Get Real ROI by Upgrading to the Latest Release of Oracle’s Siebel CRM

George Jacob Group Vice President, CRM Applications Real ROI: The Business Case for Upgrading to the Latest Release of Oracle’s Siebel CRM Folia Grace Vice President, Applications Product Marketing

Comprehensive E-Commerce solution

Enhanced online customer self-service solution

Uses Fusion Middleware for flexible architecture

Announcing Siebel 8.1.1 Complete CRM Self-Service

Communications E-Commerce

Public Sector online case management applications

Retail & Airline loyalty management

Customer Loyalty

Complete loyalty management solution

Personalized, relevant customer promotions

Comprehensive point promotion and redemption

Deep Industry

Support Above and Beyond * OEM support at Oracle’s discretion Industry Standard Apps Unlimited Previous two releases Unlimited support on key releases No patches afterwards Security and bug fixes as needed Browser certifications Forced upgrades No forced upgrades Charge for new functionality No charge for new functionality: e.g. Task-Based UI, Business Rules, Application Deployment Manager

Applications Unlimited for Oracle’s Siebel CRM * OEM support at Oracle’s discretion Release Premier Support Ends Extended Support Ends Sustaining Support Ends 8.0 Jan-12 Jan-15 Indefinite 7.8 May-10 May-13 Indefinite 7.7 Sep-09 Sep-12 Indefinite 7.5.3 Dec-08 Dec-10 Dec-12 7.0 Dec-08 Not Offered Not Offered 6 N/A Dec-07 Indefinite

Why Would You Upgrade? I don’t want to disrupt my business… I can’t justify an upgrade… Our current release is working just fine… It’s too expensive… There’s no value in upgrading…

‘ Like for Like’ Upgrade

Deployment Profile

Medium Size (5,000 users)

Medium Customization

Upgrading from Siebel 7.5 to Siebel 8

1993 Toyota Camry 2008 Toyota Camry

Reducing The TCO of Siebel Applications

Scenario

Deployment of medium size and complexity (5,000 users)

Configuration and operations for one year

TCO cost based on effort (person hour)

* Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes. TCO Savings 51% 43% 27% Siebel 7.0 to 8.0 Siebel 7.5 to 8.0 Siebel 7.7/7.8 to 8.0 Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on OracleMetaLink 3 Cost Factor 7.0 7.5 7.7/7.8 8.0/8.1 Deployment $0.010 $0.009 $0.007 $0.005 Configuration $0.32 $0.294 $0.234 $0.176 Operations $0.21 $0.189 $0.141 $0.099 Upgrade $0.04 $0.036 $0.029 $0.025 Performance $0.08 $0.060 $0.057 $0.034 Usability $0.11 $0.084 $0.060 $0.042 Test Automation $0.05 $0.046 $0.028 $0.026 Integration $0.18 $0.144 $0.115 $0.081 TCO Ratio $1.00 $0.86 $0.67 $0.49

ROI Calculator * Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes. Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on OracleMetaLink 3

‘ Like for Like’ Upgrade Scenario * Upgrade costs include software and manpower only. Savings based on hardware and software costs over a 3 yr. period. Maintenance Costs 

Siebel 7.5: $2.5 million/year

Siebel 8.1: $1.3 million/year

Deployment Profile 

Upgrade Costs 

$550,000*

Savings 

IT/CFO Savings: $1.2 million/year

Total 3 Year Savings: $3.05 million

Payback in 6 months

Decrease Deployment Costs Siebel Application Deployment Manager

Reduce personnel requirements by 60%

Decrease deployment time by 40%

Automate manual processes

Customer Feedback

“ The backup/restore capabilities alone will be the reason for us to use it”

“… manual tasks will be replaced to a great extent and that should lead to better accuracy.”

Decrease upgrade costs

Make changes more quickly

Reduce downtime

Reduce Configuration Costs Siebel Business Rules Engine Customer Feedback “ The new business rules engine offered in Siebel 8.0 is helping Verizon Business reduce customization and the complexity of the application. This, in turn, significantly reduces the cost of configuration and improves the performance and maintainability of their Siebel Business Applications deployment.” – Accenture

Siebel 8.x Improves Hardware ROI Intel: 3X more users vs. 7.8 on same-price equipment On Sun: 4.35X more users vs. 7.8 on same-price equipment 8.0 session-pooling scalability >200% vs. standard O.M. Standard O.M. Session-Pooled O.M. Standard O.M. 30% scalability gains with current HW architecture

‘ Value Add’ Upgrade The Same Company Upgrades with New Functionality

Deployment Profile

Adding Real-time Decisioning and Pricing Management

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Real-Time Decisioning Small Decisions Add Up

8% sales lift overall at BT

40% churn reduction at Canal+

Major insurer

$25 additional annual revenue per policy

Reduced cycle time for testing on new products / messages from 3 months to days

Real Results with Pricing Management

“ These projects can raise revenue by 1% to 2%, increase gross margin by 10% to 15%, and increase contribution margin by up to 50%.”*

Provide bottom line benefits averaging $3 million to $45 million, with some projects delivering as much as $200 million

*Source: AMR Research, How To Select the Right B2B Price Management Vendor , June 29, 2005

‘ Value Add’ Upgrade Scenario * Savings based on hardware and software costs Deployment Profile 

Medium Complexity

Adding RTD and Pricing Management

Upgrade Costs 

$550,000

Maintenance Savings 

Total 3 Year Savings: $3.05 million*

RTD Value 

3 Year Sales Uplift: $12 million

License/deploy: $1.5 million

Pricing Mgt. Value 

3 Year Sales Uplift: $5.5 million

Cost to implement: $1.06 million

Results 

Total Cost: $3.11 million

3 Year Sales Uplift/Savings: $21 million

Payback in 5.3 months

ROI Calculator * Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes. Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on OracleMetaLink 3

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