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Slide 1: Demystifying ERP Integration Take Your CRM Implementation to the Next Level Andrew Leigh Director, Integration Product Marketing, salesforce.com Robert Ball Activant Solutions Integration Lead Randy Berger Siemens, Process Development Manager
Slide 2: Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forwardlooking statements including but not limited to statements concerning the potential market for our existing service offerings and future 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. 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 forwardlooking statements, except as required by law.
Slide 3: Thousands of Customers Integrate with Salesforce Every Day Now Serving Over 1 Billion API Integration transactions per Month Most Common is ERP Integration!
Slide 4: ERP Applications Are Often the First Installed Why First? •General Ledger •Operational Efficiencies •Compliance •Financial Accountability What is installed? •Client Server •Smaller Set of Users •Rigid Processes •Highly Customized ERP “Applications will be delivered as services, and vendors that are not delivering applications as services that can be composed and decomposed according to your business needs will go away.” Charles Abrams, Research director, Gartner Inc.
Slide 5: Proven Success with Oracle Just a few of the Oracle customers that have implemented Salesforce Destination Customer InfoUSA Process Customer and Product Master and real-time IP telephony Implementation 30 days Partner Cast Iron Heald College Student recruitment using Oracle BPEL Mgr Customer and Product master 8 weeks Oracle BPEL Salesforce.com 8 weeks Salesforce ADP Adesa Borland Customer Master, Order Master, Over 30 Applications 360 Degree Customer View 360 Degree Customer View 12 Weeks 12 Weeks 8 weeks Salesforce Scribe SPSS Customer and Account Master 10 days Cast Iron
Slide 6: Proven Integration Success for SAP Customers Process Account and Customer Master Forecasting and order management Customer and Product master Customer and Product Master Order Management Partner Implementation 5 days Cast Iron Destination Customer Magma Symbol Technologies 16 Weeks Salesforce Littlefuse Esker Open Text 12 Weeks 12 Weeks 5 days Salesforce Salesforce Cast Iron After three years, integrating Siebel with SAP was still something we dreamed about we just couldn't make it work. With Apex, we managed to complete our integration project in 90 days" Jean-michel Berard, Esker Software Snap
Slide 7: Why Integrate My ERP Data with the Rest of the Company? Marketing Effective Segmentation ERP Invoices Products Orders Pricing Shipping Sales Accurate Forecasting Customer Retention Call Center “Integrated front and backend processes focus the enterprise on customer demand” Find Quote, Gartner Inc.
Slide 8: Where to Start? Let the Process Drive the Requirements Oracle eBusiness Suite Example Customer Master Invoicing/Billing Master Order Master Pricing Master Product Master
Slide 9: : Five paths to integration success A comprehensive family of technologies built on top of the Force.com Web Services API 1 Mash-ups from AppExchange 2 Native Desktop Connectors 3 Native ERP Connectors 4 Integration Middleware Connectors 5 Developer Toolkits
Slide 10: : Three paths to ERP integration success A comprehensive family of technologies built on top of the Forece.com Web Services API 1 Mash-ups from AppExchange Native Desktop Connectors Native ERP Connectors 2 Integration Middleware Connectors 3 Developer Toolkits
Slide 11: 1. Force.com Connect for Oracle 11i and SAP r3 Out of the box solution for integrating Salesforce.com and Oracle e-Business Suite 11i and SAP r3 1 Out of the Box Connectivity Provides out of the box connectivity to Oracle e-Business Suite 11i (through JDBC) or SAP BABIs Packaged Transformations and Integration Flows Pre-build XSL transformations and Business Flows for Customer Master records (mapping Salesforce Accounts and Oracle and SAP Customer Records Cross Reference Management Provides capability to cross-reference the Salesforce Account ID and the Oracle and SAP internal identifiers. Monitoring Console Intuitive and familiar interface for managing and monitoring integration processes. 4 2 3 1 2 1 3 4
