disruptive, fast, cheap pca10
DESCRIPTION
Provides a look at how an internal Convio start-up team leveraged the Force.com platform to quickly deliver a truly disruptive product into a classic sleepy market and immediately start winning against the big incumbents. Participants will be given a solid understanding of how Entrepreneurs (independent or internal to a larger company) leveraging Force.com can radically change major considerations like time to market, R&D costs, initial and ongoing CapEx, development of the whole product eco-system and the value of riding the Salesforce.com coattailsTRANSCRIPT
Disruptive,Fast and Cheap
Getting Disruptive Products to Market Fast and Cheap Leveraging Force.com
Sam HeywoodCliff Armstrong
sponsors
Disruptive,Fast and CheapDisruptive,Fast and Cheap Goals for Today
• Help Entrepreneurs understand Force.com• Enjoy a robust town-hall discussion• Who We Are– Smart guys that did something kind of neat
• Who we are not– Representatives of Salesforce.com– Representatives of Convio– Stuffed Shirts prepared to talk for 45 minutes
Disruptive,Fast and CheapDisruptive,Fast and Cheap The Challenge
• Enter a very mature market populated by an 800# gorilla enjoying 20-years of dominance
• Do it on a shoe-string• Do it fast• A “Me Too” would be a loser• Oh yeah, product should support entirely new
hi-volume sales, marketing and services model
Disruptive,Fast and CheapDisruptive,Fast and Cheap The New Math
• Review Force.com impact on following– Running Innovator’s Dilemma Product Strategy– Getting v1 to market in a compressed timeframe– Managing R&D costs (shorthand for tiny budget)– CapEx and gross-margins– Whole-Product Eco-System (specifically pro-serv)– Halo effect of Force.com platform
Disruptive,Fast and Cheap Me Too Is Dead
Challenge• How can I make my product
a unique and compelling choice out of the gate given that I would lose a feature drag race for the next N years?
Solution• Force.com Platform-as-a-
Service• Cloud based• Extensible• AppExchange marketplace• Mature partner eco-system• Introduces creative pricing
strategies
Disruptive,Fast and Cheap
Need it Yesterday
Challenge• Shift in market expectations
to “all-in-one” solutions• Gorilla rapidly encroaching
our space with new offer• Must quickly attack from
flank with a rival offering in their traditional space
Solution• Enterprise dev & production
environment in 5 min.• Strong fit between problem
domain and Force.com capabilities
• 75% of app complete in first 5 min. of project
Disruptive,Fast and Cheap
Got $5 in my wallet
Challenge• “Build Product” – single line
on GA punchlist• Go-To market expensive• Launch the business but
don’t crater corporate P&L
Solution• See previous slide: 75%
done• Extremely high developer
productivity• Platform, Integration, Scale
development and testing handled by SFDC
Disruptive,Fast and Cheap
↓ Price ↑Margins
Challenge• New product, price is a
clear lever in the offer• Market price sensitive• Need hi-volume to establish
install base• Must hit internal
investment hurdle rates to get funded
Solution• Annual CapEx: $0.00• IT Staffing Req’d: $0.00• One marginal cost: Support• We don’t pay SFDC until we
sell one
Disruptive,Fast and Cheap Let’s Partner
Challenge• Client success dependent
on config / data migration• No budget to build and staff
this internally• Avoid “sell only as fast as
you staff srvcs” constraints• Expand our pipeline and
reach beyond mkt’g efforts
Solution• Army of trained / certified
SFDC pro-serv firms• Partners provide effective
caulking around small product gaps
• Client can typically work with a local partner
• BizDev carries 25% quota
Disruptive,Fast and Cheap
SFDC: My Big Brother
Challenge• New product is a hi-risk
business decision• “You don’t get fired for
buying…”• Remove 5 9’s concerns and
allow focus on business value
Solution• By nature SaaS lowers initial
investment risk• Try-before-you-buy• SFDC is Global leader in
cloud computing• Enterprise platform =
Enterprise sales opps.
Disruptive,Fast and CheapDisruptive,Fast and Cheap The Results
Disruptive,Fast and CheapDisruptive,Fast and Cheap
What Can You Do?
• Launch a new enterprise app tonight for $0.00• Re-Examine economics of your business plan• Be an effective intrapreneur• Realize you might just be a programmer• Tap into a Fortune 500 app distribution
channel and an install base with 1M+ users• We’ve got the playbook, give us a call
Disruptive,Fast and CheapDisruptive,Fast and Cheap Contact Info
• Sam Heywood [email protected]• Cliff Armstrong [email protected]
sponsors
please take a moment to
• Identify someone to watch time – give 5 minute warning at :45 minutes.
• Identify someone to take notes – post notes to http://barcamp.org/ProductCampAustinSummer2010Notes
• Thank our sponsors