Stockholm: Speed of Change

Speed of change Stockholm Successful business in the digital age

#nordicspeed

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Cloud Computing Pioneer and Evangelist Our Mission

Mainframe Client/Server

Today 1960s 1980s

New Technology Model (Cloud)

New Business Model (Customers)

New Philanthropic Model (1:1:1)

Connect with Customers in a whole new way

Connect with your customers in a whole new way The Customer Success Platform

Sales Service

Marketing

Community Apps

Analytics

Shared services across applications The Customer Success Platform

2,700+ Partner Apps

Open Ecosystem

Workflow Data & Objects Identity

Fast App Dev & Customization

Analytics Collaboration Mobile UI

Scalable Metadata Platform

Complete CRM

Trusted Multitenant Cloud

Analytics Community Marketing Service Sales Apps

World’s #1 CRM company

World’s most admired software company

World’s most innovative company

Celebrating 15 Years of Customer Success

4TH YEAR IN A ROW! 2011 • 2012 • 2013 • 2014

#1 most admired in software

#8 best company to work for

Åsa Tamsons, McKinsey

Anders Mittag, PostNord

#nordicspeed

Wifi Password - Grand5577

In 2014 PostNord delivered

5.9 billion letters and other shipments

110 million parcels

2.5 billion kilos of goods

to the Nordic region’s 25 million residents and 2 million businesses.

The leading communications and logistics company in the Nordic region

5,341 distribution points

Innovation

Salesforce CRM January 2014 Number of users 670 Extra add on’s Marketo Actimizer All over smooth business implementation due to high user friendly interface and good project management

Implementation

To allow our people to connect with our customers in a new way

Sell more to our Nordic customers, across countries and business units

Further enhance our customer satisfaction and brand consistency

Our vision

Collaboration

Sales performance

Performance Dashboards Transparent view across the organization

Increased sell / cross sell Identify Nordic Accounts and serve them

accordingly Cross border best practice sharing and

collaboration Nordic single way og working Manage Nordic customer Ability to create shared service organization and

support Will be an enabler and support the ambition to be

the Nordic partner

Benefits of a common solution

Rolf Hall & Lars Göransson, Salesforce

Sales Service

Marketing

Community Apps

Analytics

Analytics for the rest of us Analytics Cloud

Powered by the Wave Platform Analytics Cloud: Analytics for the Rest of Us

Mobile insight on any device

Everyone gets answers faster than ever

Platform for any data, any app

Extend the Platform

Self Service Collaboration Exploration Analytic Apps Search Based Any Data Governance & Trust

Grow sales faster Sales Cloud

Sales Service

Marketing

Community Apps

Analytics

Hard to Grow Sales if Sales Process is Broken

Manual Processes

Hard to find information and experts

Time wasted on emails and approvals

Limited coaching and feedback

No lead routing or opportunity management

Lack of pipeline visibility

Poor data quality

Slow Sales Cycles

Missed Target

No Mobile Access

Hard to access information on-the-go

No way to access all your critical apps in one place

Hard to manage your day from anywhere

Sales Cloud: World’s #1 Sales App

Sell Smarter

Sell Faster

Sell from Anywhere

Transform the customer experience with Service on Salesforce Service Cloud

Sales Service

Marketing

Community Apps

Analytics

Unhappy Customers

Difficult to Service Your Customers Everywhere

No context Not personalized

Inaccurate answers

Poor Customer Experiences

Siloed service channels

Multiple knowledge bases

No support for social

Inconsistent Service Across Channels

92% Companies reported decline in

Customer Satisfaction

Multiple service screens

No single knowledge source

Not connected to back-office

Low Agent Productivity

54% Agents must use multiple sources to

answer inquiries

86% Customers stop doing business after one negative interaction

Service Platform for Customer Success Transform the customer experience with Service on Salesforce

Personalized Service

Smarter Support

Innovate Faster

Connect 1:1 with every customer, anywhere

Empower agents and managers with the right tools and intelligence

Build and scale at the speed of your customers

Marketing Cloud

Sales Service

Marketing

Community Apps

Four Questions

Do you know who your customers are?

