The Saleforce.com ROI Paradox The Critical Go-Live Juncture: Will you Deepen or Destroy your ROI?

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1 The Saleforce.com ROI Paradox The Critical Go-Live Juncture: Will you Deepen or Destroy your ROI?

2 the salesforce roi paradox EXECUTIVE SUMMARY Most companies implement cloud solutions with an enterprise software mindset, and once these solutions are in place, they continue to manage them with the same approach. As a result, they often neglect to put in place the processes and resources necessary to enable continual innovation and they fail to seize opportunities to enhance their applications after their initial go-live. Bluewolf estimates that 80 to 90 percent of salesforce.com customers could be achieving significantly higher returns in their first year after go-live by changing how they manage the application. In addition, ten to 15 percent of those customers are actually significantly diminishing their original ROI by failing to keep the application at pace with business change. After working with thousands of salesforce.com clients, Bluewolf has identified what separates the salesforce.com Leaders from the mere Players. In this white paper, Bluewolf lays out the steps companies can take to increase their salesforce.com sophistication and maximize their ROI.. introduction There s no denying it: cloud solutions have ushered in a new era for business users and IT departments alike. These solutions deliver greater flexibility and speed than was ever possible with enterprise software. The popularity of cloud solutions and the seeming simplicity of managing them can belie the shift in mindset that is necessary to reap their full value. Most companies that implement cloud solutions do so with an outdated, install-it-and-forget-it mindset. As a result, they may be missing out on the opportunity to actually improve efficacy over time and ultimately increase financial returns. When companies lack the culture to encourage continual innovation, their cloud solutions slowly but steadily fall out of sync with their business processes. In addition, these companies generally fail to leverage the new functionality continually released by salesforce.com. Is your company s salesforce.com implementation keeping up with changes in your business? And have you put the right processes in place to ensure continued innovation? From extensive work with thousands of salesforce.com customers, Bluewolf has identified what separates the companies that are most effective with salesforce.com post-implementation.. Will you lose or gain ROI Post Go-Live? After working with thousands of salesforce.com clients, Bluewolf has identified three levels of salesforce.com sophistication: Player, Contender, and Leader. A player is a company that has made the transition from traditional enterprise software to flexible cloud technology, but has not resourced properly for ongoing development or mastered the process of adapting the application to changes in the business. Players typically fail to achieve a positive ROI. When companies lack the culture to encourage continual innovation, their cloud solutions slowly but steadily fall out of sync with their business processes. the salesforce roi paradox 2

3 A contender is a company that has the basic resources and management processes to drive system development, but cannot ensure sustained innovation. In other words, they may be doing a decent job of maintaining their solution, but they re not extending it to drive greater business success. A leader is a company that has not only lined up the resources to ensure that its cloud technologies move in lockstep with its business changes, but has also achieved the cultural shift necessary to proactively deliver new benefits to business users over time. These high-performance organizations also typically use salesforce.com to identify areas in which their business processes can be fine-tuned.. The Common Traits of salesforce.com Leaders How do salesforce.com Leaders separate themselves from Contenders and Players? To answer that question, we must first examine the traditional corporate mindset towards implementing and maintaining enterprise software. When enterprise software ruled the corporate world, most companies viewed implementations as a series of large, difficult milestones. They would pour resources into the initial implementation, launch the software, and then rest until technical or business needs dictated a major upgrade or additional implementation. At that point, they would begin this painful cycle again. There s a fatal flaw in this approach: the post go-live period can result in as much impact as the original implementation. In other words, change doesn t stop once software is rolled out. As your business ebbs and flows as you enter new markets and roll out new products and services your IT department will have to tweak your business software in countless ways to support these changes. Leaders are aware of this. That s why they never think software development is finished not even for a period of several months. They re constantly on the lookout for opportunities to enhance the ROI of their software. growth business transformation leader vision & process ROI achieved contender ROI achieved player At a Glance: salesforce.com leaders have the ability to enhance roi method to execute & sustain the salesforce roi paradox 3

