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Siebel Annual Report


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One of the best documents on CRM ever created.
Exptact from Siebel Systems annual report.

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  • 1. Siebelmeans Siebelmeans Siebelmeans Siebelmeans Siebelmeans Siebelmeans
  • 2. ROI solutions service success continuity opportunity
  • 3. 22 Siebel Systems, Inc. 2003 Annual Report Proven Products and Technology Leadership Siebel Systems provides business software The Siebel Application Suite consists of the solutions that empower organizations and the following complementary offerings: people in them to deliver superior customer 1. Siebel Industry Solutions experiences and proven business results. 2. Siebel CRM Siebel is a leading provider of customer 3. Siebel Incentive Compensation Management relationship management solutions and 4. Siebel Analytics solutions for business intelligence, integration, 5. Universal Application Network and and employee relationship management. Siebel Universal Customer Master 6. Siebel CRM OnDemand 1. Siebel Industry Solutions Public Sector Communications Finance Life Sciences High Technology Insurance and and Media Healthcare Siebel Public Sector Siebel Siebel Finance for Siebel Clinical Siebel High Tech Siebel Healthcare Communications for Institutional Finance Wireless Carriers Siebel Siebel Finance for Siebel Medical Siebel Insurance Communications for Retail Finance Wireline Carriers Siebel Media Siebel Pharma 2. Siebel CRM Call Center and Service Sales Customer Order Management Marketing 3. Siebel Incentive Compensation Management 4. Siebel Analytics 5. Universal Application Network and Siebel Universal Customer Master 6. Siebel CRM OnDemand
  • 4. 23 Siebel Systems, Inc. 2003 Annual Report Proven Products and Technology Leadership Travel, Transportation, Consumer Goods Energy Complex Retail Automotive and Hospitality Manufacturing Siebel Hospitality Siebel Consumer Siebel Chemicals Siebel Aerospace Siebel Retail Siebel Automotive Goods and Defense Siebel Travel and Siebel Energy Siebel Industrial Transportation Manufacturing Siebel Oil and Gas Partner Relationship Management Field Service Employee Relationship Management CRM Professional Edition
  • 5. 24 Siebel Systems, Inc. 2003 Annual Report What Is CRM? The Siebel CRM Solution CRM is an integrated approach to identifying, Siebel applications provide the most comprehensive multichannel acquiring, and retaining customers. solution that allows organizations to manage, synchronize, and coordinate customer interactions across all channels. By enabling organizations to manage and • Siebel Sales helps organizations grow revenues more quickly, predictably, coordinate customer interactions across and profitably by helping them focus on the right deals at the right time. multiple channels, departments, lines of • Siebel Customer Order Management supports complex pricing and business, and geographies, CRM helps product configuration, quote approval, availability checking, and credit and payment verification to ensure customer orders are complete, valid, organizations maximize the value of every and accurate. customer interaction and drive superior • Siebel Call Center and Service applications support end-to-end, closed- corporate performance. loop service and enable organizations to increase service profitability, reduce cost per contact, optimize resource management, and enhance customer satisfaction and loyalty. • Siebel Field Service enables organizations to profitably manage all Today’s organizations must manage customer interactions across multiple aspects of their service operations, from preventive maintenance to communications channels—including the Web, call centers, field sales, invoicing and advanced parts exchange. and dealer or partner networks. Many organizations also have multiple • Siebel Marketing applications provide a complete closed-loop solution lines of business with many overlapping customers. The challenge is that enables organizations to better understand their customers; execute to make it easy for customers to do business with the organization any personalized campaigns synchronized across all channels; and optimize way they want—at any time, through any channel, in any language or strategies through continuous testing, measurement, and feedback. currency—and to make customers feel that they are dealing with a single, unified organization that recognizes them at every touchpoint. • Siebel Partner Relationship Management automates and streamlines channel business processes, facilitates collaboration, supports real-time business-to-business integration with partners, and provides powerful insight into performance and effectiveness across the entire partner Multichannel CRM network. • Siebel Incentive Compensation enables organizations to manage and Web and Email Analytics modify their compensation plans so that employee and partner behaviors are aligned with corporate strategy. • Siebel CRM Professional Edition provides deep and focused CRM Customers Call Center functionality across sales, marketing, and customer service, packaged and priced to specifically meet the requirements of small and midsize Customer Back Office businesses. Field Information • Siebel CRM OnDemand provides a fast, easy, and affordable hosted CRM service that organizations of any size and in any industry can rapidly deploy to get immediate results, with no up-front investment. Partners Marketing CRM for Everyone Siebel Systems is committed to delivering “CRM for Everyone”—to any Why Is CRM Important to an Organization? type or size of organization, in any industry, with any type of user. The benefits of CRM are clear: By streamlining processes and providing We offer a broad range of CRM solutions and a highly flexible choice sales, marketing, and service personnel with better, more complete of deployment options—including hosted, on premise, or hybrid customer information, CRM enables organizations to establish more combinations of hosted and on premise. profitable customer relationships and decrease operating costs. • Sales organizations can shorten the sales cycle and increase key sales Enterprise Siebel CRM OnDemand Siebel CRM Enterprise performance metrics such as revenue per sales representative, average Applications Hybrid order size, and revenue per customer • Preintegrated with Siebel • Deep vertical capabilities CRM enterprise applications • Unparalleled customization • Marketing organizations can increase campaign response rates and • Rapid deployment for and scalability marketing-driven revenue while simultaneously decreasing lead single division • Powerful integration • Easy to use, immediate results capabilities via UAN generation and customer acquisition costs • Affordable per-user pricing • Customer service organizations can increase service agent productivity and customer retention while decreasing service costs, response times, and request resolution times Small and Siebel CRM OnDemand Siebel CRM Professional Midmarket Edition Hybrid Across every sector and industry, effective CRM is a strategic imperative • Easy to use • Deep functionality tailored for corporate growth and survival. Research has shown that companies • Fast results for small/medium-sized • Preintegrated with Siebel businesses that create satisfied, loyal customers have more repeat business, lower CRM Professional Edition • Flexibility of pricing customer acquisition costs, and stronger brand value—all of which translate • No up-front costs • Complete CRM solution into better financial performance. Hosted On Premise
  • 6. 29 Siebel Systems, Inc. 2003 Annual Report Public Sector Citizenship and South African Revenue Service Leeds City Council Improving Citizen Response Immigration Canada in New York City Citizenship and Immigration Canada With more than 9.5 million taxpayer Leeds City Council is the government In January 2002, Mayor Michael (CIC) manages the selection, records, numerous tax types, and leadership for the city of Leeds, the Bloomberg announced plans for the admission, and processing of all multiple systems of taxpayer financial capital of Northern England, creation of a 311 Citizen Response potential new citizens to Canada. records, South African Revenue with more than 750,000 citizens. Center to simplify government Established in 1994, CIC currently Service (SARS) faced the daunting Leeds City Council initially deployed interactions for the 8 million New aims to replace several of its current task of delivering high-quality Siebel Public Sector among 40 call York City residents who were then legacy systems with a new integrated customer service while collecting center agents and 100 One-Stop faced with more than 40 different solution. This set of applications revenues accurately and efficiently. Center customer service staff to call centers, 14 pages of phone and infrastructure components will Faced with numerous views of its track citizen service requests and numbers, and a host of help lines support all of CIC’s client case customers and extremely difficult provide resolutions quickly and in order to obtain service from management, operations, and and complex account management accurately—saving more than city agencies. As a result of the requirements and will replace processes, SARS used a time- $500,000 in annual customer confusion over where to find outdated, nonintegrated legacy consuming, manual process to service costs and deploying on information, citizen access to city systems. This project, the Global prevent issuing a refund related budget in five months’ time. services was inconsistent, and Case Management System (GCMS), to one tax type when a customer service delivery was inefficient. is an integral component of CIC’s might owe a larger balance for Recently, Leeds City Council vision for the future and includes a different tax type. Utilizing Siebel expanded its use of Siebel Public “It’s not just a citizen 2,500 seats of Case Management Public Sector applications, SARS Sector applications to 2,500 social Analytics in combination with quickly linked records from various service caseworkers in order to service hotline, it is 5,000 seats of Siebel Public Sector systems to produce one aggregated deliver consistent, rapid, and effective the most powerful Call Center. Siebel Public Sector account per taxable entity, giving case management. “If a child is will leverage the lessons learned tax administrators instant debt referred to Social Services, we can management tool from the CIC experience to bring equalization capabilities; SARS can use Siebel applications to quickly ever developed to market a complete Immigration also now update numerous systems compile a complete profile of the Services solution. As a charter of record through the single child and the circumstances,” for New York City client, CIC will also influence the interface. This initial deployment says Eileen Wainwright, Director government. I can’t future directions of the product has demonstrated that revenues for Strategy and Development. to ensure its requirements are will not only increase with a single “These details are instantly sent imagine running the continuously met. With recent view of the taxpayer, but that the to the relevant social worker for city without it.” changes announced last month, new complementary systems will follow-up. Workflow ensures that the newly formed Canada Border also create significant cost reduction the correct procedures occur quickly Michael Bloomberg, Services Agency (CBSA) will and better citizen service. and in the right order.” This helps Mayor of New York City also utilize the new system for Leeds to identify cases in hours as interdiction and enforcement opposed to days—without the need To address this issue, the new 311 functions previously performed for prolonged telephone calls and Citizen Response System provides by CIC. unnecessary paperwork. a single number for residents, businesses, and visitors to initiate all interactions with the city. All of the city’s police precincts are networked to the 311 system and calls, complaints, and service requests are routed to the appropriate police precinct, allowing police to decide on an effective response more quickly than before. NYC 311 handles more than 40,000 calls daily, making it U.S. Postal Service postal service’s sales organization at the U.S. Postal Service today the largest 311 system in the and information technology staff to more than 1,400. The postal United States. Ultimately, the 311 chose Siebel because of its ability service has nine areas of operation Citizen Response Center provides to align all marketing and sales in the U.S. and Caribbean and city officials with a holistic view of To support its ongoing efforts to systems into a unified, complete required a CRM solution that could citywide operations, empowering integrate its sales and service view of postal customers and for not only handle the current scope them to allocate resources more operations, the U.S. Postal Service its ease of integration with the of its operations and massive quickly and efficiently to address is standardizing on Siebel Public existing Siebel project for the customer base, but also one that citizen needs. Sector for its Sales Support Integrated Business Service had the capacity to expand to Solution (S3) project. With more Network. These two projects bring other service fronts in the future. (From NY Times article entitled “New Yorkers Love to Complain, and Hotline Is Making the than 900 users nationwide, the the total number of Siebel users Most of It,” December 1, 2003, by Winnie Hou.)
  • 7. 30 Siebel Systems, Inc. 2003 Annual Report Communications and Media Maximizing Customer Loyalty and 9 of the top 10 Global Profitability in the Communications 500 telecommunications and Media Industries companies have selected Siebel CRM Designed specifically for service providers in the local, long distance, broadband, cable, satellite, wireless, Internet, and media content industries, Siebel Solution Sets for Communications and Media enable organizations to enhance customer service, streamline sales operations, improve collaboration across the demand chain, increase marketing effectiveness, and 90% improve the customer buying experience. Median ROI for Siebel Select Siebel Customers Communications and Media Customers Wireline Industry Imperatives BT NTT Communications Wireline • Defend the core Wireless • Improve customer Media • Reduce customer 8% Telecom Italia S.p.A. Telstra Corporation Limited business understanding churn Revenue Increase • Drive customer • Increase customer • Up-sell and cross-sell retention value • Widen the net into new Wireless • Reduce operating costs • Expand into new • Drive customer retention • Improve operational customer segments • Improve ad sales effectiveness 12% Sonofon A/S T-Mobile Telecom Italia Mobile S.p.A. markets efficiencies • Reduce operational Customer Retention • Offer new, value- • Improve partner costs Increase Virgin Mobile USA added services effectiveness • Improve visibility into Vodafone Telecel key performance Comunicacoes Pessoais, metrics 23% S.A. Siebel Solution Sets for Employee Media Communications and Media Productivity Gains Business Week DIRECTV Operations, Inc. Wireline Wireless Media Dun & Bradstreet Holdings • Intelligence-Driven Marketing: Enables • Intelligence-Driven Marketing: Improves • Subscriber Life Cycle Management: 23% LexisNexis Reuters Limited score-based segmentation and Leverages customer Customer segmentation of campaign targeting, management best Satisfaction Increase customers, proactive resulting in increased practice to improve the churn management, marketingeffectiveness customer experience and closed-loop campaign management • Deliver the Perfect Order: Streamlines quote-to-contract while decreasing service costs • Ad Sales Management: 13% • Partner Network process, reducing Provides complete Operating Costs Optimization: transaction costs view of the customer Decrease Supports collaborative and improving the and streamlines sales sales, service, and customer buying processes, leading to marketing programs experience improved ad sales Return on Siebel with partners and • One-and-Done Service: effectiveness Investment: resellers Provides a 360-degree • Deliver the Perfect • One-and-Done view of the customer, Order: Automates the 18 Months Service: Provides resulting in shorter customer order comprehensive view of resolution times and process, reducing Source: Satmetrix Systems surveys, 2003. Figures are median values based on all customer information, increased customer transaction costs and quantitative responses provided on all 2003 resulting in shorter satisfaction improving the quarterly customer surveys. resolution times • Optimize Partner customer buying • Deliver the Perfect Networks: Improves experience Order: Streamlines the collaboration across • Optimized Field customer order the demand chain, Service: Streamlines process by providing leading to improved work processes for intelligent partner-delivered delivering service in the recommendations service and higher field, resulting in cost and simplifying partner-driven savings and improved service negotiation revenues customer service levels
  • 8. 31 Siebel Systems, Inc. 2003 Annual Report Virgin Mobile USA Achieves “Now” Customer Service Communications and Media A joint venture between Virgin Using Siebel Workflow to Deliver Group and Sprint, Virgin Mobile “Now” Service is the first mobile virtual network Since Virgin Mobile offers Pay operator (MVNO) in the United As You Go service, it’s critical that States—and the nation’s first customers can quickly and easily wireless service to solely target “Top-Up” their accounts. When the youth market. Instead of an automatic top-up trigger undertaking the expense of is activated—for example, when building its own cellular network a low balance threshold is infrastructure, Virgin Mobile reached—Siebel Workflow sends utilizes Sprint’s wireless network the transaction out through BEA, to deliver service to its customers, charges the customer’s credit card, while retaining all responsibility updates the balance information, for all aspects of the customer and sends a text message experiences, including customer confirming top-up to the customer’s service, billing, development of the cell phone. “All four core systems handset user interface, design and can execute a customer’s request maintenance of the Web site, and in seconds,” says Parks, “so there the selection of handsets. is virtually no latency between request and execution.” The Customer Service Imperative Virgin Mobile USA realized early on that providing the best Empowering the Call Center Siebel Communications has also “Siebel offers the greatest customer service in the industry would be vital to its success. improved productivity in Virgin Mobile’s “At Your Service” call value at the lowest risk. “We are fundamentally different center. “In focus groups with both from any other operator in North America,” says Mike Parks, CIO, novice and expert customer service representatives, the feedback has I don’t know why anyone Virgin Mobile USA. “Although we are running on top of the Sprint been very positive,” says Parks. “A number of these agents have would choose anything else.” network, our customers have been in environments where they Mike Parks, CIO, Virgin Mobile USA a uniquely Virgin Mobile experience. have to page through multiple Everything that happens—in terms screens to get what they need to of customers’ interactions with serve a customer. With Siebel, our user interface, Web site, and all of the functionality is available customer care environment—is to them on the screen, and supported by systems that Virgin handling specific customer Mobile integrated, built, or situations is managed through customized. Another differentiator screen pops. As a result, we can is that, because we are Pay As You handle the vast majority of Go, we need to be very real time. inquiries with no transfers.” If a customer’s balance goes to zero, they want to put additional Customer Service Levels money into their account and make above Industry Average another call instantaneously—they The customer service focus at don’t want to wait 24 hours. It’s Virgin Mobile has resulted in real, critical that we are able to deliver measurable results. “From the a ‘now’ offering.” onset, we contracted a third party to provide customer service Needed: Real-Time Offerings monitoring. We’ve experienced very for Outstanding Service high service levels, scoring higher Virgin Mobile’s vision required than industry averages by 10 to 15 applications that could support points,” says Parks. “In fact, we’re the delivery of a real-time already approaching world-class experience at any time of day, service levels. From day one, across multiple channels. To help we’ve had a real focus on providing meet that challenge, Virgin Mobile a very positive experience to our turned to Siebel Communications. customers, whether they’re dealing “Siebel Communications was the with automated voice response or most comprehensive and reliable a live agent.” solution that we evaluated,” says Parks. “I had experience with Siebel Looking forward, Virgin Mobile is applications in a prior company, considering Siebel Communications and we were very comfortable for customer life cycle management. with the quality of Siebel Systems’ “We’re looking at ways to use Siebel support infrastructure, as well to help us better understand as with the responsiveness of the our customers’ behaviors and local account team and the Siebel preferences, and to start crafting Communications product team.” offers that could expand their relationship with Virgin Mobile,” says Parks. “That’s the next level of sophistication.”
