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George JacobGroup Vice President, CRM Applications
Real ROI: The Business Case for Upgrading to the Latest Release of Oracle’s Siebel CRM
Folia GraceVice President, Applications Product Marketing
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
• Comprehensive E-Commerce solution
• Enhanced online customer self-service solution
• Uses Fusion Middleware for flexible architecture
Announcing Siebel 8.1.1Complete CRM
Support Above and Beyond
Industry Standard Apps Unlimited
Previous two releases Unlimited support on key releases
No patches afterwardsSecurity and bug fixes as needed
Browser certifications
Forced upgrades No forced upgrades
Charge for new functionalityNo charge for new functionality: e.g.
Task-Based UI, Business Rules, Application Deployment Manager
* OEM support at Oracle’s discretion
Applications Unlimited for Oracle’s Siebel CRM
ReleasePremier Support
EndsExtended 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
* OEM support at Oracle’s discretion
Why Would You Upgrade?
I don’t want to disrupt my business…I don’t want to disrupt my business…
I can’t justify an upgrade…I can’t justify an upgrade…
Our current release is working just fine…Our current release is working just fine…
It’s too expensive…It’s too expensive…
There’s no value in upgrading…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 ApplicationsCost 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
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
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
Maintenance Costs Siebel 7.5: $2.5 million/year
Siebel 8.1: $1.3 million/year
Deployment Profile Medium Size (5,000 users)
Medium Customization
Upgrading from Siebel 7.5 to Siebel 8
Upgrade Costs $550,000*
Savings IT/CFO Savings: $1.2 million/year
Total 3 Year Savings: $3.05 million
Payback in 6 months
* Upgrade costs include software and manpower only. Savings based on hardware and software costs over a 3 yr. period.
Decrease Deployment CostsSiebel Application Deployment Manager
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.”
Reduce personnel requirements by 60%
Decrease deployment time by 40%
Automate manual processes
Decrease upgrade costs
Make changes more quickly
Reduce downtime
Reduce Configuration CostsSiebel 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
0%
20%
40%
60%
80%
100%
120%
140%
7.8 8.0
30% scalability gains with current HW architecture
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
7.8 8.0
Intel: 3X more users vs. 7.8 on same-price equipment
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
7.8 8.0
On Sun: 4.35X more users vs. 7.8 on same-price equipment
0%
50%
100%
150%
200%
250%
300%
7.8 8.0 8.0
8.0 session-pooling scalability >200% vs. standard O.M.
Sta
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O.M
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Se
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‘Value Add’ UpgradeThe Same Company Upgrades with New Functionality
Deployment Profile Adding Real-time Decisioning and Pricing Management
Medium Size (5,000 users)
Medium Customization
Upgrading from Siebel 7.5 to Siebel 8
1993 Toyota Camry 2008 Lexus LS 600H
Real-Time DecisioningSmall 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
Deployment Profile Medium Size (5,000 users)
Medium Complexity
Upgrading from Siebel 7.5 to Siebel 8
Adding RTD and Pricing Management
Upgrade Costs $550,000
Maintenance Savings Total 3 Year Savings: $3.05 million*
* Savings based on hardware and software costs
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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