Rasmus Aaen Madsen Senior Director Product Marketing SuccessFactors (an SAP Company)

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1 The Future of Software Rasmus Aaen Madsen Senior Director Product Marketing SuccessFactors (an SAP Company)

2 The Future of Software Where will technologies be in ten years time? Predictions for 2022

3 Prediction Making is Risky Business I think there is a world market for maybe five computers. - Thomas Watson, chairman of IBM, 1943 "640K ought to be enough for anybody. - Bill Gates, 1981 "$100 million dollars is way too much to pay for Microsoft. - IBM, 1982 Next Christmas the ipod will be dead, finished, gone, kaput. - Sir Alan Sugar, 2005 (Founder, Amstrad) "The Americans have need of the telephone, but we do not. We have plenty of messenger boys. - Sir William Preece, chief engineer of the British Post Office, SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 3

4 Safe Harbor: None of what I am going to tell you is likely to happen SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 4

5 The 2020 Workplace The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow s Employees Today Dr. Karie Willyerd VP & Chief Learning Officer, SuccessFactors 5

6 Forces Shaping the Future of Work BY 2020: global access to markets and talent will reshape business Globalization BY 2020: five generations will be working side-by-side in organizations Demographics BY 2020: the way we socialize will transform the way we engage with employees, customers, and partners Social 6

7 Global War for Talent Globalization Country to 2010 change United States % Japan UK China % Financial Times: Location of global 500 headquarters Canada % France Germany % Australia Spain India % Switzerland Brazil % Netherlands Italy % Russia

8 War for Talent Attract, engage, develop and retain talent 8

9 Demographics Demographics 2005 US Labor Market Generation 2020 (1997 -?) 0 Millennials (< 1997) 25% Generation X (< 1976) 23% Baby Boomers (< 1964) 45% Traditionalists (< 1946) 8% 0% 20% 40% 60%

10 2010 US Labor Market Demographics Demographics Generation 2020 (1997 -?) 0 Millennials (< 1997) 36% +11% Generation X (< 1976) 22% Baby Boomers (< 1964) 38% -7% Traditionalists (< 1946) 4% -4% 0% 20% 40% 60%

11 2020 US Labor Market Demographics Demographics Generation 2020 (1997 -?) 7% Millennials (< 1997) 50% Generation X (< 1976) 20% Baby Boomers (< 1964) 22% Traditionalists (< 1946) 1% 0% 20% 40% 60%

12 8 Billion Texts Sent Every Day 12

13 25 Billion Tweets 700 Million on Facebook 13

14 On Average, almost 400 Videos Watched A Month 14

15 15

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21 Attract, Retain, Excite Best New Talent

22 Tools they instantly understand, embrace and can be productive with

23 Two trends that will transform software 23

24 How end-users consume software How companies buy, deploy and manage software USER CLOUD EXPERIENCE

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26 26

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29 Readily available through devices people use every day

30 Mobile NOT a gimmick 30

31 Smartphones Not a Luxury for Millennials!

32 Mobile Org

33 Mobile Insight

34 There s an App for That! 34

35 A Collaboration Revolution Will Transform Corporate Life 35

36 Cisco s Social Media Survey of Millennials Social Web 2/3 will ask about social media during job interview 56% will not take a job from a company that bans social media, or they will work around the ban 1/3 prioritize social media access and mobility device freedom over salary 68% believe corporate devices should be used for social media and personal use 50% would rather lose their wallet or purse than smart phone 70% believe being in an office is unnecessary 36

37 Is So Yesterday! Social Web The age they go to school/work 37

38 The Share Era Partners Customers Suppliers Public relations SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 38

39 SuccessFactors JAM SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 39

40 Of course its mobile SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 40

41 McKinsey Study: Benefits from Internal Use of Web 2.0 Technologies Benefit % of Companies Reporting Average % Improvement Increasing speed of access to knowledge Reducing communication costs Increasing speed of access to internal experts Decreasing travel costs Increasing employee satisfaction Reducing operational costs Reducing time to market for products/services Increasing number of successful innovations for new products/services Increasing revenue Web 2.0 adopters more likely to outperform. McKinsey, December