  • 9. 32 Siebel Systems, Inc. 2003 Annual Report Finance Deepening Customer Relationships in 22 of the top 25 Global 500 Institutional Finance and Retail Banking banks are Siebel customers 37 of the top 50 Global 500 Siebel Solution Sets for Finance enable banks are Siebel customers organizations in the institutional finance and retail banking industries to maximize Siebel has 130,000 users customer profitability, improve customer in production in the world’s satisfaction and retention, and streamline top 10 banks alone the account and credit origination processes to lower operating costs. Industry Imperatives Institutional Finance Retail Banking 88% Median ROI for Siebel Financial Select Siebel Customers • Maximize customer profitability • Transform the branch experience Services Customers • Deliver differentiated service • Maximize customer profitability Abbey • Regain investor trust • Increase customer retention Allfirst Bank Siebel Solution Sets for Finance 8% Australian Finance Group Ltd. Banco de Galicia y Revenue Increase Buenos Aires, S.A. Institutional Finance Retail Banking Bank of America Corporation • Profitable Cross-Selling: Improves • Branch Transformation: Equips commercial bankers’ ability to cross-sell noninterest, higher- branch personnel with fully integrated sales, service, analytics, 13% Bank of Montreal Barclays Bank Plc Countrywide Home margin products such as cash and robust financial transaction Customer Retention management and treasury processing capabilities, enabling Increase Loans, Inc. services to their existing customer them to deliver an outstanding Deutsche Bank AG base, leading to greater profitability customer experience. Automates • Customer-First Service: Enables the offer management and referral Dresdner Bank AG commercial banks to retain their most valuable customers by capture process for tellers, platform officers, and managers, leading to 18% First National Bank of Omaha Fleet National Bank improving overall customer increased sales per employee in Employee HSBC Investment Bank Plc knowledge and by supporting the branch channel. proactive, personalized service • Service to Sales: Ensures that all Productivity Gains RBC Financial Group • Trusted Advisor: Provides customer inquiries are addressed Scudder Financials investment management efficiently with minimal errors Société Générale professionals with tools that enable them to more effectively target across all channels, leading to higher customer satisfaction 18% Standard Chartered Bank The Bank of New York their customers with tailored and retention. Customer cross-sell and up-sell offers, • Relationship-Powered Lending: UBS AG leading to greater customer Equips lending officers with Satisfaction Increase profitability and loyalty detailed customer intelligence and supports an end-to-end sales and credit origination process, leading to increased revenue 8% and reduced processing times. Operating Costs Decrease Return on Siebel Investment: 12 Months Source: Satmetrix Systems surveys, 2003. Figures are median values based on all quantitative responses provided on all 2003 quarterly customer surveys.
  • 10. 33 Siebel Systems, Inc. 2003 Annual Report Helping Clients Succeed in Today’s Rapidly Evolving Markets Finance The Bank of New York, founded The Company began the by Alexander Hamilton in 1784, implementation of its SFA system is the United States’ oldest bank in July 2002, testing pilot programs and the principal subsidiary of in its U.S. and European offices. The Bank of New York Company, Successful pilots led to strategic Inc., a financial holding company. deployment in remaining locations With total assets of $92 billion, including Asia, the Middle East, total assets under custody of South Africa, and Latin America. $8.3 trillion, and operations in “We implemented our SFA system 33 countries, it’s also a global across all institutional product areas leader in securities servicing for of the Bank, in over 30 countries, issuers, investors, and financial which few if any other financial intermediaries. The Company has institutions have been able to a distinguished history of serving successfully manage,” says Miller. global corporations, financial institutions, asset managers, Significant Business Benefits governments, nonprofit With the Siebel Finance solution organizations, and individuals fully deployed, the Bank has around the world through its five realized a host of benefits: primary businesses: Securities Increased Cross-Selling—Sales Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate personnel are more quickly informed of new business opportunities “The technology foundation around the world on a daily basis Banking, Global Market Services, and Retail Banking. and are better able to coordinate the sale of additional products into provided by Siebel Finance A Legacy of Acquisitions Over the last decade, The Bank existing and new relationships Increased Employee Productivity plays an important role in of New York has made over 80 acquisitions worldwide, resulting and Efficiency—Sales personnel have a shared system for managing helping us achieve our goals.” in the broadest array of products contacts and activities, which Bruce Miller, Senior Vice President, Institutional Cross Selling and services offered in the industry leads to improved coordination of and Strategic Sales, The Bank of New York and the addition of thousands of individual and group sales activities new customer relationships and Better Planning of Sales Efforts— contacts. Faced with increasingly Management has deeper insight into complex, cross-border customer the sales pipeline, allowing them relationships and multiple customer to better predict sales performance database and tracking systems, and monitor clients at risk the Bank sought a technology solution that would unify its Increased Customer Satisfaction— sales force and complement By improving the Bank’s ability its corporate vision—helping to develop value-added solutions its clients identify opportunities, and coordinate customer outreach, address challenges, and navigate Siebel Finance has helped the a constantly changing marketplace. organization improve customer satisfaction Establishing a 360-Degree Reduced IT Maintenance Costs— View of the Customer Now relying on a single technology To address these issues, The Bank solution, the Bank has sunset of New York rolled out its custom several legacy systems, reducing Siebel Finance application, named its total cost of ownership Global Sales Force Automation (SFA), to client-facing professionals “We strive to be the acknowledged based in various parts of the globe. global leader and preferred partner The application is used by client in helping our clients succeed executives, country managers, sales in the world’s rapidly evolving officers, and product relationship financial markets,” says Miller. managers to manage and track “The technology foundation all customer contact and sales provided by Siebel Finance plays activities. “We wanted a customized an important role in helping us solution that would provide us achieve our goals.” with a 360-degree view of all our institutional customers, accessible anytime and anywhere in the world,” explains Bruce Miller, Senior Vice President, Institutional Cross Selling and Strategic Sales at The Bank of New York.
  • 11. 34 Siebel Systems, Inc. 2003 Annual Report Life Sciences Driving Efficiencies, Effectiveness, 25 of the top 25 and Growth in Life Sciences pharmaceutical companies have chosen Siebel applications Siebel Solution Sets for Life Sciences enable organizations in the pharmaceutical, 8 of the top 10 medical biotechnology, clinical research, and medical products companies have products industries to deploy customer-centric chosen Siebel applications strategies that will allow them to accelerate time to market, improve sales and marketing effectiveness, ensure regulatory compliance, and deliver world-class service across all channels. 100% Industry Imperatives Median ROI for Siebel Life Select Siebel Customers Sciences Customers Pharmaceuticals Medical Pharmaceuticals • Accelerate time to market • Deliver world-class service Amgen • Improve sales effectiveness • Achieve marketing excellence • Improve sales effectiveness • Realize contract revenue 8% Aventis Pharma Bayer AG • Improve medical communications • Achieve regulatory compliance Revenue Increase Biogen Inc. and service • Increase marketing value • Maximize human capital Boehringer Ingelheim Siebel Solution Sets for Life Sciences 8% International GmbH Novartis Novo Nordisk Customer Retention Pharmaceuticals Medical Increase Pharmaceuticals, Inc. Organon NV • Clinical Trial Management: • Intelligent Customer Service: Accelerates time to market Enables world-class service by Pfizer BV by streamlining clinical trial processes, enhancing CRA providing customer-facing employees with a 360-degree view 18% Roche Laboratories, Inc. Shionogi & Co., Ltd. productivity, strengthening of the customer and an embedded Employee Takeda Pharmaceuticals investigator relationships, solutions knowledge base and providing real-time clinical • Relationship-Driven Selling: Productivity Gains America, Inc. trial status Increases close rates and reduces Wyeth • Intelligence-Driven Sales Planning sales cycles through quote-to-order and Execution: Integrates customer and market intelligence automation, real-time customer intelligence, and best-practice 13% Clinical Duke Clinical from multiple sources, enabling sales methodologies Customer sales professionals to plan more • Contract Life Cycle Management: Research Institute effective sales strategies and Enables companies to execute Satisfaction Increase Inveresk Clinical deliver personalized sales contracts as negotiated, including Research, Ltd. messages to physicians compliance to terms and • Closed-Loop Marketing: Enables one-to-one marketing by conditions, resulting in higher revenue, reduced administration, 8% Novartis Pfizer BV providing an integrated system and increased renewals and profits Operating Costs Pharmaceutical Product for designing and executing • Closed-Loop Complaints Development, Inc. campaigns across multiple Management: Enables seamless Decrease channels, including field sales, capture and tracking of product PRA International, Inc. the Web, and the call center complaints and adverse events, Source: Satmetrix Systems surveys, 2003. TAP Pharmaceutical Figures are median values based on all • Integrated Medical leading to improved reporting, quantitative responses provided on all 2003 Products, Inc. Communications, Drug Safety, faster resolution, and improved quarterly customer surveys. and Product Complaints: compliance Provides one view of medical • Integrated Marketing: Automates Medical information requests and case the design, approval, and Alcon S.A. management activities across execution of product marketing Aspect Medical Systems multiple departments and campaigns to increase market Baxter International Inc. geographies to ensure regulatory share, accelerate new product compliance and high levels of introductions, and increase sales Dade Behring Inc. customer satisfaction to the installed customer base GE Healthcare • KPI-Driven Performance Gen-Probe, Inc. Management: Aligns employees’ Guidant Corporation individual objectives with key performance indicators (KPIs) Philips Medical Systems of each functional department, PSS World Medical, Inc. leading to enhanced business STERIS Corporation performance
  • 12. 35 Siebel Systems, Inc. 2003 Annual Report A Prescription for Closer Customer Relationships at Wyeth Life Sciences The pharmaceutical industry Quick Return on Investment has long been challenged by Wyeth’s decision made it the first the risk and complexity of drug top-tier pharmaceutical company development. Lately, a new to deploy a major CRM solution. challenge has emerged—just This investment has quickly paid getting in to see the busy off for the company in measurable physician “customer.” Wyeth ways. The following benefits were responded by implementing achieved as a result of deploying Siebel CRM solutions to improve the Siebel CRM solution: customer relationships and sales Operational Spend—Reduced 20% execution, while reducing costs. in the first year With annual revenues of $15.8 billion, Average Call Answer Time— Wyeth is one of the largest Now 37 seconds, down 40% research-driven pharmaceutical First-Call Resolution—Has increased and healthcare products companies from 39% to a remarkable 93% in the world. In the high-risk business of manufacturing and Escalation Resolution Time— marketing prescription and over- An astounding 1,500% reduction, the-counter medicines, Wyeth decreasing the time to resolve has a remarkable track record— problems requiring escalation producing a long list of category winners, including Advil, Alavert by 36 hours Wyeth looked to Siebel for a allergy medicine, Centrum vitamins, Effexor antidepressants, Other Key Benefits With the Siebel CRM solution, competitive edge—to help its Prevnar pneumococcal vaccine Wyeth is also enjoying benefits for infants, and Robitussin cough and cold medicine. in other key areas. Among them are providing its field and call field reps gain better access But even with Wyeth’s consistent center sales reps with timely and integrated sales data, reducing to physicians and, once in success in the laboratory, growing the number of email and voice demands on physicians’ time— compounded by a significant messages reps handle, offering superior analytical capabilities the door, get its medicines increase in the number of pharmaceutical field sales for evaluating target effectiveness, facilitating integrated precall and other products representatives—has made it planning at the point of need, increasingly difficult to get in the door. and supplying a complete view of promotional activity around prescribed more often. each physician customer. Obstacles to Successful Sales and Service Further, despite additional contact In addition to more field salespeople information and activities that need competing for less time, several to be tracked and logged today, other factors have worked against Siebel CRM is delivering integrated the effectiveness and efficiency of sales data from Wyeth’s custom the pharmaceutical sales process. data warehouse as fast as or faster than previous “point” systems. • Many companies, Wyeth included, have been unable to avoid the Developing new medicines will confusion created by multiple always require intelligent salespeople from one firm investment and a willingness to selling different products to take calculated risks. With Siebel the same physicians CRM applications, Wyeth now has • Field salespeople and call center the powerful solution it needs to representatives do not have enhance the ROI of its sales and the latest technology tools such marketing activities and build on as a fully integrated repository of its tradition of market leadership. customer data; handheld devices for real-time field access; and sophisticated management, analysis, and reporting capabilities • Entrenched legacy systems have made it more challenging to implement the needed next- generation solutions In 2002, Wyeth selected Siebel CRM solutions to bring it closer to physicians and reduce spending on sales, service, and support.
  • 13. 36 Siebel Systems, Inc. 2003 Annual Report High Technology Creating the Customer-Driven 19 of the top 20 Global 500 High Technology Company high technology companies have chosen Siebel applications Designed specifically for companies in the hardware, software, semiconductor, 9 of the top 10 Fortune 500 and communications equipment industries, high technology companies Siebel Solution Sets for High Tech enable have chosen Siebel organizations to drive superior sales applications performance, streamline sales operations, increase marketing effectiveness and accountability, improve collaboration across the demand chain, enhance the customer buying experience, and maximize after-market 95% parts and service revenue. Median ROI for Siebel Complex Select Siebel Customers Manufacturing and High Tech Customers Actel Corporation Industry Imperatives Altera Corporation • Understand customers: Need to gain a deeper understanding American Power of customer needs and increase customer lifetime value • Grow high-margin businesses: Must expand into profitable segments 8% Conversion Corp. Autodesk, Inc. without substantially increasing operating expenses Revenue Increase Avaya • Streamline the buying experience: With greater product commoditization, high technology firms must deliver a superior buying experience to Best Software SB, Inc. attract and retain customers • Deliver world-class service and support: High technology customers evaluate vendors—and base future buying decisions—on the quality 13% BMC Software, Inc. Brooks Automation of service delivered across the entire product usage life cycle Customer Retention Cadence Design • Optimize partner channels: High technology companies must ensure Increase Systems, Inc. a seamless customer experience across their partner ecosystem and Candle Corporation maximize channel sales and profitability Cerner Corporation Siebel Solution Sets for High Tech 23% Cisco Systems, Inc. CNT Employee Fujitsu Siemens • Intelligence-Driven Marketing: Improves customer segmentation, targeting, and campaign tracking, resulting in increased marketing Productivity Gains Computers GmbH effectiveness and accountability Gateway, Inc. • Performance-Driven Sales: Streamlines sales planning, operations, and execution, resulting in optimal territory coverage, lower operating costs, shorter sales cycles, and increased sales close rates 18% HP IBM Corporation Intergraph Corporation • Deliver the Perfect Order: Streamlines the quote-to-contract process, Customer reducing transaction costs and significantly increasing order accuracy Satisfaction Increase Intuit, Inc. • Service Life Cycle Management: Helps organizations cost-effectively Lexmark International, Inc. deliver world-class service throughout the service life cycle—from identifying and closing service requests and assessing entitlements LSI Logic Corporation to dispatching field technicians and managing product defects— resulting in increased customer satisfaction and higher after-market 8% Mentor Graphics Corporation Mercury Interactive parts and service revenue Operating Costs Microsoft Corporation • Partner Network Optimization: Improves collaboration across the demand chain, resulting in greater brand consistency, more productive Decrease Misys Healthcare Systems partner relationships, higher indirect revenue and margins, enhanced Motorola, Inc. partner-delivered sales and service, and greater partner satisfaction Return on Siebel Network Associates, Inc. Investment: Novell, Inc. 12 Months Omnicell, Inc. Pitney Bowes Inc. Source: Satmetrix Systems surveys, 2003. Qualcomm, Inc. Figures are median values based on all quantitative responses provided on all 2003 Ricoh Corporation quarterly customer surveys. Sandisk Corporation Sun Microsystems, Inc. Symantec Corporation Taiwan Semiconductor Manufacturing Company Ltd. Xerox Corporation
  • 14. 37 Siebel Systems, Inc. 2003 Annual Report Enhancing Service Quality at Pitney Bowes High Technology “Pitney Bowes is focused on Bringing It All Together managing inbound and outbound To address these issues, Pitney communications more holistically Bowes is deploying Siebel CRM across the enterprise so we applications, integrating them can provide our customers with with the company’s own document a more integrated experience.” management technology to create what it calls the Pitney Bowes Bill Geronimo, Director of CRM Customer Communication Application Development, Management (CCM) solution. Pitney Bowes By consolidating and streamlining all inbound and outbound customer A leading provider of integrated communications, including mail mail, messaging, and document correspondence, the integrated management solutions, Pitney solution enables Pitney Bowes’ Bowes is committed to engineering call center agents to respond to the flow of communication for its customer requests or inquiries customers. Founded in 1920, with more efficiently and effectively. annual revenues of $4.6 billion, In fact, the solution has worked the company has developed a wide so well in-house that Pitney Bowes range of innovative technologies and Siebel Systems are now that are at the heart of its systems co-marketing the joint offering and software offerings. With the help of 33,000 employees in 24 to other Siebel customers. “Service is critical to our countries, Pitney Bowes serves more than 2 million customers. “Agents can access customer history and other data in core success, and this system mailing, leasing, or postage-by- Committed to delivering a superior customer experience, Pitney Bowes phone systems because everything is tied together,” Nichols says. allows us to get it right for is always looking for ways to improve communication across “This enables us to handle more customer questions without customers the first time.” the different business units and transferring a call—and resolve Bill Geronimo, Director of CRM Application Development, functional organizations it uses issues the first time. If someone Pitney Bowes to serve customers and generate claims that a payment has been revenue. “Some time ago, we mailed back, the agent can now developed a vision of finding access mail stream data while the a more effective way to share customer is on the phone.” information across the organization,” says Bill Geronimo, Director of Siebel applications also provide CRM Application Development, Pitney Bowes’ field service Pitney Bowes. “With the industry engineers with a comprehensive, moving toward a solution selling closed-loop solution for managing model, we knew that if we were break/fix and other service events going to keep pace, we needed in the field. Siebel Field Service has to be more efficient in the way enabled Pitney Bowes to improve we share information among our first-time fix rates by 10% and various business units.” reduce emergency and rush orders by 90%. In addition, stock levels Twenty Systems for Sales have been lowered by at least 15% and Service due to better inventory management. Pitney Bowes has relied on as many as 20 different mainframe “Having service labor as well applications to support sales and as parts inventory viewable in customer service functions across one system has been a big different business areas in the breakthrough,” Geronimo company. Not only were these comments. “Service is critical systems disconnected, but some to our success, and this system were real-time and some were allows us to get it right for batch applications, often running customers the first time.” on different hardware platforms. “If you’re trying to respond to a customer’s needs quickly and effectively,” explains Ralph Nichols, Service Program Manager, Pitney Bowes, “it’s difficult to do, when systems and data are rarely in synch.”
