Third Idea Consulting

I was planning to put this in my other post (see previous), but I was forced to clutter that space with live updates when I reached my Twitter limit. I’m not the only person who hit that particular wall–friend and respected blogger Esteban Kolsky got locked out as well, and I’m sure a number of others were as well. Look for Esteban’s post on why this is a bad thing, coming soon to a link near you once he posts it (and I update my blogroll–I’ve been a bit lax).

By now you’ve likely heard a fair amount about today’s biggest news, Salesforce Chatter. To sum it up nice and tight, Chatter is a new, more collaborative and intuitive interface for business applications. It’s the Collaboration Cloud. If Facebook and Twitter had a child, and that child grew up and got an MBA, it would be Salesforce Chatter. Feeds, status updates, groups, messaging–it’s all there, along with the dashboards and everything else we’ve come to expect from good CRM. Chatter can integrate social contacts from customers into the mix and provide context for it all. Even better, Chatter will be standard on all editions of Salesforce.com, Force.com, and related products. Outsiders can acquire access for $50 per user, per month.

At least, that’s what Chatter will be. It’s not due until the end of 2010, which is a long way off. Chairman and CEO Marc Benioff went out of his way to point out the portion of Salesforce.com’s safe harbor statement that says the company is not responsible for what might be vaporware. That’s out of character for Marc, who usually waves his hand in the general direction of the statement and makes a joke.

But the other thing that was out of character was the level of energy Marc brought to the event. This is not to say he’s usually laid back when presenting–far from it. Today’s level of bombast, though, was one step beyond. Either Marc Benioff is very excited about his new Collaboration Cloud (which is likely), or he wants us to believe he’s very excited about it (which is also likely, CEOs having certain responsibilities and whatnot). Chatter is a big deal, and it will change the way business gets done, once it’s released.

I asked about just how Chatter will change business processes, but Marc’s take on the situation is that business is already changing to accept this model, and Chatter is the first tool that allows companies to do so securely, in an orderly manner, and with scalability. However, as Kraig Swensrud (SVP of product marketing) said in a followup interview, Chatter is not Twitter or Facebook. Just as we use business email and personal email differently, the internal and external feeds of Chatter will have their own character. Surfing the Web was once a workplace taboo; now it’s how many of us do our jobs. Salesforce.com hopes that Chatter will be the same.

There’s plenty more to say about this Collaboration Cloud thing, but there’s also plenty more for me to learn before I go further. My next post will probably deal with Salesforce.com’s messaging, not its applications.

As usual, my patented, trademarked, hermetically sealed and hypoallergenic live coverage of this morning’s event (Dreamforce 09) will be appearing in the Twitter stream to your right. Follow @Lager if you don’t already, and I will be adding my analysis afterward in this space.

If you’re wondering why I don’t just liveblog it here, the answer is simple: I like words, and the temptation to editorialize is much easier to manage at 140 characters a pop.

UPDATE 11:40 am PST: Tweetdeck just crapped out on me, with the “recipient not following you” error message. I’m over my limit.

11:44 am PST: Generally speaking, Salesforce Chatter looks a whole lot like Facebook. There’s also Twitter embedded. It’s a secure social business interface. I want a lot of demo time with this.

11:48 am PST: Marc is wrapping up now. Force.com has been modified so you can build collaboration apps. Chatter collaboration cloud is an attempt to change the way we work and make it more like … well, how we kill time at work when we should be working. Your coworkers are now your community, with the closer contact that implies. The biz apps, dashboards, and workflows are still there, but social networking is now built in instead of layered on.

11:53 am PST: For those of you who are worried about security, Chatter is as secure as Salesforce.com in general. You can pull in info and interactions from outside the enterprise, but I assume that once it’s there it is shielded from malfeasance.

11:55 am PST: Sales Cloud 2 is built on Chatter. Service Cloud 2 has been rebuilt for Chatter (that two rebuilds of Service Cloud). It’s all mobile capable.

12:01 pm PST: True to social form, content can be followed or broadcast automatically–you don’t have to go into a group and post to it. Your content, your apps, and your people are all talking to you. And, to judge by this demo, they’re all talking about how bad Sharepoint is.

12:04 pm PST: Demo is over, now announcing pricing. Available early 2010 in all editions of Salesforce.com and Force.com–standard in all editions. If you want to bring outsiders into Chatter, there’s a $50/user/month product. Very nice, and a welcome departure. We’ve got Jason Goldman, from the board of directors of Twitter. @goldman if you want to know.