Where are they in their journey?

Are you engaging and moving them along the journey?

Are you measuring the impact on your business goals?

Marketing Cloud The Platform for 1:1 Customer Journeys

Build a single view of the customer Plan and optimize the customer journey Deliver personalized content across every channel and device Measure the impact on your business

Journeys Contacts Content Channels Analytics Apps

Martha Bennett, Forrester

Making Your Data Speak Martha Bennett, Principal Analyst

April 2015

Guess which car service continues to be widely used? ›Cheaper

›More convenient

›Better service

“Uber-isation of all industries…”

This is the world we live in …

65% 55%

40% 30%

35% 45%

60% 70%

… and failure to embrace it is not an option

New companies in the Fortune 1000 Top 20

Source for chart on left: Built to Change: How to Achieve Sustained Organizational Effectiveness, 2006 *estimated

1973-1983 1983-1993 1993-2003 2003-2013*

Less than 15% of companies in the

original 1955 Fortune 500 list exist today

Good To Great characteristics: not enough (bankrupt 2009)

(home mortgage scandal)

(improvements in past two years, but transformation from mail-based business remains work in progress)

(absorbed by P&G)

(received $25B from TARP)

(performed adequately)

(performed adequately) (performed adequately)

(only one in list to outperform)

December 2014: Investing in the portfolio of those 11 great companies covered in 2001 would result in underperforming the S&P 500.

Focus & market dominance: not enough

(absorbed by DHL)

(underperforming — missed mobile market)

(net income fell 72% before company was taken private in 2013)

(underperforming despite repeated turn-around initiatives)

Disrupt, adapt, reinvent – or be disrupted

Digital dysfunction at executive level

Source: Forrester/Russell Reynolds 2014 Digital Business Survey

93% • Believe that digital technologies will disrupt their business over the next 12

months

74% • Claim the company has a “digital” strategy

33% • Think it’s the right “digital” strategy

15% • Believe they have the right people and skills to execute the strategy

Photo © Martha Bennett

What are your customers really buying ?

… to selling film

From selling memories ….

What do these companies sell?

Key trend: selling an outcome Used to sell: › Aero engines › Air conditioning units › Lifts/Elevators › Cars › Agricultural machinery › Medical testing devices › Health insurance › Toothbrush

Now sell, or may in future: › Units of propulsion › The right temperature › Moving people/goods up/down › Ability to get from A to B › Optimum yields › Number of tests › Wellness program › Healthy mouth and teeth

Turn Data Into Business Insights More Deeper For Everyone

Results need to be pertinent & trustworthy

Business outcome

Data sources

Deeper insights

More data

For everyone

What business value do we want?

Who needs what insights for this?

What analysis tools do we need?

How can we manage all the data needed?

What data do we have?

How can we process that

What can we learn from this

How do we deliver

those insights?

What business value can we create?

What data sources do we need?

There’s no single right way to get there B

Making your data speak: 3 Cs to success Culture

• Data treated as an asset

• Data-driven • Data shared

across silos

Capabilities • Advanced data

management, delivery and analysis

Competency • Technology skills • Analytical skills • New approach to

data governance • Agile processes

Data at its most eloquent

Focus on getting the basics right 1. Always start with a question that’s

linked to a business objective or known issue

2. Create an environment that supports collaboration, agility and short time to value

3. Having made your data speak, be prepared to do what’s needed

Thank you

McKinsey DigitalWinning in Digital

Salesforce.com Nordic conference

Presentation | April 23, 2015

1. What is causing the digital disruption?

2. How is the disruption playing out?

3. What challenges will businesses face?

4. How to address the strategic challenges?

5. How to address the leadership challenges?

Discussion today

SET OF HARD TO REVERSE CHOICES YOU MAKE IN THE FACE OF UNCERTAINTY TO GENERATE PROFIT BY CAPTURING CUSTOMERS AND BEATING COMPETITORS

IT’S NOT ABOUT DIGITAL STRATEGY, IT’S ABOUT STRATEGY IN THE DIGITAL AGE

SUSTAINING PROFIT

A. POSITIONAL ADVANTAGE

SUSTAINING PROFIT

A. POSITIONAL ADVANTAGE

B. PROPRIETARY ADVANTAGE

“THE MORE WE COMPETE, THE LESS WE GAIN.” – Peter Thiel

CONTROL POINT DISRUPTION

WHAT‘S CAUSING THE DIGITAL DISRUPTION?THE SECOND MACHINE AGE

1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?