  • 15. 38 Siebel Systems, Inc. 2003 Annual Report Enhancing the Customer Experience and Reducing Costs at HP “To deliver a consistent, industry- Providing Power Tools to the HP’s CRM Framework and Key Programs leading customer experience, Sales Force we need to integrate our front HP’s first step was to replace CRM Framework Key Programs office and link all of the ways that or consolidate nearly 50 legacy Marketing Infrastructure Marketing Resource Management we touch the customer. Siebel applications used by its sales • Campaign Planning, Management, has become the primary enabling force with a single, powerful, and Reporting Installed-Base Marketing technology for customer contact fully integrated CRM platform at HP.” from Siebel. By reducing the Lead Management Closed-Loop Lead Management number of stand-alone CRM • Lead Qualification Mike Overly, systems by 70%, HP saved an • Lead Allocation and Tracking • Lead Rating and Routing Vice President–Marketing, HP estimated $30 million. Further, the company expects to trim Sales Force Tools Global Opportunity and HP believes that delivering a customer operations costs by Account Management globally consistent, high-quality $15 million annually, thanks to Global Funnel and Forecast Management Workflow Automation customer experience is critical streamlined development and to its success. With more than reduced staff needs. Contact Center Tools Integrated Customer Information 140,000 employees doing business Cross-Sell/Up-Sell in 170 countries worldwide, But operational savings are just the CHI Integration maintaining its high standards beginning. HP expects Siebel CRM Customer Knowledge Management Base Customer Information for responsiveness and customer applications to make their biggest Transactional Data (360-Degree View) touch is a challenge—one that contributions in lead management. Integrated Analytics HP is tackling by standardizing In the past, leads generated from on Siebel worldwide. a wide range of sources—from Web events to referrals—were qualified A key objective is to ensure that and tracked manually. wherever or however customers CRM/PRM Alignment: Vision and User Needs interact with HP, they always feel “We’ll be automating the entire like they are working with one lead and opportunity process company. “Customers want us using Siebel’s closed-loop lead to know them, and by ‘us,’ they management capabilities,” remarks mean the global HP organization,” Overly. “This will let us rate, Vision says Mike Overly, HP Vice route, and allocate leads far more Lead industry by integrating the best of direct and indirect go-to-market business models, enabling President–Marketing. “Whether efficiently and effectively than seamless, simple, low-cost customer and partner transactions customers choose to work with before. HP averages thousands of that optimize Total Customer Experience (TCE) and profitable growth us by phone, over the Web, or in leads every day, so the potential person, our goal is to make the for increased sales is enormous.” Customers Partners Expect end-to-end solutions from HP • Expect ease of doing profitable business process easy—to provide them and HP partners at the right price, with HP to sell products and services a seamless transition from one Improving Collaboration with right place, and right time for home, to customers touchpoint to another, leverage Business Partners office, or enterprise • Expect to collaborate with HP to leverage demand and provide end-to-end solutions information to know and anticipate In addition, HP is implementing their needs, and ensure their Siebel Partner Relationship experience is consistently of the Management (PRM) to support • Joint Mkt Customer Product Quote Order • Fulfillment Plan/ Contact Services and and • Post-Sales highest quality.” and maximize the contributions Execution and Lead/ and Configuration Deliver Support of a broad spectrum of external • Campaign Opportunity Solution salespeople. This is important Mgmt Mgmt because nearly 60% of HP’s business revenue comes through partners. The automated solution will also enable HP to save millions of dollars currently paid to vendors to qualify and track leads. Current Strategic Initiatives across HP Are Critically Dependent upon Capabilities Enabled by a Global CRM Implementation TC er e( m Improve Customer Experience Increased Sales/Growth E) nc sto • Make it easier for the customer • Enable Direct Sales to be competitive Hi rie Cu to work with HP • Personalized content and marketing gh CRM pe al • Anticipate customer needs campaigns for new and installed Ex t Tot Te • Seamless integration across touchpoints GLOBAL base customers c h • Consistent interactions/experiences STRATEGY • Global customer and market information s Be • Lead management auto-routing rule ensures leads are distributed properly and tracked Low Cost • Showcase for Adaptive Enterprise Simplify, Streamline, and Leverage • Radically simplify and streamline systems and processes • Leverage processes and assets wherever possible • Simple enables more
  • 16. 39 Siebel Systems, Inc. 2003 Annual Report High Technology continued “Siebel gives us tools to determine Delivering Out-of-the-Box Benefits which partners have the best It was critical to HP that whatever closure rates for different types CRM solution the company selected of business,” Overly adds. “So, not require expensive customization. we can route leads not only by Siebel provided the exceptionally geography, but also by the partner’s robust, out-of-the-box benefits track record in accepting and across functional areas that HP closing opportunities. This has a was looking for. direct impact on revenue growth.” “Choosing a solution that would Finally, HP is deploying Siebel need a lot of customization Marketing Resource Management was simply not an acceptable (MRM) to improve campaign alternative,” Overly comments. planning, management, and tracking, “Our focus was to be able to as well as Siebel Analytics to gain achieve globally consistent greater insight into the effectiveness business processes and reporting of its marketing programs. to produce better team synergy and enhance execution. All of this Improving Contact with Customers leads to our ultimate objective Like a lot of large enterprises of providing the best possible with multinational customers, Total Customer Experience.” the quality of customer information is a constant concern for HP. “Siebel helps HP provide “Approximately 80% of our basic contact information—names, customers with a seamless addresses, phone numbers, and email addresses—changes every two years,” says Overly. “It’s not experience from one enough to get good customer data; we have to keep it that way.” touchpoint to another.” Mike Overly, Vice President–Marketing, HP Siebel’s support of wireless handheld devices enables HP sales representatives to capture changes in customer contact information in real time wherever they are, using Siebel applications running on HP iPAQ Pocket PCs. These changes are immediately reflected as part of organizational knowledge, so that any HP person can leverage the data. CRM and Partner Integration Vision, Approach, and Scope CRM Vision Provide business customers an industry-leading experience CRM Global Capability Framework Marketing Customer Knowledge Partner Integration Lead Management Management Contact Centers Approach Outside Sales Build a cohesive, integrated ✓ All Geographies CRM ecosystem to turn basic ✓ All Business Units data into rich customer insight ✓ Business Market Segments (Corporate Enterprise (see, know, anticipate) and Small Medium Business)
  • 17. 40 Siebel Systems, Inc. 2003 Annual Report Creating “One IBM” for Customers Worldwide “The concept of ‘One IBM’ is a Implementing a Solution IBM Relies on a Handful of Key Principles cornerstone for the way we serve Selling Approach to Guide Its Siebel Deployment our customers.” In the past, relying on dozens of legacy systems made it difficult Steve Wright, Vice President, for IBM to integrate customer • Must be sponsored by the senior executives Worldwide Customer Relationship information across internal and Management Deployment, IBM Business Partner organizations and • Consolidate business processes and IT limited the company’s ability to • Base design on agreed-to scope and participation Two years ago, IBM standardized on efficiently and effectively provide common worldwide sales processes, end-to-end business solutions. • Define process work first, prior to development and rollout using one set of worldwide data With the pervasive implementation • Use a common sales management system, standards. The company then turned of Siebel CRM applications, IBM including selling processes, metrics, and reporting to Siebel for the technology to tie is overcoming these challenges. all the pieces together. “We can now engage in true The company now has a single solution selling across our various worldwide sales, marketing, and sales and support organizations,” support system built on the Siebel remarks Steve Wright, Vice Siebel CRM Applications Are Helping IBM Create customer relationship management President, Worldwide Customer an Increasingly Customer-Intelligent Enterprise (CRM) platform. This pervasive use Relationship Management of a single process supported by Deployment, IBM. “Soon, we’ll also robust technology not only has be able to more effectively link improved visibility into the sales campaign and marketing processes pipeline, but also has reduced with selling processes to provide Web and Email costs and improved productivity greater end-to-end visibility and by eliminating the need to promote better teaming across manually reconcile different views organizations.” Centers Enterprise-wide of marketplace data. collaboration around When a customer responds to Nearly 60,000 Users an IBM marketing message— Field Sales and Service the customer The biggest accomplishment in whether a campaign is conducted 2003 was extending the Siebel by email, telesales, or the field CRM platform used by IBM’s call sales force—the company will Business Partners centers, Business Partners, and have the capability to track the technical support organization to campaign and feed detailed virtually the entire field sales force. information into the opportunity This increased the number of users pipeline with visibility into from approximately 10,000 to customer contacts and activities. nearly 60,000 worldwide. “By getting to know our customers In 2003, IBM Extended Its Siebel Deployment to More than Consistent with its global focus, better and enabling more effective 60,000 Internal Users and Business Partners IBM has deployed Siebel CRM collaboration around the customer applications in multiple currencies and among multiple IBM and languages, including English, organizations involved in sales, YE2002 3Q2003 YE2003 French, and Japanese. In 2004, marketing, and support, we can • 10,000 IBMers • 40,000 IBMers • 55,000 IBMers IBM plans to add new currencies significantly enhance the value — — — and languages, including Chinese we bring to our customers—while —Service and —Service and —Service and and Korean. This will enable generating additional revenues and Support Support Support further consolidation of the cost efficiencies for our company,” • Few thousand —Field Sales —Field Sales company’s multifaceted sales says Wright. “The concept of Business Partner —Marketing —Marketing processes—regardless of each ‘One IBM’ is a cornerstone for firms • Several thousand • Several thousand operating group’s location, the way we serve customers, and Business Partner Business Partner language, or currency. our collaboration with Siebel is a firms firms key part of our effort to make the concept a reality for our clients.”
  • 18. 41 Siebel Systems, Inc. 2003 Annual Report High Technology continued IBM’s Business Strategies Drive Its Customer Relationship Management Objectives Develop CRM strategies, Strategy complementary business, and resulting value propositions Identify, design, and implement Operational process and organizational Business strategy Process improvements to explicitly deploy CRM strategies IT strategy Deploy and integrate the Infrastructure technology to support the new way of doing business Business strategy and IT strategy must be aligned “The Siebel solution IBM Uses a Cross-Functional, Phased Approach should ultimately provide to Release Management • Global implementation a comprehensive —Geographically deployed dashboard to highlight n Americas catio EMEA early indications of market nch ts Asia Pacific en Edu Lau em ir ss • Consolidated business qu ce requirements —Worldwide processes Re Deployment Release Pro conditions worldwide.” —Geography data Architecture Steve Wright, Vice President, Worldwide Customer Relationship D Mgmt and implementation Se eplo PD Management Deployment, IBM rv y Ts Infra • Release management ice Dev approach to delivery /Te stru —Cross-functional teams —Cross-functional business st ctur requirements e —Worldwide deployment Release N N+1 N+2 N+3 N+4 Service and Support Business Partners Sales Marketing Mobile Sales
  • 19. 42 Siebel Systems, Inc. 2003 Annual Report Insurance and Healthcare Delivering a Superior Customer Experience 17 of the top 25 Global 500 in Insurance and Healthcare life insurance companies are Siebel customers Siebel Solution Sets for Insurance and 6 of the top 10 Global 500 Healthcare enable providers of personal and property and casualty commercial property and casualty insurance, insurance companies are individual life and annuities, and group life Siebel customers and health offerings to identify, attract, 4 of the top 10 Global 500 and retain profitable customers; improve healthcare companies are operational efficiency; and better manage Siebel customers complex, multistakeholder relationships. Industry Imperatives 68% Insurance Healthcare Median ROI for Siebel Insurance Select Siebel Customers and Healthcare Customers • Target profitable customers • Drive profitable growth Insurance • Differentiate on service • Ensure regulatory compliance AMP Financial Services • Increase service capacity • Expand distribution channels • Improve customer service • Manage claims and medical expenses 8% AXA Financial AXA Sunlife Services, Plc • Align and optimize distribution Revenue Increase Farmers Insurance channels Group, Inc. Siebel Solution Sets for Insurance 8% Gjensidige NOR Forsikring Interpolis N.V. Irish Life & Permanent Plc and Healthcare Customer Retention Increase Malaysia National Insurance Healthcare Insurance Berhad • Intelligence-Driven Marketing: • Customer-Centric Service: Northwestern Mutual Life Enables the identification, acquisition, and retention Supports the delivery of fast, seamless service, leveraging 18% Insurance Company Standard Life of profitable customers consistent information across Employee Assurance Company • Value-Added Service: Enables channels insurance companies to resolve • End-to-End Sales through Productivity Gains Zurich Financial Group customer issues on the first call, Enrollment: Improves customer provide Web-based self-service, acquisition and retention via Healthcare and streamline service case management robust analytics and relationship management capabilities 18% Blue Cross and Blue Shield of Florida, Inc. • Streamlined Claims Management: • Intelligence-Driven Marketing: Customer Improves the efficiency and Improves sales and marketing Blue Cross and Blue Shield effectiveness of claims service effectiveness by supporting Satisfaction Increase of Louisiana and reporting product purchase analysis Centers for Medicare & • Producer Optimization: Enables • Health and Wellness insurance organizations to attract, retain, and support complex Management: Automates and improves medical outreach 13% Medicaid Services CSS Versicherung distribution channels and multiple initiatives aimed at reducing Operating Costs DKV Deutsche partner types medical costs Krankenversicherung AG Decrease Health Care Source: Satmetrix Systems surveys, 2003. Services Corporation Figures are median values based on all quantitative responses provided on all 2003 HealthNet, Inc. quarterly customer surveys. Horizon Healthcare Services, Inc. Misys Healthcare Systems United Healthcare Services, Inc. Vision Solutions, Inc.
  • 20. 43 Siebel Systems, Inc. 2003 Annual Report Horizon Healthcare Services, Inc. Enters a New Era Insurance and Healthcare As New Jersey’s largest health Strong Early Results insurer, Horizon Healthcare Since going live with the Siebel Services, Inc. (Horizon) provides solution in 2002, Horizon’s call coverage to more than 2.9 million center has seen numerous people throughout the state. improvements. Now customer Since 1932, Horizon has offered service representatives have most quality healthcare products and of the information they need on services designed specifically one screen, rather than having to to meet the changing healthcare go to multiple screens for the same needs of its customers. Improving Customer Service information. Customer calls are now resolved 20% faster than in the past, and employee productivity Horizon through New Technology has improved 15% overall. Always focused on improving Even while serving 200,000 more customer service, Horizon customers, call wait times have recognized the need to upgrade been reduced by 20%. its call center technology to handle rapidly growing call volumes and The need for customers to call help its agents answer customers’ multiple numbers, to be transferred, detailed questions about new plan or to reexplain their situations has offerings. One of the challenges been greatly reduced. The new Horizon faced was the coordination of five separate systems used to system allows any customer service representative to quickly “Siebel has been a good process customer and claim information. “Often a physician access and view the customer’s complete profile and service business partner. They’re office would call about claims history. If customers have special that were processed through five different claim systems, and our situations or concerns, alerts can be attached to their files so that not just trying to sell us the phone representatives would have to be able to navigate all five their issues can be quickly understood and addressed. software, they’re working to systems to answer their questions,” says Pat Geraghty, Senior Vice President of Service at Horizon. Siebel Call Center has also delivered significant benefits in help us succeed.” “As a result, it was difficult to the form of streamlined business Pat Geraghty, Senior Vice President of Service, provide comprehensive answers processes. Having a centralized Horizon Healthcare Services, Inc. to these inquiries. We engaged customer relationship management Siebel to help us prepare our system allows Horizon to change its phone representatives with the business processes for call center information to address a broad representatives in one place instead range of provider and customer of across multiple systems. Horizon’s inquiries regardless of the enhanced ability to shift teams, move underlying claim system.” people between teams, and handle call overflow greatly improved Advancing a New “Surround” organizational agility and employee IT Strategy morale. The company has already Working closely with Siebel, experienced $2.1 million in savings Horizon developed what it calls by switching to the new system and its “surround” strategy. “The idea expects to save a total of $21 million was to surround the outdated over the next four years. systems with new technology that provides employees with Becoming Number One a comprehensive view of the in Customer Service customer and provides customers Horizon’s “surround” strategy with fast access to claims and has not only been a corporate other service information,” explains and customer success, but its Geraghty. “We established a goal benefits have also been officially of having our customer service and recognized by the state of New provider service representatives Jersey. Horizon’s HMO subsidiary answer customer calls quickly, received the highest rating for easily, and comprehensively.” customer service in the 2003 New Jersey HMO Performance Report, published by the New Jersey Department of Health and Senior Services.
