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Siebel Annual Report

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Page 1: Siebel Annual Report

SiebelmeansSiebelmeansSiebelmeansSiebelmeansSiebelmeansSiebelmeans

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ROIsolutionsservicesuccesscontinuityopportunity

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22 Siebel Systems, Inc. 2003 Annual Report

Proven Products and Technology Leadership

Siebel Systems provides business softwaresolutions that empower organizations and thepeople in them to deliver superior customerexperiences and proven business results.Siebel is a leading provider of customerrelationship management solutions andsolutions for business intelligence, integration,and employee relationship management.

Siebel Public Sector SiebelCommunications forWireless Carriers

SiebelCommunications forWireline Carriers

Siebel Media

Public Sector Communications and Media

Siebel Finance forInstitutional Finance

Siebel Finance forRetail Finance

Finance

Siebel Clinical

Siebel Medical

Siebel Pharma

Life Sciences

Siebel High Tech

High Technology

Siebel Healthcare

Siebel Insurance

Insurance andHealthcare

1. Siebel Industry Solutions

2. Siebel CRM

4. Siebel Analytics

3. Siebel Incentive Compensation Management

5. Universal Application Network and Siebel Universal Customer Master

6. Siebel CRM OnDemand

Call Center and Service Sales Customer Order Management Marketing

The Siebel Application Suite consists of thefollowing complementary offerings:1. Siebel Industry Solutions2. Siebel CRM3. Siebel Incentive Compensation Management4. Siebel Analytics5. Universal Application Network and

Siebel Universal Customer Master6. Siebel CRM OnDemand

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23 Siebel Systems, Inc. 2003 Annual Report

Proven P

roducts and Technology Leadership

Siebel Hospitality

Siebel Travel andTransportation

Travel, Transportation,and Hospitality

Siebel ConsumerGoods

Consumer Goods

Siebel Chemicals

Siebel Energy

Siebel Oil and Gas

Energy

Siebel Aerospaceand Defense

Siebel IndustrialManufacturing

ComplexManufacturing

Siebel Retail

Retail

Siebel Automotive

Automotive

Partner Relationship Management Field Service Employee Relationship Management CRM Professional Edition

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24 Siebel Systems, Inc. 2003 Annual Report

What Is CRM?

CRM is an integrated approach to identifying,acquiring, and retaining customers. By enabling organizations to manage andcoordinate customer interactions acrossmultiple channels, departments, lines ofbusiness, and geographies, CRM helpsorganizations maximize the value of everycustomer interaction and drive superiorcorporate performance.

Today’s organizations must manage customer interactions across multiplecommunications channels—including the Web, call centers, field sales,and dealer or partner networks. Many organizations also have multiplelines of business with many overlapping customers. The challenge is to make it easy for customers to do business with the organization anyway they want—at any time, through any channel, in any language orcurrency—and to make customers feel that they are dealing with a single,unified organization that recognizes them at every touchpoint.

Why Is CRM Important to an Organization?The benefits of CRM are clear: By streamlining processes and providingsales, marketing, and service personnel with better, more completecustomer information, CRM enables organizations to establish moreprofitable customer relationships and decrease operating costs.

• Sales organizations can shorten the sales cycle and increase key salesperformance metrics such as revenue per sales representative, averageorder size, and revenue per customer

• Marketing organizations can increase campaign response rates andmarketing-driven revenue while simultaneously decreasing leadgeneration and customer acquisition costs

• Customer service organizations can increase service agent productivityand customer retention while decreasing service costs, response times,and request resolution times

Across every sector and industry, effective CRM is a strategic imperativefor corporate growth and survival. Research has shown that companiesthat create satisfied, loyal customers have more repeat business, lowercustomer acquisition costs, and stronger brand value—all of which translateinto better financial performance.

The Siebel CRM SolutionSiebel applications provide the most comprehensive multichannelsolution that allows organizations to manage, synchronize, and coordinatecustomer interactions across all channels.

• Siebel Sales helps organizations grow revenues more quickly, predictably,and profitably by helping them focus on the right deals at the right time.

• Siebel Customer Order Management supports complex pricing andproduct configuration, quote approval, availability checking, and creditand payment verification to ensure customer orders are complete, valid,and accurate.

• Siebel Call Center and Service applications support end-to-end, closed-loop service and enable organizations to increase service profitability,reduce cost per contact, optimize resource management, and enhancecustomer satisfaction and loyalty.

• Siebel Field Service enables organizations to profitably manage allaspects of their service operations, from preventive maintenance toinvoicing and advanced parts exchange.

• Siebel Marketing applications provide a complete closed-loop solutionthat enables organizations to better understand their customers; executepersonalized campaigns synchronized across all channels; and optimizestrategies through continuous testing, measurement, and feedback.

• Siebel Partner Relationship Management automates and streamlineschannel business processes, facilitates collaboration, supports real-timebusiness-to-business integration with partners, and provides powerfulinsight into performance and effectiveness across the entire partnernetwork.

• Siebel Incentive Compensation enables organizations to manage andmodify their compensation plans so that employee and partnerbehaviors are aligned with corporate strategy.

• Siebel CRM Professional Edition provides deep and focused CRMfunctionality across sales, marketing, and customer service, packagedand priced to specifically meet the requirements of small and midsizebusinesses.

• Siebel CRM OnDemand provides a fast, easy, and affordable hostedCRM service that organizations of any size and in any industry canrapidly deploy to get immediate results, with no up-front investment.

CRM for EveryoneSiebel Systems is committed to delivering “CRM for Everyone”—to anytype or size of organization, in any industry, with any type of user. We offer a broad range of CRM solutions and a highly flexible choice of deployment options—including hosted, on premise, or hybridcombinations of hosted and on premise.

Customers

CustomerInformation

Back Office

Call Center

Field

Marketing

AnalyticsWeb and Email

Partners

Multichannel CRM

Enterprise

Hosted On Premise

Small and Midmarket

Siebel CRM OnDemand

• Preintegrated with Siebel CRM enterprise applications

• Rapid deployment for single division

• Easy to use, immediate results• Affordable per-user pricing

• Deep vertical capabilities• Unparalleled customization

and scalability• Powerful integration

capabilities via UAN

• Easy to use• Fast results• Preintegrated with Siebel

CRM Professional Edition• No up-front costs

• Deep functionality tailoredfor small/medium-sizedbusinesses

• Flexibility of pricing• Complete CRM solution

Siebel CRM EnterpriseApplications

Siebel CRM OnDemand Siebel CRM Professional Edition

Hyb

rid

Hyb

rid

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29 Siebel Systems, Inc. 2003 Annual Report

Public S

ector

U.S. Postal Service

To support its ongoing efforts tointegrate its sales and serviceoperations, the U.S. Postal Serviceis standardizing on Siebel PublicSector for its Sales SupportSolution (S3) project. With morethan 900 users nationwide, the

postal service’s sales organizationand information technology staffchose Siebel because of its abilityto align all marketing and salessystems into a unified, completeview of postal customers and forits ease of integration with theexisting Siebel project for theIntegrated Business ServiceNetwork. These two projects bringthe total number of Siebel users

at the U.S. Postal Service today to more than 1,400. The postalservice has nine areas of operationin the U.S. and Caribbean andrequired a CRM solution that couldnot only handle the current scopeof its operations and massivecustomer base, but also one thathad the capacity to expand toother service fronts in the future.

South African Revenue Service

With more than 9.5 million taxpayerrecords, numerous tax types, andmultiple systems of taxpayerrecords, South African RevenueService (SARS) faced the dauntingtask of delivering high-qualitycustomer service while collectingrevenues accurately and efficiently.Faced with numerous views of itscustomers and extremely difficultand complex account managementprocesses, SARS used a time-consuming, manual process toprevent issuing a refund related to one tax type when a customermight owe a larger balance for a different tax type. Utilizing SiebelPublic Sector applications, SARSquickly linked records from varioussystems to produce one aggregatedaccount per taxable entity, givingtax administrators instant debtequalization capabilities; SARS canalso now update numerous systemsof record through the singleinterface. This initial deploymenthas demonstrated that revenueswill not only increase with a singleview of the taxpayer, but that thenew complementary systems willalso create significant cost reductionand better citizen service.

Leeds City Council

Leeds City Council is the governmentleadership for the city of Leeds, thefinancial capital of Northern England,with more than 750,000 citizens.Leeds City Council initially deployedSiebel Public Sector among 40 callcenter agents and 100 One-StopCenter customer service staff totrack citizen service requests andprovide resolutions quickly andaccurately—saving more than$500,000 in annual customerservice costs and deploying onbudget in five months’ time.

Recently, Leeds City Councilexpanded its use of Siebel PublicSector applications to 2,500 socialservice caseworkers in order todeliver consistent, rapid, and effectivecase management. “If a child isreferred to Social Services, we canuse Siebel applications to quicklycompile a complete profile of thechild and the circumstances,” says Eileen Wainwright, Director for Strategy and Development.“These details are instantly sent to the relevant social worker forfollow-up. Workflow ensures thatthe correct procedures occur quicklyand in the right order.” This helpsLeeds to identify cases in hours asopposed to days—without the needfor prolonged telephone calls andunnecessary paperwork.

