Siebel Systems

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					         Siebel Systems

Fred Lizotte
Mission and Vision
 100% Customer Satisfaction
 To do whatever it takes to assure that our
  customer is successful.
Key Dates
 1993 – Seibel Systems was founded
 1995 – Siebel delivers sales Enterprise software
  for sales force automation
 1996 – Siebel becomes a publicly traded company
 1998 – Seibel acquired Scopus Technology for
  450 million in stock
 2000 – Siebel generates more than 1 billion dollars
  in revenue
 2006 – Oracle acquires Siebel Systems
Management Team
 Tom Siebel – UI, business & Computer
  Science, Oracle, VP of direct marketing,
  Gain Technology, Siebel Systems
 Patricia House – a former Oracle marketing
  colleage
Important stakeholders
 Anderson Consulting – its first major
  partner, company took 10 % stake in the
  company and George Shaheen joined the
  board of directors.
 Charles Schwab & Co – Charles Schwab
  joined board of directors in 1994 with a 2.5
  % stake in the company.
 Cisco Systems
Goals and Strategies
 They are looking for heavy growth.
 Strong branding
 They relied on customer partnerships early
  on in the company
 The company team was ahead of the game
  the whole way, they predicted that their
  market will consolidate leaving only a few
  players left in the game. They planned
  accordingly.
Facts of the case
 Industry and marketing decisions
   – Siebel saw the consolidation of companies
     coming in the near future and decided to play
     along with it.
   – They bought out Scopus Technology for 460
     million in stock.
   – They gained 500 customers and their revenues
     surpassed competitor Vantive.
E-Commerce opportunities
 The opportunities that Siebel saw:
  – Technology paved the way for new channels of
    connecting customers to the company.
  – Sales force Automation and customer
    relationship management
  – The company predicted the consolidation of the
    industry to happen.
Prospective analysis
 The company used the perspective of
 creating value.
Why?
 The important thing to remember is from the
  beginning Seibel was looking to keep the
  customers the most important thing to the
  company.
 They brought onboard these partnerships. These
  partnerships helped Siebel know what the
  customers needed and wanted in the product, and
  then it was developed.
 Seibel Wasn’t even looking to get into the CRM
  market at first, but they found this opportunity that
  it is what the customer wanted, they jumped in the
  boat.
DSIR

 DSIR is possible for this company.
  – Near the end we see that Siebel is creating software
    packages that work through a web browser. We also see
    client applications being run from the server, making it
    easier to update software.
  – We see Siebel creating free single user software to get
    people acquainted with how the software works. It also
    helps standardize the systems that run it. People around
    the world can download the free version and be able to
    view the same database the same way.
DSIR
 When new companies start up, some of the
  people involved in the company would have
  worked on some kind of CRM software, or
  other applications that siebel systems or a
  competitor has created.
 Just the fact that a person has the experience
  on a certain software can increase the
  potential for the company to want to use
  that software.
Competitive risks
 There were a good amount of competitive
  risks involved in this industry
 Siebel was competing against giants like
  SAP and Oracle along with other smaller
  companies.
Competition
 Siebel was faced with competition from 4
  different angles
  – Established top-tier CRM firms
  – Smaller second tier CRM firms
  – Developers of “e-business applications”
    including numerous start-ups
  – Major ERP firms
Missed opportunities
 Hindsight is 20/20
 We see that Oracle and SAP were the
  biggest problems that Siebel faced.
  – If Siebel would have started sooner, it is
    possible that Siebel would be a leader in CRM
    software.
Discussion
 Siebel sold to Oracle in 2006, was this a
  good idea? And for who?
 Is Tom Siebel a smart man, and what makes
  him so great?

				
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