A little more on Salesforce

Disclaimer: Although my presentation of Salesforce is still a couple weeks out, I figured the articles and our the talk with the homie Al may have peeked some interest so I might as well go for it.Screen Shot 2018-02-16 at 11.02.31 PM

Above looms San Francisco’s new Salesforce building. A force of change for San Francisco both through its size and design. This picture comes from this NYT article which does a great job of describing its significance.

The Rise

For myself and many other bay area natives, Salesforce was little more than another tech company from the valley before the emergence of great index finger in the sky. My limited knowledge of the company was partly due to the fact that it was one of the few of up and coming tech giants that had no bearing on my daily life. Now, I can’t get within 20 miles of the city without being reminded of its presence.

Despite the massive physical presence Salesforce now has in my life back home, I can’t say I knew much about the company until our Skype call with our new friend Al Dea. Since everyone that’s reading this was likely also in class that day, I’m going to skip the Salesforce introduction and instead jump straight to the thing that I (and likely others) was still confused by. That thing is the umbrella that all of Saleforce’s products fall under and it’s called CRM.

Salesforce Tower.jpg

So what or who is CRM?

You know something is convoluted when even after you spell out the acronym, you don’t feel any closer to understanding it. That’s at least how I felt when I heard that CRM stood for customer relationship management system.

When you search “what is CRM” the first seven or so results are either Salesforce sponsored or organic results of Salesforce articles or videos. The first link brought me to Salesforce’s site which broke down CRM “as a way to store and manage prospect and customer information, like contact info, accounts, leads, and sales opportunities, in one central location.” While this description and video gave me a better idea of what CRM was used for, it wasn’t until I stumbled upon the good ol’ Wikipedia page for CRM that I felt like I really felt like I understood the overarching purpose of CRM. The wiki page says: 

“Customer relationship management (CRM) is an approach to manage a company’s interaction with current and potential customers. It uses data analysis about customers’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.”

brett_cartoon_june2013_final-article-860x450_c.jpg

The Evolution of CRM and Salesforce

Now that we’re all on the same page regarding CRM’s parts and purpose, I want to show you how Salesforce was responsible for this concept’s advancement. While most of the articles we read for our Salesforce case study (see bottom of post for the articles) highlighted Salesforce’s leader, Marc Benioff’s, extraordinary leadership, only the Product Habits article explored Salesforce’s history in depth and showed it emerged from the idea of making CRM simpler and thus more effective for businesses.

Since this history is necessary in understanding Salesforce’s evolvement alongside CRM’s evolvement, I will summarize it as best I can. The main CRM advancements that the Product Habit article points out is Salesforce scaling from solely a software as a service (SaaS) to also being a platform as a service (PaaS). Before we continue however, let me remind everyone of some words you probably haven’t heard used since Computers in Management. In their simplest terms, software as a service is a cloud based tool while platform as a service is an environment on which you can build your own tools to implement and share amongst others using the same overarching SaaS. The advantage of the having both: customizability and network effects.

This transition from SaaS to PaaS occurred through a number of major developments which included the creation App Exchange (a place where you could sell the cloud based tools you made), Apex (a programming language made exclusively for the Salesforce environment), and Force.com (a place for people to develop tools using Apex and Saleforce’s first true PaaS). Additionally, they acquired companies like Desk.com and Social.com which helped them build out the CRM tools that the consumer was directly interacting with.

Screen Shot 2018-02-16 at 11.07.24 PM.png

More than a CRM business… yet still a cloud software business

So here we are, present day. Salesforce is far more than just a CRM business, yet at its root still a cloud software business. Why is this important? Well unlike other tech superpowers and unicorns, Salesforce has seemed to have stayed disciplined and has done their best not to flirt with industry of ubiquity. Today, more than ever, there’s an ideology that tech is expanding so rapidly that really every industry is its own way also a part of the tech industry. While this isn’t completely incorrect, many tech giants seem to use this rational as justification for dipping their toes in any industry of their pleasing and then drawing some abstract relationship between their current product and their investment if ever asked about it. If you don’t believe me, just look in the news every now and then.

While Salesforce might not have as much money to throw around as the main culprits of ubiquitous innovation, Salesforce should still be given credit for their discipline. This credit can be justified by looking at Salesforce’s most “out-there” investments. In my opinion, these are the ones made through their venture arm, Salesforce Ventures. Despite covering a broad range of industries, Salesforce Ventures points out on their landing page that their fund is “one hundred percent invested in enterprise cloud software.” To me, this simple statement says we know what our space of influence is and we will not stray from it.

google.gif

Concluding Thoughts

Despite Salesforce disciplined nature in terms of investment and expansion, the reality is that Salesforce’s core product ­– CRM – is difficult to understand, even for technically capable people. Knowing this, I believe that their future success will lie in finding ways to simplify their explanation of their services, the product line itself, and the network of third party services offered through the Salesforce platform. As Al pointed out in our Skype call, one of Salesforce’s main goals is to increase the number of people they reach. For me, it seems like the only way to do this is through continuing to find ways to visualize and verbally explain the tools that Salesforce offers without letting their virtual and relational existence muddy this understanding. Only through this clearer picture will Salesforce gain the notoriety that other successful B2B companies have managed to obtain in the past.