Slide 12: • Force.com Connect for Oracle 11i example Packaged Transformations  Bi-directional mappings and transformations  Maps to both, the TCA Party and Account layer in the Oracle Trading Community Architecture
Slide 13: Activant – Increased Sales Productivity with Integration to Oracle 11i Force.com Connect for Oracle 11i and Fusion Middleware Salesforce Oracle 11i Challenge  Saddled with inconsistent view of customers across multiple applications  Wanted to ensure customer profile data is the same across systems  Sought to increase sales productivity by providing critical customer data to sales teams through a single interface  Poor business visibility and disparate CRM and other enterprise systems resulted in low productivity Solution  Used Force.com Connect for Oracle 11i, a native connector from Salesforce, to synchronize customers across systems  Customer master integration will serve as the springboard for process integration via Oracle Fusion BPEL manager  Next phases:      Contacts Web Portal Install Base Items, Pricing Order Entry Results  Higher sales productivity  Sales can now access critical ERP data via Salesforce  Reduced time per sales call  Synchronized Customer Master across front and back office  Solution installed in minimal time under budget.  Higher quality data, better communication between Sales and Finance departments
Slide 14: Activant – Who are we Activant Solutions Inc. – Livermore, CA Systems Integrator Leading provider of POS/ERP solutions for medium sized businesses in 4 vertical markets: Hardware Stores, Auto Parts, Lumber/Building, Wholesale Distribution. Revenue = $500 million/year. Aprox 400 sales reps. Complete Solutions Provider Integrate the hardware, OS, database, apps software, connectivity, content, and services to be the “IT Department” for our customers. Steep Growth Curve Several acquisitions per year ($50 million - $200 million companies). Most Sales to Existing Customers Over 2/3rds of sales revenue comes from existing customers. Aprox. 2/3rds of total revenue comes from recurring fees (license, content subscription & services).
Slide 15: Activant – ERP Integration Challenge Faced Business Challenges Change processes in Finance to maintain needed data on Oracle Persuade Sales Reps to allow Oracle to overwrite “their” data Transformation business logic Synchronize the meaning of data items Develop feedback channels (Sales – Finance) KNA process Technical Challenges Data denormalization issue  “Safety Net” concurrent requests  Packing multiple data items into a single descriptive flexfield Oracle Business Event system (Workflow)  Implementing changes  Overloading KNA Process  Oracle descriptive flexfield  Salesforce workflow Implementation strategy  Comparing Oracle & Salesforce data  Phased go-live using data load utility  Temporary Salesforce workflow
Slide 16: Activant – Solution - Roadmap 1 Business Analysis Most of Activant’s was already done as a result of Legacy integration, and initial Salesforce data load. Activant had additional work resulting from Legacy system data not being on Oracle yet. Develop on Oracle First The ERP effort is bigger, more risky and has more “red tape”. Salesforce development & Force.com Connect development is much smaller – more fun. Have Sales Sign Off on the Data Show them the differences between what’s in Salesforce now and what Oracle will overwrite with. Work through the differences until Sales is satisfied before implementing. Go Live in Phases (if Possible) By coupling data signoff with Go Live, the process is smother. By implementing in phases it is more manageable. 2 3 4
Slide 17: Activant – Benefits Increased Sales & Finance Productivity Hidden cost of sales having to “look up” information eliminated, especially when it required calling someone. Finance gets better feedback and can get the data correct quicker (less back & forth). Team Spirit Before, Sales complained about the data that Finance maintained and their responsiveness. Now it’s a partnership and Sales shares responsibility for data accuracy. Better Reporting By having the data synchronized, reporting on Oracle & Salesforce data together is easy. More Accurate Data With the feedback loop, the Oracle data is more accurate. Easy to Monitor & Maintain Oracle alerts & Salesforce workflow notifications provide electronic alerts, often before problems occur.
