S O P002 Queener 091707
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Transcript of S O P002 Queener 091707
Optimizing Sales Operations with Sales Performance Management
Christopher W. Cabrera, Xactly Corporation
Joanna Bloor, CNET Networks
Sam Chung, Salesforce.com
Sales: Operations & Performance
Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements including but not limited to statements regarding our expected future revenue, GAAP diluted earnings per share, expected tax rate, anticipated shares outstanding,and concerning the potential market for our existing service offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K for the fiscal year ended January 31, 2007. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
About Xactly Corporation
• INDUSTRY: Software
• EMPLOYEES: 100+
• GEOGRAPHY: Global
• # CUSTOMERS: 100+
• PRODUCT(S) USED: ALL
Xactly Corporation is the market leader in on-demand sales performance management. The company’s flagship product, Xactly Incent, enables sales and finance executives to design, implement, manage, and audit sales compensation management programs easily and affordably. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance and maximize profits.
Xactly Customer Success
Sales Performance Management: Four Core Process Components
Monitoring and Analyses
TerritoryManagement
Sales ICMQuota
Management
What's Going On?
What to Expect?
How Am I Goingto be Rewarded?
What's My Role?To Whom do I
Sell?
What do I Need to Sell and How
Much?
Source: Gartner
QuotaTerritory
PriceExecution
Forecast/Planning
Reporting& Analytics
Workflow
SalesComp
Rewards &Incentives
CreditAssignment
On-Demand Sales Performance Management
BusinessData
QuotaTerritory
PriceExecution
Forecast/Planning
Reporting& Analytics
Workflow
SalesComp
Rewards &Incentives
CreditAssignment
BusinessData
On-Demand Sales Performance ManagementCustomer-driven Product Development
Flexible, rules-based compensation engine Intuitive compensation plan design, implementation and maintenance Real-time visibility into incentive compensation plans: commissions, bonuses,
draws, SPIFs Real-time “what if” calculations Web-based reporting for the entire organization Plan Document and Certification Letter configuration, routing and tracking Deep integration with Salesforce.com
Benefits• Increase profits• Increase sales
effectiveness• Gain competitive
advantage• Reduce TCO• Comply with
Sarbanes-Oxley
Xactly Commissions Mash-up with Salesforce
Use Incentive Compensation Management toAlign Payments to Performance
Large snack food distributor
initiating discounting ‘on-the-fly’
based on seasonality
Midwestern storm forecast
significantly increases snack
food demand and consumption
Retailers creating targeted
incentives for snack food sales
on seasonal basis
Augment Cash Incentives with Non-Cash Rewards Automate Sales Contests
Motivate and drive performance and achievement across teams Issue Reward Points for SPIFs and contests Up-sell & cross-sell campaigns Greatest selection of value-oriented tangible rewards
Eight Requirements for Effective Sales Performance Management
Secure, hosted repository with actionable post-sales business data
1
Intuitive compensation plan design, implementation and maintenance2
Rich analytics, reporting and dashboards for sales and finance analytics3
Ability to model and forecast compensation plan changes in advance of implementing 4
Integration with CRM applications for visibility and insight into sales opportunities in the pipeline5
Ability to automate quota allocation and analysis based on territory goals6
Optimize pricing strategy and execution by identifying and analyzing what products have been sold7
Motivate and reward performance through automated sales contests and SPIFs with non-cash rewards8
Who is CNET Networks?
Commissions Were…
What Were We Trying to Solve?
For the Sales People
For the Sales Management
For the Sales Operations
For the Finance Organization
Why Was All of This So Challenging?
Complicated Compensation
Plan
Complicated Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
More Calculations
How Has Xactly Helped Us Out?
Automated Document Approval
Compensation Visibility
Individual
Team
Company
Implementation
Application
Support
What’s Next For Us?
Compensation Modeling
Integration with HR tools
Non-Sales Compensation
Simplify our compensation plan
Incentive Estimator
About Salesforce.com
• INDUSTRY: Software
• EMPLOYEES: 2000+
• GEOGRAPHY: Global
• # USERS: 2000+
• PRODUCT(S) USED: ALL
Salesforce.com is the worldwide leader in on-demand customer relationship management (CRM) services. Salesforce.com is constantly building on that legacy by improving and expanding our award-winning suite of on-demand applications, our Apex platform for extending Salesforce, and our one-of-a-kind AppExchange directory of on-demand applications.
Key Challenges
Business Challenges
• How do I implement a Sales Compensation system that will:
• Allow me to deploy sooner than 2 years from now?
• Reduce my manual touch points?
• Standardize my processes worldwide?
• Accommodate for additional design flexibility in the future?
• Integrate with our Order Management application?
The Solution
How did we address these challenges?
• Deployed Xactly Incent
• 9 month worldwide deployment
• Migrated to Orders-based compensation model
• Tight alignment with bookings/revenue event
• Replaced Calculators with Rules Configurator
• SFDC Custom Object to integrate to Xactly
• 1st Object built entirely using Apex Code
The Solution – Process Architecture
AE
Create Oppty
Activate
Order
Contract
SalesOperations
EditOppty
MicrosoftAccess®
DatabaseOpportunity
Custom Object
AmortizationEngine
GeneralLedger
manual
manualMicrosoft
AE
Benefits
No more manual time bombs
• Let Xactly calculate commission basis
No more Microsoft AccessTM
• Replace custom queries with Rules Configurator
No more disparate processes
• 1 system, worldwide, for Sales Compensation
No more restrictions on comp design
• Order line-level design options are possible
No more disconnects with Sales transactions
• Determine commissions off of Orders, not Opptys
What’s Next
Deploy Xactly’s AppExchange App
• Real-time visibility for Sales
• Case Management
• Incentive Estimator
Utilize Web Services
• Crediting through daily data transfers
Deploy Xactly Analytics
• Enhanced reporting for Sales and Finance
Distribute and Accept Plans Using Xactly
Obtain SAS 70 Type II Report for Xactly Incent
Christopher W. Cabrera
Founder, CEO & President
Sam Chung
VP Finance Systems & Compliance
Joanna Bloor
AVP Sales Operations
QUESTION & ANSWER SESSION
Winner – Apple iPhone