  • 21. 44 Siebel Systems, Inc. 2003 Annual Report Travel, Transportation, and Hospitality Meeting Increasing Customer Expectations 4 out of 4 of the global in the Travel, Hospitality, and Transportation distribution companies Industries in the travel industry are Siebel customers Siebel Solution Sets for Travel, Transportation, 2 of the 3 largest global and Hospitality enable organizations in the cruise companies are airline, travel, car rental, trucking, rail cargo, Siebel customers shipping, and hospitality industries to deliver 3 of the 4 largest U.S. seamless customer service, maximize asset railroads are Siebel utilization, improve partner coordination, and customers increase customer profitability. Industry Imperatives 100% Travel Transportation Hospitality Median ROI for Siebel Travel and Select Siebel Customers Transportation Customers • Improve partner • Maximize return on • Identify and acquire Travel coordination capital expenditures profitable customers Amadeus SAS • Increase operational efficiency • Identify and acquire • Minimize operational costs to improve margins • Maximize asset utilization • Optimize sales and 13% Deutsche Bahn Systems Galileo International LLC profitable customers • Increase revenue channel performance Employee IBERIA, Líneas Aéreas de • Maximize customer by up-selling value- • Increase operational Productivity Gains Espa˜ a, S.A. n loyalty and added services efficiency Sabre Inc. profitability • Improve asset • Maximize customer Source: Satmetrix Systems surveys, 2003. utilization loyalty and profitability Figures are median values based on all VVF Vacances quantitative responses provided on all 2003 quarterly customer surveys. Worldspan L.P. Siebel Solution Sets for Travel, Transportation Transportation, and Hospitality Burlington Northern Santa Fe Corporation Travel Transportation Hospitality CSX Technology, Inc. • Optimize Sales and • Maximize ROI on • Opportunity Capture: Delmas, France Channel Performance: CapEx: Leverages An integrated end-to- DHL Improves sales operational data to end group sales and coordination and help transportation event management Union Pacific Railroad effectiveness, leading companies identify (GSEM) solution that Company to lower operating business opportunities increases group sales Unishippers Association, Inc. costs, shorter sales that will deliver the conversion rates and cycles, and increased highest return on profitability Hospitality sales close rates capital spending • Personalized • Increase Operational • Optimize Sales and Experience: Enables Carnival Cruise Lines Efficiency: Decreases Channel Performance: hospitality companies Cendant Corporation, Inc. operating costs by Improves sales to consistently Princess Cruises streamlining coordination and recognize and reward Sol Meliá S.A. customer service, effectiveness, leading high-value guests order management, to lower operating • Optimize Sales and and partner costs, shorter sales Channel Performance: management cycles, and increased Improves sales processes sales close rates coordination and • Attract and Retain • Increase Operational effectiveness, leading Profitable Customers: Efficiency: Decreases to lower operating Increases marketing operating costs by costs, shorter sales ROI by supporting streamlining cycles, and increased intelligent customer customer service, sales close rates segmentation, order management, • Customer Insight: personalized service, and partner Leverages customer and enhanced management data to help hospitality campaign targeting processes companies analyze • Maximize Customer • Attract and Retain and increase Loyalty: Enables Profitable Customers: customer profitability travel companies to Increases marketing • Attract and Retain operate loyalty ROI by supporting Profitable Customers: programs that intelligent customer Increases marketing increase customer segmentation, ROI by supporting loyalty and personalized service, intelligent customer profitability and enhanced segmentation and campaign targeting enhanced campaign targeting
  • 22. 45 Siebel Systems, Inc. 2003 Annual Report DHL—The World’s Largest Customer-Focused Express Company Travel, Transportation, and Hospitality “Siebel CRM applications play Coordinated, Real-Time a key role in allowing us to give Customer Understanding our customers what they want: DHL is using Siebel CRM best-in-class service tailored to applications to unify customer their specific needs, at the best information and create a single, value in the industry.” global, multichannel view of each and every customer relationship. Ulrik Topp, Global Sales The Siebel solution is used by more Development Director, DHL than 6,000 sales and marketing professionals in more than 220 In the 36 years since it created countries and territories worldwide the air express industry with the and helps to support them in first route from San Francisco efficiently and effectively selling to Honolulu, DHL has grown express delivery and logistics to become the world’s leading solutions to more than 4.2 million express and logistics company. customers, through whichever DHL’s integrated international channel the customer chooses network links more than 220 to use. The Siebel system assists countries and territories worldwide. DHL in executing compelling, Employing 170,000 dedicated multichannel marketing programs employees, DHL is known for aimed at maximizing demand its innovative use of technology and fast and reliable service. for domestic and international express services. “By providing a transparent Last year, DHL’s parent company, “Siebel CRM applications play view of the customer, Siebel Deutsche Post World Net, embarked a key role in allowing us to give on the consolidation of its portfolio of businesses, folding them all under our customers what they want: best-in-class service tailored to will help DHL to achieve an the flagship DHL brand. These businesses included its courier and their specific needs, at the best value in the industry,” says Topp. estimated 1% increase in express operation, DHL; its parcel “By providing a transparent view businesses, DP Euro Express, Airborne, and Loomis; and its of the customer, Siebel will help DHL to achieve an estimated 1% revenue by the end of 2005.” logistics business, Danzas. increase in revenue by the end Ulrik Topp, Global Sales Development Director, DHL The integration of these separate of 2005. These gains are derived organizations has created the from transforming the agility, world’s biggest express and efficiency, and effectiveness of logistics company, geared to companywide business processes. provide customers with the most The Siebel solution has also reduced comprehensive service from the amount of time the sales force one source. “We see DHL as the needs to spend on administrative Coca-Cola of transportation, activities, leaving them more ranked among the best-known time to devote to the customer. international brands in the Marketing is equipped to deliver transportation sector,” says Ulrik campaigns with the right message, Topp, Global Sales Development to the right person, at the right Director, DHL. moment in time.” Each of the business units and countries had its own unique system for managing customer relationships, and the challenge for the “new DHL” was to integrate the highly fragmented sales and marketing processes inherited from the consolidation activity. DHL would only achieve its vision of a veritable “one-stop shop” for customers if it merged customer information locked away within each of its business units. “We needed to replace overlapping products and processes with a streamlined, globally consistent approach to managing customer relationships,” explains Topp.
  • 23. 46 Siebel Systems, Inc. 2003 Annual Report Consumer Goods Strengthening Trade and Consumer 9 of the top 10 global Relationships in the Consumer Goods Industry consumer goods companies have chosen Siebel applications Comprising an integrated suite of industry- specific sales, marketing, and service applications, Siebel Solution Sets for Consumer Goods enable brand owners to increase the effectiveness of trade marketing, decrease customer service costs, enhance collaboration with partners and customers, and maximize consumer demand and loyalty. Industry Imperatives 90% • Accelerate brand innovation: Given the importance of being first to market, Median ROI for Siebel Consumer Select Siebel Customers consumer goods companies need to accelerate brand innovation and Goods and Retail Customers new product launches Bayer Consumer Care • Improve consumer marketing effectiveness: To break through the clutter Bose Corporation in today’s marketplace, consumer goods companies must carefully target their messages and constantly experiment with new marketing techniques • Measure and improve trade promotion ROI: With increased scrutiny 8% Church & Dwight Co., Inc. The Gillette Company being directed toward trade promotions, consumer goods companies Revenue Increase Hershey Foods Corporation must find ways to measure and improve trade promotion ROI H.J. Heinz Company • Improve execution at retail: Consumer goods companies must make the most of limited sales resources by ensuring that sales efforts are focused on the most profitable products and accounts 23% Unilever plc United Stationers Supply Company • Expand into new markets and channels: Consumer goods companies must Customer Retention find ways to expand into new markets without substantially increasing operating expenses Increase Industry Recognition • Automate data exchange with trading partners: Given the continued emphasis on reducing costs and improving organizational responsiveness, Ranked by readers consumer goods companies need to automate manual data exchange processes with their trading partners 20% of Consumer Goods Technology as: Employee • #1 CRM Solution for the Siebel Solution Sets for Consumer Goods Productivity Gains second straight year • #1 Trade Promotion • Streamlined, Collaborative Brand Management: Accelerates time to Management Solution for market by centralizing brand analysis, strategy, and planning and by providing a 360-degree view of historical and current information to all members of a product launch team 20% the third straight year • #1 for overall “Customer • Direct-to-Consumer Marketing: Integrates consumer marketing efforts Customer Experience” in the across all channels and allows targeted execution, resulting in greater Satisfaction Increase Business Intelligence campaign ROI and consumer loyalty • ROI-Driven Trade Marketing: Increases revenue and improves profitability category by enabling and enforcing a data-driven approach to the development and execution of trade promotions • Targeted Retail Execution: Enables sales and delivery representatives to 13% efficiently merchandise, sell, and deliver products to the right accounts Operating Costs at the right time, resulting in a lower cost to serve and increased Decrease customer satisfaction • Value-Driven Food Service/Commercial Channel Management: Increases revenue and profitability from alternative channels by supporting solution Return on Siebel selling and closed-loop contract management Investment: • Trading Partner Collaboration: Improves efficiency of data exchange and speeds item introductions by enabling consumer goods companies 12 Months to electronically communicate item, pricing, and other critical information with trading partners Source: Satmetrix Systems surveys, 2003. Figures are median values based on all quantitative responses provided on all 2003 quarterly customer surveys.
  • 24. 47 Siebel Systems, Inc. 2003 Annual Report Cooking Up New Strategies in Trade Spending at Heinz Consumer Goods “One of our primary challenges is Empowering the People Closest to ensure that our trade investment to Customers decisions are consistent with the Heinz made its decision to strategic role of trade promotion.” implement Siebel Consumer Goods after other attempts at developing Gregg Newcombe, a comprehensive trade promotion Group Vice President, Sales, platform fell short. “Our previous Heinz Consumer Products solution did not meet the needs of the business and was not what H.J. Heinz Company is one of customers and end users—our the world’s leading producers Consumer Products Sales team— and marketers of branded foods wanted,” explains George Chappelle, in ketchup, condiments, sauces, CIO, H.J. Heinz. “The Siebel CRM meals, soups, seafood, snacks, and solution—particularly the Category infant foods. Heinz is a global family Development Funds model— of leading brands, including Heinz® empowers and enables the Ketchup, sauces, soups, beans, pasta, people closest to the customer and infant foods (representing nearly to make better decisions about one-third of total sales); Ore-Ida® trade investments.” french fries; Boston Market® and Smart Ones® meals; and Plasmon® Deloitte, a Siebel Global Strategic baby food. Heinz’s 50 companies have number-one or number-two Alliance Partner, played a critical role throughout the Siebel rollout. “We looked toward Siebel brands in 200 countries, showcased by Heinz Ketchup, the world’s “Deloitte has been a key partner for a number of reasons,” explains for our solution because favorite ketchup. Chappelle. “First, they have deep Like all consumer products Siebel technical expertise. Second, they have extensive knowledge we knew that the company companies, Heinz seeks to be the preferred supplier in every of the trade promotions space. And third, they’ve been very is the industry leader in CRM category in which it competes. effective at assimilating into our To support this goal, Heinz launched its First Call sales culture. Deloitte has really helped us accelerate our entire rollout and had the resources to help strategy. Focused on harnessing the full power of Heinz’s brands, process. We were able to implement our planning solution in 7 months us deliver our objectives.” consumer insights, value-added versus the industry-standard 12 John J. Hans, Vice President, Channels, Heinz services, and people, the strategy to 15 months.” is intended—as the name suggests— to make Heinz the first choice Improved Visibility among both trade customers Using information made available and end consumers. through the Siebel application, Heinz has significantly enhanced A key component of First Call its planning, forecasting, and is Project Keystone, a redesign promotion tracking capabilities. of the Heinz trade promotions In addition, the trade promotion platform. Supported by Siebel approval process has been Consumer Goods, Project Keystone simplified, and unproductive is helping Heinz encourage trial investment practices have of its products, up-sell consumers been reduced. to higher-margin items, build brand awareness, increase market “The most exciting news is that share, and ultimately improve we’ve been able to shift the profitability for both Heinz and mindset of retailers to a model its retail customers. of co-ownership for both volume and margin growth,” Hans says. “One of the key drivers behind our Siebel implementation was Serving Up Big Benefits that our trade promotion platform According to Newcombe, the needed to provide our sales force company is already starting to the information they need to realize benefits from its Siebel- efficiently drive sales volume for based trade promotion management our customers,” says John J. Hans, solution. “We anticipate that the Vice President, Channels at Heinz. benefits we are seeing should pay “We expect the platform to become for the project in a short time,” a strategic tool for us to grow he says. “In addition to the soft top-line sales and to help us dollar savings in the areas of become a better business partner productivity, we also expect to to our customers.” generate more sales volume because of improved planning capabilities, enhanced insights, and improved collaboration with our customers.”
  • 25. 48 Siebel Systems, Inc. 2003 Annual Report Energy Enhancing Customer Intimacy in the Utility, 4 of the top 5 Global 500 Chemical, and Oil and Gas Industries chemical companies have selected Siebel applications Siebel Solution Sets for Energy enable 4 of the top 5 Global 500 organizations in the utility, chemical, and petroleum companies have oil and gas industries to integrate their selected Siebel applications customer care processes, increase marketing effectiveness, enhance the efficiency and 10 of the top 15 Global 500 energy companies use effectiveness of field service operations, Siebel applications and rapidly respond to changing market conditions through more flexible pricing and contract management. 80% Industry Imperatives Median ROI for Siebel Energy Select Siebel Customers Customers Utilities Oil, Gas, and Chemicals Utility • Adapt to new market complexity • Maintain margins City of Los Angeles and competitiveness • Leverage existing IT investments • Segment customer base • Efficiently deliver service 2.5% Department of Water and Power • Efficiently deliver products in the field Revenue Increase EDF Energy and services • Consolidate customer information • Improve customer service Electricité de France Siebel Solution Sets for Energy 8% Endesa Servicios S.L. Gas Natural Informatica SA Hydro-Quebec Inc. Customer Retention Utilities Oil, Gas, and Chemicals Increase Integral Energy Australia KeySpan Energy Corporation • Streamlined Customer Care: • Pricing Agility: Enables companies Streamlines the execution of to conduct in-depth analyses of Nuon ICT B.V. customer care processes, resulting in lower operating costs, improved pricing trends and rapidly respond to changing market conditions 13% TXU Energy Services Company service levels, and increased • Single View of the Customer: Employee Zapadoceska energetika a.s. customer satisfaction Consolidates customer information • Intelligence-Driven Marketing: across disparate systems, leading Productivity Gains Improves customer segmentation to greater customer intimacy and Oil and Gas and campaign targeting, resulting improved customer service Key Energy Services, Inc. in increased marketing effectiveness • Contract Automation: Automates the entire contract management 13% Shell Oil Products US • Optimized Field Service: Enables process, from analysis of contract Customer more efficient dispatch and history and renegotiation of valid Chemicals scheduling of work, resulting terms to approval management and Satisfaction Increase Akzo Nobel Organon in improved customer service, contract compliance evaluation BASF AG reduced service costs, and better • Optimized Field Service: Enables asset utilization • Optimized Transactions: Improves more efficient dispatch and scheduling of work, resulting 8% Bayer AG Engelhard Corporation contract and pricing management, in improved customer service, Operating Costs resulting in faster revenue reduced service costs, and better recognition, reduced credit risk, asset utilization Decrease and improved contract renewal rates Return on Siebel Investment: 12 Months Source: Satmetrix Systems surveys, 2003. Figures are median values based on all quantitative responses provided on all 2003 quarterly customer surveys.
  • 26. 49 Siebel Systems, Inc. 2003 Annual Report Shifting to a Customer Focus at Nuon Business Energy “Prior to deregulation, we had very Prepackaged CRM Solution little customer management because According to Rob Weerts, we knew our customers couldn’t Information Manager at Nuon go anywhere else. In the changing Business, Siebel Systems was environment, we realized that in a class by itself in terms of unless we developed a complete CRM experience, knowledge, and understanding of our customers, prepackaged product functionality. our competitors would have us “We needed a best-of-breed CRM for breakfast.” application that we could launch straight out of the box without Rob Weerts, Information Manager, expensive customization,” Weerts Nuon Business says. “Siebel Energy fit our needs perfectly. We also liked the fact that Nuon is a leading energy distributor Siebel Energy integrated quickly in the Netherlands, providing and closely with our SAP IS-U electricity and natural gas to billing and provisioning system.” approximately 2.7 million residential and business customers in the Today, the Siebel CRM solution is country. The company also invests the foundation of Nuon’s strategy in utilities and energy generation to efficiently acquire new customers projects—including facilities and retain existing ones. At any harnessing renewable resources such as wind power—worldwide. time, Nuon Business can review a complete record of each “Knowledge is power, and Nuon employs more than 10,000 people and has annual sales of customer’s profile; the type and volume of products customers are Siebel gives Nuon the more than $5 billion. using; and their buying history, Until 2001, Nuon was one of three preferences, and contract conditions. The company uses this information power to create profitable, regulated regional suppliers of energy in the Netherlands. Then, to identify the most important and profitable customers and to target long-lasting relationships.” the Dutch market was opened to resources accordingly; to cross-sell Kevin Mahon, Program Manager, Nuon Business domestic and foreign competition, related services, including gas and starting with large business renewable energy; and to support customers consuming more than sales pipeline management. one gigawatt of electricity. Nuon recognized that it had to transform Thirty Percent Conversion Rate itself into a customer-centric Siebel Energy has already played business—and fast—focused on a key role in supporting several more effective sales and marketing highly successful marketing and highly responsive service. campaigns for Nuon. “Using Siebel, we quickly identified 6,000 business “What little contact we had with our customers who were most of the business customers was through way through their contract. We then our billing system—the invoice built a product offering specific served as the primary form of to this audience and mailed offer customer communication,” says details to customers. Of the 6,000 Kevin Mahon, Program Manager, recipients, 1,700 signed up for a new Nuon Business. “On the sales side, three-year contract—a conversion all the information developed by rate of more than 30%. That our account managers was locked represents an exceptional return away in different paper-based and on investment,” explains Mahon. electronic information silos, which made it extremely difficult to While Nuon has already seen understand the type and volume significant benefits from its Siebel of energy that each business implementation, the journey is far customer was buying, the price from complete. The next steps are they were paying, and the history the launch of a multichannel of sales calls.” customer contact center, followed by Web-based self-service and the The solution was a customer use of the Siebel CRM solution relationship management system to market energy services to more that could provide the company than 2 million customers in the with the in-depth customer Netherlands and overseas. As Nuon understanding and insight to reinvents itself, the ability to get capitalize on sales opportunities, closer to customers will provide improve service, and combat a distinct advantage every step competitive threats both at home of the way. and abroad.