Slide 18: 2. Integration Middleware Connectors Force.com Connect Category on the AppExchange Certified connectors to more than 30 integration middleware partners Middleware SOA Document Management Integration Appliances Composites Data Integration
Slide 19: Integration Partner Ecosystem Low Complexity Composite Apps • Enterprise Mash-ups • Rich user interface 4 High Complexity Medium Complexity Scontrol Application Integration • Real-time integration •Multi-step integration • Human workflow Data Integration • Data migration • Data replication • Bulk Data Transfers Data Cleansing • Data deduplication • Data assessment
Slide 20: Siemens – Who are we
Slide 21: Siemens – ERP Integration Challenge Faced
Slide 22: Siemens – Solution - Roadmap
Slide 23: Siemens – Benefits/Lessons Learned
Slide 24: Proven Enterprise Platform ERP Integration Success Middleware Dell Customer Process Customer and Material Master Student Recruitment SOA Customer Data Integration Order Management Customer, Pricing and Material Master Orders, Products, Customer Master Customer and Material master End Point Time 12 Weeks Heald College Cisco Rolls Royce Ashland 12 weeks 6 months In Process 16 Weeks Brocade 12 Weeks Shell In Process
Slide 25: 3. Developer Toolkits Build custom integration solutions • Freedom to develop highly custom integrations • Leverage existing language and IDE experience • Interact with Salesforce data via the Apex Web Services API • Access toolkits and free developer edition accounts on the AppExchange Developer Network http://www.salesforce.com/developer
Slide 26: Example: Data Loaded from External System via API Salesforce Account Data Invoices Custom Object Loaded via API
Slide 27: Examples: Enterprise Mash-Ups Account, Opportunity data Order Management data / Mash-up / Account/Open Orders Mash-up
Slide 28: Miyachi Unitek – Integrated Lead Tracking and Marketing Accountability Force.com API Salesforce Legacy ERP Challenge  Needed to consolidate seven disparate customer databases  Wanted to Integrate Web mail solution with CRM app  Sought to improve customer visibility across 18 different countries.  Fragmented customer data hindered collaboration across sales teams  Required improved lead tracking processes and marketing accountability Solution  Deployed Salesforce.com globally across all sales teams  Integrated core back office processes such as customer master, quotes, orders, invoices, and RMAs, with legacy ERP application  Bi-directional sync of front office and back office  Implemented Force.com Mobile best practices  Integrated product configuration and quoting process across Salesforce and ERP systems  Extended standard data model to integrate custom objects from external systems  Installed six applications from AppExchange to improve efficiency of sales, marketing, and HR processes Results  Standardized employees across 18 countries on Salesforce platform  Reduced the number of internal calls to check order status by 70 percent by increasing visibility  Improved accuracy of forecast and pipeline information  Ability to monitor marketing ROI including lead generation spend and matching campaign revenue  Preintegrated applications from the AppExchange extend the value of the core Salesforce applications
Slide 29: ADP Integrates to Over 20 Endpoints Legacy Oracle DW Force.com API Oracle Homegrown Challenge  Needed to provide sales with a more complete view of the customer  Needed to Integrate sales order process  Needed to integrate to many disparate systems  Required enterprise scalability and flexibility to address complex environment. Solution  Integration via the Force.com API  Integration to over 20 different applications Results  Increased customer visibility in the field  Integrated lead to order process  Helped optimize API scalability Internal use only
Slide 30: ERP Integration Best Practices  Partner with Business – Understand the Processes  Do You Already Have a Standard?  Choose Approach Based on Cost vs. Benefits  Look for great partners – Buy vs Build  Real-time vs. Right-time  Plan for Growth
Slide 31: Additional Resources  Integration Demo Booth  Expo Booths: Integration Partners  Salesforce.com/Platform/Integration/  Apex Connect White Paper  Integration Section ADN  API Guide  Mashups Cookbook  Apex Code – Salesforce SOA  Apex Exchange – Integration Section (Partners) aleigh@salesforce.com
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Slide 34: How Do I Extend My ERP to the Rest of the Company? Back Office/Supply Front Office/Demand Marketing Marketing Customer Profiles Leads Financials Customer Financials General Ledger Shipping Accounts Receivables Invoices Supply Chain Order Management Products/BOM Orders Campaigns Customer Service Service Requests Resolutions Service Customer Profile Customer Satisfaction Sales Opportunity Pipeline Quotes Competition Sales Customer Profile Marketing Schedule PRM Partner Profiles Partner Customer Profiles Partner Opportunities “Applications will be delivered as services, and vendors that are not delivering applications as services that can be composed and decomposed according to your business needs will go away.” Charles Abrams, Research director, Gartner Inc.