Improving Citizen Response in New York City

In January 2002, Mayor MichaelBloomberg announced plans for thecreation of a 311 Citizen ResponseCenter to simplify governmentinteractions for the 8 million NewYork City residents who were thenfaced with more than 40 differentcall centers, 14 pages of phonenumbers, and a host of help linesin order to obtain service from city agencies. As a result of theconfusion over where to findinformation, citizen access to cityservices was inconsistent, andservice delivery was inefficient.

To address this issue, the new 311Citizen Response System providesa single number for residents,businesses, and visitors to initiate allinteractions with the city. All of thecity’s police precincts are networkedto the 311 system and calls,complaints, and service requests arerouted to the appropriate policeprecinct, allowing police to decide onan effective response more quicklythan before. NYC 311 handles morethan 40,000 calls daily, making itthe largest 311 system in theUnited States. Ultimately, the 311Citizen Response Center providescity officials with a holistic view ofcitywide operations, empoweringthem to allocate resources morequickly and efficiently to addresscitizen needs.

(From NY Times article entitled “New YorkersLove to Complain, and Hotline Is Making theMost of It,” December 1, 2003, by Winnie Hou.)

Citizenship and Immigration Canada

Citizenship and Immigration Canada(CIC) manages the selection,admission, and processing of allpotential new citizens to Canada.Established in 1994, CIC currentlyaims to replace several of its currentlegacy systems with a new integratedsolution. This set of applicationsand infrastructure components willsupport all of CIC’s client casemanagement, operations, andrequirements and will replaceoutdated, nonintegrated legacysystems. This project, the GlobalCase Management System (GCMS),is an integral component of CIC’svision for the future and includes2,500 seats of Case ManagementAnalytics in combination with5,000 seats of Siebel Public SectorCall Center. Siebel Public Sectorwill leverage the lessons learnedfrom the CIC experience to bring to market a complete ImmigrationServices solution. As a charterclient, CIC will also influence thefuture directions of the product to ensure its requirements arecontinuously met. With recentchanges announced last month, the newly formed Canada BorderServices Agency (CBSA) will also utilize the new system forinterdiction and enforcementfunctions previously performed by CIC.

“It’s not just a citizenservice hotline, it isthe most powerfulmanagement toolever developed for New York Citygovernment. I can’timagine running thecity without it.”Michael Bloomberg,Mayor of New York City

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Page 7: Siebel Annual Report

90%

9 of the top 10 Global 500 telecommunicationscompanies have selected Siebel CRM

30 Siebel Systems, Inc. 2003 Annual Report

Communications and Media

Median ROI for SiebelCommunications and MediaCustomers

8%Revenue Increase

12%Customer RetentionIncrease

23%EmployeeProductivity Gains

23%CustomerSatisfaction Increase

13%Operating CostsDecrease

Return on SiebelInvestment:18 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

WirelineBTNTT CommunicationsTelecom Italia S.p.A.Telstra Corporation Limited

WirelessSonofon A/ST-MobileTelecom Italia Mobile S.p.A.Virgin Mobile USAVodafone Telecel

Comunicacoes Pessoais,S.A.

MediaBusiness WeekDIRECTV Operations, Inc.Dun & Bradstreet HoldingsLexisNexisReuters Limited

Maximizing Customer Loyalty andProfitability in the Communications and Media Industries

Designed specifically for service providers in the local, long distance, broadband, cable, satellite, wireless, Internet, and mediacontent industries, Siebel Solution Sets for Communications and Media enableorganizations to enhance customer service,streamline sales operations, improvecollaboration across the demand chain,increase marketing effectiveness, andimprove the customer buying experience.

Industry Imperatives

Wireline Wireless Media

Siebel Solution Sets for Communications and Media

• Defend the corebusiness

• Drive customerretention

• Reduce operatingcosts

• Expand into newmarkets

• Offer new, value-added services

• Improve customerunderstanding

• Increase customervalue

• Drive customerretention

• Improve operationalefficiencies

• Improve partnereffectiveness

• Reduce customerchurn

• Up-sell and cross-sell• Widen the net into new

customer segments• Improve ad sales

effectiveness• Reduce operational

costs• Improve visibility into

key performancemetrics

Wireline Wireless Media

• Intelligence-DrivenMarketing: Enablesscore-basedsegmentation ofcustomers, proactivechurn management,and closed-loopcampaignmanagement

• Partner NetworkOptimization:Supports collaborativesales, service, andmarketing programswith partners andresellers

• One-and-DoneService: Providescomprehensive view ofcustomer information,resulting in shorterresolution times

• Deliver the PerfectOrder: Streamlines thecustomer orderprocess by providingintelligentrecommendationsand simplifyingservice negotiation

• Intelligence-DrivenMarketing: Improvessegmentation andcampaign targeting,resulting in increasedmarketingeffectiveness

• Deliver the PerfectOrder: Streamlinesquote-to-contractprocess, reducingtransaction costs and improving thecustomer buyingexperience

• One-and-DoneService:Provides a 360-degreeview of the customer,resulting in shorterresolution times andincreased customersatisfaction

• Optimize PartnerNetworks: Improvescollaboration acrossthe demand chain,leading to improvedpartner-deliveredservice and higherpartner-drivenrevenues

• Subscriber Life CycleManagement:Leverages customermanagement bestpractice to improve thecustomer experiencewhile decreasingservice costs

• AdSalesManagement:Provides completeview of the customerand streamlines salesprocesses, leading toimproved ad saleseffectiveness

• Deliver the PerfectOrder: Automates thecustomer orderprocess, reducingtransaction costs andimproving thecustomer buyingexperience

• Optimized FieldService: Streamlineswork processes fordeliveringservice in thefield, resulting in costsavings and improvedcustomer service levels

www.siebel.com/communications

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“Siebel offers the greatestvalue at the lowest risk. I don’t know why anyonewould choose anything else.”Mike Parks, CIO, Virgin Mobile USA

31 Siebel Systems, Inc. 2003 Annual Report

Virgin Mobile USA Achieves “Now” Customer ServiceA joint venture between VirginGroup and Sprint, Virgin Mobile is the first mobile virtual networkoperator (MVNO) in the UnitedStates—and the nation’s firstwireless service to solely targetthe youth market. Instead ofundertaking the expense ofbuilding its own cellular networkinfrastructure, Virgin Mobileutilizes Sprint’s wireless network to deliver service to its customers,while retaining all responsibility for all aspects of the customerexperiences, including customerservice, billing, development of thehandset user interface, design andmaintenance of the Web site, andthe selection of handsets.

The Customer Service ImperativeVirgin Mobile USA realized early on that providing the bestcustomer service in the industrywould be vital to its success. “We are fundamentally differentfrom any other operator in NorthAmerica,” says Mike Parks, CIO,Virgin Mobile USA. “Although weare running on top of the Sprintnetwork, our customers have a uniquely Virgin Mobile experience.Everything that happens—in termsof customers’ interactions with our user interface, Web site, andcustomer care environment—issupported by systems that VirginMobile integrated, built, orcustomized. Another differentiatoris that, because we are Pay As YouGo, we need to be very real time. If a customer’s balance goes tozero, they want to put additionalmoney into their account and makeanother call instantaneously—theydon’t want to wait 24 hours. It’scritical that we are able to deliver a ‘now’ offering.”

Needed: Real-Time Offerings for Outstanding ServiceVirgin Mobile’s vision requiredapplications that could support the delivery of a real-timeexperience at any time of day,across multiple channels. To helpmeet that challenge, Virgin Mobileturned to Siebel Communications.“Siebel Communications was themost comprehensive and reliablesolution that we evaluated,” saysParks. “I had experience with Siebelapplications in a prior company,and we were very comfortable with the quality of Siebel Systems’support infrastructure, as well as with the responsiveness of thelocal account team and the SiebelCommunications product team.”

Using Siebel Workflow to Deliver“Now” ServiceSince Virgin Mobile offers Pay As You Go service, it’s critical thatcustomers can quickly and easily“Top-Up” their accounts. When an automatic top-up trigger is activated—for example, when a low balance threshold isreached—Siebel Workflow sendsthe transaction out through BEA,charges the customer’s credit card,updates the balance information,and sends a text messageconfirming top-up to the customer’scell phone. “All four core systemscan execute a customer’s requestin seconds,” says Parks, “so thereis virtually no latency betweenrequest and execution.”

Empowering the Call CenterSiebel Communications has alsoimproved productivity in VirginMobile’s “At Your Service” callcenter. “In focus groups with bothnovice and expert customer servicerepresentatives, the feedback hasbeen very positive,” says Parks. “A number of these agents havebeen in environments where theyhave to page through multiplescreens to get what they need toserve a customer. With Siebel, all of the functionality is availableto them on the screen, andhandling specific customersituations is managed throughscreen pops. As a result, we canhandle the vast majority ofinquiries with no transfers.”