  • 27. 50 Siebel Systems, Inc. 2003 Annual Report Complex Manufacturing Creating the Customer-Driven 9 of the top 10 Global 500 Manufacturing Company aerospace and defense companies have chosen Siebel applications Siebel Solution Sets for Complex Manufacturing enable companies in the 7 of the top 10 Global 500 aerospace and defense, industrial electronics, industrial manufacturing industrial machinery, and general companies have chosen manufacturing industries to manage Siebel applications relationships across the demand chain and throughout the entire service life cycle, leading to greater after-market parts and service revenue, lower customer service costs, and improved customer loyalty. 90% Median ROI for Siebel Complex Select Siebel Customers Industry Imperatives Manufacturing and High Tech Aerospace and Defense Customers Aerospace and Defense Industrial Manufacturing Airbus S.A.S. Aviall Services, Inc. • Improve sales effectiveness • Provide consultative and solution expertise • Understand the customer • Improve sales effectiveness • Streamline the buying experience 8% The Boeing Company Dassault Aviation • Deliver world-class • Optimize distributor channels Revenue Increase Honeywell Aerospace customer service • Deliver world-class Lockheed Martin • Optimize ISO/supplier channels customer service • Improve effectiveness of marketing events 13% Corporation Northrop Grumman Customer Retention Commercial Information Siebel Solution Sets for Complex Manufacturing Increase Services, Inc. Raytheon Aircraft Aerospace and Defense Industrial Manufacturing • Collaborative Sales: Leverages proven sales methodologies and • Intelligence-Driven Marketing: Improves customer segmentation 23% Industrial Manufacturing Honeywell International robust sales automation and campaign targeting, resulting Employee Ingersoll-Rand Company capabilities to streamline cross- in increased marketing Productivity Gains ITT Industries divisional sales processes effectiveness • Consultative Solution Selling: • Collaborative Sales: Leverages Goulds Pump Streamlines the quote-to-order process and enables product/ service solution bundling, leading proven sales methodologies and robust sales automation capabilities to streamline cross- 18% Otis Elevator Company Rockwell Automation SKF Data Services AB to shorter proposal turnaround divisional sales processes, leading Customer times and higher revenue per to increased forecast accuracy Satisfaction Increase Toshiba Corporation transaction and higher deal closure rates Victaulic Company • World-Class Fleet Life Cycle • Perfect Order Creation: of America Service and Support: Provides employees with a 360-degree view of customer information, Streamlines the quote-to-order process by ensuring solutions are accurately configured and priced, 8% York International Corporation comprehensive data on products leading to shorter proposal Operating Costs and parts, and a deep solutions turnaround times, lower Decrease knowledge base, resulting in transaction costs, and higher shorter service cycle times and customer satisfaction greater after-market parts and • Distributor Network Optimization: Return on Siebel service revenue Improves collaboration across Investment: • ISO/Supplier Network Optimization: the demand chain, leading to Provides comprehensive partner improved distributor sales and 12 Months relationship management service effectiveness capabilities in the areas of sales, • World-Class Equipment Life Cycle Source: Satmetrix Systems surveys, 2003. Figures are median values based on all order management, and service, Service and Support: Provides quantitative responses provided on all 2003 resulting in improved collaboration employees with a 360-degree quarterly customer surveys. with ISOs and greater ISO loyalty view of customer information, • Closed-Loop Air Show Event comprehensive data on products Marketing: Enables marketing and parts, and a deep solutions organizations to orchestrate knowledge base, resulting in closed-loop campaigns to increase shorter service cycle times, attendance at air shows and other improved customer satisfaction, key marketing events and greater after-market parts and service revenue
  • 28. 51 Siebel Systems, Inc. 2003 Annual Report Serving Customers in a Spirit of “Unlimited Partnership” Complex Manufacturing Honeywell Aerospace, an To date, Honeywell has deployed $8.8 billion division of ATLAS to more than 3,000 users Honeywell International with spanning executive management, 42,000 employees, is a leading sales, field service engineers, global provider of integrated and program and product line avionics, engines, systems, and managers in both the commercial service solutions for aircraft and defense aviation markets. manufacturers, airlines, business ATLAS automates four key front-end and general aviation, military, processes: tracking of customer space, and airport operations. service requests and issues, sales Honeywell Aerospace focuses and opportunity management, on enhancing customer value campaign and marketing by making flight safer, more management, and measuring of reliable, and more cost-effective. customer satisfaction through an Known for its excellence in internal program called Voice of technology, as well as for its the Customer. strong after-market service and support, Honeywell Aerospace The benefits of the ATLAS system proactively pursues its mission have been significant. The company to be the aerospace company has increased annual after-market most admired by its customers. spare parts revenue by 100% The Business Challenge: Providing from $45 to $100 million, with approximately 20% of the increase “Our investment in Siebel a Single Face to the Customer Upholding this commitment to serve directly attributable to Siebel CRM and Siebel Analytics applications; has already paid for itself and satisfy customers in a spirit increased the number of identified of “unlimited partnership” became a principal challenge in 1999 when opportunities by 40%; improved its sales opportunity win rate; in productivity savings alone.” Allied Signal merged with divisions improved cross business unit and Darryl Carroll, Senior Director of Defense and Space Business of Honeywell International to form team communication by 40%; Operations, Honeywell Aerospace today’s Honeywell. The combined improved its service request closure entity brought together multiple rate from 45% to 83%; reduced aerospace business units with average customer service response disparate systems, making it time by 27%; and increased difficult for Honeywell Aerospace customer satisfaction by 38%. to share information on sales opportunities, the status of “Our investment in Siebel has maintenance requests, and the already paid for itself in productivity products customers had installed savings alone,” says Carroll, “but on their aircraft. that’s just the start of its value to our organization. It has definitely “Customers were telling us that we improved our customer satisfaction, were too hard to do business with,” and it has increased our ability to says Darryl Carroll, Senior Director respond much faster to customer of Defense and Space Business issues. It’s also helping us improve Operations, Honeywell Aerospace. product performance by identifying long-standing systemic issues and Formation of the Aerospace Total getting them fixed.” Account System In response, Honeywell Aerospace launched a companywide customer excellence initiative as part of its enterprise-wide Six Sigma quality improvement program. Central to this effort was the enterprise-wide rollout of the Aerospace Total Account System (ATLAS), an integrated customer relationship management platform designed to improve front-end business processes and speed the organization’s transition from a product-centric strategy based on selling products and parts to a customer-centric strategy based on delivering systems, solutions, and services. Honeywell Aerospace selected Siebel CRM applications as the ATLAS platform on the basis of their robust sales, service, and marketing functionality; ease of implementation; and ability to integrate seamlessly with ERP and other back-end applications.
  • 29. 52 Siebel Systems, Inc. 2003 Annual Report Retail Becoming Customer-Centric in the Retail Industry Staples Business Delivery Teleservices increased Siebel Solution Sets for Retail enable retailers in the hardline, softline, grocery/food, and mail overall outbound talk times order/direct business to achieve a 360-degree view of the customer, increase marketing (productivity) by 22% effectiveness, optimize store operations, using Siebel improve the customer buying experience, and maximize service effectiveness. Industry Imperatives • Understand customers: Need to gain a deeper understanding of customer needs and buying patterns Median ROI for Siebel Consumer Select Siebel Customers • Increase share of wallet with existing customers: Retailers seeking Goods and Retail Customers to retain core customers must offer new complementary products Administradora de Serv. and services without substantially increasing operating expenses Comp. y de Crédito CMR 8% • Develop profitable new customer segments: To drive top- and bottom- line growth, retailers must find new segments to which they can sell Falabella Ltda existing products Burberry Spain S.A. • Streamline the buying experience: With greater product commoditization, Revenue Increase CompUSA, Inc. retailers must deliver a superior buying experience to attract and Famous Smoke Shop Pa Inc. retain customers • Deliver world-class service and support: Customers evaluate retail brands—and base future buying decisions—on the quality of service delivered across the entire product purchase and usage life cycle 23% Gateway, Inc. Marks & Spencer Plc The Pep Boys—Manny, • Optimize retail execution: Retailers derive 95% of their revenue from Customer Retention Increase Moe & Jack brick-and-mortar store operations, and aligning the goals and tactics of a geographically dispersed organization is a significant challenge The Sports Authority, Inc. • Improve collaboration with franchise/partner channels: Retailers who Staples, Inc. serve customers through franchises and/or partners must ensure a seamless customer experience across their franchisee/partner ecosystem and maximize channel profitability 20% Employee Siebel Solution Sets for Retail Productivity Gains • One View of the Customer: Unifies customer information across business units and disparate systems. Leveraging a single, consistent view of the customer, retailers can maximize cross-selling opportunities and improve 20% the overall customer experience while reducing data management costs. Customer • Fact-Based Retailing: Transforms the volumes of enterprise data scattered across disparate systems into relevant and up-to-the-moment customer Satisfaction Increase and business insight, allowing retailers to monitor and drive business performance in real time. • Intelligence-Driven Marketing: Streamlines the marketing planning process, improves segmentation, and optimizes marketing execution, 13% resulting in greater marketing effectiveness and lower marketing costs. Operating Costs • Drive Customer Loyalty: Allows retailers to develop loyalty programs to identify customers; maintain profitable, long-term customer relationships; Decrease and build brand loyalty. • Store Manager Workbench: Automates and simplifies administrative tasks, Return on Siebel enabling retail store managers to spend more time selling and working with sales associates. Investment: • Frictionless Selling: Streamlines sales planning, operations, and execution, 12 Months resulting in lower operating costs, increased sales, and an improved customer buying experience. Source: Satmetrix Systems surveys, 2003. • Deliver World-Class Service: Reduces problem resolution times, accelerates Figures are median values based on all in-home installations, and maximizes cross-selling opportunities, leading quantitative responses provided on all 2003 quarterly customer surveys. to increased revenue and higher customer satisfaction. • Franchise/Partner Network Optimization: Improves collaboration with partners and franchisees, leading to improved service, lower support costs, and greater customer satisfaction and loyalty.
  • 30. 53 Siebel Systems, Inc. 2003 Annual Report Improving Internal and External Support at CompUSA Retail “Using Siebel Call Center, we have Enhancing Field Service greatly increased the quality of Externally, CompUSA added to information gathered during its service capability by deploying the service request life cycle. Siebel Field Service to its 1,600 field This allows us to more efficiently service technicians. The Siebel allocate IT resources and proactively solution permits automatic skills- address recurring issues.” based scheduling and dispatching, much fuller recording of both Scott Johnson, IT Director, customer and asset information, CRM Applications, CompUSA and—thanks to Siebel 7’s zero- footprint client platform—a virtual CompUSA Inc. is one of the nation’s end to concerns about maintenance leading retailers and resellers of and upgrading. “Users also like technology, products, and services. the intuitive user interface,” The company currently operates Johnson says. “It’s faster, more approximately 226 stores in 90 efficient, and more customer- major metropolitan markets. friendly. And, because it’s Web- These Superstores serve retail enabled, we can even give service customers, small to medium-sized customers a unique URL, so they businesses, corporate customers, can check the status of their and government and education service requests online.” customers and include technical service departments. Many of the Overall, says Johnson, Siebel “Siebel practices what it stores include classroom training facilities. CompUSA also operates Systems has been an important part of CompUSA’s evolving service preaches, which is listening a Web site that offers an assortment capability—and will continue to of more than 80,000 items at be so. “Siebel practices what it preaches,” he says, “which is to the customer and CompUSA first became a Siebel listening to the customer and putting what you learn back into the product. putting what you learn customer in 1998, when it purchased As a Siebel customer since 1998, 1,800 licenses of Siebel Call Center in an effort to replace a patchwork we’ve seen that process at work. For our business, the goal isn’t just back into the product.” of disparate customer information to use the product, but to exploit Scott Johnson, IT Director, CRM Applications, CompUSA applications with a centralized it to full advantage. We’re very CRM system. That effort not only pleased that Siebel Systems is improved the company’s ability helping us to do that.” to serve its customers, but it also enabled CompUSA to become a model of customer service proficiency. As a result, other companies began to outsource their own call center operations to CompUSA. Eventually, CompUSA spun off this outsourcing business, renaming it Telvista. Today, Telvista continues to service CompUSA customer support, as well as those of many other businesses, on the Siebel Call Center platform. Improving Help Desk Operations CompUSA, meanwhile, has leveraged its Siebel investment by expanding its service capability both internally and externally. Internally, the company deployed Siebel Call Center to operate a help desk through which its internal IT department—25 call center agents and about 250 technicians—could provide more reliable and rapid support to the company’s own employees. “We deployed the application to our help desk in only two weeks and now use the application to handle more than 15,000 employee inquiries a month,” says Scott Johnson, IT Director, CRM Applications, CompUSA.
  • 31. 54 Siebel Systems, Inc. 2003 Annual Report Automotive Improving Collaboration across 10 of the top 15 global the Enterprise automotive companies have chosen Siebel Automotive* Siebel Solution Sets for Automotive enable vehicle manufacturers, captive finance organizations, and dealers to collaborate throughout the customer life cycle, leading to lower customer acquisition costs, higher revenue per customer, and greater customer satisfaction and loyalty. Industry Imperatives Vehicle Brand Owner Captive Finance Company 67% *Based on 2002 industry data; 2003 data not available as of the date of this Annual Report. Select Siebel Customers • Deliver targeted marketing • Maximize customer profitability Dealers manage • Provide world-class service • Grow dealer business Manufacturers • Improve dealer collaboration • Increase operational effectiveness the vast majority of customer American Suzuki • Maximize supplier contribution • Deliver differentiated service • Increase customer retention Motor Corporation interactions in the BMW of North America, LLC Siebel Solution Sets for Automotive automotive industry Bridgestone/Firestone Europe S.A. Vehicle Brand Owner Captive Finance Company Captive finance Caterpillar, Inc. • Closed-Loop Collaborative • Value-Generating Marketing: companies have DaimlerChrysler AG Marketing: Improves customer Allows captive finance the ability to Ducati Motor Holding S.p.A. segmentation and campaign organizations to segment maintain an ongoing Ford Motor Company, Inc. targeting to increase marketing ROI customers and develop customer- Mitsubishi Motors • Loyalty-Building Customer specific strategies to retain high- relationship with North America, Inc. Service: Provides employees with value customers, increase cross- complete view of customer, selling, and improve prospect customers during the Renault S.A. vehicle, and dealer information, conversion rates ownership life cycle leading to improved customer • Dealer-Centric Sales and Service: Captive Finance Providers satisfaction and retention Provides complete view of dealer • Customer Order Management: financing needs and history, Siebel Automotive BMW Financial Streamlines the quote-to-contract leading to higher revenue for the is the only solution Services, NA, LLC process, reducing transaction captive finance organization and designed specifically Caterpillar Financial costs and improving the customer increased dealer satisfaction Services Corporation buying experience • Customer Value-Driven for the automotive Mitsubishi Motors • Seamless Dealer Collaboration: Collections: Enables captive Enables efficient collaboration on finance organizations to identify industry that enables Credit of America, Inc. sales, service, and marketing, and segment delinquent accounts CRM across the Nissan North America, Inc. leading to increased revenue, and empowers agents with higher customer satisfaction, and information to effectively collect enterprise—providing lower costs outstanding bills while preserving functionality for • Supplier Management: Ensures customer loyalty both the automotive enterprise • Single Contact Service: Provides and collaboration and its suppliers benefit from service agents with a 360-degree between OEMs, a collaborative relationship that view of customer information to enhances brand value eliminate redundancy and reduce dealers, and captive resolution times finance providers • Retention-Focused Lease End: Increases customer retention by focusing end-of-lease communications on retention
  • 32. 55 Siebel Systems, Inc. 2003 Annual Report On the Road to Closer Cooperation at Mitsubishi Motors Automotive “We had the customer service group Cost per call dropped by 38%, and working hard to make customers MMCA’s abandon rate improved happy, while our collections group 8%. In addition, efficiency gains was chasing down some of those have increased productivity so same people for late payments. much that even though incoming This created a real disconnect— call volume has risen 75% over internally, and in interactions the past two years, it has been with customers.” handled with virtually no increase in staffing levels. Robert Costantino, President & CEO, Mitsubishi Motors Credit Building Bonds Drives of America, Inc. Bigger Benefits The biggest benefits of the CRM Mitsubishi Motors North America, solution lie ahead. MMCA has now Inc. (MMNA) is the U.S. distributor seamlessly integrated its customer for Tokyo-based Mitsubishi Motors service, credit, and collections Corporation, offering American groups under the Siebel CRM motorists a full line of passenger cars umbrella. Credit reviews will and sport utility vehicles. It employs be streamlined with the help more than 4,000 people at its of consolidated data on each Cypress, California headquarters; customer. And for the first time, parts and manufacturing facilities in the U.S.; and wholly owned “captive” people in the collections group will have a full view of each “Siebel allows us to see the finance subsidiary, Mitsubishi Motors Credit of America, Inc. (MMCA). customer’s relationship with MMCA before they pick up the entire customer relationship phone or send a notification. While MMNA has made good inroads into the North American “For example, John could have so we can respond to each market, it has wrestled with an issue facing many automotive purchased five vehicles from us, financed them all through our customer according to their manufacturers and financial services captive credit group, and fallen companies: After the initial sales and financing, customers are behind on one,” comments Costantino. “Bill has bought total expected lifetime value.” generally regarded as numbers, his first car and has already Robert Costantino, President & CEO, not as individuals. missed three payments. In the Mitsubishi Motors Credit of America, Inc. past, we would have treated them Recently, MMNA and MMCA began equally, when clearly, if a person implementation of a broad-based has purchased five cars from customer relationship management MMNA, you’d want to continue solution from Siebel, designed that relationship if you could.” to enhance customer intelligence and improve cooperation among The Siebel CRM solution will various business units. “Previously, also improve the efficiency of the customers were too often viewed regulation-burdened, paper-choked as VINs—vehicle identification collections and repossession numbers,” says Robert Costantino, process, which requires extensive President & CEO, MMCA. “There manual intervention and has was simply no visibility into a substantial cost per car. Key steps multiple relationships. It was one will be automated and synchronized, customer, one account.” rechecking and duplication will be minimized, and the risk of further Phased Rollout loss or depreciation of the vehicle MMCA decided to roll out the will be reduced. Siebel solution in phases to allow time for fine-tuning the system “The savings should be tremendous,” and further development of the Costantino remarks. “In addition, company’s CRM business model. employee morale has improved Initially, the solution was deployed as everyone works together to in MMCA’s call center facilities. build customer relationships Callers with relatively simple and improve service. We expect problems could either serve a significant return on our themselves through an interactive investment in 2004.” voice response (IVR) directory or get routed to a Texas-based call center managed by business partner SITEL. Escalated calls were seamlessly directed to MMCA case managers in California. “Any interaction that couldn’t be handled in Texas was redirected with all relevant customer information to California, so customers did not have to repeat themselves,” Costantino explains.
