Snowforce 2017 Keynote - Peter Coffee

Innovation
in Engagement
and Connection
Snowforce asks; Snowforce gets
Peter Coffee
VP for Strategic Research
Salesforce

You asked for it: you’ll get it

• Trust
Dynamic threat environments; rising awareness and expectations
• Governance
Global markets; narrow perspectives; ‘crown jewel’ data
• Mobility
Productivity improvement; BYOD challenges
• Social Interaction
External communities; internal collaboration; high-velocity operations
• Talent Development and Technology Change
Where will we get tomorrow’s key people? How will practices change?
“The theme this year is the diffusion of tech jobs out of the traditional tech sector and into healthcare,
finance and even in some cases government and retail” – Andrew Chamberlain, Chief Economist, Glassdoor (USA Today, 22 February 2017)
#10: Department of Adult Supervision
50 Best Jobs, February 2017
1. Data Scientist
2. DevOps Engineer
3. Data Engineer
4. Tax Manager
5. Analytics Manager
6. HR Manager
7. Database Administrator
8. Strategy Manager
9. UX Designer
10. Solutions Architect
…
16. Software Engineer
www.glassdoor.com/List/Best-Jobs-in-
America-LST_KQ0,20.htm

Evolving “Shadow IT” into “Citizen Development”
“We’ve built more than 200 apps on Salesforce, and most of them
were built by ‘citizen developers,’” said Herry Stallings, AVP of
Applications Development, USAA. “Salesforce gives us all the cloud
services we need to achieve incredible speed and scale in our app
development, allowing us to keep innovating and grow our business.”
App Cloud integrates the platform services Salesforce is known for—
including Force, Heroku Enterprise and Lightning—with new shared
identity, data and network services to empower CIOs to deliver
connected apps for any business need. In addition, App Cloud’s
platform services include Trailhead, a new interactive learning
environment for all Salesforce app creators, and the AppExchange,
the largest enterprise app marketplace in the world.

#9 and #8: the Talent Pipeline
“In many industries and countries,
the most in-demand occupations
or specialties did not exist 10 or
even five years ago, and the pace
of change is set to accelerate.
“By one popular estimate, 65% of
children entering primary school
today will ultimately end up
working in completely new job
types that don’t yet exist.”
– World Economic Forum
The Future of Jobs
January 2016
Philippe Kruchten examined 1988 issues
of IEEE Software and evaluated which
ideas “are still important or at least
recognizable.” He estimated that the half-
life of software engineering ideas is likely
not much more than 5 years.
A working engineer needs ~7½ hours’
study per week, 48 weeks/year, to stay as
current as at time of first college degree.
spectrum.ieee.org/riskfactor/computing/it/an-engineering-
career-only-a-young-persons-game

Learning to code – a non-trivial skill, but is it a career?
F1 “Driver”: $30 million per year
Long-Haul “Driver”: $90k/year
Uber “Driver”: $34k/year*
Think in code?
Career as “coder”?
* www.buzzfeed.com/johanabhuiyan/what-uber-drivers-really-make-according-to-their-pay-stubs

Transdisciplinarity: “We can no longer rely on just
bringing together groups of specialists to solve
our most complex problems”
Computational Thinking: “To understand the
meaning, the trends and patterns of what the
data is telling us becomes paramount.”
– Institute for the Future
Sensemaking: “When you ask creative people
how they did something, they feel a little guilty
because they didn’t really do it, they just saw
something” – Steve Jobs
Social Intelligence: “Influence and relationship-
building will now come from asking the right
questions, not necessarily having all the
answers” – John Hagel
What talents and skills aren’t being replaced by technology?

#7: New demands for sales and service
“247 expectations” are real
www.convinceandconvert.com/social-media-research/42-percent-of-consumers-
complaining-in-social-media-expect-60-minute-response-time/

You’re not just competing with “The Competition”
“Multi-device customers…”
Fixed phone and desktop PC are actually in decline
Tablets’ importance to purchasing >> % of device count
You must know the behavior of your customer (or internal user)
“…with 247 expectations…”
hbr.org

You’re Not Just Competing With “The Competition”
“Multi-device customers…”
Fixed phone and desktop PC are actually in decline
Tablets’ importance to purchasing >> % of device count
You must know the behavior of your customer (or internal user)
“…with 247 expectations…”
hbr.org

