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Siebel Systems Case Analysis: Group 10 - Section B

Siebel Systems was considering how to handle a $2.1 million sale to Quick & Reilly without affecting their relationship with existing customer FleetBoston. They could either go ahead with the sale using their own CRM software over FleetBoston's outdated software, risking the FleetBoston relationship, or pull back the sale and use the outdated software, risking the new Quick & Reilly relationship and quarterly sales goals. They decided the best option was to go ahead with the sale using their own software but buy back the outdated FleetBoston software through a credit, maintaining both customer relationships.

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100 views

Siebel Systems Case Analysis: Group 10 - Section B

Siebel Systems was considering how to handle a $2.1 million sale to Quick & Reilly without affecting their relationship with existing customer FleetBoston. They could either go ahead with the sale using their own CRM software over FleetBoston's outdated software, risking the FleetBoston relationship, or pull back the sale and use the outdated software, risking the new Quick & Reilly relationship and quarterly sales goals. They decided the best option was to go ahead with the sale using their own software but buy back the outdated FleetBoston software through a credit, maintaining both customer relationships.

Uploaded by

Amit Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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 OPTION 2
PROS PROS
■ Improved relationship with Quick and Reilly ■ Short-term relationship with Fleet Boston will be
maintained
■ Sales quota for the quarter will be met
■ Might gain deals worth $30 Million over the next few
■ The deal will strengthen Seibels’ Position as a CRM years
software leader
■ Internal conflicts will be resolved
■ Alignment with Ron Seibel’s Core Values

CONS
CONS
■ Risk of bad relationship with Fleet Boston due to
deployment of unnecessary Scopus products and losses ■ Long-term relations might be impacted due to poor
of $30 Million over various deals performance of outdated Scopus products
■ Losses for Scopus ■ December sales quota will not be met
■ Increased market share of Oracle ■ Stained relationship with Quick and Reilly
■ Internal conflicts ■ 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

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