  • 33. 56 Siebel Systems, Inc. 2003 Annual Report Call Center and Service Improving Customer Satisfaction, Retention, and Profitability with Siebel Call Center and ETF has reduced the time Service Applications required to answer phone To win the battle for customers in today’s marketplace, companies must optimize their service processes and inquiries by 93% provide employees with the information and tools they need to deliver a superior customer experience. Siebel Call Center and Service applications meet these requirements, enabling organizations to interact with customers more Select Siebel Customers professionally and consistently across all touchpoints, Key Business Benefits including the telephone, email, wireless devices, face to • Improves service optimization Barclays Bank Plc face, and over the Web. By enabling companies to deliver by capturing all customer BMC Software, Inc. personalized service across all channels of communication, interactions, whether face to face, over the phone or Internet, BT Siebel Call Center and Service applications enable or through email Centers for Medicare & organizations to increase customer satisfaction, reduce • Increases agent productivity by Medicaid Services cost per contact, and increase overall service profitability. streamlining the agent desktop Deutsche Bank AG • Reduces call handling times DIRECTV Operations, Inc. through computer telephony integration (CTI) Dresdner Bank AG • Improves revenue generation IBM Corporation Wisconsin Department of Employee Trust through targeted offer delivery Intuit, Inc. Funds Becomes Model of Service Excellence and flexible call scripting Northrop Grumman • Reduces call load by offering with Siebel Call Center Web-based self-service Commercial Information The tenth-largest public retirement system in the U.S., the Wisconsin • Reduces training costs Services, Inc. Department of Employee Trust Funds (ETF) recognized the need to • Decreases emergency dispatch NTT DoCoMo, Inc. reengineer the processes and systems it was using to serve its more costs by scheduling preventive Renault S.A. than 500,000 members. Membership had grown 87% during the previous maintenance ten years, and the small bank of conventional phone lines used to handle • Improves first-time fix rates by Reuters Limited phone inquiries could no longer support prompt, effective, and efficient providing instructions and best- Société Générale service. In response, ETF redesigned its customer-facing processes and practice maintenance steps Staples, Inc. implemented a modern, multichannel customer contact center solution • Eliminates costs due to unnecessary State of Wisconsin, powered by Siebel Call Center. The Siebel application has enabled cross-departmental escalations ETF to reduce the time required to answer phone inquiries by 93%, • Helps coordinate delivery of labor Department of Employee to improve email response time by 71%, and to eliminate labor-intensive and materials Trust Funds transaction coding and scanning of 30,000 pages of documents per year. • Improves off-warranty and service Sun Microsystems, Inc. contract capture rates Telecom Italia Mobile S.p.A. “Throughout the state, we have heard glowing reports regarding the responsiveness and professionalism we have achieved in our Telecom Italia S.p.A. call center with the help of Siebel Systems.” Product Capabilities Telstra Corporation Limited • Intelligent scripting U.S. Postal Service Julie Reneau, Administrator, Retirement Services Division, • Real-time targeted offer Department of Employee Trust Funds, State of Wisconsin presentment • Patented computer telephony integration • Bi-directional collaboration Improving Telesales and Telemarketing and workflow • Automated email response Effectiveness at Staples and routing The pioneer of the office supply superstore industry, Staples, Inc. relies • Automatic or one-button upon its Staples Business Delivery Teleservices (SBD Teleservices) unit escalations to market to and sell to its growing base of small business customers. • Contract and warranty Facing the prospect of rapid expansion, SBD Teleservices decided to management replace its proprietary account and campaign management systems • Blended sales and service with Siebel Call Center. Since deploying the solution, SBD Teleservices • Preventive maintenance scheduler has improved its ability to develop and execute outbound campaigns, • Dispatch and scheduling increased its margins, and increased overall outbound talk times by 22%. optimization • Prebuilt dashboards and reports “The primary productivity measure of success in an outbound call • Service inventory and parts center like ours is how much time we spend talking to prospects or logistics customers. The less time my teleservices reps spend on previously • Asset management manual tasks, the more they can spend talking to customers and • Automated alerts and exception generating revenue.” notifications Jeri Holland, Director of Teleservices, Staples, Inc.
  • 34. 57 Siebel Systems, Inc. 2003 Annual Report Sales Call Center and Service/Sales Maximizing Sales Effectiveness Aviall has improved sales Siebel Sales helps selling organizations grow revenues more quickly, predictably, and profitably by helping sales productivity by 200% professionals focus on the right deals at the right time. Siebel Sales provides unparalleled visibility into the sales pipeline, enabling sales professionals to “see” the most promising opportunities and develop specific actions to help manage those opportunities to rapid closure. Siebel Sales also facilitates discovery of customer needs and sharing of knowledge across the entire sales force, leading Select Siebel Customers Key Business Benefits to improved sales collaboration, higher revenue per • Increases average revenue American Heart transaction, and increased customer satisfaction. per transaction Association, Inc. • Improves sales efficiency Aviall Services, Inc. and effectiveness • Improves customer retention Bayer AG Improving Sales Productivity at Aviall • Lowers customer acquisition costs BMC Software, Inc. Aviall, Inc. is the world’s largest independent provider of new aviation parts • Reduces operational costs Cable & Wireless plc • Improves forecasting accuracy Deloitte Consulting and related after-market services for the commercial, military, and general • Lowers human resource costs aviation sectors. Aviall was not always in such a powerful market position, • Reduces order errors Dresdner Bank AG however. As Aviall approached the year 2000, it was faced with shrinking FleetBoston Financial market share and declining sales, the results of intensifying competition. Thanks to a new management team, Aviall developed a visionary plan Product Capabilities Corporation for revitalizing its customer service focus and transforming itself into Honeywell Aerospace • Account planning a value-added partner to its OEM suppliers. Deploying Siebel Call Center • Opportunity management HP and Siebel Sales as the core of a new customer relationship management Misys Healthcare Systems • Quoting, pricing, and solution system, Aviall has improved customer satisfaction by 30% and improved sales productivity by 200% on sales calls and processed orders. In fact, configuration Novell, Inc. • Territory and lead management Quick & Reilly despite being in an industry hurt badly by the 9/11/2001 terrorist attacks, • Pipeline and forecast Aviall’s annual sales have soared from $371.9 million in 1999 to over management SGL Carbon GmbH $1 billion in 2003. • Proposals and presentations • Incentive compensation “Siebel Sales and Siebel Call Center were both attractive because • Sales methodologies (such of their robust functionality. When we looked at the other options, as Target Account Selling and there wasn’t even a close second.” Enterprise Selling Process) • Sales performance analytics Joe Lacik, CIO, Aviall Capitalizing on New Opportunities at SGL Carbon The market for specialized carbon and graphite products is one of the most concentrated in the world. For this reason, it is crucially important for SGL Carbon—the world’s leading manufacturer of carbon, graphite, and composite materials for industrial and aerospace applications— to forge loyal, lucrative, long-term relationships with its customers. To improve its customer relationship management capabilities, SGL is deploying Siebel Sales to all of its sales professionals worldwide. Seamlessly integrated with the company’s SAP R/3 back-office system, the Siebel application is helping SGL gain a deeper understanding of its customers, capitalize on new sales opportunities, and improve customer satisfaction across the globe. “Using Siebel Sales, we can select all of the customers in a particular market or product segment, ones in a particular geographic area, or ones of a certain revenue threshold. This improved targeting enhances event attendance and brand exposure.” Markus Mirgeler, VP of Sales and Marketing, SGL Carbon
  • 35. 58 Siebel Systems, Inc. 2003 Annual Report Customer Order Management Streamlining End-to-End Order Management WilTel has improved Siebel Customer Order Management applications provide a unified view of customer, quote, order, contract, and customer satisfaction pricing information, enabling organizations to create more profitable orders and build stronger customer relationships. rates by 59% • Siebel Quote and Order Life Cycle Management allows companies to create, validate, and manage customer quotes and orders across multiple enterprise systems • Siebel Product and Catalog Management enables Select Siebel Customers Key Business Benefits companies to publish dynamic product catalogs Operational Efficiency Asyst Technologies, Inc. containing customizable sales bundles, configure • Lowers order costs by reducing Bally Gaming, Inc. complex products, and analyze product information quote and order errors BMC Software, Inc. from all customer channels • Reduces order cycle time • Reduces customer inquiries Brooks Automation • Siebel Pricing and Contract Management enables BT companies to plan, deploy, execute, and analyze contract Revenue Optimization Deutsche Telekom AG and pricing policies across all lines of business • Increases quote-to-order close rates DIRECTV Operations, Inc. • Increases margins through consistent discount control Harris Corporation and by providing consistent, IBM Corporation Setting a New Standard for Customer personalized pricing across Infonet Services Corporation all channels Maintenance Warehouse, Inc. Service at WilTel • Increases average order size In a highly price-sensitive industry that is crowded with players, WilTel by providing cross-sell/up-sell Reuters Limited Communications realized that the way to competitive advantage was recommendations Telecom Italia Mobile S.p.A. through customer service. To this end, WilTel implemented Siebel Sales Telenor Networks and Siebel Customer Order Management to streamline its order Customer Intimacy Telstra Corporation Limited provisioning system and provide the foundation for a fully automated • Increases customer satisfaction future. Using the Siebel solution, WilTel has been able to reduce order by providing personalized WilTel Communications entry error rates by 25%, improve customer satisfaction rates by 59%, offerings based on customer York International and achieve promised delivery dates 98% of the time, all while beating preferences and assets Corporation industry-standard delivery times by 50%. • Ensures existing contracts are enforced “When our users saw a demo of the Siebel solution, they took one look • Provides customers with self- and realized that it met at least 80% of our needs right out of the box. service tools Due to our extremely complex products, we had an intense need for a good product configurator. We thought, ‘Why should we custom-build something that Siebel can do already?’” Product Capabilities • Multichannel order capture Brent Harris, Siebel Development Manager, WilTel Communications • Product and pricing management • Product and service configuration • Customer contracts and entitlements Reducing Order Processing Time • Account- and contract-specific pricing at BMC Software • Quote and order approval With more than 6,000 employees and revenues exceeding $1.3 billion, • Comprehensive view of customer BMC Software is one of the world’s largest suppliers of enterprise order activities management software. During the past several years, BMC has been • Product and order analysis highly focused on integrating its business processes across the enterprise, with the goal of improving customer satisfaction, increasing operational efficiency, and capturing the full potential of its acquisitions. In line with this strategy, BMC used Siebel Customer Order Management applications and Universal Application Network to streamline and automate its Web store order management process. “Siebel Systems has the vision in the marketplace of what CRM can do for a business, and I believe it has the premier technology for executing against that vision.” Mark Meyer, Director of CRM, BMC Software
  • 36. 59 Siebel Systems, Inc. 2003 Annual Report Marketing Customer Order Management/Marketing Meeting Today’s Marketing Challenges Within one year of Across industries, marketing organizations are being asked to do more with less while justifying and accounting for each deployment, Vodafone dollar spent. In addition, they are expected to rapidly develop and execute one-to-one campaigns that are synchronized Telecel reduced campaign across communication channels. The Siebel Marketing product suite enables organizations to address these development time by 71% challenges by providing a complete solution for planning and executing targeted, multichannel marketing campaigns. With Siebel Marketing, organizations can accelerate campaign Key Business Benefits Select Siebel Customers development and execution, increase marketing effectiveness, • Improves customer insight 3Com Corporation and maximize the value of each customer relationship. • Makes marketing planning more Co-Operative Insurance effective and less time-consuming Society Limited Implementing Marketing Best Practices • Ensures that global spending is Eli Lilly & Company aligned to corporate objectives at L’Oréal and priorities HP L’Oréal, the world’s largest cosmetics company, is focused on maximizing • Enables the implementation of IBM Corporation brand loyalty and revenue per sale. To support these goals, the company standardized processes based on Informatica Corporation recently launched a CRM initiative aimed at reengineering its consumer best practices Itron, Inc. marketing processes and systems. As a first step, L’Oréal has implemented • Improves coordination and Siebel Marketing and Siebel Analytics in two of its luxury business units. alignment between marketing, L’Oréal The Siebel solution has helped L’Oréal gain a deeper understanding of its sales, and partners MCI Worldcom consumers, segment its customer base by demographic and buying • Improves the quality and speed International Limited patterns, and improve the efficiency and ROI of its campaigns. of execution • Reduces campaign development Novartis “Siebel is the solution we have found that will allow us to manage an time and costs Nykredit A/S end-to-end process from consumer analysis and segmentation to creation, • Lowers customer acquisition costs Pitney Bowes, Inc. execution, and measurement of the success of marketing campaigns.” • Increases response rates Vodafone Telecel • Increases lead conversion rates • Increases repeat purchases and Comunicacoes Pessoais, Georges Edouard Dias, Strategic Business Development Division, L’Oréal customer loyalty S.A. • Synchronizes marketing communications across channels Achieving Marketing Excellence at HP • Enables the management and enforcement of customer Optimizing integrated marketing activities on a global basis presents preferences and contact policies a tremendous challenge. HP’s technology solutions span IT infrastructure, • Improves visibility into marketing personal computing and access devices, global services, and imaging ROI and printing and are marketed worldwide to consumers, businesses, and institutions via every imaginable channel. HP is standardizing on Siebel Marketing Resource Management (MRM) to deliver a set of best-in-class Product Capabilities marketing processes that improve collaboration and accountability and • Planning and budgeting make assessing results easier. • Marketing resource management • Data management and integration “We chose Siebel Marketing Resource Management at HP to enable us not • Segmentation and analysis only to see which programs deliver the best ROI, but also to enable us • Predictive modeling and data to optimize our marketing investments by repeating successful programs mining and enhancing others to increase overall effectiveness.” • Campaign management • List management John Yelland, Director of Marketing Operations, HP • Multichannel execution, including support for mail, email, phone, field/branch, Web, and wireless Improving Cross-Selling and channels • Event-triggered and real-time Customer Loyalty at Nykredit marketing Facing new competition in the mortgage services market it had once • Marketing events management dominated, Copenhagen-based Nykredit decided to diversify into banking, • Response and lead management insurance, and real estate services. To support this transformation, the • Content management company deployed Siebel Marketing to its marketing teams while rolling • Loyalty program management out Siebel Sales to its call center staff. Siebel Marketing enables the • Measurement and reporting company to efficiently develop and execute multichannel marketing campaigns that reflect a deep understanding of customer preferences. Moreover, seamless integration with Siebel Sales ensures that agents are aware of which customers have been targeted for which campaigns, leading to improved cross-selling and customer satisfaction. “Since the system was introduced, 40% of our customers have bought more than one Nykredit product. Together, improved cross-selling and enhanced loyalty have enabled Nykredit to maintain its market share in the face of fierce competition.” John Anker Moller, Vice President, Nykredit
  • 37. 60 Siebel Systems, Inc. 2003 Annual Report Partner Relationship Management Enhancing Partner Relationships with Siebel PRM Saab has improved dealer In today’s “do more with less” environment, companies follow-up on leads from increasingly rely on partners to market, sell, and support their products. Partners provide a cost-effective means of 38% to 70% reaching a broader audience and frequently offer services and solutions that enhance the value of a company’s own offerings. Select Siebel Customers Siebel Partner Relationship Management (PRM) provides Key Business Benefits companies with an enterprise-wide platform for managing • Improves efficiency and 3Com Corporation relationships with partners and resellers. Using Siebel PRM, consistency of partner Blue Cross and Blue Shield companies can plan and execute collaborative sales, management across product lines of Louisiana and geographies marketing, and service programs; enhance forecasting • Increases channel revenue and Deutsche Telekom AG accuracy and pipeline visibility; reduce partner management pipeline visibility First Service Networks, Inc. costs; and improve their ability to orchestrate channel • Streamlines quote-to-order Fujitsu Siemens operations on a global basis. Moreover, Siebel PRM provides process Computers GmbH • Simplifies synchronization native support for industry-specific PRM best practices, of product catalog and pricing Gas Natural Informatica SA leading to greater partner program effectiveness and information HP increased end customer and partner satisfaction. • Reduces channel support costs Hydro-Quebec Inc. • Improves partner satisfaction IBM Corporation • Enables efficient management of co-op funds and claims Leeds City Council Streamlining Partner Relationship • Enhances joint marketing Microsoft Corporation Management at Xerox execution and measurement Renault S.A. • Accelerates cycle times by Rockwell Automation Xerox Corporation, the worldwide leader in document management supporting direct business- technologies, products, and solutions, deployed Siebel PRM in 2003 to to-business integration Saab Cars USA, Inc. approximately 1,000 users across its Dealer, Xerox Business Partner, • Improves real-time visibility Telecom Italia S.p.A. and internal Channel Management organizations. The Siebel solution of sales, marketing, and service Telenor AS has helped Xerox reduce its partner management costs, accelerate time activities across partner ecosystem Vector Limited to market, increase channel operations productivity, and adapt more • Improves end customer quickly to its partners’ changing needs. satisfaction by increasing quality Xerox Corporation of third-party service delivery “The Siebel application provides a fast, cost-effective way to ensure partners have the information and skills they need to provide high- quality, consistent service to their customers, increasing their revenue Product Capabilities and ours.” • Partner recruiting and training • Partner profiling Bob Jacob, Xerox Business Partner Management, Xerox Corporation • Partner performance management • Collaborative marketing and sales • Collaborative eCommerce • Collaborative service Improving Dealer Collaboration • Partner analytics • Real-time business-to-business at Saab Cars USA integration Georgia-based Saab Cars USA, Inc., a subsidiary of the Swedish company Saab Automobile AB, has deployed Siebel Dealer (the automotive industry version of Siebel PRM)—in conjunction with Siebel Call Center and Siebel Marketing—to help it more efficiently and effectively manage leads among its network of 240 U.S. dealers. Sales leads generated through a multitude of different marketing activities and channels are delivered rapidly through the Siebel system to the right dealerships. Saab then tracks the status of referred leads by monitoring key events such as the salesperson’s initial call to the customer, the scheduling of a test drive, and the completion of a test drive. These tracking capabilities enable Saab to measure the sales results of specific leads, recommend more efficient selling techniques, and target leads more precisely in the future. Deploying the Siebel solution has enabled Saab to improve dealer follow-up on leads from 38% to 70%, reduce direct marketing costs by 5%, and increase overall satisfaction with Saab services from 69% to 75%. “We realized that Saab had the power to convert more leads into sales by helping improve its dealers’ interactions with prospective and current customers. The key was to improve the quality of our information flow to and from dealers.” Al Fontova, Direct Marketing Manager, Saab Cars USA