Customer Service Levels above Industry AverageThe customer service focus atVirgin Mobile has resulted in real,measurable results. “From theonset, we contracted a third partyto provide customer servicemonitoring. We’ve experienced veryhigh service levels, scoring higherthan industry averages by 10 to 15points,” says Parks. “In fact, we’realready approaching world-classservice levels. From day one, we’ve had a real focus on providinga very positive experience to ourcustomers, whether they’re dealingwith automated voice response ora live agent.”

Looking forward, Virgin Mobile isconsidering Siebel Communicationsfor customer life cycle management.“We’re looking at ways to use Siebelto help us better understand our customers’ behaviors andpreferences, and to start craftingoffers that could expand theirrelationship with Virgin Mobile,”says Parks. “That’s the next level of sophistication.”

Com

munications and M

edia

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32 Siebel Systems, Inc. 2003 Annual Report

Finance

Median ROI for Siebel FinancialServices Customers

8%Revenue Increase

13%Customer RetentionIncrease

18%EmployeeProductivity Gains

18%CustomerSatisfaction Increase

8%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

AbbeyAllfirst BankAustralian Finance Group Ltd.Banco de Galicia y

Buenos Aires, S.A.Bank of America CorporationBank of MontrealBarclays Bank PlcCountrywide Home

Loans, Inc.Deutsche Bank AGDresdner Bank AGFirst National Bank of OmahaFleet National BankHSBC Investment Bank PlcRBC Financial GroupScudder FinancialsSociété GénéraleStandard Chartered BankThe Bank of New YorkUBS AG

Deepening Customer Relationships inInstitutional Finance and Retail Banking

Siebel Solution Sets for Finance enableorganizations in the institutional finance and retail banking industries to maximizecustomer profitability, improve customersatisfaction and retention, and streamline the account and credit origination processesto lower operating costs.

Industry Imperatives

• Maximize customer profitability• Deliver differentiated service• Regain investor trust

• Transform the branch experience• Maximize customer profitability• Increase customer retention

Institutional Finance Retail Banking

Siebel Solution Sets for Finance

• Profitable Cross-Selling: Improvescommercial bankers’ ability tocross-sell noninterest, higher-margin products such as cashmanagement and treasuryservices to their existing customerbase, leading to greater profitability

• Customer-First Service: Enablescommercial banks to retain theirmost valuable customers byimproving overall customerknowledge and by supportingproactive, personalized service

• Trusted Advisor: Providesinvestment managementprofessionals with tools that enablethem to more effectively targettheir customers with tailoredcross-sell and up-sell offers,leading to greater customerprofitability and loyalty

• Branch Transformation: Equipsbranch personnel with fullyintegrated sales, service, analytics,and robust financial transactionprocessing capabilities, enablingthem to deliver an outstandingcustomer experience. Automatesthe offer management and referralcapture process for tellers, platformofficers, and managers, leading toincreased sales per employee inthe branch channel.

• Service to Sales: Ensures that allcustomer inquiries are addressedefficiently with minimal errorsacross all channels, leading tohigher customer satisfaction and retention.

• Relationship-Powered Lending:Equips lending officers withdetailed customer intelligenceand supports an end-to-end salesand credit origination process,leading to increased revenue and reduced processing times.

Institutional Finance Retail Banking

88%

22 of the top 25 Global 500banks are Siebel customers

37 of the top 50 Global 500banks are Siebel customers

Siebel has 130,000 users in production in the world’stop 10 banks alone

www.siebel.com/finance

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33 Siebel Systems, Inc. 2003 Annual Report

Helping Clients Succeed in Today’s Rapidly Evolving MarketsThe Bank of New York, founded by Alexander Hamilton in 1784, is the United States’ oldest bankand the principal subsidiary of The Bank of New York Company,Inc., a financial holding company.With total assets of $92 billion,total assets under custody of $8.3 trillion, and operations in 33 countries, it’s also a globalleader in securities servicing forissuers, investors, and financialintermediaries. The Company hasa distinguished history of servingglobal corporations, financialinstitutions, asset managers,governments, nonprofitorganizations, and individualsaround the world through its fiveprimary businesses: SecuritiesServicing and Global PaymentServices, Private Client Servicesand Asset Management, CorporateBanking, Global Market Services,and Retail Banking.

A Legacy of AcquisitionsOver the last decade, The Bank of New York has made over 80acquisitions worldwide, resulting in the broadest array of productsand services offered in the industryand the addition of thousands ofnew customer relationships andcontacts. Faced with increasinglycomplex, cross-border customerrelationships and multiple customerdatabase and tracking systems, the Bank sought a technologysolution that would unify its sales force and complement its corporate vision—helping its clients identify opportunities,address challenges, and navigate a constantly changing marketplace.

Establishing a 360-Degree View of the Customer To address these issues, The Bankof New York rolled out its customSiebel Finance application, namedGlobal Sales Force Automation(SFA), to client-facing professionalsbased in various parts of the globe.The application is used by clientexecutives, country managers, salesofficers, and product relationshipmanagers to manage and track all customer contact and salesactivities. “We wanted a customizedsolution that would provide us with a 360-degree view of all ourinstitutional customers, accessibleanytime and anywhere in theworld,” explains Bruce Miller,Senior Vice President, InstitutionalCross Selling and Strategic Salesat The Bank of New York.

The Company began theimplementation of its SFA systemin July 2002, testing pilot programsin its U.S. and European offices.Successful pilots led to strategicdeployment in remaining locationsincluding Asia, the Middle East,South Africa, and Latin America.“We implemented our SFA systemacross all institutional product areasof the Bank, in over 30 countries,which few if any other financialinstitutions have been able tosuccessfully manage,” says Miller.

Significant Business BenefitsWith the Siebel Finance solutionfully deployed, the Bank hasrealized a host of benefits:

Increased Cross-Selling—Salespersonnel are more quickly informedof new business opportunitiesaround the world on a daily basisand are better able to coordinatethe sale of additional products intoexisting and new relationships

Increased Employee Productivityand Efficiency—Sales personnelhave a shared system for managingcontacts and activities, which leads to improved coordination ofindividual and group sales activities

Better Planning of Sales Efforts—Management has deeper insight intothe sales pipeline, allowing them to better predict sales performanceand monitor clients at risk

Increased Customer Satisfaction—By improving the Bank’s ability to develop value-added solutionsand coordinate customer outreach,Siebel Finance has helped theorganization improve customersatisfaction

Reduced IT Maintenance Costs—Now relying on a single technologysolution, the Bank has sunsetseveral legacy systems, reducingits total cost of ownership

“We strive to be the acknowledgedglobal leader and preferred partnerin helping our clients succeed in the world’s rapidly evolvingfinancial markets,” says Miller. “The technology foundationprovided by Siebel Finance playsan important role in helping usachieve our goals.”

Finance

“The technology foundationprovided by Siebel Financeplays an important role inhelping us achieve our goals.”Bruce Miller, Senior Vice President, Institutional Cross Selling and Strategic Sales, The Bank of New York

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34 Siebel Systems, Inc. 2003 Annual Report

Life Sciences

Median ROI for Siebel LifeSciences Customers

8%Revenue Increase

8%Customer RetentionIncrease

18%EmployeeProductivity Gains

13%CustomerSatisfaction Increase

8%Operating CostsDecrease

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

PharmaceuticalsAmgenAventis PharmaBayer AGBiogen Inc.Boehringer Ingelheim

International GmbHNovartisNovo Nordisk

Pharmaceuticals, Inc.Organon NVPfizer BVRoche Laboratories, Inc.Shionogi & Co., Ltd.Takeda Pharmaceuticals

America, Inc.Wyeth

ClinicalDuke Clinical

Research InstituteInveresk Clinical

Research, Ltd.NovartisPfizer BVPharmaceutical Product

Development, Inc.PRA International, Inc.TAP Pharmaceutical

Products, Inc.

MedicalAlcon S.A.Aspect Medical SystemsBaxter International Inc.Dade Behring Inc.GE HealthcareGen-Probe, Inc.Guidant CorporationPhilips Medical SystemsPSS World Medical, Inc.STERIS Corporation

Driving Efficiencies, Effectiveness, and Growth in Life Sciences

Siebel Solution Sets for Life Sciences enable organizations in the pharmaceutical,biotechnology, clinical research, and medicalproducts industries to deploy customer-centricstrategies that will allow them to acceleratetime to market, improve sales and marketingeffectiveness, ensure regulatory compliance,and deliver world-class service across all channels.

