SIEBEL SYSTEMS

CASE ANALYSIS
Group 10 | Section B
Background
Company
■ Siebel System was founded in 1993 by Tom Siebel
■ it is a leading software company in CRM and application software
■ In 2001, the company had more than 200 products and
■ Core values: 100% Customers satisfaction, professionalism, professional courtesy, bias for action
Customers
Companies which want to implement CRM, CISCO, SUN, Charles Schwab
Competitors
Oracle, SAP, PeopleSoft, Clarify, Epiphany
Collaborators
Integration alliance partners, hardware and software partners, trade show organizers
Context
Economic factors
Opportunity – Market for CRM software grown nearly 400% from 1997 to 2000 and projected to grow at 32% compounded annually through 2005
Technological Factors
Opportunity – Companies shifting focus from cost reduction to what software could do for revenue, customer loyalty etc.
Threat – Lot of competitors had popped in 400 vendors were in sales force automation space
Decision Problem

How to handle the negotiation of $2.1 million sale to Quick & Reilly
without affecting company’s relation with FleetBoston?
Alternative

Gregg Carman was considering following alternatives

■ OPTION 1: Go ahead with Seibel Systems’ Deal and let Fleet Boston
manage the extra Scopus

■ OPTION 2: Pull back Seibel Systems’ Deal and deploy old Scopus
Products t Quick and Reilly
Evaluation of alternatives
OPTION 1
PROS
■ Improved relationship with Quick and Reilly
■ Sales quota for the quarter will be met
■ The deal will strengthen Seibels’ Position as a CRM
software leader
■ Alignment with Ron Seibel’s Core Values
CONS
■ Risk of bad relationship with Fleet Boston due to
deployment of unnecessary Scopus products and losses
of $30 Million over various deals
■ Losses for Scopus
■ Increased market share of Oracle
■ Internal conflicts
OPTION 2
PROS
■ Short-term relationship with Fleet Boston will be
maintained
■ Might gain deals worth $30 Million over the next few
years
■ Internal conflicts will be resolved
CONS
■ Long-term relations might be impacted due to poor
performance of outdated Scopus products
■ December sales quota will not be met
■ Stained relationship with Quick and Reilly
■ No proof of CRM Leadership to Wallstreet
RECOMMENDATION
Go ahead with Option 1 but buyback Scopus products on credit

Reasons
■ Focus should be on providing the best product and service to the customer for
long term relationship. Hence, Seibel software is more relevant for Quick and
Reilly
■ Scopus product will maintain the short-term relationship but long-term
relationship will be impacted due to old and outdated Scopus products
■ Buying back deployed Scopus products on credits will help in improving the
relations with FleetBoston. The amount can be adjusted in further deals with
Fleet Boston
THANK YOU