#6: The future of “the App”?
Phone-Book World
• Customer looks up your company by name

Web World
• Customer Googles for help
• If you don’t come up on first page, you don’t exist
• If network doesn’t validate you, you don’t get called
Connected World
• Customer searches the app store
• Your app needs to solve problems…
…not just offer information

The “Search” feature tells
you something’s wrong
Tomorrow’s “app”
extends a lexicon of APIs
Any dedicated UI is just a
“serving suggestion”
But…a silo in your hand…is still a silo

Think through automation – to experience design
blog.xamarin.com/expand-your-apps-reach-with-googles-app-invites/
dzone.com/articles/android-60-marshmallow-and-ios-9

Are “Apps” already legacy tech?
Conversational commerce largely pertains to
utilizing chat, messaging, or other natural
language interfaces (i.e. voice) to interact with
people, brands, or services and bots that
heretofore have had no real place in the
bidirectional, asynchronous messaging context.
The net result is that you and I will be talking to
brands and companies over Facebook Messenger,
WhatsApp, Telegram, Slack, and elsewhere before
year’s end.
- Chris Messina

Conversational connection enables superior experience
The moment social messaging was
opened up as a service channel in March
2016, the volume of messages shot up.
KLM gets on average five questions a
minute via Facebook Messenger, with
13 messages a minute during peak
times (15h-17h)

Doing this with people is not sustainable
Doing this with algorithms is essential
Doing it everywhere is finally an option
#5: AI leverage will be crucial

What was “artificial intelligence” supposed to be? (emphasis added)What was “artificial intelligence” supposed to be?
A PROPOSAL FOR THE DARTMOUTH SUMMER RESEARCH
PROJECT ON ARTIFICIAL INTELLIGENCE
J. McCarthy, Dartmouth College
M. L. Minsky, Harvard University
N. Rochester, I.B.M. Corporation
C.E. Shannon, Bell Telephone Laboratories
August 31, 1955
We propose that a 2 month, 10 man study of artificial intelligence
be carried out during the summer of 1956 at Dartmouth College in
Hanover, New Hampshire. The study is to proceed on the basis of
the conjecture that every aspect of learning or any other feature of
intelligence can in principle be so precisely described that a machine
can be made to simulate it. An attempt will be made to find how to
make machines use language, form abstractions and concepts, solve
kinds of problems now reserved for humans, and improve
themselves. We think that a significant advance can be made in
one or more of these problems if a carefully selected group of
scientists work on it together for a summer.
A PROPOSAL FOR THE DARTMOUTH SUMMER RESEARCH
PROJECT ON ARTIFICIAL INTELLIGENCE
J. McCarthy, Dartmouth College
M. L. Minsky, Harvard University
N. Rochester, I.B.M. Corporation
C.E. Shannon, Bell Telephone Laboratories
August 31, 1955
We propose that a 2 month, 10 man study of artificial intelligence
be carried out during the summer of 1956 at Dartmouth College in
Hanover, New Hampshire. The study is to proceed on the basis of
the conjecture that every aspect of learning or any other feature of
intelligence can in principle be so precisely described that a machine
can be made to simulate it. An attempt will be made to find how to
make machines use language, form abstractions and concepts, solve
kinds of problems now reserved for humans, and improve
themselves. We think that a significant advance can be made in
one or more of these problems if a carefully selected group of
scientists work on it together for a summer.
The challenge of “AI” was somewhat…underestimated
• Automatic Computers: “The major
obstacle is not lack of machine capacity,
but our inability to write programs taking
full advantage of what we have.”
• Neuron Nets: “How can a set of
(hypothetical) neurons be arranged so as
to form concepts.”
• Self-Improvement: “Probably a truly
intelligent machine will carry out activities
which may best be described as self-
improvement. Some schemes for doing
this have been proposed and are worth
further study.”