42 Huge Potential Productivity Gains Benefit % of Companies Reporting Average % Improvement Increasing speed of access to knowledge Information doubling every 2 years; in some fields every 6 months (UC Berkeley) Knowledge workers spend 15-30% of their time looking for information (IDC). 30% improvement = up to 9 percentage points of productivity improvement for the workforce! 42

43 Overhauling the Economics of Learning Learning spend per employee Learning budget as a % of Payroll Average cost per learning hour created Learning delivery via ILT (live and online) Source: ASTD, 2011 Study SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 43

44 Peer-to-Peer Learning 44

45 Social media will change the lives of leaders 45

46 What Millennials Want From A Boss 1. Help me navigate my career path 2. Give me straight feedback 3. Mentor and coach me 4. Sponsor me for development programs 5. Accept flexible schedules Meister & Willyerd, Harvard Business Review, May

47 Millennials Want Mentoring 1. Group mentoring 2. Team-based learning 3. Reverse mentoring 4. Anonymous mentoring 5. Peer-to-peer mentoring with micro feedback 47

48 Glassdoor.com Social Web 48

49 You Are Being Rated Now! Social Web 49

50 Everyone Will Have a Reputation Score starting with leaders 50

51

52

53 HR will take a seat at the board table next to the CEO

54 What s Strategic? IT out-sourcing to save x M$ CRM system to improve up-sell and drive y M$ sales Operating profit, return on capital employed, return to shareholders, etc $ ROI? CEO Marketing campaign to drive z M$ sales Career development program to improve staff retention

55 Data = ticket to seat at the board table LEARN TO SPEAK THE LANGUAGE OF BUSINESS CFOS, CIOS AND SALES EXECS have credibility with CEOs because their views and decisions are based on data. NEW HR LEADERS win executive authority with credible data, business cases, and ROI forecasts. SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 55

56 Changing the conversation HR leader stuck in time: This talent management program will attract and retain more high performing people! Visionary HR leader: Imagine the possibilities when you can tell your business leaders: Employees who took this training course sold 30 percent more products than those who didn t or, improving engagement scores by 10 percent in this location will reduce turnover by five percent, reducing costs by x.. DAVID CRUMLEY, VP HRIS & CONTINUOUS IMPROVEMENT SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 56

57 The Conversation Just Changed $ ROI? Operating profit, return on capital employed, return to shareholders, etc CEO Career development program will cost x and improve sales by y M$

58 The Biggest Opportunity to Improve Business Performance THE WORKFORCE MAKES UP 60-80% OF YOUR OPERATING EXPENSES Are you making decisions about your people with the same rigor, logic and confidence as your decisions about money, customers, products and technology? DR. BOUDREAU, USC CENTER FOR EFFECTIVE ORGANIZATIONS Using workforce analytics vs. not: (Y/Y % change) 4% 4% Revenue per FTE Profit per FTE -1% (Aberdeen, Intelligent Human Capital Management, 2010) -5%

59 HR becomes Data Driven 1/3 of the Google HR staff globally is hired specifically for their analytical skills. They build an underlying quality into what we are doing by constantly testing our ideas and practices. Analytics measure the ROI for everything we do. Laszlo Bock, Chief HR Officer, Google

60 We help companies shape their future

61 Typical Company % OPEX 40% Workforce Improvements??? 60% Marketing G&A Depreciation Facilities Travel & Entertainment Outside Services IT Business Process Re-Engineering ERP Cost Take Out SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 61

62 Business Execution Get people working on the right things Find the right people and make them great Run the business better Align Optimize Accelerate SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 62

63 SuccessFactors BizX BizX Insights Goals Performance Workforce Recruiting Compensation Learning Succession Jam Analytics Planning Employee Central SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 63

64 BizX Insights Strategy Financials Supply Chain Operations Employee Survey CRM BizX Insights Goals Performance Workforce Recruiting Compensation Learning Succession Jam Analytics Planning Employee Central SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 64

65 Cloud is not future, it s now! Fast time to Value Faster Innovation Proven Configuration High Security No Infrastructure & Admin Ease of consumption Low TCO Fast ROI SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 65

66 SuccessFactors Proprietary and Confidential 2011 SuccessFactors, Inc. All rights reserved. 66

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