Industry Imperatives

• Accelerate time to market• Improve sales effectiveness• Achieve marketing excellence• Improve medical communications

and service• Maximize human capital

• Deliver world-class service• Improve sales effectiveness• Realize contract revenue• Achieve regulatory compliance• Increase marketing value

Pharmaceuticals Medical

Siebel Solution Sets for Life Sciences

• Clinical Trial Management:Accelerates time to market by streamlining clinical trialprocesses, enhancing CRAproductivity, strengtheninginvestigator relationships, and providing real-time clinicaltrial status

• Intelligence-Driven Sales Planningand Execution: Integratescustomer and market intelligencefrom multiple sources, enablingsales professionals to plan moreeffective sales strategies anddeliver personalized salesmessages to physicians

• Closed-Loop Marketing: Enablesone-to-one marketing byproviding an integrated system for designing and executingcampaigns across multiplechannels, including field sales, the Web, and the call center

• Integrated MedicalCommunications, Drug Safety,and Product Complaints:Provides one view of medicalinformation requests and casemanagement activities acrossmultiple departments andgeographies to ensure regulatorycompliance and high levels ofcustomer satisfaction

• KPI-Driven PerformanceManagement: Aligns employees’individual objectives with keyperformance indicators (KPIs) of each functional department,leading to enhanced businessperformance

• Intelligent Customer Service:Enables world-class service byproviding customer-facingemployees with a 360-degree viewof the customer and an embeddedsolutions knowledge base

• Relationship-Driven Selling:Increases close rates and reducessales cycles through quote-to-orderautomation, real-time customerintelligence, and best-practicesales methodologies

• Contract Life Cycle Management:Enables companies to executecontracts as negotiated, includingcompliance to terms andconditions, resulting in higherrevenue, reduced administration,and increased renewals and profits

• Closed-Loop ComplaintsManagement: Enables seamlesscapture and tracking of productcomplaints and adverse events,leading to improved reporting,faster resolution, and improvedcompliance

• Integrated Marketing: Automatesthe design, approval, andexecution of product marketingcampaigns to increase marketshare, accelerate new productintroductions, and increase salesto the installed customer base

Pharmaceuticals Medical

100%

25 of the top 25pharmaceutical companies have chosenSiebel applications

8 of the top 10 medicalproducts companies havechosen Siebel applications

www.siebel.com/lifesciences

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35 Siebel Systems, Inc. 2003 Annual Report

A Prescription for Closer Customer Relationships at WyethThe pharmaceutical industry has long been challenged by the risk and complexity of drugdevelopment. Lately, a newchallenge has emerged—justgetting in to see the busyphysician “customer.” Wyethresponded by implementing Siebel CRM solutions to improvecustomer relationships and salesexecution, while reducing costs.

With annual revenues of $15.8 billion,Wyeth is one of the largestresearch-driven pharmaceuticaland healthcare products companiesin the world. In the high-riskbusiness of manufacturing andmarketing prescription and over-the-counter medicines, Wyeth has a remarkable track record—producing a long list of categorywinners, including Advil, Alavertallergy medicine, Centrumvitamins, Effexor antidepressants,Prevnar pneumococcal vaccine for infants, and Robitussin coughand cold medicine.

But even with Wyeth’s consistentsuccess in the laboratory, growingdemands on physicians’ time—compounded by a significantincrease in the number ofpharmaceutical field salesrepresentatives—has made itincreasingly difficult to get in the door.

Obstacles to Successful Sales and ServiceIn addition to more field salespeoplecompeting for less time, severalother factors have worked againstthe effectiveness and efficiency ofthe pharmaceutical sales process.

• Many companies, Wyeth included,have been unable to avoid theconfusion created by multiplesalespeople from one firm selling different products to the same physicians

• Field salespeople and call centerrepresentatives do not have the latest technology tools suchas a fully integrated repository ofcustomer data; handheld devicesfor real-time field access; andsophisticated management,analysis, and reporting capabilities

• Entrenched legacy systems have made it more challenging to implement the needed next-generation solutions

In 2002, Wyeth selected SiebelCRM solutions to bring it closer to physicians and reduce spendingon sales, service, and support.

Quick Return on InvestmentWyeth’s decision made it the firsttop-tier pharmaceutical companyto deploy a major CRM solution.This investment has quickly paid off for the company in measurableways. The following benefits wereachieved as a result of deployingthe Siebel CRM solution:

Operational Spend—Reduced 20%in the first year

Average Call Answer Time—Now 37 seconds, down 40%

First-Call Resolution—Has increasedfrom 39% to a remarkable 93%

Escalation Resolution Time—An astounding 1,500% reduction,decreasing the time to resolveproblems requiring escalation by 36 hours

Other Key BenefitsWith the Siebel CRM solution,Wyeth is also enjoying benefits in other key areas. Among themare providing its field and callcenter sales reps with timely andintegrated sales data, reducing the number of email and voicemessages reps handle, offeringsuperior analytical capabilities for evaluating target effectiveness,facilitating integrated precallplanning at the point of need, and supplying a complete view of promotional activity around each physician customer.

Further, despite additional contactinformation and activities that needto be tracked and logged today,Siebel CRM is delivering integratedsales data from Wyeth’s customdata warehouse as fast as or fasterthan previous “point” systems.

Developing new medicines willalways require intelligentinvestment and a willingness totake calculated risks. With SiebelCRM applications, Wyeth now hasthe powerful solution it needs toenhance the ROI of its sales andmarketing activities and build onits tradition of market leadership.

Life Sciences

Wyeth looked to Siebel for acompetitive edge—to help itsfield reps gain better accessto physicians and, once inthe door, get its medicinesand other productsprescribed more often.

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36 Siebel Systems, Inc. 2003 Annual Report

High Technology

Median ROI for Siebel ComplexManufacturing and High TechCustomers

8%Revenue Increase

13%Customer RetentionIncrease

23%EmployeeProductivity Gains

18%CustomerSatisfaction Increase

8%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

Actel CorporationAltera CorporationAmerican Power

Conversion Corp.Autodesk, Inc.AvayaBest Software SB, Inc.BMC Software, Inc.Brooks AutomationCadence Design

Systems, Inc.Candle CorporationCerner CorporationCisco Systems, Inc.CNTFujitsu Siemens

Computers GmbHGateway, Inc.HPIBM CorporationIntergraph CorporationIntuit, Inc.Lexmark International, Inc.LSI Logic CorporationMentor Graphics CorporationMercury InteractiveMicrosoft CorporationMisys Healthcare SystemsMotorola, Inc.Network Associates, Inc.Novell, Inc.Omnicell, Inc.Pitney Bowes Inc.Qualcomm, Inc.Ricoh CorporationSandisk CorporationSun Microsystems, Inc.Symantec CorporationTaiwan Semiconductor

Manufacturing Company Ltd.Xerox Corporation

Creating the Customer-Driven High Technology Company

Designed specifically for companies in the hardware, software, semiconductor, and communications equipment industries,Siebel Solution Sets for High Tech enableorganizations to drive superior salesperformance, streamline sales operations,increase marketing effectiveness andaccountability, improve collaboration acrossthe demand chain, enhance the customerbuying experience, and maximize after-marketparts and service revenue.

Industry Imperatives• Understand customers: Need to gain a deeper understanding

of customer needs and increase customer lifetime value• Grow high-margin businesses: Must expand into profitable segments

without substantially increasing operating expenses• Streamline the buying experience: With greater product commoditization,

high technology firms must deliver a superior buying experience toattract and retain customers

• Deliver world-class service and support: High technology customersevaluate vendors—and base future buying decisions—on the quality of service delivered across the entire product usage life cycle

• Optimize partner channels: High technology companies must ensure a seamless customer experience across their partner ecosystem andmaximize channel sales and profitability

Siebel Solution Sets for High Tech• Intelligence-Driven Marketing: Improves customer segmentation,

targeting, and campaign tracking, resulting in increased marketingeffectiveness and accountability

• Performance-Driven Sales: Streamlines sales planning, operations, and execution, resulting in optimal territory coverage, lower operatingcosts, shorter sales cycles, and increased sales close rates

• Deliver the Perfect Order: Streamlines the quote-to-contract process,reducing transaction costs and significantly increasing order accuracy

• Service Life Cycle Management: Helps organizations cost-effectivelydeliver world-class service throughout the service life cycle—fromidentifying and closing service requests and assessing entitlements to dispatching field technicians and managing product defects—resulting in increased customer satisfaction and higher after-marketparts and service revenue

• Partner Network Optimization: Improves collaboration across thedemand chain, resulting in greater brand consistency, more productivepartner relationships, higher indirect revenue and margins, enhancedpartner-delivered sales and service, and greater partner satisfaction

95%

19 of the top 20 Global 500high technology companieshave chosen Siebelapplications

9 of the top 10 Fortune 500high technology companieshave chosen Siebelapplications

www.siebel.com/hightech

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37 Siebel Systems, Inc. 2003 Annual Report

Enhancing Service Quality at Pitney Bowes“Pitney Bowes is focused onmanaging inbound and outboundcommunications more holisticallyacross the enterprise so we can provide our customers with a more integrated experience.”

