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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
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.
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
Innovation and the Agile Enterprise Jeff Hunter Senior Director, HR Business Solutions [email_address]
The Blue Dress Incident How do I avoid the cost and risk of this problem in the future?
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
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”
Cost of Change
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”
Prototype & Model Examples And now…. IT:   Business Process Innovation
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
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
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
The EA Opportunity – People Management Problem:  Can’t Find Right People Reason:  Buyer’s Market Impact:  Top and Bottom Line  Real Business Impact
The Initial EA Analysis BIG PROBLEMS Talent Sourcing – Top Line Problem Contractor / Contract Management – Bottom Line Problem Evaluated these problems against BPI criteria Showed it made sense to innovate, but how?
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
Innovation Leads to Discovery Initial Innovation Leads to: Talent Tracking Talent Planning University Relations Management Event Planning and Management Repeated Process
Innovating – The Results We started seeing business results even as we were innovating Innovating Gets People Excited Real Data Uncovers Problems Faster Prototypes Become Common Language
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
Key Take-Aways Assume the Best Look for the Relationships First Start Small to Grow Big
Session Feedback Let 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, t hank you for filling out our survey. Additionally, please score each individual speaker on: Overall delivery of session
QUESTION & ANSWER

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E C L003 Hansen 091707

  • 1. The Agile Enterprise: Enabling Business Results & Innovation through SaaS Jeff Hunter, Electronic Arts Eric Hansen, salesforce.com Executives: C-Level Strategy
  • 2. 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.
  • 3. 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
  • 4. Innovation and the Agile Enterprise Jeff Hunter Senior Director, HR Business Solutions [email_address]
  • 5. The Blue Dress Incident How do I avoid the cost and risk of this problem in the future?
  • 6. 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
  • 7. 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”
  • 9. 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”
  • 10. Prototype & Model Examples And now…. IT: Business Process Innovation
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. The EA Opportunity – People Management Problem: Can’t Find Right People Reason: Buyer’s Market Impact: Top and Bottom Line Real Business Impact
  • 15. The Initial EA Analysis BIG PROBLEMS Talent Sourcing – Top Line Problem Contractor / Contract Management – Bottom Line Problem Evaluated these problems against BPI criteria Showed it made sense to innovate, but how?
  • 16. 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
  • 17. Innovation Leads to Discovery Initial Innovation Leads to: Talent Tracking Talent Planning University Relations Management Event Planning and Management Repeated Process
  • 18. Innovating – The Results We started seeing business results even as we were innovating Innovating Gets People Excited Real Data Uncovers Problems Faster Prototypes Become Common Language
  • 19. 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
  • 20. Key Take-Aways Assume the Best Look for the Relationships First Start Small to Grow Big
  • 21. Session Feedback Let 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, t hank you for filling out our survey. Additionally, please score each individual speaker on: Overall delivery of session