I’ve just spent (and am still spending) a busy and informative demi-week at the RightNow Summit in lovely Colorado Springs, and I’m glad I came. Greg Gianforte and company are doing some very smart things.I’ve dinged RightNow in the past for sometimes lacking in effective media/analyst outreach, but that appears to no longer be the case, and the timing is excellent.

The reason for my enthusiasm is that RightNow’s message of customer experience is now a product and a strategy, CX. The social CRM and SaaS stars are finally in alignment, and the RightNow CX customer experience suite that Greg G. announced on Tuesday was born under those auspices. My tweets from that morning’s general session will give you some idea of what RightNow CX is all about, but I’ll summarize it here in a more coherent fashion. I’ve got to rely on text because I’m having trouble getting slides to work, but bullet lists are clear enough.

From the ground up, there are five main components of RightNow CX, each containing part of the package. RightNow CX Platform is the technology that supports the traditional CRM functions of RightNow Engage, which in turn supports the three customer experience components (Web Experience, Social Experience, and Contact Center Experience). Thus,

RightNow CX Platform

• Knowledge management
• Integration
• Mission-critical SaaS (more about this later)

RightNow Engage

• Marketing
• Voice of the Customer
• Sales
• Analytics

RightNow Web Experience

• Customer Portal (including Web self-service and mobile)
• Chat and Co-Browse
• Email Management
• Web Experience Design

RightNow Social Experience

• Support communities
• Innovation communities
• Cloud monitoring
• Social experience design

RightNow Contact Center Experience

• Phone and multichannel interaction management
• Case management
• Voice automation
• Contact center experience design (including desktop workflow, agent scripting, and contextual workspaces)

Mission-critical SaaS includes something the company is calling Invisible Updates, with elimination of downtime as the goal. The concept appears similar to Salesforce.com’s 5-minute upgrades, but RightNow is aiming for true seamlessness. It also prides itself on having always provided service level agreements with teeth—the company cuts checks for its customers when downtime exceeds what’s spelled out in the SLA. It’ll be fun to see how the two rivals stack up in this matter.

A lot of the new customer experience functionality, especially the knowledge base and Social Experience parts, are the fruit of RightNow’s acquisition of HiveLive in September of this year, followed by what must be the fastest assimilation of technology since Star Trek introduced the Borg. A six-week turnaround from acquisition to deployment was unheard of before this, as far as I know.

RightNow takes the position that customer experience is everything, and is making “ridding the world of bad experiences” its goal. The path to achieving this leads through the contact center, and recognizes the power of the customer to make or break a business no matter how good the products might be. Numbers from the 2009 Customer Experience Impact Report (commissioned by RightNow from Harris Interactive) back this up:

• 86% of consumers will never go back to a company after a bad customer experience
• 60% will always or often pay more for a better customer experience (up from 58% in 2008)
• 82% who had a bad customer experience told others about it (up from 67% in 2006)
• 53% will recommend a company to someone else because they provide outstanding service

To illustrate the potential impact of one bad experience, we were treated to one more showing of the “United Breaks Guitars” video—but with a twist, because Dave Carroll (the creator) took the stage partway through to finish out the song and give us a first-hand account of his experiences. As he finished up, he revealed what I’d call PR gold for him and RightNow: Carroll’s only option for getting to the conference was to fly United, and the airline lost his luggage. If you listen carefully, you can hear United’s market capitalization dropping even further than the $180 million attributed to the initial incident.

If RightNow CX Platform is as good as it looks, and the company is true to its word, 2010 could very well be RightNow’s year. Every single one of Greg G’s customer visits in the past three to four months (he’s done more than 300 customer visits in the past 18 months) has had social CRM as a focus—driven by the customers, pulling RightNow into the conversation. That’s encouraging to me, since I’d hate to have established a practice in a field nobody cares about.

You’ll also be glad to know that I am now officially Huge On Twitter, at least as far as the PR team from Horn Group and RightNow Technology is concerned. I hope to continue living up to the accolade.

Hey folks: I’m at a conference with functioning WiFi! It’s RightNow Summit ‘09, and we’re just a few minutes away from the opening address. Look for my live updates on Twitter, and a full account of the news later today. Anything I don’t get, you should be able to learn from Christopher Musico of CRM magazine, Esteban Kolsky, or Forrester Research’s Dr. Natalie Petouhoff.

I keep forgetting that there are other settings for San Francisco weather than, “hey, that’s really nice.”