Bill Geronimo, Director of CRMApplication Development, Pitney Bowes

A leading provider of integratedmail, messaging, and documentmanagement solutions, PitneyBowes is committed to engineeringthe flow of communication for itscustomers. Founded in 1920, withannual revenues of $4.6 billion, the company has developed a widerange of innovative technologiesthat are at the heart of its systemsand software offerings. With thehelp of 33,000 employees in 24countries, Pitney Bowes servesmore than 2 million customers.

Committed to delivering a superiorcustomer experience, Pitney Bowesis always looking for ways toimprove communication across the different business units andfunctional organizations it uses to serve customers and generaterevenue. “Some time ago, wedeveloped a vision of finding a more effective way to shareinformation across the organization,”says Bill Geronimo, Director ofCRM Application Development,Pitney Bowes. “With the industrymoving toward a solution sellingmodel, we knew that if we weregoing to keep pace, we needed to be more efficient in the way we share information among ourvarious business units.”

Twenty Systems for Sales and ServicePitney Bowes has relied on asmany as 20 different mainframeapplications to support sales andcustomer service functions acrossdifferent business areas in thecompany. Not only were thesesystems disconnected, but somewere real-time and some werebatch applications, often runningon different hardware platforms. “If you’re trying to respond to a customer’s needs quickly andeffectively,” explains Ralph Nichols,Service Program Manager, Pitney Bowes, “it’s difficult to do, when systems and data arerarely in synch.”

Bringing It All TogetherTo address these issues, PitneyBowes is deploying Siebel CRMapplications, integrating them with the company’s own documentmanagement technology to createwhat it calls the Pitney BowesCustomer CommunicationManagement (CCM) solution. By consolidating and streamliningall inbound and outbound customercommunications, including mailcorrespondence, the integratedsolution enables Pitney Bowes’ call center agents to respond tocustomer requests or inquiriesmore efficiently and effectively. In fact, the solution has worked so well in-house that Pitney Bowesand Siebel Systems are now co-marketing the joint offering to other Siebel customers.

“Agents can access customerhistory and other data in coremailing, leasing, or postage-by-phone systems because everythingis tied together,” Nichols says.“This enables us to handle morecustomer questions withouttransferring a call—and resolveissues the first time. If someoneclaims that a payment has beenmailed back, the agent can nowaccess mail stream data while thecustomer is on the phone.”

Siebel applications also providePitney Bowes’ field serviceengineers with a comprehensive,closed-loop solution for managingbreak/fix and other service eventsin the field. Siebel Field Service hasenabled Pitney Bowes to improvefirst-time fix rates by 10% andreduce emergency and rush ordersby 90%. In addition, stock levelshave been lowered by at least 15%due to better inventory management.

“Having service labor as well as parts inventory viewable in one system has been a bigbreakthrough,” Geronimocomments. “Service is critical to our success, and this systemallows us to get it right forcustomers the first time.”

High Technology

“Service is critical to oursuccess, and this systemallows us to get it right forcustomers the first time.”Bill Geronimo, Director of CRM Application Development, Pitney Bowes

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38 Siebel Systems, Inc. 2003 Annual Report

Enhancing the Customer Experience and Reducing Costs at HP“To deliver a consistent, industry-leading customer experience, we need to integrate our frontoffice and link all of the ways thatwe touch the customer. Siebel has become the primary enablingtechnology for customer contact at HP.”

Mike Overly,Vice President–Marketing, HP

HP believes that delivering aglobally consistent, high-qualitycustomer experience is critical to its success. With more than140,000 employees doing businessin 170 countries worldwide,maintaining its high standards for responsiveness and customertouch is a challenge—one that HP is tackling by standardizing on Siebel worldwide.

A key objective is to ensure thatwherever or however customersinteract with HP, they always feellike they are working with onecompany. “Customers want us to know them, and by ‘us,’ theymean the global HP organization,”says Mike Overly, HP VicePresident–Marketing. “Whethercustomers choose to work with us by phone, over the Web, or inperson, our goal is to make theprocess easy—to provide them a seamless transition from onetouchpoint to another, leverageinformation to know and anticipatetheir needs, and ensure theirexperience is consistently of thehighest quality.”

Providing Power Tools to the Sales ForceHP’s first step was to replace or consolidate nearly 50 legacyapplications used by its sales force with a single, powerful, fully integrated CRM platform from Siebel. By reducing thenumber of stand-alone CRMsystems by 70%, HP saved anestimated $30 million. Further, the company expects to trimcustomer operations costs by $15 million annually, thanks tostreamlined development andreduced staff needs.

But operational savings are just thebeginning. HP expects Siebel CRMapplications to make their biggestcontributions in lead management. In the past, leads generated from a wide range of sources—from Webevents to referrals—were qualifiedand tracked manually.

“We’ll be automating the entirelead and opportunity process using Siebel’s closed-loop leadmanagement capabilities,” remarksOverly. “This will let us rate, route, and allocate leads far moreefficiently and effectively thanbefore. HP averages thousands ofleads every day, so the potentialfor increased sales is enormous.”

Improving Collaboration withBusiness PartnersIn addition, HP is implementingSiebel Partner RelationshipManagement (PRM) to support and maximize the contributions of a broad spectrum of externalsalespeople. This is importantbecause nearly 60% of HP’sbusiness revenue comes throughpartners. The automated solutionwill also enable HP to save millionsof dollars currently paid to vendorsto qualify and track leads.

HP’s CRM Framework and Key Programs

Marketing Infrastructure

CRM Framework Key Programs

Lead Management

Sales Force Tools

Contact Center Tools

Customer Knowledge Management

Marketing Resource Management • Campaign Planning, Management, and ReportingInstalled-Base Marketing

Closed-Loop Lead Management • Lead Qualification• Lead Allocation and Tracking• Lead Rating and Routing

Global Opportunity and Account ManagementGlobal Funnel and Forecast ManagementWorkflow Automation

Integrated Customer InformationCross-Sell/Up-SellCHI Integration

Base Customer InformationTransactional Data (360-Degree View)Integrated Analytics

CRM/PRM Alignment: Vision and User Needs

• Joint Mkt Plan/ Execution• Campaign Mgmt

Customer Contact and Lead/ Opportunity Mgmt

Product Services and Solution

Quote and Configuration

Order and Deliver

• Fulfillment • Post-Sales Support

CustomersExpect end-to-end solutions from HP and HP partners at the right price, right place, and right time for home, office, or enterprise

Partners• Expect ease of doing profitable business with HP to sell products and services to customers• Expect to collaborate with HP to leverage demand and provide end-to-end solutions

VisionLead industry by integrating the best of direct

and indirect go-to-market business models, enabling seamless, simple, low-cost customer and partner transactions

that optimize Total Customer Experience (TCE) and profitable growth

Current Strategic Initiatives across HP Are Critically Dependent upon Capabilities Enabled by a Global CRM Implementation

Improve Customer Experience• Make it easier for the customer to work with HP• Anticipate customer needs• Seamless integration across touchpoints• Consistent interactions/experiences

Increased Sales/Growth• Enable Direct Sales to be competitive• Personalized content and marketing campaigns for new and installed base customers• Global customer and market information• Lead management auto-routing rule ensures leads are distributed properly and tracked• Showcase for Adaptive Enterprise

Simplify, Streamline, and Leverage• Radically simplify and streamline systems and processes• Leverage processes and assets wherever possible• Simple enables more

Best

Tot

al C

usto

mer

Expe

rienc

e (T

CE)

High Tech

Low Cost

CRMGLOBAL

STRATEGY

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“Siebel helps HP providecustomers with a seamlessexperience from onetouchpoint to another.”Mike Overly, Vice President–Marketing, HP

39 Siebel Systems, Inc. 2003 Annual Report

High Technology continued

“Siebel gives us tools to determinewhich partners have the bestclosure rates for different types of business,” Overly adds. “So, we can route leads not only bygeography, but also by the partner’strack record in accepting andclosing opportunities. This has adirect impact on revenue growth.”

Finally, HP is deploying SiebelMarketing Resource Management(MRM) to improve campaignplanning, management, and tracking,as well as Siebel Analytics to gaingreater insight into the effectivenessof its marketing programs.

Improving Contact with CustomersLike a lot of large enterprises with multinational customers, the quality of customer informationis a constant concern for HP.“Approximately 80% of our basiccontact information—names,addresses, phone numbers, andemail addresses—changes everytwo years,” says Overly. “It’s notenough to get good customer data;we have to keep it that way.”

Siebel’s support of wirelesshandheld devices enables HP sales representatives to capturechanges in customer contactinformation in real time whereverthey are, using Siebel applicationsrunning on HP iPAQ Pocket PCs.These changes are immediatelyreflected as part of organizationalknowledge, so that any HP personcan leverage the data.

Delivering Out-of-the-Box BenefitsIt was critical to HP that whateverCRM solution the company selectednot require expensive customization.Siebel provided the exceptionallyrobust, out-of-the-box benefitsacross functional areas that HPwas looking for.

