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Siebel CRM Professional EditionAdapting Your Products to the SMB Market
Alvin Leung
Product Strategy Manager
Oracle Corporation
Updated July 12, 2006
Goals of This Presentation
• Understand overall positioning of Oracle’s SMB CRM offerings and SPE’s place
• Understand SPE sales positioning, pricing and packaging
• How to add SPE positioning to your products• How to develop SPE appropriate products
Agenda
1. The SMB CRM Opportunity
2. Oracle SMB CRM offerings
3. SPE as part of Oracle’s SMB CRM offerings
4. Review of SPE Positioning, Pricing, Packaging
5. Case Study – Horizon Health
6. Adapting your product for SPE
The SMB CRM Opportunity
: Best Selling and Most DeployedLargest Number of Live Users
93-4 95 96 97 98 99 00 01 02 03
500 4,000 20,000 60,000200,000
600,000
1 M
1.3 M
2.17 M
04
Number of Live Siebel Users (as of Q4 2004)
0
3.0 M
Gartner: Live Users by CRM Provider (as of Q4 2003)
2.5M
2.0M
1.5M
1.0M
500k
2,170,000
Seats
360,000 Seats 180,000
Seats 165,000
Seats
Source: Gartner Dataquest, G00122293, August 13, 2004, T. Topolinski, Y. Dharmasthira, and P. Kumar.
Siebel PeopleSoft Oracle SAP0
Best Selling and Most DeployedIndustry Leaders Run Oracle-Siebel CRM
9 of the top 10 global telecommunications companies
20 of the top 25 global banks
25 of the top 25 global pharmaceutical companies
19 of the top 20 global high technology companies
14 of the top 20 life insurance companies
3 of the 4 largest U.S. railroads
9 of the top 10 global consumer goods companies
18 of the top 25 global energy companies
10 of the top 15 global automotive companies
Communications
Banking
Pharmaceuticals
High Technology
Insurance
Transportation
Consumer Goods
Energy
Automotive
Oracle SMB Customer Revenue CY03-05
Based on customer size; from Oracle sales data from past three years
57%67% 71%
44%37%
43%
29%
56%63%
33%
Oracle E-BusinessSuite
JD EdwardsEnterpriseOne
JD Edwards World PeopleSoft Enterprise Siebel CRM
SMB (< $1B) Large Business(> $1B)
Takeaway #1
SMB is still a largely untapped market for CRM
SMB/MidMarket CRM Represents Large Revenue Opportunity
Source: • CRM Software Application Spending by SMBs on the Rise. Gartner Research, 2004• IDC Proprietary Research for Oracle
Large SMB/Mid Market Base … that is Largely Untapped
CRM PenetrationMidsized Businesses
20%
CRM PenetrationSmall Businesses
2%
# Companies in North America
5M Small Businesses
90K Midsize Bus.
SM
B/M
idM
arke
t
$8.0B $8.6B$9.3B
2004 2005 2006 (P)
Drives Significant SMB/ MidMarket CRM Spend
World Wide SMB ($0-$500M) CRM Spending
$5.9B
2005
$6.3B
2006
$6.6B
2007(P)
Takeaway #2
Oracle is well positioned to capitalize on this opportunity.
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Why Oracle is Poised to Succeed
The Best Software– Most comprehensive application functionality
– Best industry applications
– Solutions to address all deployment needs
Longevity and Commitment– Most successful enterprise software vendor– Focused on business applications and technology only– Long term support and continual enhancements
Most Success and Expertise in CRM– Best Selling and most deployed
– Most experience in making customers successful
– Certified consulting ecosystem
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s SMB CRM Offering
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s SMB CRM Offerings
CRM Professional Edition
Oracle CRM
JDE Edwards EnterpriseOne CRM
CRM On Demand Peoplesoft CRM
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s Siebel CRM On Demand
Comprehensive Hosted Solution• Pre-built sales, marketing and service• Industry-specific features ensure organizations
spend less time customizing their software• Built-in contact center empowers virtual teams
Insight-driven• Enables real-time feedback, historical trend
and predictive analyses
Embedded Best-practices• Tutorials, wizards, and task-based layouts
guide optimal behaviors
Flexibility• Multiple deployment options• Easy integration and customization address
your specific needs
Blueprint for Customer Success
Embedded Analytics withBuilt-in Data Warehouse
Configuration, Integration & Extension
World-Class Hosting Infrastructure
MarketingSales Service
Built-in Contact Center
Industry Specific CRM
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s Siebel CRM Professional EditionThe Most Comprehensive CRM Solution for Small and Mid-sized Businesses
Strategic CRM– Pre-integrated best of class sales, marketing,
service and CRM analytics applications
– Embedded industry best practices
– Deep industry functionality for across 12 vertical editions
– 150 available add-on modules
Tailored for Small and Mid-sized Businesses– Functionality optimized for SMB requirements
– Tailor deployment with 6 free add-on modules
– Integration with familiar desktop and Web apps
– Runs on Windows, SQL Server
– Priced at $995 per user, financing available
Delivered by certified implementation partners
“Siebel Professional Edition offers best-of-breed CRM to the mid-market.”