UBIQUITOUS CONNECTIVITY

TRANSPARENT ACCESS TO DATA ON A MASSIVE SCALE

DECREASING COST OF COMPUTER PROCESSING POWER

HOW THE DISRUPTION IS PLAYING OUT?

2. HOW IS DISRUPTION PLAYING OUT?

CUSTOMER POWER IS PARAMOUNT

…this year more unique information will be generated than during the

PAST 5,000 YEARS

…each month,

4 million man years

is spent online

…by 2016,

200,000 HRSof video will be

STREAMED EVERY SEC

…approximately

17 BILLIONdevices are connected to

the internet

…a smartphone is

1,000,000x cheaper

100,000x smaller

and 10,000x morepowerful than the

MIT computer in 1965

…average 21-year-olds exchanged

250,00010,000 HRSon a mobile phone

messages and spent

…the world's data centers consume ~1.5% OF

ALL POWER or little more

than 2x the power consumption of Sweden

2,378Number of websites worldwide in 1994

1,110,000,000

A NEW GENERATION EXPECTING DIGITAL BY DEFAULT…

"Any screen will do" In store experiences polarising

Rise of the hyper-informed customer

Always on

Your world in your pocket You can own the customer experience … not the customer

Merging digital and physical

…AND BEHAVIOUR CHANGING RAPIDLY

CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE

MONEY MOVES UNEVENLY

NEW CAPABILITIES ARE NEEDED

CHANGE HAPPENS FASTER

CUSTOMER POWER IS PARAMOUNT

CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE

MONEY MOVES UNEVENLY

NEW CAPABILITIES ARE NEEDED

CHANGE HAPPENS FASTER

ECOSYSTEMS ARE REDRAWN

MONEY MOVES UNEVENLY "Your margin is my opportunity"

Jeff Bezos

A TRACTOR

WHAT CHALLENGES WILL BUSINESSES FACE?

Rethinking your overarching strategy in light of industry fundamentals, trade-offs, and sources of advantage altered by digital disruption

Designing and implementing operational

digital initiatives, e.g., big data

enabled supply chain, mobile/

online stores, etc.

60%+ of CXOs don’t have a digital strategy or it does not link to the

broader corporate strategy

60%+ of CXOs aredirectly engaged in digital

business initiatives

Digital Transformation

Strategy in digital age

How to win

3. WHAT CHALLENGES WILL BUSINESSES FACE?

IT and the business don’t talk

Leadership are not digital natives

Resource re-allocation is tough

Legacy ways can seem like immovable barriers

You don’t have the talent you need

The leadership challenge

Embody the habit of successful digital

executives

The strategic challenge

Uncover the magic, be focused on where the real business value are, and be

granular with what you go after

The technology challenge

Set up your organization and capabilities to enable

fast changes

HOW TO ADDRESS THE STRATEGIC CHALLENGES?

CONTROL POINT DISRUPTION4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?

Product/service dev

Marketing & sales

Operations

Finance & MIS

Risk mgmt

HR & org

Connectivity with customers, colleagues, suppliers and other stakeholders 1

Digital reputation management

Virtual co-making

Real-time supply chain

Social network risk analysis

‘Golden source’ MIS

On-demand processing power

Social network recruiting

Decision-making based on ‘big data’ and advanced analytics2

Next product to buy

Personalised product and service offerings

Dynamic workflow

Real-time automated decision makingReal-time financials

Dynamic hardware provisioning

Predictive resource management

Automation of manual activity, replacing labourwith technology3

Mobile channel

Virtual product testing

Straight-through processing

Automated testing

Paperless MIS

Sensor-driven maintenance scheduling

Self-service training

Behavioral pricing

Digitally augmented products

Crowd-sourced support

Cloud computing

Crowd-funding

Risk socialization

Virtual workforce

Innovation of products, business models and operating models4

CONTROL POINT DISRUPTION4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?