Tuesday at Oracle Open World was the single worst climatic day I’ve ever experienced in California, and in fact the heaviest rain the state had seen since 1962. That’s right—the last time it poured like this, the LA Dodgers were still a relatively new idea, the NY Mets were truly new (and truly terrible, losing 120 games their first season), and working class people could still afford to see a baseball game. If you’re wondering why I keep referring to baseball, it’s because I’ve spent most of my time here in the company of Paul Greenberg, a fine fellow traveler who harbors a passion for America’s Pastime and a deep, uncanny lust for the NY Yankees. For better or worse, Oracle Open World + the Bronx Bombers in the postseason = associating enterprise CRM with baseball whenever Paul’s in the room.

Back to the weather: It’s fitting that the skies opened up and drenched us, because Tuesday amounted to Cloud Computing Day at the show. There are plenty of software-as-a-service (are we still calling it that?) vendors at this convention, and in fact they’ve got their own section of the show floor staked out in Moscone South, but the biggest one of all—Salesforce.com—pulled out all the stops. In addition to their sizable booth presence (not in the SaaS area) and excellent T-shirts, there’s a fleet of SFDC-liveried Mini Coopers circling the downtown area. As a special treat, Marc Benioff himself hosted a session in the nearby Yerba Buena Arts Center.

By “special,” I mean there was a massive queue of people waiting in the drenching rain, with no shelter, for a good half hour. By “treat,” I mean SFDC was giving away HD flip cameras to the first 500 attendees, which probably helps explain the queue. To be fair to myself, though, I didn’t know about the camera until after I was indoors, so my soaked-to-the-skin experience was all about seeing what Marc would have to say in Larry Ellison’s back yard.

If I’m honest, I must say that there was little news to be had at the event, at least for people who track SFDC at all closely. Marc modified his message to play better for the enterprise crowd that comes to OOW, many of whom are less interested in SaaS than his typical audience, and the demos were compelling for those who hadn’t seen them before. As always, Marc brought his considerable force of personality to bear, and made a strong case for cloud computing. He was respectful of his host (a company that has a cloud product of its own) and didn’t step on toes, though I felt the overall effect was toeing the line. SFDC makes all its bones on the cloud, whereas Oracle devotes only a relatively small amount of its efforts in that direction; to make that strong case at the show of somebody who is comparatively weak in that area is bordering on poor taste. Note that I said bordering; Marc and his team stayed classy, but controversial enough for me to point it out.

There are numerous companies here using the appearance of unrest as their marketing approach, arguably with less class. They cover a range, from businesses I’ve never heard of to Microsoft SQL Server, all taking turns on the streetcorner with placards, prisoner costumes, and the rhetoric of a World Bank protest to generate interest. It’s such a common theme this year that I wonder if there was a planning meeting with Oracle to plan it. Phrases like “Better Dead than Red” (stolen from the McCarthy era), “Encryption Shouldn’t Be a Pain in the App,” and “Stop the Spindle Swindle” are stuck in my head, though I doubt any of the associated companies will follow suit. The use of protest imagery by so many organizations dulls the effect of each, so it looks like the sort of picketing you can safely tune out.

On another note, I get a second chance to hear Larry Ellison speak this afternoon, at the 2:45 closing keynote. While it’s too late for me to redeem my Sunday failure (necessary though it was), it will help my sense of accomplishment for the week. More importantly, I get to see one of my idols. Not Larry—Roger Daltrey of The Who will be performing at tonight’s appreciation event. The headliner is Aerosmith, and we’ll also have a shot at Three Dog Night, The Wailers, and Shooter Jennings, but for me it’s all about Rog.

Yesterday I had a quiet lunch with Marc Benioff and 300 of his closest friends at the Mandarin Oriental Hotel in New York, off Columbus Circle. Well, maybe it wasn’t exactly quiet, and I don’t think Marc actually ate anything, but the fact is he was there. So was a large chunk of the Salesforce.com management, several partners, and a lot of customers.

The purpose, I think, was to get some excitement going for the Dreamforce conference next month in San Francisco. Discussion centered on developments in Service Cloud 2, the company’s social CRM approach to the contact center.Much of the presentation was covering stuff I already knew about, such as the various parts of Service Cloud and the partnership with Cisco that lets Salesforce.com be part of a unified communications environment. Since the audience wasn’t exclusively press and analysts, I have to assume the goal was to put all the information together for the public to show that SFDC will probably be making a major push for contact center business.

