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

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

    1. 1. 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
    2. 2. <ul><li>Comprehensive E-Commerce solution </li></ul><ul><li>Enhanced online customer self-service solution </li></ul><ul><li>Uses Fusion Middleware for flexible architecture </li></ul>Announcing Siebel 8.1.1 Complete CRM Self-Service <ul><li>Communications E-Commerce </li></ul><ul><li>Public Sector online case management applications </li></ul><ul><li>Retail & Airline loyalty management </li></ul>Customer Loyalty <ul><li>Complete loyalty management solution </li></ul><ul><li>Personalized, relevant customer promotions </li></ul><ul><li>Comprehensive point promotion and redemption </li></ul>Deep Industry
    3. 3. 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
    4. 4. 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
    5. 5. 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…
    6. 6. ‘ Like for Like’ Upgrade <ul><li>Deployment Profile </li></ul><ul><li>Medium Size (5,000 users) </li></ul><ul><li>Medium Customization </li></ul><ul><li>Upgrading from Siebel 7.5 to Siebel 8 </li></ul>1993 Toyota Camry 2008 Toyota Camry
    7. 7. Reducing The TCO of Siebel Applications <ul><li>Scenario </li></ul><ul><li>Deployment of medium size and complexity (5,000 users) </li></ul><ul><li>Configuration and operations for one year </li></ul><ul><li>TCO cost based on effort (person hour) </li></ul>* 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
    8. 8. 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
    9. 9. ‘ 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  <ul><li>Siebel 7.5: $2.5 million/year </li></ul><ul><li>Siebel 8.1: $1.3 million/year </li></ul>Deployment Profile  <ul><li>Medium Size (5,000 users) </li></ul><ul><li>Medium Customization </li></ul><ul><li>Upgrading from Siebel 7.5 to Siebel 8 </li></ul>Upgrade Costs  <ul><li>$550,000* </li></ul>Savings  <ul><li>IT/CFO Savings: $1.2 million/year </li></ul><ul><li>Total 3 Year Savings: $3.05 million </li></ul><ul><li>Payback in 6 months </li></ul>
    10. 10. Decrease Deployment Costs Siebel Application Deployment Manager <ul><li>Reduce personnel requirements by 60% </li></ul><ul><li>Decrease deployment time by 40% </li></ul><ul><li>Automate manual processes </li></ul><ul><li>Customer Feedback </li></ul><ul><li>“ The backup/restore capabilities alone will be the reason for us to use it” </li></ul><ul><li>“… manual tasks will be replaced to a great extent and that should lead to better accuracy.” </li></ul>
    11. 11. <ul><li>Decrease upgrade costs </li></ul><ul><li>Make changes more quickly </li></ul><ul><li>Reduce downtime </li></ul>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
    12. 12. 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
    13. 13. ‘ Value Add’ Upgrade The Same Company Upgrades with New Functionality <ul><li>Deployment Profile </li></ul><ul><li>Adding Real-time Decisioning and Pricing Management </li></ul><ul><li>Medium Size (5,000 users) </li></ul><ul><li>Medium Customization </li></ul><ul><li>Upgrading from Siebel 7.5 to Siebel 8 </li></ul>1993 Toyota Camry 2008 Lexus LS 600H
    14. 14. Real-Time Decisioning Small Decisions Add Up <ul><li>8% sales lift overall at BT </li></ul><ul><li>40% churn reduction at Canal+ </li></ul><ul><li>Major insurer </li></ul><ul><ul><li>$25 additional annual revenue per policy </li></ul></ul><ul><ul><li>Reduced cycle time for testing on new products / messages from 3 months to days </li></ul></ul>
    15. 15. Real Results with Pricing Management <ul><li>“ These projects can raise revenue by 1% to 2%, increase gross margin by 10% to 15%, and increase contribution margin by up to 50%.”* </li></ul><ul><li>Provide bottom line benefits averaging $3 million to $45 million, with some projects delivering as much as $200 million </li></ul>*Source: AMR Research, How To Select the Right B2B Price Management Vendor , June 29, 2005
    16. 16. ‘ Value Add’ Upgrade Scenario * Savings based on hardware and software costs Deployment Profile  <ul><li>Medium Size (5,000 users) </li></ul><ul><li>Medium Complexity </li></ul><ul><li>Upgrading from Siebel 7.5 to Siebel 8 </li></ul><ul><li>Adding RTD and Pricing Management </li></ul>Upgrade Costs  <ul><li>$550,000 </li></ul>Maintenance Savings  <ul><li>Total 3 Year Savings: $3.05 million* </li></ul>RTD Value  <ul><li>3 Year Sales Uplift: $12 million </li></ul><ul><li>License/deploy: $1.5 million </li></ul>Pricing Mgt. Value  <ul><li>3 Year Sales Uplift: $5.5 million </li></ul><ul><li>Cost to implement: $1.06 million </li></ul>Results  <ul><li>Total Cost: $3.11 million </li></ul><ul><li>3 Year Sales Uplift/Savings: $21 million </li></ul><ul><li>Payback in 5.3 months </li></ul>
    17. 17. 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
    18. 18. Stay Current on the Latest on Oracle Applications by Tuning in to AppCasts at www.oracle.com/appcasts or via iTunes <ul><li>Product News </li></ul><ul><li>Customer Interviews </li></ul><ul><li>Partner Highlights </li></ul><ul><li>Email: folia.grace@oracle.com </li></ul>

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