Is it, finally, just about letting a machine know enough?
“When Mike was installed in Luna, he was pure thinkum, a flexible
logic—‘High-Optional, Logical, Multi-Evaluating Supervisor, Mark IV,
Mod. L’—a HOLMES FOUR. He computed ballistics for pilotless
freighters and controlled their catapult. This kept him busy less than
one percent of time and Luna Authority never believed in idle
hands.
“They kept hooking hardware into him – decision-action boxes to let
him boss other computers, bank on bank of additional memories,
more banks of associational neural nets, another tubful of twelve-
digit random numbers, a greatly augmented temporary memory.
“Human brain has around ten-to-the-tenth neurons. By 2075, Mike
had better than one and a half times that number of neuristors.
“And woke up.” - Robert Heinlein, The Moon is a Harsh Mistress, 1966

Is reality going faster than we ever dared imagine?
Consider an IBM Blue Gene /L
• 1.57 million processor cores
• 18 cores per processor chip
• 1.47 billion transistors per chip
As best I can tell, that’s
~12,800  1010 transistors
~8,500  Heinlein’s “Mike”

Are machines becoming, actually, creative?
Phrase-based translation is a blunt force object, mapping
roughly equivalent words and phrases. In September
Google gave their translation tool a new engine: the
Google Neural Machine Translation system (GNMT). It
got creative. Google Translate invented its own
language to help it translate more effectively.
What’s more, nobody told it to. Stop and think about
that for a moment. A neural computing system designed
to translate content from one human language into
another developed its own internal language to make
the task more efficient. In a matter of weeks.
www.linkedin.com/pulse/mind-blowing-ai-announcement-from-google-you-probably-gil-fewster

#4: Big Data and AI: with power comes responsibility

Tied for #2: Connection and Engagement
“Digital Masters excel in two critical
dimensions: the what of technology
and the how of leading change.”
“Digital Masters see technology as a
way to change the way they do
business – their customer
engagements, internal operations,
and even business models.”

Increasingly, the Experience is the Product
“By 2017, 89% of marketers expect customer experience to be
their primary differentiator (up from 36% in 2012)– Gartner, May 2016
“We’re not in the basketball business.” - Mark Cuban
“Do what you do so well
that they will want to see it
again and bring their friends.”
- Walt Disney

Products merely begin the journey to lifestyle enabler
For more than 200 years, Valspar has been
chosen for everything from Lindbergh’s
airplane to John Deere tractors to Budweiser
cans. The company only recently began
marketing to consumers and professionals.
“It takes more than putting a high quality
product on the shelf to win customers these
days” – Anne Quirk, Global IT Manager
• 360-degree view of customers by
brand and geography
• Cross-silo collaboration on customer
service cases
• Consumer channel partner
collaboration

Between 1991 and 2005, over $7 billion was invested by Intel
and computer manufacturers in advertising that carried the
Intel Inside® logo. Intel turned a chip into a brand and that
brand into billions in added sales.
In 1991, before the start of the "Intel inside" branding
program, Intel's market capitalization was about $10 billion.
In 2003: $155 billion.
Around 70% of home PC buyers and 85% of business buyers
state a preference for Intel, saying they will pay a premium for
the security and peace-of-mind offered by the brand.
www.fastcompany.com/3004135/marketing-backstory-how-intel-became-household-name
www.intangiblebusiness.com/news/marketing/2005/11/ingredient-branding-case-study-intel
Consider the implications of “[Your Brand] Inside”

Connection is the exploding resource

Connected products redefine standards of service
Zero has integrated their products into a
seamless customer experience by
creating connected motorcycles.
An owner can tap the help button in the
app and get service advice on the spot
because Zero can access key data
remotely, diagnose the issue, and
schedule an appointment if necessary.
• 50% faster emergency service
• 25% reduction in support tickets

#1: Innovation Process  Culture

Achieving innovation at Salesforce
“In its early years, the group was
delivering an average of four major
releases each year. By 2006, the pace
had slowed to one major release a year.”
“In 2007, Salesforce.com [adopted] the radically different practices of
management known as Scrum and Agile in just three months.”
(Forbes.com)
“During the [following] year…Salesforce.com released 94% more features,
delivered 38% more features per developer, and delivered over 500%
more value to their customers compared to the previous year” (Mike Cohn)
Top Two
2011 • 2012 • 2013 • 2014 • 2015 • 2016

“Conscious, purposeful search”
There are, of course, innovations that spring from a flash of genius. Most
innovations, however, especially the successful ones, result from a conscious,
purposeful search for innovation opportunities, which are found only in a few
situations. Four such areas of opportunity exist within a company or industry:
unexpected occurrences, incongruities, process needs, and industry and
market changes.
Three additional sources of opportunity exist outside a company in its social
and intellectual environment: demographic changes, changes in perception,
and new knowledge.
True, these sources overlap, different as they may be in the nature of their risk,
difficulty, and complexity, and the potential for innovation may well lie in more
than one area at a time. But together, they account for the great majority of all
innovation opportunities. Peter Drucker, “The Discipline of Innovation,” August 2002
hbr.org/2002/08/the-discipline-of-innovation/