-- Forrester Research 11/22/2005
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle E-Business Suite CRM, Peoplesoft CRM &Oracle’s JD Edwards EnterpriseOne CRM
CRM functionality embedded in Oracle’s ERP applications
Single Suite ERP & CRM Apps
• Consolidates and reduces IT admin costs
• Common data model – enables a single source of customer data
– reduces data integration costs
• Integrated Order Mgmt &Inventory Fulfillment – supports customer service for manufacturing
companies
• Integrated CRM to financials
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s SMB CRM Offerings
CRM Professional Edition
Oracle CRM
JDE Edwards EnterpriseOne CRM
Which product to sell?
CRM On Demand Peoplesoft CRM
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
SMB Mid-Market PlaybookGlobal Recommendations—Product Positioning for Net New Accounts
Aer
ospa
ce &
Def
ense
Aut
omot
ive
Che
mic
als
Com
mun
icat
ions
Con
sum
er P
rodu
cts
Edu
catio
n\R
esea
rch
Fin
anci
al S
ervi
ces
Hea
lthca
re
Hig
h T
echn
olog
y
Indu
stria
l Man
ufac
turin
g
Life
Sci
ence
s
Med
ia &
Ent
erta
inm
ent
Nat
ural
Res
ourc
es
Oil
& G
as
Pro
fess
iona
l Ser
vice
s
Pub
lic S
ecto
r
Ret
ail
Tra
vel &
Tra
nspo
rtat
ion
Util
itiesTarget
ProductLine
E1
Enterprise
EBS
E1
E1
E1
EBS
SEBL
EBS
SEBL
EBS
SEBL
EBS
SEBL
EBS
SEBL
EBS
SEBL
EBS/Retek
SEBL
EBS
SEBL
EBS
SEBL
Enterprise
EBS
SEBL
Aut
omot
ive
Sup
plie
rs
E1
E1
SEBL
LegendEBS—Oracle eBusiness Suite/Special EditionE1—JDE EnterpriseOneEnterprise—PeopleSoft EnterpriseSEBL—Siebel CRM Professional Edition
Eng
inee
ring\
Con
stru
ctio
n
E1
SEBL
E1
Who
lesa
le D
istr
ibut
ion
EBS
SEBL
CoreERP/SCM
CRM
Takeaway #3
Comparative Advantage – Utilize SMB CRM Offerings as a Portfolio
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Oracle’s SMB Mid-Market CRM Offerings
CRM Professional Edition
Order ManagementInventory Fulfillment
Integration to Oracle ERP
Closed Loop MarketingContact Center On Demand
Customer’s Key Functional
Requirements
Closed Loop Marketing,Analytics,
Mobility esp. Field Service,Industry Specific functionality,
Workflow EngineContact Center On Demand
Leverages ERP IT ResourcesMinimalIT Admin Costs IT Resources Needed
Oracle CRM
Hosted, Integrated or Best of ClassOracle Provides A Complete Portfolio of CRM Products for all SMB’s Needs
Cost of Ownership,ERP Integration
Rapid Deployment, Cost of Ownership
Purchase DriversCRM for Competitive
Differentiation
ERP Suite, Add-on FunctionalityStandalone CRM Scope of Deployment Standalone CRM
JDE Edwards EnterpriseOne CRM
Hosted Best of ClassIntegrated
CRM On Demand
Existing Oracle ERP CustomerNet new,
Existing Oracle ERPOracle Footprint
Net new,Existing Oracle ERP
For existing ERP, all sizesAll SizesDeployment Size Recommend 30+ seats
Manufacturing IndustriesAll Industries Industries Services, B2C Industries
Copyright ©2006, Oracle. All rights reserved. Oracle Confidential
Siebel CRM Professional EditionPositioning, Packaging & Pricing
…used by leading companies large and small…
Oracle’s Siebel CRM: The World’s Leading CRM Solution
…and the recognized CRM leader by industry analysts such as Gartner and Forrester.