  • 38. 61 Siebel Systems, Inc. 2003 Annual Report Field Service Partner Relationship Management/Field Service Improving the Profitability of Field Service Operations Honeywell Aerospace Siebel Field Service enables service organizations to has improved its on-time dramatically improve the productivity and effectiveness of their field service professionals, increase revenue, and closure rate of service enhance customer satisfaction. The application supports closed-loop problem resolution with wireless messaging, issues from 45% to 83% call handling, schedule optimization, shipping, receiving, depot repair, parts logistics, and inventory management Select Siebel Customers and invoicing functionality. It is fully integrated with all Key Business Benefits Siebel applications and can be seamlessly integrated • Coordinates delivery of labor Alcatel Internetworking, Inc. with existing third-party applications and legacy systems and materials to address American Power to provide service organizations with a comprehensive, customer needs Conversion Corp. • Improves labor resource multichannel solution that allows them to better satisfy utilization through efficient ASML Netherlands B.V. their customers. dispatch and scheduling C3i Inc. • Enables the creation of new Caterpillar, Inc. service offerings to improve CompUSA, Inc. revenue, market share, and Taking Customer Service to the Next Level customer loyalty Cymer • Improves billing accuracy by DIRECTV Operations, Inc. at Honeywell Aerospace managing entitlements associated First Service Networks, Inc. Focused on customer satisfaction and total quality, Honeywell Aerospace with complex service offerings Gen-Probe, Inc. deployed Siebel Sales, Siebel Service, Siebel Field Service, and Siebel • Improves off-warranty capture Analytics to consolidate customer information across its organization and service contract renewal rates Honeywell Aerospace and integrate its customer-facing processes. Siebel Call Center and • Minimizes errors and IBM Corporation Siebel Field Service route service requests to the right personnel, administrative burdens associated Key Energy Services, Inc. enable call center service engineers and field service engineers to log with service inventory management Lexmark International, Inc. cases by product and severity (for example, Aircraft on Ground, or • Increases visibility into service AOG), and provide these professionals with access to a knowledge base delivery effectiveness Maytag Corporation and documentation for rapidly providing a response. Through the use of • Improves first-time fix rates Northrop Grumman this closed-loop system, Honeywell Aerospace has improved its on-time • Improves on-time arrival Commercial Information closure rate of service issues from 45% to 83% and reduced customer • Reduces missed service call Services, Inc. response times by 27%. appointments Pitney Bowes Inc. “In our business, where product cycles are long and there is a strong SKF Data Services AB emphasis on after-market service and success, relationships are Product Capabilities Whirlpool Corporation especially important. Unless you have tools, processes, and • Automated appointment booking York International management focused on customer relationships, you will not be • Schedule optimization successful in this industry long-term.” • Asset management Corporation • Contract management Darryl Carroll, Senior Director of Defense and Space Business Operations, • Automated entitlement verification Honeywell Aerospace • Invoice automation • Service inventory and parts logistics • Support for preventive maintenance • Wireless dispatch • Warranty management
  • 39. 62 Siebel Systems, Inc. 2003 Annual Report Employee Relationship Management Improving Business Execution and Employee Siebel ERM Customers Productivity with Siebel ERM 350 309 With more than 300 customers across a range of industries, 300 Siebel ERM is an integrated suite of solutions that allows 250 234 companies to drive dramatic improvements in the areas 200 of organizational learning, employee performance, and 150 133 employee service: 100 • Organizational Learning—Siebel Learning allows 50 corporations to build organizational skills more efficiently 0 2001 2002 2003 and cost-effectively. Using Siebel Learning, organizations can help employees acquire the competencies they need Select Siebel Customers to support corporate objectives. Key Business Benefits • Siebel Learning Alcatel Internetworking, Inc. • Employee Performance—Siebel Performance Management —Helps employees develop skills Barclays Bank Plc allows organizations to consistently align employees with relevant to job function and Ceridian Corporation key business objectives and track, evaluate, and reward career path Deutsche Bank AG employee performance. The net results are improved —Links training to performance —Reduces the cost of training Fortis Investment execution of corporate operating plans and increased • Siebel Performance Management Management customer satisfaction. —Ensures rapid organizational Fujitsu Siemens alignment • Employee Service—Siebel Employee Service allows —Establishes a pay-for- Computers GmbH corporations to provide more effective employee support performance culture Gas Natural Informatica SA across key areas (HR, IT, facilities, and others), as well —Identifies and retains Itron, Inc. as across diverse systems and geographies. The result is high-performing employees Leeds City Council • Siebel Employee Service higher employee productivity at lower organizational costs. —Reduces employee support Microsoft Corporation costs RSA Securities Inc. —Improves service levels TeleAp —Improves employee productivity Improving Organizational Skills and Knowledge while Reducing Training Costs at TeleAp Product Capabilities As TeleAp expanded, the leading Italian systems integration specialist • Siebel Learning experienced an eightfold increase in headcount, making it increasingly —Single platform for employee, difficult to keep its employees up to date on changes and additions partner, and customer training to its service offerings. Now using Siebel Training, TeleAp is able to —Support for instructor-led, certify consultants on business skills prior to sending them on an distance, and media-based engagement, leading to lower training costs, faster time to market, learning and greater performance. —Embedded learning analytics • Siebel Performance Management “With Siebel Training, we are able to rapidly certify our workforce —Support for goal setting, on the skills and knowledge they need to provide world-class service performance review, and to TeleAp customers.” compensation processes —Performance dashboards Roberta Rossi, General Manager, TeleAp —Competency management • Siebel Employee Service —Preemptive and self-service tools —Enhanced assisted service Aligning Employees to Improve Business —Embedded service analytics Execution at Fortis Having grown rapidly through acquisitions, Fortis needed a solution that would enable the company to align its workforce around key initiatives and standardize its performance management processes. Siebel Performance Management enables Fortis to measure employee performance and provides a platform that will support future organizational growth. “By deploying Siebel Performance Management, we are able to provide a unified employee performance environment to align all of our people around our key business drivers. We are now able to translate corporate “The key benefit of Siebel ERM has been strategy into actionable business unit and individual objectives, and in turn measure our individual achievements objectively. This is key to reducing our call center volume, increasing success in a highly people-based environment.” our first touch resolution rate to 92%.” Phil Smith, Global Head of Human Resources, Fortis John Edward Smith, Program Manager, Microsoft
  • 40. 63 Siebel Systems, Inc. 2003 Annual Report CRM Professional Edition Employee Relationship Management/CRM Professional Edition Meeting the Unique Needs of Small and Midsize Businesses with Siebel CRM EMI Industries has cut Professional Edition 10 to 20% off the time With an installed base of more than 1,800 small and medium-sized businesses (SMBs), Siebel Systems has taken to complete a gained a deep understanding of the factors that drive CRM success in the midmarket. Companies in this category need custom project CRM solutions that offer deep sales, marketing, and service functionality; that can easily be expanded; and that deliver Select Siebel Customers great value for their price. Key Business Benefits • Deep functionality and high, Inc. Siebel CRM Professional Edition explicitly addresses these usability reduce the need for EMI Industries, Inc. expensive customization and Lumenos, Inc. requirements. The product line—formerly known as Siebel lengthy end user training eBusiness Applications, MidMarket Edition—provides best- • Flexible pricing options and Plumtree Software, Inc. in-class CRM functionality in easy-to-deploy modules, fixed-price implementation Tipper Tie allowing organizations to choose the specific CRM capabilities packages enable on-time and they need to run their business. Moreover, the product offers • on-budget deployments allows Modularized packaging a seamless migration path to Siebel enterprise applications customers to deploy the exact and can be deployed in conjunction with Siebel CRM functionality they need today OnDemand, providing SMBs with multiple ways to deliver while preserving the ability to expand the application as their world-class CRM functionality. CRM requirements evolve • Seamless migration to Siebel enterprise applications is supported, ensuring that Achieving World-Class Performance at EMI customers will never outgrow Tampa-based EMI Industries provides the food retailing industry with their Siebel solution point-of-sale and food service equipment ranging from checkout stands • Deployment in conjunction with and refrigeration units to carts and display racks. A leading supplier of Siebel CRM OnDemand allows such store fixtures, EMI was not able to provide its customers with complete customers to enjoy the benefits visibility into the production process because its Web channel was not of both on premise and hosted integrated with its phone communication channels, and customer data applications remained housed in multiple, disparate applications, including Excel, Access, • Powerful integration and and Macola, the company’s ERP system. To address these challenges, configuration tools allow seamless EMI implemented Siebel CRM Professional Edition (formerly known integration with existing business as Siebel eBusiness Applications, MidMarket Edition). Deployed in just processes and IT systems 13 weeks, the Siebel solution enabled EMI to integrate its customer-facing processes and create a complete view of the customer. As a result, the company has been able to decrease the amount of time required to fulfill Product Capabilities custom orders, decrease lead generation costs, and significantly increase • Opportunity management deal closure rates. • Forecasting • Incentive compensation “We have cut 10 to 20% off the time it takes to complete a custom management project from proposal to order completion, while improving process • Events management quality with Siebel-supported best practices.” • Quote and order management • Support for Target Account David Hahmann, Vice President, EMI Industries Selling sales methodology • Service request management • Contract management Improving Sales Productivity • Computer telephony integration at Plumtree Software • Closed-loop service request management Plumtree is a leading provider of Enterprise Web technology that allows • Closed-loop marketing customers and partners to build service-oriented applications. The company • Asset management looked to Siebel for assistance in streamlining its sales processes and • Integration with Dun and optimizing its marketing channels. Thanks to the powerful integration Bradstreet business analysis tools capabilities of Siebel CRM Professional Edition (formerly known as • Expense reporting Siebel eBusiness Applications, MidMarket Edition) and Plumtree’s open • Support for handheld and framework, Plumtree was able to seamlessly incorporate Siebel CRM wireless Professional Edition into its broader IT infrastructure. This integration • Proposal and presentation resulted in a seamless look and feel across multiple applications, leading management to high end user adoption. “Customers use Plumtree’s framework to create service-oriented applications based on Siebel that support the sales process. The new capabilities available from Siebel CRM Professional Edition not only create additional opportunities to enhance our own operations, but support our joint customers’ evolving needs as well.” Jay Simons, Director of Applications, Plumtree Software
  • 41. 64 Siebel Systems, Inc. 2003 Annual Report Incentive Compensation Management Driving Superior Financial Performance through Effective Incentive Compensation Acme Brick simplified its Management compensation processes To thrive in today’s ultra-competitive business climate, companies must review and update their corporate and eliminated redundancy strategies on a regular basis. When revising business plans, it is imperative that companies also update their across systems incentive compensation plans—these plans are among the most powerful vehicles for driving employee and partner Select Siebel Customers behavior. Siebel Incentive Compensation Management Key Business Benefits enables companies to change their compensation plans • Aligns employee and partner Acme Brick Company on a dime and keep their plans synchronized with corporate behavior with corporate objectives Australian Finance Group Ltd. • Reduces the amount of time Blue Cross and Blue Shield strategy. By ensuring that employee and partner behavior salespeople spend double- is focused on the appropriate objectives, Siebel Incentive checking their compensation of Florida, Inc. Compensation Management empowers organizations to • Provides timely feedback Deutsche Telekom AG grow revenue, increase profits, and improve employee and to payees and management Group 1 Software, Inc. • Decreases channel conflict National City Bank partner performance. • Frees compensation analysts to analyze compensation Northwestern Mutual Life effectiveness versus scrambling Insurance Company Simplifying Compensation Management to make payroll Reuters Limited • Improves financial performance WRQ, Inc. at Acme Brick by driving the right behavior • Replaces and consolidates Acme Brick, a Berkshire Hathaway company, manufactures more than redundant systems 1.1 billion bricks per year and operates 32 plants, 11 tile distribution • Eliminates financial surprises warehouses, and 44 sales offices throughout the south central United by enabling organizations to States. Seeking to eliminate redundancy across various enterprise project the cost of compensation systems, Acme Brick decided to implement Siebel Incentive • Reduces compensation Compensation Management to create an enterprise-wide platform for calculation error rates managing sales compensation. Working closely with Siebel Professional • Streamlines the quota and Services, Acme completed its implementation of Siebel Incentive territory setting process Compensation Management in less than 100 days, resulting in a rapid • Allows organizations to make return on investment. frequent updates to incentive compensation programs “Siebel enables our nontechnical people to handle plan administration, • Empowers organizations to report creation, and performance analysis associated with more than process incentive compensation 75,000 transactions per month. With Siebel Incentive Compensation more frequently Management, Acme can quickly and accurately calculate commissions in concert with our new JD Edwards financial modules and existing SAP payroll systems. This greatly simplifies our compensation processes Product Capabilities while eliminating redundancy across systems.” • Flexible compensation plan administration Judy Hunter, Chief Financial Officer, Acme Brick Company • Web-based reporting • Role-based dashboards • Dispute resolution • Incentive compensation modeling • Manual adjustments • Detailed audit trails and traceability • Multicurrency support • Complex organizational and product hierarchies • Easy-to-use formulas • Extensible data model • Scalable processing • 100% J2EE architecture
  • 42. 65 Siebel Systems, Inc. 2003 Annual Report Analytics Incentive Compensation Management/Analytics The Need for a New Class of Enterprise Business Intelligence Is Consistently Ranked as a Top Spending Priority for Organizations Business Intelligence Solutions Citigroup Smith Barney CIO Survey—September 2003 Companies have made significant investments in core Applications Category % of CIOs Indicating Priority operational systems such as enterprise resource planning ETL/Data Warehousing/BI 28.7% (ERP), finance, supply chain, and customer relationship CRM 14.7% management systems. Many have also invested in data warehousing and various business intelligence (BI) tools. Business Application Management 14.0% While these systems have yielded significant benefits primarily ERP 14.0% through increased efficiency and automation and provided Portals 14.0% the necessary data infrastructure, the challenge now is to SCM 10.7% deliver new levels of value and insight from the data captured in these systems. For this reason, business intelligence solutions are becoming increasingly mission-critical. Prudential CIO Survey—March 2004 Applications Category % of CIOs Indicating Priority Financial 30.7% Key Drivers for Enterprise BI Solutions Business Intelligence 24.0% Sales Force Automation 22.7% •Rapid growth in data volumes, spread across many Employee Self-Service 21.3% sources and systems Supplier Management 18.7% •The need to deliver new levels of insight and value Human Resources 17.3% from existing IT investments Supply Chain Planning 17.3% •Demand to empower much larger audiences of users Call Center 16.0% with customer and business insight Supply Chain Execution 16.0% Portals 13.3% •Demand for insight that is more timely and actionable Marketing Automation 13.3% and that is delivered in context of everyday business processes Strategic Sourcing/Procurement 13.3% Other 8.0% •Increasingly mission-critical nature of business intelligence solutions Merrill Lynch CIO Survey—January 2004 Software Category % of CIOs Indicating Priority Security 46% BI/Data Warehousing 38% Corporate Portals 32% CRM 30% Analytic Applications 26% Storage 26% Document/Content Management 26% Application Integration 24% Network Management 24% Database 22% ERP 20% Custom Development 20% PLM 14% Supply Chain 12% Systems Management 8% Application Performance Management 8% Electronic Medical Records 2% E-Business Applications 2% Sources: Citigroup—September 2003 CIO Macro Trends Survey—Software (Priority Projects, Next Six Months); Prudential Equity Research, Apps & Enterprise Software: Proprietary CIO Survey—Software Spending Expectations for 2004 Show Improvement, March 9, 2004 (2004 Applications Software Priorities); Merrill Lynch—CIO Survey Results—January 2004 Software Spending Survey (Top 2004 Spending Priorities).
  • 43. 66 Siebel Systems, Inc. 2003 Annual Report Analytics continued Achieving New Levels of Business Insight With Siebel Analytics, every employee with Siebel Analytics is empowered with the critical insight To compete effectively in today’s marketplace, companies necessary to: require business intelligence solutions that deliver more than reporting and ad hoc analysis. Today, organizations • Make the best possible decisions are looking to empower every member of the organization • Take action based on facts rather with relevant and up-to-the-moment customer and business insight. Insight into historical and emerging trends. Deep than intuition insight about customer behaviors. Predictions about most • Respond intelligently to changing likely future outcomes. conditions with customers, suppliers, Ultimately, the real need is to deliver the right insight, to the and business partners right person, at exactly the moment in time when it is needed, proactively alerting and guiding each user to take the best Siebel Analytics enables organizations to possible next step or action—even enabling intelligent become truly insight-driven. interactions with customers in real time. Traditional BI tools were not designed to meet these new demands. A new class of enterprise BI solutions is needed. Siebel Analytics is capable of delivering on these emerging needs. Market Needs Are Expanding Far Beyond Traditional Query and Reporting Siebel Analytics Legacy BI Tools Relative Value Intelligent Interaction Insight- Driven Action Performance Management Query and OLAP Transaction Reporting Generational Step Here are I can explore How am What is my What should your reports. my data. I doing best opportunity? I do right now vs. goals? What should at the moment I do next? of contact? Siebel Analytics delivers all of these capabilities on one integrated enterprise BI platform.
  • 44. 67 Siebel Systems, Inc. 2003 Annual Report Analytics continued The Siebel Analytics Offering—Complete Three out of four customers license the Customer Analytic Applications and Enterprise Edition of Siebel Analytics, the Powerful Enterprise BI Platform version that enables users to access and Siebel Customer Analytic Applications are complete, prebuilt analyze data stored across the enterprise in analytic applications that deliver insight from and are addition to data in their Siebel applications. seamlessly integrated with Siebel CRM applications. These solutions are built on a next-generation BI platform that enables organizations to easily extend the applications to leverage customer and business information stored across enterprise data sources, in addition to data in their Siebel CRM applications. For broader BI needs, the Siebel Enterprise Analytics Platform is a line of BI platform products that can be selected to develop custom analytic solutions leveraging any existing corporate data sources. Many customers are expanding their use of Siebel Analytics well beyond customer analytics to address a broad set of enterprise BI needs. The Siebel Analytics Offering Executives Managers Front-Line Users Partners Siebel Customer Analytic Applications Prebuilt Customer Analytic Applications • Prebuilt analytic applications for customer and enterprise insight • Customer-driven, enterprise-wide • Industry-specific and role-based, incorporating best practices • Fast time to value, low risk, and low TCO Sales Service Marketing Partner Product and Order Executive • Seamless integration with Analytics Analytics Analytics Analytics Pricing Analytics Analytics Siebel CRM solutions provides closed information loop Analytics Siebel Enterprise Siebel Enterprise Analytics Platform Analytics Platform • Complete and comprehensive Interactive Ad Hoc Predictive Proactive intelligence across enterprise sources Dashboards Analytics Analytics Alerts • Unsurpassed ease of use and interactivity • Intelligence dashboards, ad hoc query, predictive analytics, proactive personalized alerts, and guided analytics • Native high-performance access to all major RDBMS platforms Siebel Siebel RMW Enterprise Department ERP SCM Financial HR and support for multidimensional DW Data data sources Marts • Unrivaled scalability, reliability, Siebel Data Enterprise Data performance, and cost of ownership Siebel Analytics transforms data from across the enterprise into actionable intelligence for every user.
