Siebel Systems

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Siebel would like to close on a successful sale of their SFA system to Q&R/FleetBoston as their sales figures for the quarter pretty much depend on this one sale to Q&R. It has to convince the executive board at the company about the superiority of it products over its close competitors in order to achieve this goal.

Additionally, Siebel would like to win FleetBoston’s faith in its products. Although a large percentage of the deal on Q&R’s side has already been done by representatives and department heads, it is essential to convince the new acquirers at FleetBoston of the feasibility of using Siebel Systems over the already existing Scopus product.

Currently Siebel also needs to sustain their competitive advantage against prevalent competitors. They can do this by convincing Q&R and FleetBoston of the superiority of their SFA system over the existing Oracle system. This could well be done by demonstration, eradicating the need for an integrator and result in a huge financial transaction for Siebel Systems.

Furthermore, as they make the transition towards new software, Siebel would like to discourage the use of the old Scopus system. Although FleetBoston could very well employ the existing Scopus system with the help of integration, it is to Siebel’s advantage both financially and lawfully that the new Siebel SFA system be used in this case.

Problem Set

FleetBoston has excess licenses for its old Scopus software, which Siebel now owns the rights to. FleetBoston does a significant amount of business (“$30 million of cross-selling at stake… over the next couple of years” ) with Siebel and should not be slighted by losing their investment in these licenses. Currently they could push Scopus upon a reluctant Q&R and ‘get the job done’ while saving a lot of money.

Since Q&R has just been acquired by another company, it would be hard for the Siebel people to break through the upper ranks of FleetBoston and change their minds about the new deployment without taking extra time. The people who Mr. Carman had developed contacts and relationships with are now greatly diminished in importance within the new company, which complicates the future direction of the sales push.

With the acquisition of Q&R came new management and policies. One of the factors that hindered the progress of the transaction was the six months of paperwork that had to be carried out in order to see it through. If this same project were to proceed within FleetBoston, Siebel could face significant delays which could allow their competitors (namely Oracle) to catch up.

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