The most complete CRM suite available… …with 3M live users from 4000+ companies worldwide…
Proven, pre-integrated CRM solutions for SMB’s
Optimized for SMB IT environments
Affordable priced from $995 Delivered by local systems
integrator
Tailored for SMB’s
Siebel CRM
…Engineered for Small & Mid-sized Businesses
Featuring Best of Breed CRM Solutions with Built-in Best Practices
developed from over 12 years of experience pioneering CRM solutions
Vertical Editions with Deep Industry-Specific Functionality
Communications,Media
& Energy
FinancialServices
LifeSciences
Health Care& Insurance
ConsumerGoods
Automotive
•Pricing Authorization Management
•Billing Management
•Credit Management
•Fraud Management
•Price Comparison
•Credit Origination
• Investment Banking
•Retirement & Pension Mgmt
•Wealth Mgmt
•Small Business Banking
•Adverse Events & Complaints Tracking
•Prescription Analysis
•Clinical Profiles
•Territory Mgmt for LS
•Pharma Campaigns
•Medical Handheld
•Etc…
•Group Coverage
• Individual Coverage
•Group Pensions
•Group Policies
• Individual Life & Annuities
•Personal Lines Claims
•Etc…
•Trade Management
•Sales Volume Planning
•Deduction
•CG Handheld Sales
•Territory Mgmt for Consumer Goods
•Van Sales & Delivery
•Etc…
•Financial Accounts
•Lease End of Term Processing
•Personal Lines Claims
•Title Management
•Vehicle Contracts
to deliver best fit for SMB’s while reducing implementation costs
• Greater product fit and business benefit• Increased user adoption
•Reduced need for customization •Streamlines implementation cost and time•Reduced future upgrade costs
The Most Comprehensive CRM Solution for Small and Mid-sized
Businesses
Siebel CRM Pro Ed.
SalesLogix
MSCRM
Onyx
Pivotal
SF.com
Fiel
d Sa
les
Insi
de S
ales
Partn
er M
gmt
E-C
omm
erce
Cus
tom
er S
ervi
ceFi
eld
Serv
ice
Dat
a C
lean
sing
CR
M A
naly
tics
Con
tent
Mgm
t.C
ampa
ign
Mgm
t.
Strong Functionality Light Product Functionality No Product Functionality
Source: A Feature Comparison of CRM Suites for MSBS, Wendy Close, Gartner, August 8, 2004
Flexible Packaging Allows SMBs to Create Custom CRM Bundles
Option 5Option 5Customer Choice
Option 6Option 6Customer Choice
Option 3Option 3Customer Choice
Option 4Option 4Customer Choice
Option 1Option 1Customer Choice
Option 2Option 2Customer Choice
Base ApplicationBase Application
Build the Application You Need• Start with a Sales, Service,
Marketing or Call Center base• Choose 6 additional modules at
no extra cost
Solution Grows with Business • Purchase additional functionality
a la carte• Select from over 150 modules
cross-industry and industry specific modules
Siebel CRM Professional Edition Delivers A Broad Range Of CRM Capabilities…
• Opportunity Management (included in Sales Base)
• Forecasting Management
• Quote and Order Capture
• Proposals and Presentations
• Incentive Compensation Management
• Sales Methodologies
• Time and Expense reporting
• eSales/eCommerce
• Disconnected Mobile access
• Handheld (PocketPC) access
• Partner Relationship /Channel management
• Service Management (included in Service Base)
• Email response management
• Field Service
• Helpdesk
• Asset Management
• Computer Telephony Integration (CTI)
• Hosted Call Center
• SmartScript (Call Scripting)
• Quality Management
• eService (Web Self Service)
• Contracts (SLA management)
• Solutions
• Marketing Resource Manager (included in Marketing Base)
• E-mail marketing
• Web Marketing
• Event Management
• Data Quality
• TeleSales / Tele Marketing
• Segmentation
Available Sales Options Available Service Options Available Marketing Options
Compelling Pricing Options increase affordability to SMB’s
• Single payment at time of purchase• Maintenance and support purchased
separately
• Delivered through Oracle Financing Division• Competitive financing and leasing options• Single payment solutions covering software,
hardware and implementation costs available
FinancingFinancing
• Offered by qualified System Integrator partners
• Starting from $67K for up to 200 users
Fixed Fee Fixed Fee ImplementationImplementation
FromFrom $995 per user $995 per user
Flexible PackagingPre-integrated CRM SolutionsPick 6 modules to custom tailor
solution at no additional costSeamlessly add additional modules
as business needs evolve
Tailored for SMB EnvironmentsSupport for Oracle DB and SQL
Server, Windows, Solaris Streamlined installation process
Affordable PricedPricing from $995 per user Financing and leasing options
available
Siebel CRM Professional EditionComprehensive CRM Solutions Engineered for Small and Medium Businesses
Industry-Specific Best Practices
Case Study:
Company Overview:• Provider of EAP services and psychiatric rehab services • Annual Revenues of $180m in FY04-05
Problems:• Growth by acquisition = disparate information systems including
6 call center systems, various IT systems• Call center agents took 4 weeks to train and 1 month to get up to
speed• IT keeping 9 developer FT to maintain legacy systems – IT was
a barrier to improving business performance
Solution:• Initial project was to consolidate call center systems
using SPE• Selected SPE over SFDC, Rightnow, Sage• Project rapidly expanded to cover many other aspects
of the business using Healthcare vertical edition• Provider provisioning and assignment• Claims review, processing and payment• Hospital management and utilization
Case Study:
Results:• Operating Margin on EAP programs increased 5x• Call Center agents average call time 10mins to 2 mins• Call center training from 4 weeks to 2 days• Claims payment time from 120 days to 10 days• 60% decrease in complaints volume• Increased employee morale• IT became enabler for growth instead of roadblock:
• ‘Siebel has become our platform for future growth’• “Flexibility and integration is our greatest strength now”
• Looking at future projects for Siebel Helpdesk and Analytics• “Could only achieve these results with Siebel” – VP of IT• “Wouldn’t be able to afford Siebel without Professional Edition offering”
Case Study:
Adapting Your Product for SPE
Adding SPE Positioning to Existing Content
http://my.oracle.com -> integrated products -> siebel -> oracle-branded content -> CRM Professional Edition -> Sales Presentations
1. Append the SPE “Mini-Deck” to Existing Presentations
2. Use the SPE One-slide for summary callout
Profile of an Typical SPE Customer
Company Profile• $150AAR+• 100-500 seats ~$100K-$500K
SPE Profile• At 2-3 CRM apps (Sales+Service, Marketing+Sales)• Single instance system
IT Profile• IT department of 9-12, 2-3 DBA’s, 1 FTE Siebel admin• SQL Server DB/MSFT shop (60% of the time)• Leverage local SI’s for initial implementation, in-house
resources for ongoing maintenance
How SMB’s Are Different?• Risk adverse!
• Seek to purchase from known stable vendor• Typically lag adoption of new technologies by 2-5 years
• Buying Psychology• Seek to address their greatest pain points, ‘vision’ will be
differentiator but not as important• Failure is not an option – 1 shot to get it right: Ease of
implementation, ease of adoption are priorities
• Limited IT resources• Target initial budget for CRM project $500K – $1M (licenses and
services)• Cost of Ownership (relative to value added) is important
Product Management Considerations for Siebel CRM Professional Edition
Product:1. Consider the ownership experience of your product
• Does it work ‘out of the box’ – ‘default settings’, ‘set up wizards’, straightforward documentation?
• Easy to implement, maintain and upgrade? • Can be maintained by 1 Siebel FTE?
• If not, was in minimum number of seats needed?
2. Product dependencies?• Does your product need high end/enterprise only products such as CDI/UCM, Analytics
3. License Keys• SPE is delivered using License keys:• Ensure your LK definitions are cleanly and logically grouped• No monolithic LK definitions – we can aggregate LK’s together but not disaggregate large
ones• Advance notice of chances to LK definitions, deprecations, etc.
4. Future releases of Siebel – advance changes to pricing models, module or LK names between releases.
Product Management Considerations for Siebel CRM Professional Edition
Pricing:1. Avoid server-based pricing models with high minimum
1. E.g. $55k email marketing server, $500k Siebel Analytics Server are inappropriate for SMB2. Per seat pricing is preferable, $200-$1500/seat range. Typical per seat Enterprise pricing is
usually satisfactory
Product:1. Consider ownership experience of your product
1. Does it work ‘out of the box’ – ‘default settings’, ‘set up wizards’, straightforward documentation?2. Easy to implement, maintain and upgrade? 3. Can be maintained by 1 Siebel FTE?
1. If not, was in minimum number of seats needed?
2. Product dependencies?1. Does your product need high end/enterprise only products such as CDI/UCM, Analytics
3. License Keys1. SPE is delivered using License keys:2. Ensure your LK definitions are cleanly and logically grouped3. No monolithic LK definitions – we can aggregate LK’s together but not disaggarate large ones
Key Takeaways
1. SPE is part of a portfolio strategy to attack the SMB CRM market
2. SPE expands addressable market of your Siebel CRM product
3. Your product can be easily adapted for SPE
4. Consider suitability for typical SPE customer when designing new products