  • 45. 68 Siebel Systems, Inc. 2003 Annual Report Analytics continued Siebel Customer Analytic Applications In May 2003, IDC recognized Siebel Systems Building lasting, high-value relationships with customers as the market share leader in customer is critical for business success. Improving an organization’s analytic applications, which is forecasted ability to acquire more of the right kind of customers, to to be the fastest-growing segment of the better serve and retain them, and to maximize their value analytic applications and business will result in significant bottom-line benefits and has the potential to create lasting competitive advantage. Realizing intelligence market. this potential, however, requires expanding the focus beyond improved efficiencies in customer-facing processes to applying advanced business intelligence and analytics. Siebel Customer Analytic Applications were designed to address these needs, transforming customer and enterprise data into insights to drive customer interactions and employee actions. The applications solve a wide range of business problems, are tailored to meet the analytic needs of more than 20 different industries, and reflect built-in knowledge of industry-specific processes and best practices. These applications can be deployed rapidly at lower total cost of ownership and deployment risk. Siebel Customer Analytic Applications Automotive Comms and Complex Consumer Energy Finance High Insurance and Life Public Travel and Media Manufacturing Goods Technology Healthcare Sciences Sector Transportation Sales Service Marketing Partner Product, Pricing, Executive Analytics Analytics Analytics Analytics Order Analytics Analytics Pipeline Churn Campaign Channel Lead Product Sales Business Analysis Propensity Scorecard Conversion Trends Performance Triangulated Customer Response Channel Pipeline Product Sales Forecasting Satisfaction Rates Forecasting Mix Performance Sales Team Resolution Customer Partner Sales Pricing Marketing Effectiveness Rates Lifetime Value Performance Analysis Results Up-Sell/ Service Rep Product Partner Portal Product Service Cross-Sell Effectiveness Propensity Analytics Bundling Effectiveness Discounting Service Cost Market Basket Partner Service Average Selling Product Analysis Analysis Analysis Trends Price Trends Lead Service Loyalty and Partner Campaign Product Competitive Conversion Trends Attrition ROI Profitability Trends MORE… MORE… MORE… MORE… MORE… MORE… Siebel Customer Analytic Applications solve a wide range of business problems and are tailored to meet the needs of more than 20 industries.
  • 46. 69 Siebel Systems, Inc. 2003 Annual Report Analytics continued Siebel Analytics—Key Milestones in 2003 Select Siebel Analytics Customers •Recognized by IDC as the market leader in customer Industry Customer analytic applications and fastest-growing major vendor Aerospace and Industrial The Boeing Company in the entire BI and analytics marketplace Caterpillar, Inc. Honeywell Aerospace •Delivered Siebel 7.5.3 and Siebel 7.7 Customer Analytic Raytheon Aircraft Company Applications, significantly enhancing our market-leading Automotive DaimlerChrysler AG analytic applications Ford Motor Company, Inc. Mitsubishi Motors Corporation •Introduced new intelligent customer interaction North America capabilities with Siebel Analytics 7.7 Nissan North America, Inc. Communications BT •Delivered Siebel Enterprise Analytic Platform 7.7, MCI Worldcom International Limited a major new release of the enterprise BI platform Telecom Italia S.p.A. Telstra Corporation Limited •Formed Global Strategic Alliance with IBM focused on Consumer Goods Bayer Consumer Care customer analytics and enterprise business intelligence The Gillette Company •Added more than 150 new Siebel Analytics customers, Hershey Foods Corporation H.J. Heinz Company expanding the Siebel Analytics total customer base to more than 350 Financial Services Abbey KeyBank National Association •Awarded CMP Media’s Intelligent Enterprise Readers Nykredit A/S Royal Bank of Canada Choice Award for Best Customer Intelligence, Interaction, and Relationship Management Software High Technology Cisco Systems, Inc. Fujitsu Siemens Computers GmbH •Achieved solid double-digit revenue growth in 2003, HP which management believes positions Siebel among the IBM Corporation fastest-growing companies in the analytics and business Insurance and Healthcare AXA Financial intelligence market Blue Cross and Blue Shield of Florida, Inc. CC Services Inc. United Healthcare Services, Inc. Enhancing Pipeline Visibility and Life Sciences Eli Lilly and Company Marketing Effectiveness at BT Pfizer BV Phillips Medical Systems BT is using Siebel Analytics to extend its sales performance and increase Wyeth its marketing effectiveness, providing access to billions of dollars of opportunity pipeline data, improving forecast accuracy, and increasing Media and Energy DIRECTV Operations, Inc. the effectiveness of marketing programs. EDF Energy Plc Reuters Limited “Siebel Analytics enables BT Major Business to move from disparate Warner Home Video and complex sales reporting, whereby individual teams were manually Public Sector Citizenship and compiling disconnected reports, to a standard, consolidated approach Immigration Canada to business intelligence. Siebel Analytics provides executives with La Poste deeper insight into business performance and the needs and wants of Leeds City Council our customers. The rich out-of-the-box functionality provides unrivaled New York City 311 management dashboards, together with comprehensive drill-down sales, South African Revenue Service marketing, and service reporting.” Travel and Transportation Burlington Northern Steve Dickson, Operations Manager, BT Retail Major Business Sante Fe Corporation CSX Technology, Inc. Sabre Inc. Union Pacific Railroad Company Improving Safety and Organizational Other Akzo Nobel Catalysts BV Responsiveness at Union Pacific Jostens, Inc. Linkshare Corporation Using the Siebel Enterprise Analytics Platform, Union Pacific Railroad has developed more than 100 analytic applications to empower employees to track maintenance personnel with up-to-the-second, personalized information they need to maximize effectiveness. “Siebel Analytics provides a unique combination of true end user ease with powerful analytic capabilities and best-in-class scalability. These unique capabilities have enabled us to provide actionable, timely information to more than 4,000 users—in a very complex, data-intensive environment. As a result, we are delivering significant business value with an exceptionally low TCO.” James Holder, Director of Engineering Systems, Union Pacific Railroad
  • 47. 73 Siebel Systems, Inc. 2003 Annual Report Achieving a Single View of the Taxpayer Siebel Business Integration Applications “UAN enabled us to integrate Integration in Four Weeks 12 separate, independent systems Phase One of Single View, involving in four weeks and reduced our the real-time integration of income integration implementation time tax, VAT, PAYE, and employee frames by 40 to 50%.” insurance, was completed in four weeks. Two hundred tax advisors Ken Jarvis, CIO, South African and case managers can now access Revenue Service a single, unified view of individual and corporate tax information, South African Revenue Service including taxpayer profile, complete (SARS) provides tax collection tax history, record of payment, and services for the South African all outstanding tax inquiries. Phase government. Employing 15,000 Two of the program, which is still in people, SARS collects more than progress, involves integrating other $30 billion in revenue from multiple tax systems; adding functionality to tax products, including earned the main tax products of Phase One; income, corporation, value added and providing 5,800 tax workers (VAT), and import/export taxes. with a single, comprehensive view of the taxpayer. Currently, taxpayer information is kept in a variety of different “UAN enabled us to integrate IT systems, making it difficult to perform effective debt 12 separate, independent systems in four weeks and reduced our “UAN enabled us to integrate equalization—the offset of tax credits and refunds against taxes payable— integration implementation time frames by 40 to 50%,” says Ken 12 separate, independent and to detect suspicious activity Jarvis, CIO, South African Revenue and tax noncompliance. According to Andre van der Post, who manages Service. “UAN enabled SARS to overcome the cost, complexity, systems in four weeks…and IT strategy and architecture at SARS, this fragmented view and time involved in traditional point-to-point integration.” is saving the South African needed urgent resolution. “We were using 12 separate, Single View increases tax liability accuracy; reduces data entry errors; Revenue Service almost independent systems to manage individual and corporate tax and provides faster, more accurate responses to tax inquiries and $3 million each day.” and customs affairs,” he says. correspondence. Creating a full Andre van der Post, Manager, Innovation, South African Revenue Service “Organizations would be separately picture of a company’s tax situation registered for income tax, VAT, pay- now takes 30 seconds, rather than as-you-earn (PAYE), and employee up to three weeks. insurance, and companies often had multiple subsidiaries. One company Saves Millions Every Month had 196 different points of tax “Using Single View to create registration! It could take a member a unified view across 12 different of the Revenue Service staff up to tax systems has the potential of four weeks to consolidate the tax saving the Service almost $3 million situation of a major South African each day—which is equivalent to corporation, simply because we approximately $90 million every needed to drill down through so month,” says Jarvis. “This means many different systems and screens.” we have received a complete return on our investment in just a few days. Easy Access to Taxpayers’ When we are asked about how Full Taxation Status soon we expect to receive a return To address these challenges, SARS on investment, we usually quote envisioned “Single View,” a system a couple of months, simply because enabling its call center agents, tax so few people would believe advisors, and case workers to easily a return on investment could be access the full taxation status of achieved in days! But it’s true.” citizens and corporations in one location. To realize Single View, SARS selected Universal Application Network (UAN)—a standards-based application integration solution. “We chose UAN because it offered us a prepackaged solution for solving our most pressing business process integration issues,” says van der Post.
  • 48. 75 Siebel Systems, Inc. 2003 Annual Report Siebel Universal Customer Master UAN and Siebel Business Integration Applications/Siebel Universal Customer Master Solving the Fragmented Customer Other Siebel Master Data Solutions Data Problem In addition to Siebel Universal Customer Master, Siebel provides the following master data solutions: In a typical large company, customer • Universal Product Master information can be fragmented and • Universal Sales Master duplicated across business units and communication channels (such as email, • Universal Service Master phone, and the Internet), resulting in an • Universal Field Service Master incomplete and possibly inaccurate view • Universal Marketing Master of the customer. Siebel Universal Customer Master (UCM) is an application that provides Key Business Benefits organizations with a single authoritative Cross-Sell • Improved data integrity source of customer information. Enhancements • Better analysis of product adoption by customer Improved • Effective customer segmentation Customer • Better detection of “at risk” customers Retention • Better customer service Siebel Universal Customer Master Capabilities Sales • Better alignment of product and pricing with Effectiveness customer needs Enhancement • Improved coordination of sales efforts CRM BI ERP Productivity • Reduced time for data capture, data entry, Improvement and data maintenance e U ut • Better focus on high-value activities Distrib nif PLM Custom Customer • Better focus on high-value customers y Siebel Segmentation • Better tailoring of products, services, and pricing UCM Improved • Better targeted marketing campaigns Ra Partner t i o n a li z e Legacy Marketing • Reduced administration overhead Effectiveness OSS SCM Large Diversified Financial Institution In order to effectively manage the enterprise information life cycle, $57 Million Annual Projected Savings* Siebel UCM performs the following master operations: Through a series of mergers and acquisitions, a regional bank recently achieved nationwide presence, becoming a large diversified financial Unifies customer master data across institution. Faced with disparate customer records from five separate lines of business, it wanted to unify its customer information to ensure the enterprise a high standard of customer service and data integrity throughout all of its interactions. Rationalizes information to create unique, complete, and correct customer profiles $60 Total $57M Cross-Sell Enhancements Distributes the customer profiles back to other business applications and systems $50 Improved Customer Retention Select Siebel Customers $40 Autodesk, Inc. Sales Effectiveness Enhancement Bank of Montreal Annual Savings (in millions) $30 ENI Spa Productivity Improvement Interpolis N.V. MCI $20 Customer Segmentation NTT Group Putnam Investments, Inc. $10 Improved Marketing Effectiveness $0 Projected Savings and Business Benefits *Siebel-estimated savings based on the financial institution implementing Siebel Universal Customer Master.
  • 49. 76 Siebel Systems, Inc. 2003 Annual Report Siebel CRM OnDemand For ten years, Siebel Systems has raised Prebuilt Integration the bar on CRM. Siebel CRM OnDemand enables companies to quickly Now, we’re lowering the hurdles. and easily create integrated solutions that allow key sales, marketing, and service data to be shared between Siebel CRM OnDemand and other systems across the organization. Siebel CRM OnDemand—an innovative Siebel CRM OnDemand supports integration in two ways: customer relationship management solution • First, Siebel CRM OnDemand provides prebuilt integration for unifying, tracking, and managing customer to Siebel enterprise applications, allowing companies information and processes across sales, to achieve seamless integration between Siebel CRM OnDemand and Siebel enterprise applications rapidly marketing, and customer service, served and cost-effectively up on demand by IBM e-business Hosting™ . • Second, Siebel CRM OnDemand provides open interfaces and APIs based on the XML/SOAP Web Services standards to support easy integration with third-party systems Seamless Data Sharing from Siebel CRM OnDemand to Siebel Enterprise Applications It’s CRM made simple. Siebel Seamless Siebel Enterprise It’s CRM made fast. CRM OnDemand Data Sharing Applications It’s CRM made smart. UI UI Common Architecture Fast Results With Siebel CRM OnDemand, companies can be up and running in no time—sharing critical sales information, Business Business automatically routing leads, and providing exceptional Seamless Logic Logic Data Sharing support to their customers. Plus, with robust scalability from IBM e-business Hosting, Siebel CRM OnDemand Data Data Model Model customers can easily add users at any time. Pay as You Go With Siebel CRM OnDemand, companies pay just $70 per person per month. There’s no software to install. No hardware to buy. No maintenance, upgrade, or support costs. Together, Growing Revenues and Profitability at Galileo Siebel and IBM e-business Hosting deliver best-in-class Galileo, one of the world’s leading providers of electronic global distribution CRM at the lowest total cost of ownership. services (GDS), selected Siebel CRM OnDemand to transform sales, marketing, and service effectiveness and grow revenues and profitability. Industry-Leading Sales, Marketing, Hosted by BT, the solution will be used by more than 300 Galileo sales, marketing, and service professionals in ten countries across Europe, and Service Capabilities Asia, and Australasia to effectively manage every stage of the sales With more than ten years of CRM experience, Siebel Systems cycle, from contact and opportunity management to sales forecasting and ongoing account management. They will use the best-practice has unrivaled domain expertise in enabling organizations analytics capabilities built into Siebel CRM OnDemand to analyze to identify, acquire, serve, and retain profitable customers. customer information, increase sales efficiency, and, most importantly, Embedded directly in Siebel CRM OnDemand are best improve the customer experience, thereby maximizing revenues. practices that drive the entire customer life cycle, from “Siebel CRM OnDemand provides Galileo with an online, cost-effective the first marketing contact through each stage of the sales gateway to greater customer intimacy. By adopting this ‘pay-as-you-go’ cycle to ongoing customer service and support. BT-hosted model, Galileo is minimizing risk and overcoming the cost barriers often associated with CRM. Together, Siebel and BT will Real-Time Insight with Interactive Analytics automate our sales, service, and marketing processes, empowering Galileo staff worldwide to concentrate on their key responsibility— With powerful built-in analytic capabilities, Siebel CRM the customer. We estimate that the Siebel solution will enable us to OnDemand provides deep real-time insight into a company’s increase our prospect conversion by 20% in 12 months and drive increased return on investment for all our marketing activities.” operations. Insight that unlocks the value hidden in customer data. Insight that enables companies to act quickly to identify Elizabeth Harraway, Vice President, Marketing EMEA, and capitalize on new opportunities. Insight that helps Asia & Australasia, Galileo management understand the “why”—not just the “what”— when analyzing business performance.
  • 50. 77 Siebel Systems, Inc. 2003 Annual Report Siebel Contact OnDemand Siebel CRM OnDemand/Siebel Contact OnDemand “Hosted CRM is now a significant component Siebel Contact OnDemand Extends of enterprise CRM strategy going forward.” “CRM for Everyone” Strategy Sheryl Kingstone, Yankee Group Siebel Contact OnDemand is an affordable, hosted contact center service that eliminates the need for costly hardware and software, delivering all of the capabilities of a traditional contact center in a robust, hosted solution. Siebel Contact “Organizations currently pursuing selection OnDemand delivers hosted voice, voicemail, email, Web projects for hosted applications that already self-help, and chat capabilities as a simple, affordable have Siebel in place should put Siebel CRM monthly service, whether a company is a small or medium- OnDemand at the top of the list.” sized business or a division of a large company. Laura Preslan, The AMR Research Alert, October 2, 2003 “Siebel’s addition of Contact OnDemand is an important milestone in the marketplace.” Denis Pombriant, Managing Principal, Beagle Research Group Today’s activities. How the quarter is shaping up. Benefits of Siebel Contact OnDemand Hot new leads. Completely Hosted Eliminates need for costly premise-based call center equipment. Telephone, PC, and Internet connection are the only tools needed. Low Cost Affordable per-user pricing plans with built-in customization tools. Deployed Quickly World-class contact center functionality in weeks— not months. Scalable Easily add agents based on customer volume during peak periods. Single Vendor Prebuilt integration with Siebel CRM OnDemand allows complete view of customer interactions. Select Siebel OnDemand Customers Accenture Increasing Revenue and Customer Boise Cascade Corporation BroadVision, Inc. Satisfaction at The World’s Finest Resorts eTelecare The World’s Finest Resorts, the world’s leading provider of luxury vacation Galileo property trading and travel benefit services, needed a robust CRM solution to help the company improve customer satisfaction and enhance sales General Orthodontic effectiveness across its far-flung network of offices. With Siebel CRM Haworth OnDemand, The World’s Finest Resorts can quickly respond to customer HP requests, offer targeted vacation packages that fit customer desires, and Jones Lang La Salle ensure that it is exceeding customer expectations for world-class service. Kodak “Simply put, Siebel CRM OnDemand allows me to manage my business The World’s Finest Resorts more effectively. It helps me close deals faster, improve communication Xerox Corporation and customer satisfaction, and significantly increase revenues.” Chris Abbott, Chief Operating Officer and Principal, The World’s Finest Resorts