4 The Three Levels of salesforce.com Sophistication player Negative ROI Trouble keeping pace Minimal maturity Limited resources System use not stable Large backlogs Adoption a challenge Not likely to adopt new release features contender 100% ROI Becoming proactive Stable system usage Access to basic resources Established method to manage backlog Adopting new features Some targeting of whitespace opportunities leader % ROI Strategic approach Established governance Collaborative, agile process Access to multi-disciplinary resources Disciplined approach to innovation Strict prioritization and ROI tracking. Leaders share two traits: trait one They think strategically about how to manage their cloud technologies after go-live. After their cloud solutions go into production, Leaders don t just wait for the next upgrade. They seek to manage new development and the user request backlog as strategically as possible. Rather than developing in a vacuum, Leaders involve the business in their development strategy. They also make sure they have not only the resources to work through the backlog quickly, but the depth and breadth of IT skills to enable ongoing innovation. trait two They shift their cultures from a traditional enterprise software management mindset to an agile, adaptive culture. What s behind this culture? Leaders put processes in place that enable them to dynamically prioritize and pace a steady stream of well-defined innovations. Feeding into these processes is user feedback, which Leaders harness to help them build a more relevant system. However, Leaders do more than just update and enhance salesforce.com they also use salesforce.com as a tool to digitize and fine-tune their business processes, with access to various levels of information to understand and leverage relationships with customers over time.. How to Become a Leader Becoming a Leader in salesforce.com sophistication isn t a sprint it s a marathon. You must have the focus to transform your processes and culture over time. Bluewolf has helped hundreds of companies make the transition from Player to Contender to Leader. Here are some of the steps we encourage:. Form a governance board The best way to manage innovation and backlog strategically is to form a salesforce.com governance board made up of leaders from across your business units. It s best to put this board in place before you first go live on salesforce.com but it s never too late. Who should make up the board? Your governance board should be made up of key business stakeholders who help prioritize which product enhancements will deliver the greatest benefit to your business. The specific makeup will depend on your corporate culture. Just make sure the list includes the executives and key decisionmakers who can properly prioritize development and represent their organizations. Some of our clients have included their entire C-level executive team on their governance board. Others have included only select directorlevel employees. With your company s key players as part of your governance board, you ll ensure that your future salesforce.com development directly supports business needs. What exactly will the board do? Your governance board can establish formal guidelines and specific criteria for prioritizing not only backlog items, but also new features the salesforce roi paradox 4

5 and functionalities. By setting objective ratings systems for changes, the governance board can help ensure that every new development will have a positive impact on the organization. Thus, the board can help prevent your IT department from becoming mere order-takers for business users throughout your company. Our more advanced clients think of the backlog not as a to-do list, but as a wish list to be carefully analyzed, prioritized, and even challenged. What should be IT s role? As your business leaders drive change via the governance board, IT can facilitate board meetings and set criteria for establishing development priorities. But that should be the limit of their role after all, salesforce.com is there for the business, not for IT. During your governance board meetings, some business leaders will be highly vocal about their needs, while others will lack the influence to drive the discussion. Your IT department can level the playing field by requiring all leaders to outline the business reasons and estimated financial value of the changes they re proposing. What s the overall goal? Over time, your governance board can begin to require specific business justification for each new development, and can assign metrics to establish the expected return that each change will deliver. The first level of sophistication is to require business users to define the business objective of each proposed enhancement. Next, you can define the impact of each change against defined criteria such as: Reducing the time it takes people to complete a task Reducing cost Increasing output Increasing quality When you start using salesforce.com s rich reports to track improvements over time, you ll have a powerful tool for measuring progress and prioritizing future changes to the application. User Interface Business Analyst Solution Advanced Configuration Change Management Trainer VisualForce Developer Apex Developer Lead Generation At a Glance: Leaders Maintain Ready Access to a Diverse Skillset the salesforce roi paradox 5