One truly new thing (to me, at least) was the announcement of five-minute upgrades. Contact centers can’t afford downtime, and one of the things that has held back adoption of SaaS contact centers systems is the lack of control over when that downtime hits. SFDC will be able to update its customers’ instances in minutes instead of hours, which should go a long way toward making it a more attractive option. Integrating with Cisco, a respected force in communications technology, doesn’t hurt either.

The event may have answered the “what is Salesforce.com up to?” question for most of the attendees, but it created more questions for some. A few of us (CRM magazine’s Josh Weinberger and Yankee Group’s Sheryl Kingstone) were wondering what the threshold is for SaaS update speed. Is it five minutes? Two minutes? Thirty seconds? More important, we couldn’t figure out how the partnership will make SFDC its next billion dollars. Josh spent a good half hour grilling Alex Dayon (senior VP of customer service and support products) about how SFDC and Cisco could each profit from the arrangement—they’re splitting a relatively small pie.

It’s not my biggest worry how they earn their bread. I’m more interested in them making social CRM in the contact center work for customers as well as businesses. When viewed from that perspective, Marc’s got an exciting product to roll out, and I’ll be watching closely.

Disclosure: I have some stake in this discussion, since I will be part of a panel at Dreamforce on Why Collaboration Between Sales and Service Is Imperative in Today’s Economy. If you’re in town, the session is Thursday Nov. 19 at 2:30pm.

More about this as it develops. Tonight, I’m out to dinner with Tealeaf and a roomful of people to hear the results of the 2009 Survey of Online Consumer Behavior. The state of online customer experience is our topic for the evening, and you just know I want to get the details.

The hot topic in social computing is social CRM—at least it is for me—but there are other aspects that bear consideration. I spoke with LiveOps yesterday (by way of Eckart Walther, SVP) about one of them. Paid crowdsourcing is a newer kind of business process outsourcing (BPO) that leverages qualified personnel as a sort of “in crowd” for projects. The occasion for the briefing was LiveOps’ announcement of new application programming interfaces (API) for LiveWork, the company’s BPO platform (for which Walther is general manager).

LiveOps and companies like it have developed applications to manage uncertainties (like whether the offsite employee is competent and present) and make it easier to get the best effect out of remote labor. The greatest success has been in virtual contact centers, but imagine if there was a means by which businesses could access a pool of experts, specialists in a given industry or product line or core competency. Remotely, as needed. Think of the efficiencies for a business, not to mention motivated individuals who don’t happen to live where the main office happens to be.

The new API set allows developers to leverage LiveWork in settings beyond the contact center. Two early examples are Smartsheet (which crowdsources lead generation, content review, and content generation) and CrowdFlower, a more general workforce-on-demand provider.

If a LiveWork API and some ingenuity can be stretched far enough, this could be mildly disruptive in the BPO industry. Major outsource providers (staffing agencies and large management and/or IT consultancies) will still have a lock on long term engagements, especially where frequent reassessments and tweaks are needed; but for cases where the duration is short or the required workforce is very large, this solution beats the heck out of hiring temps and part-timers.

If you’d like to see why LiveOps thinks this has play in the business world, it recently produced a white paper which you can find here. [CORRECTION: The white paper was in fact produced by SmartSheet, though with the assistance and participation of LiveOps. Thanks to Andrew Schmitt of OutCast Communications for the clarification.]

[Correction #2: I've changed the link to the document. It should take you to the most recent version of the SmartSheet white paper at their site.]

The busy part has ended for the moment. Here’s what you missed—or got from somebody else, I don’t mind. For those of you who might criticize me for cramming multiple updates into one post, too bad. I want to get these things off my plate, and they’re conceptually related.

1. Salesforce.com announced updates to Service Cloud, the award-winning customer service component for its SaaS business computing environment. It’s now called Service Cloud 2, based on changes to the way it all works as the integration with InStranet has progressed. Salesforce.com fans will be glad to know that the Twitter integration is available now for free download, and tentative dates have been attached to the other two components (the knowledge base and the crowdsourced customer service).

I will tell you it’s looking very good, and I stand by my assessment of Service Cloud’s potential in the first linked article. One of the key concepts Service Cloud is built on is that a great many customers turn to the Internet for help before (or instead of) asking the vendor, and building customer service around this is going to be big for Salesforce.com. The announcement, however, is very similar to what we saw in January—if there’s one thing I can regularly ding that company for, it’s the issuance of multiple press releases for what is essentially the same news. It’s more a journalistic quibble than a complaint about their business practices—the fact remains that Salesforce.com has become a billion-dollar concern by making sure nobody forgets what they’re up to.

