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Salesforce Organizational Analysis
Organizational Analysis of Salesforce.com
Salesforce.com (NYSE:CRM) has completely redefined the economics of cloud computing by successfully using the Software-as-a-Service (SaaS) platform that enables enterprises to pay just for the software they use, while also significantly streamlining the agility and speed of application customization. These are major improvements over how enterprise software has been sold in the past, where sales cycles were often very long, expensive and complex often taking nine to 12 months to complete. Being able to pay for enterprise software from an operating expense (OPEX) budget quickly is replacing the more time-consuming and expensive capital expense (CAPEX) budgeting process (Upson, 2011). Salesforce.com competes in the global Customer Relationship Management (CRM) enterprise software industry, which is a class of software companies use for better attracting, selling and serving their customers (Denning, 2011). The intent of this analysis is to evaluate the basic legal, social, global marketing and economic factors that are affecting Salesforce's ability to grow today and into the future. The potential change factors that will affect Salesforce's growth over the long-term are also discussed.
Analysis Of Salesforce.com
Salesforce.com operates as a corporation with limited liability as defined their organizational structure. They are however a publically-traded business on the New York Stock Exchange (NYSE) an d as a result must abide by the Sarbanes-Oxley...
Their CEO and founder Mac Benioff was also recently mentioned as one of the most socially active CEOs in industry (Salesforce.com Investor Relations, 2013). Salesforce.com has also devised a unique and highly differentiated suite of applications entirely based on social networks, with the most well-known being Salesforce.com Chatter (Denning, 2011). Chatter is a product suite that combines the ease of use found on social networks Facebook and Twitter with integration to a given company's CRM systems and overall system of record for managing finance, operations and manufacturing (Denning, 2011). Salesforce.com is immersed in social networking as a result and leads the enterprise software market in their adoption of these technologies.
From a global marketing standpoint, Salesforce.com is a the worldwide leader in CRM software sales with 14% market share. Figure 1 is from a recent Forbes article analyzing the CRM marketplace, which indicated 40% of all CRM systems sold are SaaS-based and Salesforce being the market leader.
Figure 1: Worldwide CRM Software Spending by Vendor, 2012
Source: Forbes
From a global marketing standpoint, Salesforce is orchestrating their value chain well by incorporating industry, operational…
References
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Salesforce.com Relations, 2013. Investor Relations. Retrieved June 2, 2013, from Salesforce.com Investor Relations and Filings with the SEC:
http://www.salesforce.com/company/investor/
Retrieved September 17, 2008, from ABI/INFORM Global database. (Document ID: 1325026401) Drucker, Peter F (1992, February 11). There's More Than One Kind of Team. Wall Street Journal (Eastern Edition), p. A16. Retrieved September 20, 2008, from ABI/INFORM Global database. (Document ID: 4277929) Nicki Hayes (2008). Improving engagement in a small business. Strategic Communication Management, 12(4), 28-31. Retrieved September 18, 2008, from ABI/INFORM Global database. (Document ID: 1516270091). Yan Ling, Zeki Simsek, Michael
The senior executives who are for the most part from engineering, are taking a wait-and-see approach to how effective the use of a 3rd party is for porting the Cincom applications to the cloud-based platforms from Salesforce.com. The group of leaders who are in charge of the transition of specific piloted applications are concentrating on creating a dashboard of metrics to show how effectively the move to a more
Finally the GM of the Division intervened, took the marketing, win/loss and sales data and defined an aggressive development plan that involved outsourcing part of the development effort. Luckily Medford had an outsourcing division in India and also in the Ukraine which could easily handle the workload. The GM sided with marketing that unless at least a new product was out within a year, Medford would lose the bulk
These are the two most powerful factors that anchor the Force Field Model analysis of the enterprise software industry. With the driving and restraining forces in continual interaction and at times conflict, productivity shifts drastically across the continuums of industries based on the impact of driving and restraining forces (Paquin, Koplyay, 2007). Cincom is being affected by the disruptive driving forces of CAPEX and OPEX most severely as competitors are
Brand equity of trusted advisor for CRM application delivery. Source: Framework based on the concepts presented in (Yoo, Donthu, Lee, 2000) References Aaker, D.A. (2012). Win the brand relevance battle and then build competitor barriers. California Management Review, 54(2), 43-57. Aremu, M.A., & Bamiduro, J.A. (2012). Marketing mix practice as a determinant of entrepreneurial business performance. International Journal of Business and Management, 7(1), 205-213. Friedman, H.H., & Friedman, L.W. (1987). Marketing methods for software.
Software quality management, compliance, and collaboration across the entire organization also need to be integrated at the process and role level with the LMA supply chain. As the LMA supply chain is very unique in that it specifically deals with prototypes often that are under covered under security guidelines and clearances, there needs to be continual focus on change management and task ownership in this area as well. For