“Choosing a solution that wouldneed a lot of customization was simply not an acceptablealternative,” Overly comments.“Our focus was to be able toachieve globally consistentbusiness processes and reportingto produce better team synergyand enhance execution. All of thisleads to our ultimate objective of providing the best possible Total Customer Experience.”

CRM and Partner Integration Vision, Approach, and Scope

CRM VisionProvide business customers an industry-leading experience

ApproachBuild a cohesive, integrated CRM ecosystem to turn basic data into rich customer insight (see, know, anticipate)

CRM GlobalCapability Framework

✓ All Geographies✓ All Business Units✓ Business Market Segments (Corporate Enterprise and Small Medium Business)

Custom

er Know

ledge M

anagement

Lead Managem

entPartner Integration

Marketing

Contact Centers

Outside Sales

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40 Siebel Systems, Inc. 2003 Annual Report

Creating “One IBM” for Customers Worldwide“The concept of ‘One IBM’ is acornerstone for the way we serveour customers.”

Steve Wright, Vice President,Worldwide Customer RelationshipManagement Deployment, IBM

Two years ago, IBM standardized oncommon worldwide sales processes,using one set of worldwide datastandards. The company then turnedto Siebel for the technology to tieall the pieces together.

The company now has a singleworldwide sales, marketing, andsupport system built on the Siebelcustomer relationship management(CRM) platform. This pervasive useof a single process supported byrobust technology not only hasimproved visibility into the salespipeline, but also has reducedcosts and improved productivity by eliminating the need tomanually reconcile different viewsof marketplace data.

Nearly 60,000 UsersThe biggest accomplishment in2003 was extending the SiebelCRM platform used by IBM’s callcenters, Business Partners, andtechnical support organization tovirtually the entire field sales force.This increased the number of usersfrom approximately 10,000 tonearly 60,000 worldwide.

Consistent with its global focus,IBM has deployed Siebel CRMapplications in multiple currenciesand languages, including English,French, and Japanese. In 2004,IBM plans to add new currenciesand languages, including Chineseand Korean. This will enablefurther consolidation of thecompany’s multifaceted salesprocesses—regardless of eachoperating group’s location,language, or currency.

Implementing a Solution Selling ApproachIn the past, relying on dozens of legacy systems made it difficultfor IBM to integrate customerinformation across internal andBusiness Partner organizations andlimited the company’s ability toefficiently and effectively provideend-to-end business solutions.With the pervasive implementationof Siebel CRM applications, IBM is overcoming these challenges.

“We can now engage in truesolution selling across our varioussales and support organizations,”remarks Steve Wright, VicePresident, Worldwide CustomerRelationship ManagementDeployment, IBM. “Soon, we’ll alsobe able to more effectively linkcampaign and marketing processeswith selling processes to providegreater end-to-end visibility andpromote better teaming acrossorganizations.”

When a customer responds to an IBM marketing message—whether a campaign is conductedby email, telesales, or the fieldsales force—the company will have the capability to track thecampaign and feed detailedinformation into the opportunitypipeline with visibility intocustomer contacts and activities.

“By getting to know our customersbetter and enabling more effectivecollaboration around the customerand among multiple IBMorganizations involved in sales,marketing, and support, we cansignificantly enhance the value we bring to our customers—whilegenerating additional revenues andcost efficiencies for our company,”says Wright. “The concept of ‘One IBM’ is a cornerstone for the way we serve customers, andour collaboration with Siebel is akey part of our effort to make theconcept a reality for our clients.”

IBM Relies on a Handful of Key Principles to Guide Its Siebel Deployment

• Must be sponsored by the senior executives

• Consolidate business processes and IT

• Base design on agreed-to scope and participation

• Define process work first, prior to development and rollout

• Use a common sales management system, including selling processes, metrics, and reporting

In 2003, IBM Extended Its Siebel Deployment to More than 60,000 Internal Users and Business Partners

YE2002• 10,000 IBMers —ibm.com —Service and Support• Few thousand Business Partner firms

3Q2003• 40,000 IBMers —ibm.com —Service and Support —Field Sales —Marketing• Several thousand Business Partner firms

YE2003• 55,000 IBMers —ibm.com —Service and Support —Field Sales —Marketing• Several thousand Business Partner firms

Siebel CRM Applications Are Helping IBM Create an Increasingly Customer-Intelligent Enterprise

Enterprise-wide collaboration around the customer

Web and Email

ibm.com Centers

Field Sales and Service

Business Partners

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Page 18: Siebel Annual Report

“The Siebel solution should ultimately provide a comprehensivedashboard to highlightearly indications of marketconditions worldwide.”Steve Wright, Vice President, Worldwide Customer RelationshipManagement Deployment, IBM

41 Siebel Systems, Inc. 2003 Annual Report

High Technology continued

IBM’s Business Strategies Drive Its Customer Relationship Management Objectives

Develop CRM strategies, complementary business, and resulting value propositions

Strategy

Identify, design, and implement process and organizational improvements to explicitly deploy CRM strategies

Operational Process

Deploy and integrate the technology to support the new way of doing business

InfrastructureBusiness strategy and IT strategy must be aligned

Bus

ines

s st

rate

gy

IT s

trat

egy

Release Mgmt Architecture

PDTsDev/Test

Infrastructure

Service

Deploy

Deployment

Requir

emen

ts

Educ

atio

n

Laun

ch

Process

Release

ibm.com

Service and Support

Business Partners

Sales

Marketing

Mobile Sales

N N+1 N+2 N+3 N+4

IBM Uses a Cross-Functional, Phased Approach to Release Management

• Global implementation —Geographically deployed Americas EMEA Asia Pacific

• Consolidated business requirements —Worldwide processes —Geography data and implementation

• Release management approach to delivery —Cross-functional teams —Cross-functional business requirements —Worldwide deployment

31851_028_055_P14 4/24/04 11:05 AM Page 41

Page 19: Siebel Annual Report

68%

17 of the top 25 Global 500life insurance companies are Siebel customers

6 of the top 10 Global 500property and casualtyinsurance companies areSiebel customers

4 of the top 10 Global 500healthcare companies areSiebel customers

42 Siebel Systems, Inc. 2003 Annual Report

Insurance and Healthcare

Median ROI for Siebel Insuranceand Healthcare Customers

8%Revenue Increase

8%Customer RetentionIncrease

18%EmployeeProductivity Gains

18%CustomerSatisfaction Increase

13%Operating CostsDecrease

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

InsuranceAMP Financial ServicesAXA FinancialAXA Sunlife Services, PlcFarmers Insurance

Group, Inc.Gjensidige NOR ForsikringInterpolis N.V.Irish Life & Permanent PlcMalaysia National

Insurance BerhadNorthwestern Mutual Life

Insurance CompanyStandard Life

Assurance CompanyZurich Financial Group

HealthcareBlue Cross and Blue Shield

of Florida, Inc.Blue Cross and Blue Shield

of LouisianaCenters for Medicare &

Medicaid ServicesCSS VersicherungDKV Deutsche

Krankenversicherung AGHealth Care

Services CorporationHealthNet, Inc.Horizon Healthcare

Services, Inc.Misys Healthcare SystemsUnited Healthcare

Services, Inc.Vision Solutions, Inc.

Delivering a Superior Customer Experiencein Insurance and Healthcare

Siebel Solution Sets for Insurance andHealthcare enable providers of personal andcommercial property and casualty insurance,individual life and annuities, and group lifeand health offerings to identify, attract, and retain profitable customers; improveoperational efficiency; and better managecomplex, multistakeholder relationships.

Industry Imperatives

• Target profitable customers• Differentiate on service• Increase service capacity• Expand distribution channels

• Drive profitable growth• Ensure regulatory compliance• Improve customer service• Manage claims and medical

expenses• Align and optimize distribution

channels

Insurance Healthcare

Siebel Solution Sets for Insurance and Healthcare

• Intelligence-Driven Marketing:Enables the identification,acquisition, and retention of profitable customers

• Value-Added Service: Enablesinsurance companies to resolvecustomer issues on the first call,provide Web-based self-service,and streamline service casemanagement

• Streamlined Claims Management:Improves the efficiency andeffectiveness of claims serviceand reporting

• Producer Optimization: Enablesinsurance organizations to attract,retain, and support complexdistribution channels and multiplepartner types

• Customer-Centric Service:Supports the delivery of fast,seamless service, leveragingconsistent information acrosschannels

• End-to-End Sales throughEnrollment: Improves customeracquisition and retention viarobust analytics and relationshipmanagement capabilities

• Intelligence-Driven Marketing:Improves sales and marketingeffectiveness by supportingproduct purchase analysis

• Health and WellnessManagement: Automates andimproves medical outreachinitiatives aimed at reducingmedical costs

Insurance Healthcare

www.siebel.com/insurancewww.siebel.com/healthcare

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Horizon

43 Siebel Systems, Inc. 2003 Annual Report

Horizon Healthcare Services, Inc. Enters a New EraAs New Jersey’s largest healthinsurer, Horizon HealthcareServices, Inc. (Horizon) providescoverage to more than 2.9 millionpeople throughout the state. Since 1932, Horizon has offeredquality healthcare products andservices designed specifically to meet the changing healthcareneeds of its customers.