Product/service dev

Marketing & sales

Operations

Finance & MIS

Risk mgmt

HR & org

Connectivity with customers, colleagues, suppliers and other stakeholders 1

Digital reputation management

Virtual co-making

Real-time supply chain

Social network risk analysis

‘Golden source’ MIS

On-demand processing power

Social network recruiting

Decision-making based on ‘big data’ and advanced analytics2

Next product to buy

Personalised product and service offerings

Dynamic workflow

Real-time automated decision makingReal-time financials

Dynamic hardware provisioning

Predictive resource management

Automation of manual activity, replacing labourwith technology3

Mobile channel

Virtual product testing

Straight-through processing

Automated testing

Paperless MIS

Sensor-driven maintenance scheduling

Self-service training

Behavioral pricing

Digitally augmented products

Crowd-sourced support

Cloud computing

Crowd-funding

Risk socialization

Virtual workforce

Innovation of products, business models and operating models4UNDERSTANDING THE

OPPORTUNITIES AND YOUR CHOSEN PLAYS AS YOUR BUSINESS GETS RE-IMAGINED

4. WHAT DOES THIS MEAN FOR OUR APPROACH TO STRATEGY?

New questions at each stage

▪ Are we being attacked or disrupted? Should we disrupt ourselves? ▪ If software is eating the world, how will it eat our business? ▪ How is our value chain transforming? ▪ Which players from outside our industry could now enter?▪ What will my workforce look like in 5 years’ time as automation and

machine learning play out?

HOW TO ADDRESS THE LEADERSHIP CHALLENGES?

A SET UNREASONABLE ASPIRATIONS

What does this mean? What does this not mean? ▪ Board level digital "owner"▪ Stretching and coherent

digital vision▪ Value-oriented targets

(i.e., Digital P&L)

▪ Adding "digital" to existing responsibilities

▪ Uncoordinated digital initiatives▪ Digital interaction targets

5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?

B CHALLENGE EVERYTHING

What does this mean? What does this not mean? ▪ Challenge the status-quo▪ Go your own way▪ Involve regulators in

change

▪ Accept historic norms▪ Follow others▪ Put your head in the sand

C OBSESS ABOUT CUSTOMERS

What does this mean? What does this not mean? ▪ Learn from every inter-

action with the customer▪ Relentless iteration of

customer experience

▪ Infrequent aggregation of customer insights

▪ Ad-hoc patching of customer processes

D FOLLOW THE MONEY

What does this mean? What does this not mean? ▪ Zero-base tech budget

aligned with value at stake▪ Invest in digital across the

value chain▪ Scale success quickly

▪ Incremental spend in line with last year’s budget allocation

▪ Focus digital effort only on customer facing functions

▪ Pilots never rolled out

E BE QUICK AND DATA DRIVEN

What does this mean? What does this not mean? ▪ Continuous proposition

iteration▪ Live beta▪ Golden source of truth

▪ 12 month release cycles▪ Quarterly investment boards▪ Multiple customer records

F ACQUIRE CAPABILITIES

What does this mean? What does this not mean? ▪ Buy scarce talent en-masse▪ Move into adjacent markets▪ Hire for skills, not industry

experience

▪ Add resources one-by-one▪ Random buying spree▪ Recycling talent from industry

G RING FENCE TALENT

What does this mean? What does this not mean? ▪ Protect digital talent from

business-as-usual▪ Digital talent management

▪ Embed digital in existing businesses

▪ Retrofit existing HR model

Set unreasonable aspirationsA

Challenge everythingB

Be obsessed with the customerC

Follow the moneyD

Be quick and data drivenE

Acquire new capabilitiesF

Ring fence and cultivate digital talentG

Digital changes value chains and enables new business models

DO DIFFERENT THINGSDigital changes the traditional way of doing business

DO THINGS DIFFERENTLY

AS FINAL WORDS:“LOOK UP AND LOOK OUTDOCTOR HEAL THYSELF”

Stockholm: Speed of Change

Business

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