2. RightNow signed an agreement to acquire HiveLive, the social networking platform vendor. I’ve met and spoken with HiveLive before (though not recently enough to have had any inkling of the buyout), and I’ve got to say this is potentially an excellent move by RightNow. Greg Gianforte’s Bozeman, MT-based RightNow has always been very strong in the customer service end of CRM, and the move to community-based help environments impacts that. HiveLive’s platform is highly customizable and capable, so if all goes well RightNow will have just what it needs to make itself the go-to provider of SaaS customer service, Web self-service, and e-commerce apps.

There are a number of ifs, of course. Buying technology isn’t the same as integrating it; I’m still waiting for the Salesnet acquisition from 2006 to bear visible fruit. And I can’t say for certain where the deal came from or where it’s going, because—unlike rival Salesforce.com—RightNow tends to be very closed-mouthed about its activities, and the company doesn’t make nearly enough regular noise for its own good. (This time it’s understandable though, because certain messages need to be held until the markets close.)

Caveats aside, I think it’s a good move. I am imagining the combined product and it’s awesome. Here’s hoping there’s something to see very soon, at least by the RightNow Summit this October.

[UPDATE 9/15/2009, noonish] Regardless of what I think about RightNow having slipped a bit in the industry’s perception, the company is still doing right by its customers; Three of its implementations won Gartner/1to1 enterprise CRM awards today. Congratulations to RightNow, iRobot, Distance Minnesota, and National Cable Networks. See the release here.

3. I spent Wednesday afternoon at the live component of an Acxiom Webinar, which you can view here. David Daniels of Forrester Research was the leadoff speaker, giving a great talk about the relevancy of the messages and channels businesses use to engage customers. He was followed by Chriss Marriott, Acxiom’s global managing director and vice president, who presented his ideas on “Winning Elections in the Marketing Democracy,” a clever way of discussing the use of social CRM for marketing. It was a pretty low-key session, but informative and even inspiring. If you need a primer on the ROI of social media in marketing, you could do worse than watch the recording. David and Chris are both very engaging speakers, and the day provided me some new ideas on how to open discussions.

The embargo is up, so I can report on a little piece of news I got last week from Oracle. No less a personage than Anthony Lye (with the aid of Susie Penner, one of the best media/analyst relations people I’ve ever met) laid out the details of a partnership with InQuira to deliver an on-demand knowledge management system for customer service. It’s available now.

Oracle and Lye need no introduction. InQuira is a name I’ve encountered before, though the company’s claimed strength is in Web self-service. The partnership itself is not new, either—the two companies announced something similar last year at Oracle OpenWorld, but for on-premises deployments. Today’s announcement extends their work to SaaS.

To quote Oracle’s statement: “The integrated, on demand service solution enables customers to go seamlessly from self-service to live agent-assisted service. Service agents receive overall view of customer issues and actions taken, providing a consistent experience across Web, phone and community-based channels. … With InQuira knowledge management available on demand and embedded in the Oracle CRM On Demand desktop, customer service agents have access to knowledge across the enterprise, enabling them to seamlessly access answers right from within their normal service flow.” Thus, customers who are looking for help or other information encounter fewer bumps on the way up the support chain, while agents can respond more quickly and definitively to customer inquiries. There’s greater likelihood that answers will be consistent across all access points, and the user base’s expertise becomes part of the support mix.

I can’t say that this is a totally unique product—it’s an extension of an existing partnership to provide something similar, and service automation vendors have been working at solutions like this for a few years now—but it does have the stamp of two respected corporate names as well as the addition of SaaS. In my experience, it’s easier to create integrated service environments with smaller businesses, simply because there’s less knowledge to manage and less demand on the delivery channels. Oracle and InQuira working together have a fair chance of extending service integration to really large companies, where customers have previously found it very easy to get lost or confused. The reduced tech footprint of the SaaS option doesn’t hurt either, so companies who are willing and able to go this route should be well served.

Sounds good, right? I think so too, but to be honest I had a little trouble envisioning the structure of the partnership in terms of who brings what to the table and when it comes into play during a service engagement. I’ll be taking a follow-up briefing later today to see how it all works, and maybe get InQuira’s point of view on the partnership. Should anything new and awesome emerge from that call, I’ll update. For now, though, I like what I’ve heard.