6 . Staff in Ways that will Enable Innovation Develop a staffing and resource plan that enables true innovation in your ongoing salesforce.com development. Your salesforce.com team should mirror the diverse skillset you engaged to carry out your initial implementation. Many IT staffs do have some of the skills needed to develop salesforce.com. However, most IT staffs are already stretched thin in our uncertain economy. For them, salesforce.com will never be more than an extra responsibility. It s also true that salesforce.com Premium Support offers some basic development services for customers like you. But if you want to be successful with salesforce.com, you ll need speedy access to a full range of development skills. You ll need to hire experts to build complicated reports, craft complex workflows, and make salesforce.com talk to your other systems just as you did when you implemented salesforce.com. Note that the skills we re describing go far beyond typical system administrator resources. Your ongoing salesforce.com development will consist of major configuration that often involves writing custom code, tailoring the user interface to the way business works, tweaking workflows, change management, and project management. System administrators typically don t have the familiarity with your business nor the strategic insight to deliver support that moves the application forward and keeps it at pace with your business. Master Timing Tackling your backlog and releasing salesforce.com innovations on a consistent basis require more than the right staff. You ll also need to establish the processes to dynamically prioritize and pace your releases. Your governance board will play a key role by analyzing and reacting to ever-changing business conditions. Another key to agile development is timeboxing a practice in which each iteration is built within a well-defined period or timebox. To do so, you ll need to break down your post go-live development needs into discrete segments that can be built, tested, and delivered within a specific short time period typically two to six weeks. Although timebox deadlines should remain firm, give your development team the flexibility to alter the deliverables for any given timebox. By sticking to your deadlines, you ll ensure that your end-users will regularly get access to new features and enhancements. How often should you release enhancements? On one hand, you ll want to release often enough to avoid including an overwhelming number of features in each release. On the other hand, you ll want to avoid releasing so often that you become a nuisance to business users. Your governance board will be a big help in determining your ideal release schedule. Whatever they decide, tell your user base what to expect and then keep your word. Your users will see that you mean business and will be more likely to participate in the process. To jump-start your development program, consider asking each of your business units to submit their three biggest struggles with your current salesforce.com configuration. Then, make a schedule for addressing these concerns, and deliver on time. By showing your business that you can deliver, you can increase buy in to your process more quickly. the salesforce roi paradox 6

7 about bluewolf Bluewolf is a global pack of experts committed to partnering with clients to attain Agile Business Transformation. Only Bluewolf can bring over 10 years of best practices to every project and guarantee its success. The company is distinctly positioned between classic management consultants and breakthrough technical designers its world-class portfolio proves its ability to match its agile methodology with unparalleled vision. From demand generation to close, channel strategies to customer care, Bluewolf helps clients attain efficient, responsible business performance gaining the label of tomorrow s business standard. Bluewolf has extensive experience with implementing cloud computing solutions for thousands of enterprise clients. Bluewolf clients include, Time Warner Cable, ADP, Dow Jones and Company, United Way, Chevron and more. For more information, visit bluewolf.com. Communicate Regularly with Business Users One of the biggest mistakes we see IT departments make is to forget to market their work to the business units. Establish regular communication in the form of s, training sessions, and announcements integrated into your regular employee communication channels that clearly announce new features to your user base. Also, consider marketing within the salesforce.com application itself by placing announcements in the sidebar or among the homepage components. Every time you notify employees about a new feature release, compare it to what came before. Explain why it s an improvement. Estimate how much time and money it will save them. Lean on your governance board to interface with users, showing them where the application started, how it has progressed, and what will happen in the future. This open communication should work in both directions. Establish and promote avenues for users to give feedback. Whether you use salesforce.com Ideas or another tool, make sure you give your users an easy, accessible way to tell you what they like and what they d like next.. Fine-Tune Processes for Continual Improvement Salesforce.com makes it easy to digitize your business processes. Once you ve digitized a process, you can easily measure it, and once you can measure it, you can improve it. For example, you might want to know how long it takes your company to deliver service and start billing after someone places an order. Once you ve digitized the process, you can measure how long it takes to go through each of the steps. You can set norms and receive alerts when performance falls outside those norms. By using this information to close the gap between order and billing, you can collect revenue more quickly. This ability to digitize processes gives sales the same advantages for measurement and enhancement that marketing department has had for years. For example, marketers have long been able to monitor how a visitor interacts with a website, pinpointing problem areas and developing solutions to enhance every step. Now, sales can have the same ability to identify, track and address weaknesses. To gain a more meaningful idea of the value you re getting from your salesforce.com implementation, digitize a business process. Follow it through from end-to-end and make adjustments. The visibility you gain into the way you work will ultimately pay back your investment in salesforce.com.. Conclusion Your salesforce.com development is too businesscritical to leave to chance. Busy IT administrators won t find the time to keep up with basic development requests and the serious development requests typically lie far beyond their skillset. If you want to get maximum ROI from your salesforce.com implementation, make a plan to work through your backlog quickly, maintain a steady stream of innovation, and transform your company to an agile, adaptive culture, Bluewolf can help. For more information call Bluewolf at WOLF or visit salesforce-outsourcing. the salesforce roi paradox 7

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