sales force case study kartix

Kartik Dixit

Salesforce.com Case Study

[email protected] Park 10 Place, Suite 300, Houston TX 77084

Secure, Multi-Tenant Architecture

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Content

• Cannibalize your best selling product?• Salesforce.com Case Study• Case Questionnaire

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History Lesson• F-Series - Ford’s best selling truck• Camry - Toyota’s best selling car• 1984: Apple II and Macintosh• 2003: iPod, iTouch and iPhone• Why is this relevant to your case study?

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Cannibalize your best selling product?• What is CRM?• Salesforce.com – world’s first hosted (on-demand) CRM• Siebel, Oracle and SAP CRM

On premise CRM Hosted (on-demand) CRM Hybrid CRM

• What was the biggest casualty of Salesforce.com?

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Salesforce.com Case Study

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Traditional CRM and Salesforce.com• 1996-1999 – Siebel, Oracle and SAP

CRM growth 50% - 1996-1998 CRM growth 71% - 1999

• 1999 – Salesforce.com Marc Benioff, Chairman and CEO Started with ten employees World’s first on-demand CRM What was Microsoft doing?

• 2010 – Salesforce.com 87,200 customers $1.3 B in revenue 4th ranked in 100 fastest growing companies

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Traditional CRM• Targeted large business• Selling using traditional licensing models• Cost of owning servers and infrastructure• Took 18-24 months to setup CRM• TCO for 200 users CRM was $1.8 M• TCO for 200 users CRM over 5 year period was $4.0 M• 60% CRM implementation failed

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Salesforce.com• Web-based, on-demand CRM offering• Accessible from anywhere• Centrally deployed and managed• Stripped down features and simple to use• Freed company of costly deployments• $65 per user to access CRM applications• $156K per year for 200 users

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Salesforce.com Strategy• Salesforce.com’s initial strategic move on the delivery platform

Traditional CRM companies focusing on packaged CRM software sales were worried that providing an on-demand CRM service risked cannibalizing their traditional licensed software sales. They eventually responded by offering a hybrid solution between

Traditional CRM companies started providing on-demand and on-premise applications to retain their existing target customers (large and mid-sized organizations). It’s just another way of deploying it,” although this was exactly what Salesforce.com was trying to do and why its offering was attractive.

• Force.com and AppExchange: a strategic move on the product platform In the mid-2000s, Salesforce.com launched Force.com, a cloud application development platform,

and AppExchange, a web-based portal for applications trading. The Force.com platform allowed external developers to create add-on applications for almost any business need on a cloud basis and host them on Salesforce.com’s infrastructure. These new applications were packaged and distributed through AppExchange, where developers could upload applications they had built, and corporate customers could search, read reviews, test for free, and ultimately purchase and download new applications to their Salesforce.com environment.

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Salesforce.com Strategy• Chatter: a strategic move on the service platform

By offering the Chatter service to business users, it transposed the concept of social networking to the corporate environment. Chatter allowed users to easily communicate and collaborate on-line while doing their jobs. Users could send and receive information via a real-time news stream. They could follow co-workers and receive broadcast updates about project and customer status. Users could also form groups and post messages on each other's profiles to collaborate on projects. In so doing, they received timely updates about what their colleagues were doing, as well as on the status of important projects and deals, and thus had a full picture of what mattered most to their business.


Case Questionnaire


Who were the noncustomers of the traditional CRM software industry?


What were the biggest blocks to buyer utility in traditional CRM software offerings?


Which one(s) of the six paths did Salesforce.com look across to create a new market space?

Purchase, Delivery, Use, Maintenance, xyz, abc


Can you draw the value curve of Salesforce.com’s initial on-demand CRM offering in the early 2000s versus traditional CRM software vendors’ on the strategy canvas?

Price per user (TCO), Infrastructure Investment, Purchase Cycle, Product Features, Usability, Subscription, Ubiquitous Access


How was Salesforce.com able to sustain its market leadership in the on-demand CRM market vis-à-vis both large players and new entrants for more than a decade?

• 1st Strategic Move• 2nd Strategic Move• 3rd Strategic Move


THANK YOU

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sales force case study kartix

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