Articles Referenced

http://fortune.com/2017/10/19/salesforce-marc-benioff-leadership/

https://www.forbes.com/sites/alexkonrad/2016/08/24/nonstop-benioff-inside-the-audacious-plan-to-disrupt-salesforce-and-the-world/#49d596ab11d6

https://techcrunch.com/2016/01/14/salesforce-appexchange-turns-10-today/

https://producthabits.com/salesforce-built-10-billion-empire-crm/

10 thoughts on “A little more on Salesforce

  1. Will, awesome post! I am probably the most excited out of all the cool places we are going on out trip to visit Salesforce’s new Salesforce Tower. I’ve heard it’s incredible, and I can’t wait to see it in person in a few weeks.

    I used Salesforce in my last internship, and I can tell you firsthand that it’s an extremely powerful tool. It really helped the mortgage and home equity department (that I was doing data analytics for) manage their client relationships and personalize the service that they were giving to each customer interested in a mortgage. As one of the articles mentioned, the average Joe doesn’t have a clue what Salesforce does because of its B2B nature. My mom had never even heard of the company when I told her that we were going there. I definitely agree with you that they need more people talking about the firm through brand awareness, and the way to do this is through aggressive marketing (like their infamous commercial Michelle mentioned in class) and through being innovative in explaining their tool, platform, and the multitude of services that they offer! Looking forward to your presentation.

    Liked by 1 person

  2. Great post, Will! Given that Kipp and I use Salesforce for The Heights, I second Dan’s comment that it is a very powerful tool: our business arm that funds the newspaper has logged sales and revenue on it for over five years, which helps to create continuity for each year’s incoming members. Moreover, it serves as a great liaison between our corporate and editorial sides, as everyone can see the insertions made on it and reference them as we make the paper. One criticism that I will say, however, is that the software’s free-form nature can become frustrating when creating one’s own structure online. Sometimes Kipp and I will simply want to perform a basic function for accounting, but will have to make our own reports or tables just to find the information. Awesome job again, though, and I’m looking forward to your presentation!

    Like

  3. It is amazing when you hear the story of Benioff that he was developed under Larry Ellison at Oracle and went on to be a fierce competitor to them, and now some say he has become them. I really think the Salesforce has a great set of products, but I think they are smart in not trying to be a closed off platform. They need people to innovate with them! I think the PaaS transition and creating Apex have allowed so many people help themselves and others on the platform. Its amazing how this has changed business, but as Dea said, it could do so much more for industry abroad. Visibility is very important as salesforce is usually a behind the scenes product. Word of mouth can only travel so far, so it will be interesting to see what their next marketing campaign will be!

    Like

  4. Great post and nice photos. In my internship this semester, I am using Salesforce daily and one thing that is striking is the simplicity of its user interface. The CRM data that I have to work with is very self explanatory, quick loading, and not glitchy whatsoever. I really like the point you made about changing from SaaS to PaaS, it is going to be interesting to see how Salesforce will implement its fantastic qualities into its PaaS products as it expands.

    Liked by 1 person

  5. Hey Will! Great post. I totally agree, that even after hearing the definition of the acronym, I didn’t really know what it actually meant. Your post really points out the important aspects of the company and it’s history and now I am even more excited for our visit to Salesforce in a few weeks. I didn’t have a chance to work with Salesforce in my job last summer, but I am aware of the fact that the company had used Salesforce to their advantage. It will be interesting to see how Salesforce will attempt to reach more users and I am curious as to how Marketing will play a role.

    Liked by 2 people

  6. The more I learn about Salesforce, the more I am fascinated by what they do. Thank you all in the comments for sharing your experience using it. I wish it could be a case study in Computers in Management. I agree that Salesforce’s brand awareness is a bit lacking to the audience outside Tech/SV. I am interested to see what’s the next bold campaign they are going to do.

    Like

  7. Awesome post! I’ve never used SalesForce, but I’m itching to try it! I love the way you broke down what CRM does and a main strength of SalesForce–staying true/focused on what it is. Additionally, I didn’t realized the opportunities that PaaS creates by allowing users to create their own tools. However, as @michaelrosmarin said, I can understand how that could be stressful. It reminds me of using WordPress.org and how everything requires a plug-in that you have to download or code. Overall, great post and I am so excited for your presentation!!! Go Salesforce!!!

    Like

  8. Really enjoyed your blog, Will! Having used Salesforce at two different companies, I still find it hard to explain to others. This is mostly due to how customizable the platform is. Tracking customer data means something different to every company and Salesforce provides the flexibility to appeal to everyone. In addition, I liked your analysis of Salesforce Ventures. The fact they are disciplined enough to stick to what they know makes me trust Salesforce. Innovation is important but worthless investments are certainly not.

    Liked by 1 person

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s