data is the New Oil...We are the Wells 1.5k+ On over 200MM Americans Pieces of info per consumer While beneficial to both parties, there is increasingly an imbalance of power. Powerful ML algorithms are using our data to make decisions about us and for us
  • 42. What does this mean for work and life?
  • 43. Industries and jobs will always evolve Source: U.S. Bureau of Labor Statistics, Sep 2016
  • 44. Job activities, not entire occupations, will be automated Source: McKinsey Global Institute, Jul 2016 v
  • 45. New industries will continue to emerge AI will make this reality more likely
  • 46. The rise of the independent workforce Sources: MBO Partners: State of Independence in America – Jun 2016; Upwork: Freelancing in America – Oct 2015 ‘11-‘16 < ‘16-‘21 2X growth rate
  • 47. Drivers of the Independent Workforce Business Increasingly competitive global economy Looking for increased flexibility More cost efficient to hire project basis only Workers Jaded after layoffs/pay cuts Increasing workloads and decreasing job security Greater work/life balance; be your own boss flexibility Enablers Cheaper, more powerful/accessible technology Vastly improved networks driven by social platforms
  • 49. Netflix AlgorithmNumer.AI Algorithmia Turning big data into a valuable asset Algorithm Economy
  • 53. Hyperchain Polychain CapitalCOIN - a new kind of AI service What comes after Blockchain? A wave of new FinTech is already here
  • 54. Further develop uniquely human skills Polanyi’s Paradox: We know more than we can tell
  • 55. The most important skill: How to learn (and relearn) “The illiterate of the 21st Century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn” — Alvin Toffler
  • 56. New sources of learning
  • 57. Fun and easy way to learn to be your best New Learning Model Product Knowledge HR & Culture Leadership & Management 2.5M+ Badges completed 200+ Badges available Visit trailhead.salesforce.com and get started today
  • 58. Future of Work Scenarios
  • 59. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly
  • 60. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly New Jobs Emerge Quickly New Jobs Emerge Slowly
  • 61. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly New Jobs Emerge Quickly New Jobs Emerge Slowly Jobs Crisis Focused investment in training/re-training Public sector intervention, UBI; private sector automation tax
  • 62. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly New Jobs Emerge Quickly New Jobs Emerge Slowly False Alarm Jobs Crisis Slow, manageable change; non-urgent Focused investment in training/re-training Public sector intervention, UBI; private sector automation tax
  • 63. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly New Jobs Emerge Quickly New Jobs Emerge Slowly False Alarm Labor Shortage Jobs Crisis Slow, manageable change; non-urgent Training investment & public- private sector collaboration on incentives Focused investment in training/re-training Public sector intervention, UBI; private sector automation tax
  • 64. Future of Work Scenarios Current Jobs Displaced Quickly Current Jobs Displaced Slowly New Jobs Emerge Quickly New Jobs Emerge Slowly New Economy False Alarm Labor Shortage Jobs Crisis Slow, manageable change; non-urgent Training investment & public- private sector collaboration on incentives Focused investment in training/re-training Public sector intervention, UBI; private sector automation tax
  • 65. “…not just number of jobs lost to more efficient machines, but automation may prevent the economy from creating enough new jobs…automation is beginning to move in and eliminate service and office jobs too” The Automation Jobless
  • 66. “…not just number of jobs lost to more efficient machines, but automation may prevent the economy from creating enough new jobs…automation is beginning to move in and eliminate service and office jobs too” The Automation Jobless - February 24, 1961
  • 67. Peter Schwartz SVP, Strategic Planning Salesforce pschwartz@salesforce.com @pschwartz2