Improving Customer Servicethrough New TechnologyAlways focused on improvingcustomer service, Horizonrecognized the need to upgrade its call center technology to handlerapidly growing call volumes andhelp its agents answer customers’detailed questions about new planofferings. One of the challengesHorizon faced was the coordinationof five separate systems used toprocess customer and claiminformation. “Often a physicianoffice would call about claims that were processed through fivedifferent claim systems, and ourphone representatives would haveto be able to navigate all fivesystems to answer their questions,”says Pat Geraghty, Senior VicePresident of Service at Horizon.“As a result, it was difficult toprovide comprehensive answers to these inquiries. We engagedSiebel to help us prepare ourphone representatives with theinformation to address a broadrange of provider and customerinquiries regardless of theunderlying claim system.”

Advancing a New “Surround” IT Strategy Working closely with Siebel,Horizon developed what it calls its “surround” strategy. “The ideawas to surround the outdatedsystems with new technology that provides employees with a comprehensive view of thecustomer and provides customerswith fast access to claims andother service information,” explainsGeraghty. “We established a goal of having our customer service andprovider service representativesanswer customer calls quickly,easily, and comprehensively.”

Strong Early ResultsSince going live with the Siebelsolution in 2002, Horizon’s callcenter has seen numerousimprovements. Now customerservice representatives have mostof the information they need onone screen, rather than having togo to multiple screens for the sameinformation. Customer calls are nowresolved 20% faster than in thepast, and employee productivityhas improved 15% overall. Even while serving 200,000 morecustomers, call wait times havebeen reduced by 20%.

The need for customers to callmultiple numbers, to be transferred,or to reexplain their situations hasbeen greatly reduced. The newsystem allows any customerservice representative to quicklyaccess and view the customer’scomplete profile and servicehistory. If customers have specialsituations or concerns, alerts canbe attached to their files so thattheir issues can be quicklyunderstood and addressed.

Siebel Call Center has alsodelivered significant benefits in the form of streamlined businessprocesses. Having a centralizedcustomer relationship managementsystem allows Horizon to change itsbusiness processes for call centerrepresentatives in one place insteadof across multiple systems. Horizon’senhanced ability to shift teams, movepeople between teams, and handlecall overflow greatly improvedorganizational agility and employeemorale. The company has alreadyexperienced $2.1 million in savingsby switching to the new system andexpects to save a total of $21 millionover the next four years.

Becoming Number One in Customer ServiceHorizon’s “surround” strategy has not only been a corporate and customer success, but itsbenefits have also been officiallyrecognized by the state of NewJersey. Horizon’s HMO subsidiaryreceived the highest rating forcustomer service in the 2003 New Jersey HMO PerformanceReport, published by the NewJersey Department of Health and Senior Services.

Insurance and Healthcare

“Siebel has been a goodbusiness partner. They’re not just trying to sell us thesoftware, they’re working tohelp us succeed.”Pat Geraghty, Senior Vice President of Service, Horizon Healthcare Services, Inc.

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44 Siebel Systems, Inc. 2003 Annual Report

Travel, Transportation, and Hospitality

Median ROI for Siebel Travel andTransportation Customers

13%EmployeeProductivity GainsSource: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

TravelAmadeus SASDeutsche Bahn SystemsGalileo International LLCIBERIA, Líneas Aéreas de

Espana, S.A.Sabre Inc.VVF VacancesWorldspan L.P.

TransportationBurlington Northern Santa

Fe CorporationCSX Technology, Inc.Delmas, FranceDHLUnion Pacific Railroad

CompanyUnishippers Association, Inc.

HospitalityCarnival Cruise LinesCendant Corporation, Inc.Princess CruisesSol Meliá S.A.

Meeting Increasing Customer Expectationsin the Travel, Hospitality, and TransportationIndustries

Siebel Solution Sets for Travel, Transportation,and Hospitality enable organizations in theairline, travel, car rental, trucking, rail cargo,shipping, and hospitality industries to deliverseamless customer service, maximize assetutilization, improve partner coordination, andincrease customer profitability.

Industry Imperatives

Travel Transportation Hospitality

Siebel Solution Sets for Travel, Transportation, and Hospitality

• Improve partnercoordination

• Increase operationalefficiency

• Identify and acquireprofitable customers

• Maximize customerloyalty andprofitability

• Maximize return oncapital expenditures

• Minimize operationalcosts to improvemargins

• Increase revenue by up-selling value-added services

• Improve assetutilization

• Identify and acquireprofitable customers

• Maximize assetutilization

• Optimize sales andchannel performance

• Increase operationalefficiency

• Maximize customerloyalty and profitability

Travel Transportation Hospitality

• Optimize Sales andChannel Performance:Improves salescoordination andeffectiveness, leadingto lower operatingcosts, shorter salescycles, and increasedsales close rates

• Increase OperationalEfficiency: Decreasesoperating costs bystreamliningcustomer service,order management,and partnermanagementprocesses

• Attract and RetainProfitable Customers:Increases marketingROI by supportingintelligent customersegmentation,personalized service,and enhancedcampaign targeting

• Maximize CustomerLoyalty: Enablestravel companies tooperate loyaltyprograms thatincrease customerloyalty andprofitability

• Maximize ROI onCapEx: Leveragesoperational data tohelp transportationcompanies identifybusiness opportunitiesthat will deliver thehighest return oncapital spending

• Optimize Sales andChannel Performance:Improves salescoordination andeffectiveness, leadingto lower operatingcosts, shorter salescycles, and increasedsales close rates

• Increase OperationalEfficiency: Decreasesoperating costs bystreamliningcustomer service,order management,and partnermanagementprocesses

• Attract and RetainProfitable Customers:Increases marketingROI by supportingintelligent customersegmentation,personalized service,and enhancedcampaign targeting

• Opportunity Capture:An integrated end-to-end group sales andevent management(GSEM) solution thatincreases group salesconversion rates andprofitability

• PersonalizedExperience: Enableshospitality companiesto consistentlyrecognize and rewardhigh-value guests

• Optimize Sales andChannel Performance:Improves salescoordination andeffectiveness, leadingto lower operatingcosts, shorter salescycles, and increasedsales close rates

• Customer Insight:Leverages customerdata to help hospitalitycompanies analyzeand increasecustomer profitability

• Attract and RetainProfitable Customers:Increases marketingROI by supportingintelligent customersegmentation andenhanced campaigntargeting

100%

4 out of 4 of the globaldistribution companies in the travel industry are Siebel customers

2 of the 3 largest globalcruise companies are Siebel customers

3 of the 4 largest U.S.railroads are Siebelcustomers

www.siebel.com/travel

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45 Siebel Systems, Inc. 2003 Annual Report

DHL—The World’s Largest Customer-Focused Express Company

Travel, Transportation, and Hospitality

“By providing a transparentview of the customer, Siebelwill help DHL to achieve anestimated 1% increase inrevenue by the end of 2005.”Ulrik Topp, Global Sales Development Director, DHL

“Siebel CRM applications play a key role in allowing us to giveour customers what they want:best-in-class service tailored totheir specific needs, at the bestvalue in the industry.”

Ulrik Topp, Global SalesDevelopment Director, DHL

In the 36 years since it created the air express industry with thefirst route from San Francisco to Honolulu, DHL has grown to become the world’s leadingexpress and logistics company.DHL’s integrated internationalnetwork links more than 220countries and territories worldwide.Employing 170,000 dedicatedemployees, DHL is known for its innovative use of technologyand fast and reliable service.

Last year, DHL’s parent company,Deutsche Post World Net, embarkedon the consolidation of its portfolioof businesses, folding them all underthe flagship DHL brand. Thesebusinesses included its courier andexpress operation, DHL; its parcelbusinesses, DP Euro Express,Airborne, and Loomis; and itslogistics business, Danzas. The integration of these separateorganizations has created theworld’s biggest express andlogistics company, geared toprovide customers with the mostcomprehensive service from one source. “We see DHL as the Coca-Cola of transportation,ranked among the best-knowninternational brands in thetransportation sector,” says UlrikTopp, Global Sales DevelopmentDirector, DHL.

Each of the business units andcountries had its own uniquesystem for managing customerrelationships, and the challenge for the “new DHL” was to integratethe highly fragmented sales andmarketing processes inherited from the consolidation activity.DHL would only achieve its visionof a veritable “one-stop shop” forcustomers if it merged customerinformation locked away within eachof its business units. “We neededto replace overlapping productsand processes with a streamlined,globally consistent approach tomanaging customer relationships,”explains Topp.