“Conscious, purposeful search”
There are, of course, innovations that spring from a flash of genius. Most
innovations, however, especially the successful ones, result from a conscious,
purposeful search for innovation opportunities, which are found only in a few
situations. Four such areas of opportunity exist within a company or industry:
unexpected occurrences, incongruities, process needs, and industry and
market changes.
Three additional sources of opportunity exist outside a company in its social
and intellectual environment: demographic changes, changes in perception,
and new knowledge.
True, these sources overlap, different as they may be in the nature of their risk,
difficulty, and complexity, and the potential for innovation may well lie in more
than one area at a time. But together, they account for the great majority of all
innovation opportunit

“Incongruities” are my favorite place to play
Why can't more systems have the power and accessibility of Amazon?
That question led to the formation of Salesforce
Why can't business tools have the community-formation and relevance-recognition of Facebook?
That question led to Chatter and to Salesforce Communities
Why can't business analytics have the immense scalability, irregular-data capabilities, and mobile
usability of common travel and leisure apps?
That question led to Wave and the Analytics Cloud
Why can't marketing address the customer during the multi-year arc of customer journey, across all
the channels that a customer uses to learn and act?
That question led to the Marketing Cloud

• Chatter deployed in 2010
• Platform for innovation
• Event-driven
• Non-hierarchical
• Automatable
• Measurable
“I learned more about my
company in a few months
through Chatter than I had
in the last three years”
- Marc Benioff, CEO, Salesforce
Collaboration culture  Innovation environment

Which of these looks like more your company?
“The most notable difference we
see is the presence of the group
of highly connected, experienced
‘super inventors’ at the core of
Apple compared to the more
evenly dispersed innovation
structure in Google. This seems
to indicate a top-down, more
centrally controlled system in
Apple vs. potentially more
independence and
empowerment in Google.”
Wes Bernegger
Data Explorer
Periscopic
flipboard.com/@flipboard/flip.it%2FXDlB.e-the-real-difference-between-google-and-/f-7383732a10%2Ffastcodesign.com

Build an ecology: let the world work for you
Joy’s Law:
No matter who you are,
most of the smartest people
work for someone else.
Create an ecology that gets
all the world’s smartest
people toiling in your
garden for your goals.

• Customers:
engaged
• Process:
transparent
• Priorities:
quantified
• Managers:
accountable

Four pillars of digital mastery
Connected: Are you collecting the bits of communication and measurement?
Aware: Are you demonstrating to customers that their connection has impact?
Smart: Are you applying machine intelligence and data science to make your
awareness scalable, consistent, and always becoming more valuable?
Trusted: Do your customers believe that you will
• Collect their data with respect?
• Use it with consideration?
• Manage it with discipline?
All are needed to thrive in a world of smartphone-era customers

“Digital Transformation” is not a technology strategy
Does an athlete have an “oxygen strategy”?
• Resources are abundant
• Provision is not adoption
• Enablement is not culture
• Will to win is what’s scarce
Achieving digital representation is the starting line
• What makes “digital” special? Potential for transformation & computation
• What makes “digital” irrelevant? Poor data quality and bad logic
• What makes “digital” strategic? Consistency; Acceleration; Improvement

“If you can see the mountaintop, you may
not know the path, but you know the
general direction.
“If there’s an obvious path, you’re not
doing anything new; if you can’t see the
peak, you don’t have a basis for assessing
your progress.”
– Dr. Lynda Chin, Chief Innovation Officer for Health Affairs, Univ. Texas
Where no one is already going

Where are the peaks without trails?
Conference Board CEO Challenge, 2016
- Talent attraction and retention
- Leadership development
- Growth in emerging markets
- New competitive challenges
- Customer engagement
Don’t wait for a job description
Start something
Your first follower
makes you
a leader

Thank Y u
Peter Coffee
VP for Strategic Research
pcoffee@salesforce.com
@petercoffee
in/petercoffeeCreative Commons Attribution-NoDerivatives 4.0 International

Snowforce 2017 Keynote - Peter Coffee

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