connection for innovation - petter coffee - avanxo cloud forum 2013

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Above the Cloud Connection + Collaboration Innovation Peter Coffee VP / Head of Platform Research salesforce.com inc.

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Page 1: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Above the CloudConnection + Collaboration Innovation

Peter CoffeeVP / Head of Platform Researchsalesforce.com inc.

Page 2: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

“The typical large organization, twenty years hence, will

be composed largely of specialists who direct and

discipline their own performance through organized

feedback from colleagues and customers.”

“It will be a knowledge-based organization.”

Peter Drucker, in The New Realities

…in 1989

What happened to the future?

We Must Catch Up With Peter Drucker

Page 3: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Complex legacy IT portfolios made the simplest data integrations

an overwhelming task

Cumbersome, brittle integrations demoted end users to

information consumers

Path of least resistance

then over-emphasized

rear-view mirror views of

historical data – or deep

inspection of recent past

“IT vendors” are still selling the tools to do low-value things in a

high-cost way

IT Has Not Been a Medium of Knowledge

Page 4: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

“I almost never look to the existing discipline for new

ideas. Most of the time, I actively avoid it.”– Jack Hughes, TopCoder

Consider the kinds of connections underway here—

between an algorithm specialist in (for all I know) Algeria,

or a software developer in Slovenia, and a radiation

oncologist at Dana-Farber Cancer Institute. Not the most

likely collaborators. When you harness mental energies of people in different

fields and disciplines, you’re changing the game– Andy Boynton, forbes.com

New Knowledge Arises From Connection

Page 5: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Motivated Knowledge Fuels Innovation

Innovation “goes rogue” when:– Products are open-source and/or

highly configurable/customizable

– Some users have incentive to innovate

– Some innovators have incentive to share

– Diffusion of innovations is inexpensive

What is the new “intellectual property”?– Brand equity

– Community loyalty

– Ecosystem diversity and strength

Page 6: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Sift more dirt, find more gold– With modern machines/methods, gold mines are

viable at 1 g. Au / ton of ore

– Costs of collecting/sifting the crowdstreamcontinue to fall

The oddly opposite models:– Delphi Method: people with wildly varying knowledge, exposed to each other’s

opinions, produce consensus surpassing the sum of the parts

– Open-Source Method: Individual contributions, appropriately incented (if only with ego rewards), yield cost-effective combined results

Can the crowd survive its success?– “Even mild social influence can undermine the wisdom of crowd effect.”

Proceedings of the National Academy of Sciences, 16 May 2011wired.com/wiredscience/2011/05/wisdom-of-crowds-decline

– Vital elements: diversity, independence, decentralization, aggregation

Crowds Offer Different Kinds of Knowledge

Page 7: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Social Graphs Turn ‘Crowd’ to Community(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)

Pop quiz: where is Beijing?

Page 8: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

All New IT Will Be Connected – or ‘Cloudy’

• Since the IBM PC was introduced (Aug.1981 to now)

• Processor speed has risen ~25 per cent per year

• Memory capacity has grown ~40 per cent per year

• Mass storage surging ~50 per cent per year

• Desktop systems are burdened with too much state• File system technology has not addressed new needs• Governance falls short of rising demands

• Trends redefine “best practice”

• Bandwidth expansion: ~45 %/year

• Processor road maps favor shared machines • Data centralization superior governance*

* Knowingly provocative statement with backup to come

Server CPU sales trends:

Overall, 2011-2015 (TechNavio)7.1% CAGR

“Contributing to this market growth is adoption of cloud computing.”

Cloud servers, 2011-15 (IDC)21% CAGR

Page 9: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

If the cloud is only used to modernize IT, that’s all that

will happen – and it will not be enough

Enormous improvement of connection enables

mobile as the norm; desk work as exception– Mobile access enables in-the-moment inquiry and

action via networks of trusted advisors – some call

them ‘social’

– Machines, as well as people, are connected – and

even machines can be ‘social’ in key behaviors

Decades of design have focused on documents

Future of IT is in workflows. We call it “the feed.”

‘Cloud’ Must Mean More Than ‘Cheap IT’

Page 10: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

The PC is a Legacy Technology

Source: Gartner Research; Smartphone, Tablet, and PC Forecast

2013E

16 billionmobile devices by 2013

Desktop

2007 20082009 2010 2011E 2012E

Laptops

Smartphones

Tablets

Device Usage

Page 11: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

The Platform Market is…Diverse

Page 12: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

“What You See Is What You Get”?“What You See Is What You Need”

What you’re doing

Who else is doing it

What’s already been done

What you want to share

What you want to show

What you want to ask

Page 13: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Connected Computing Leaves the Desk Behind

“Desktop metaphor” is 25 years old

– Xerox…

– Apple…

– Microsoft…

…but today,

1/3 of U.S.

adults own

at least one

tablet…

…and usually don’t use it at a desk

Page 14: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Mobility is More Than Just a Handle on the Past

There are three parts of user experience to increase convenience: immediacy, simplicity and context.

The three parts make up  a customer’s mobile context, or the overall feedback of what a customer has told you and is experiencing during engagement.

The Future Of Mobile Is User ContextContext Transforms Product Opportunities For Consumer Product Strategists

Page 15: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Connected Systems Close Contextual Loops

Customers: records become communities

Employees: appraisals transform to collaborations

Partners: supply chain grows into value network

Financials: transactions evolve to scenarios

Fighter pilot’s “OODA Loop”

“Observe, Orient,

Decide, Act”

Page 16: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Connection Economy Demands ‘Big Data’ Power

Islands of data are cheap, but low-value

Integrate data with apps: cloud-platform (PaaS) strength– Data.com: 2 million participants, 1 million updates/month

– Radian6: massive data flows distilled into understanding

– Heroku + Treasure Data Hadoop: 0 to Warehouse in 3 minutes

Data-driven expertise for developers and managers

Page 17: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Michael Koster, Open Source Internet of Thingswww.meetup.com/The-Open-Source-Internet-Of-Things-Silicon-Valley/

APIs evolve;ecosystems emerge

Machine-Scale Connection Requires Abstraction

Page 18: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Mash-ups from Web and

AppExchange

Native Desktop

Connectors

Integration Tools

AppExchange Apps

ERP

Any System

Finance

Systems of Record

Systems of Engagement

Connection is not “Rip/Replace”

Page 19: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Value-Adding Connection Depends on Trust

Robust infrastructure security

Rigorous operational security

Granular customer controls– Role-based privilege sets

– Convenient access control & audit

“Sum of all fears” scrutiny– Multi-tenancy shrinks attack surface; slashes opportunities for error

– The most demanding customer sets the bar

– PCI DSS Compliance Level 1; FIPS 199 LOW and MODERATE

– Comprehensive, continuing audit/certification

Page 20: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

“Despite resource sharing, multitenancy will often improve security…

“Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite!”

Cloud Architectures Offer Trust in Depth

Page 21: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

The Corollaries of Becoming Connected

The bad news is that this is a truly intense technical and business undertaking, and not for the faint of heart.

The good news is that what it makes possible is magical.

Marc Andreessen,“The Three Kinds of Platforms You Meet on the Internet”

Any technology distinguishable from magic is insufficiently advanced.

Gehm's Corollary to Clarke's Third Law

Web 1.0: DiscoverWeb 2.0: CollaborateWeb 3.0: Innovate

Page 22: Connection for Innovation - Petter Coffee - Avanxo Cloud Forum 2013

Q&A? @petercoffee

linkedin.com/in/petercoffee f facebook.com/peter.coffee

[email protected]