Coordinated, Real-Time Customer UnderstandingDHL is using Siebel CRMapplications to unify customerinformation and create a single,global, multichannel view of eachand every customer relationship.The Siebel solution is used by morethan 6,000 sales and marketingprofessionals in more than 220countries and territories worldwideand helps to support them inefficiently and effectively sellingexpress delivery and logisticssolutions to more than 4.2 millioncustomers, through whicheverchannel the customer chooses to use. The Siebel system assistsDHL in executing compelling,multichannel marketing programsaimed at maximizing demand for domestic and internationalexpress services.

“Siebel CRM applications play a key role in allowing us to giveour customers what they want:best-in-class service tailored totheir specific needs, at the bestvalue in the industry,” says Topp.“By providing a transparent view of the customer, Siebel will helpDHL to achieve an estimated 1%increase in revenue by the end of 2005. These gains are derivedfrom transforming the agility,efficiency, and effectiveness ofcompanywide business processes.The Siebel solution has also reducedthe amount of time the sales forceneeds to spend on administrativeactivities, leaving them more time to devote to the customer.Marketing is equipped to delivercampaigns with the right message,to the right person, at the rightmoment in time.”

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90%

9 of the top 10 globalconsumer goods companies have chosenSiebel applications

46 Siebel Systems, Inc. 2003 Annual Report

Consumer Goods

Median ROI for Siebel ConsumerGoods and Retail Customers

8%Revenue Increase

23%Customer RetentionIncrease

20%EmployeeProductivity Gains

20%CustomerSatisfaction Increase

13%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

Bayer Consumer CareBose CorporationChurch & Dwight Co., Inc.The Gillette CompanyHershey Foods CorporationH.J. Heinz CompanyUnilever plc United Stationers

Supply Company

Industry RecognitionRanked by readers of Consumer GoodsTechnology as:• #1 CRM Solution for the

second straight year• #1 Trade Promotion

Management Solution forthe third straight year

• #1 for overall “CustomerExperience” in theBusiness Intelligencecategory

Strengthening Trade and ConsumerRelationships in the Consumer Goods Industry

Comprising an integrated suite of industry-specific sales, marketing, and serviceapplications, Siebel Solution Sets forConsumer Goods enable brand owners toincrease the effectiveness of trade marketing,decrease customer service costs, enhancecollaboration with partners and customers,and maximize consumer demand and loyalty.

Industry Imperatives• Accelerate brand innovation: Given the importance of being first to market,

consumer goods companies need to accelerate brand innovation andnew product launches

• Improve consumer marketing effectiveness: To break through the clutterin today’s marketplace, consumer goods companies must carefully targettheir messages and constantly experiment with new marketing techniques

• Measure and improve trade promotion ROI: With increased scrutinybeing directed toward trade promotions, consumer goods companiesmust find ways to measure and improve trade promotion ROI

• Improve execution at retail: Consumer goods companies must make the most of limited sales resources by ensuring that sales efforts arefocused on the most profitable products and accounts

• Expand into new markets and channels: Consumer goods companies mustfind ways to expand into new markets without substantially increasingoperating expenses

• Automate data exchange with trading partners: Given the continuedemphasis on reducing costs and improving organizational responsiveness,consumer goods companies need to automate manual data exchangeprocesses with their trading partners

Siebel Solution Sets for Consumer Goods• Streamlined, Collaborative Brand Management: Accelerates time to

market by centralizing brand analysis, strategy, and planning and byproviding a 360-degree view of historical and current information to all members of a product launch team

• Direct-to-Consumer Marketing: Integrates consumer marketing effortsacross all channels and allows targeted execution, resulting in greatercampaign ROI and consumer loyalty

• ROI-Driven Trade Marketing: Increases revenue and improves profitabilityby enabling and enforcing a data-driven approach to the developmentand execution of trade promotions

• Targeted Retail Execution: Enables sales and delivery representatives toefficiently merchandise, sell, and deliver products to the right accountsat the right time, resulting in a lower cost to serve and increasedcustomer satisfaction

• Value-Driven Food Service/Commercial Channel Management: Increasesrevenue and profitability from alternative channels by supporting solutionselling and closed-loop contract management

• Trading Partner Collaboration: Improves efficiency of data exchange and speeds item introductions by enabling consumer goods companiesto electronically communicate item, pricing, and other criticalinformation with trading partners

www.siebel.com/consumergoods

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47 Siebel Systems, Inc. 2003 Annual Report

Cooking Up New Strategies in Trade Spending at Heinz“One of our primary challenges isto ensure that our trade investmentdecisions are consistent with thestrategic role of trade promotion.”

Gregg Newcombe,Group Vice President, Sales, Heinz Consumer Products

H.J. Heinz Company is one of the world’s leading producers and marketers of branded foods in ketchup, condiments, sauces,meals, soups, seafood, snacks, andinfant foods. Heinz is a global familyof leading brands, including Heinz®

Ketchup, sauces, soups, beans, pasta,and infant foods (representing nearlyone-third of total sales); Ore-Ida®

french fries; Boston Market® andSmart Ones® meals; and Plasmon®

baby food. Heinz’s 50 companieshave number-one or number-twobrands in 200 countries, showcasedby Heinz Ketchup, the world’sfavorite ketchup.

Like all consumer productscompanies, Heinz seeks to be the preferred supplier in everycategory in which it competes. To support this goal, Heinzlaunched its First Call salesstrategy. Focused on harnessingthe full power of Heinz’s brands,consumer insights, value-addedservices, and people, the strategyis intended—as the name suggests—to make Heinz the first choiceamong both trade customers and end consumers.

A key component of First Call is Project Keystone, a redesign of the Heinz trade promotionsplatform. Supported by SiebelConsumer Goods, Project Keystoneis helping Heinz encourage trial of its products, up-sell consumersto higher-margin items, build brand awareness, increase marketshare, and ultimately improveprofitability for both Heinz and its retail customers.

“One of the key drivers behind our Siebel implementation was that our trade promotion platformneeded to provide our sales forcethe information they need toefficiently drive sales volume forour customers,” says John J. Hans,Vice President, Channels at Heinz.“We expect the platform to becomea strategic tool for us to grow top-line sales and to help usbecome a better business partnerto our customers.”

Empowering the People Closest to CustomersHeinz made its decision toimplement Siebel Consumer Goodsafter other attempts at developinga comprehensive trade promotionplatform fell short. “Our previoussolution did not meet the needs of the business and was not whatcustomers and end users—ourConsumer Products Sales team—wanted,” explains George Chappelle,CIO, H.J. Heinz. “The Siebel CRMsolution—particularly the CategoryDevelopment Funds model—empowers and enables the people closest to the customer to make better decisions abouttrade investments.”

Deloitte, a Siebel Global StrategicAlliance Partner, played a criticalrole throughout the Siebel rollout.“Deloitte has been a key partnerfor a number of reasons,” explainsChappelle. “First, they have deepSiebel technical expertise. Second,they have extensive knowledge of the trade promotions space. And third, they’ve been veryeffective at assimilating into ourculture. Deloitte has really helpedus accelerate our entire rolloutprocess. We were able to implementour planning solution in 7 monthsversus the industry-standard 12 to 15 months.”

Improved VisibilityUsing information made availablethrough the Siebel application,Heinz has significantly enhancedits planning, forecasting, andpromotion tracking capabilities. In addition, the trade promotionapproval process has beensimplified, and unproductiveinvestment practices have been reduced.

“The most exciting news is thatwe’ve been able to shift themindset of retailers to a model of co-ownership for both volumeand margin growth,” Hans says.

Serving Up Big BenefitsAccording to Newcombe, thecompany is already starting torealize benefits from its Siebel-based trade promotion managementsolution. “We anticipate that thebenefits we are seeing should payfor the project in a short time,” he says. “In addition to the softdollar savings in the areas ofproductivity, we also expect togenerate more sales volume becauseof improved planning capabilities,enhanced insights, and improvedcollaboration with our customers.”

Consum

er Goods

“We looked toward Siebel for our solution because we knew that the company is the industry leader in CRMand had the resources to helpus deliver our objectives.”John J. Hans, Vice President, Channels, Heinz

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80%

4 of the top 5 Global 500chemical companies haveselected Siebel applications

4 of the top 5 Global 500petroleum companies haveselected Siebel applications

10 of the top 15 Global 500energy companies useSiebel applications

48 Siebel Systems, Inc. 2003 Annual Report

Energy

Enhancing Customer Intimacy in the Utility,Chemical, and Oil and Gas Industries

Siebel Solution Sets for Energy enableorganizations in the utility, chemical, and oil and gas industries to integrate theircustomer care processes, increase marketingeffectiveness, enhance the efficiency andeffectiveness of field service operations, and rapidly respond to changing marketconditions through more flexible pricing and contract management.

Median ROI for Siebel EnergyCustomers

2.5%Revenue Increase

8%Customer RetentionIncrease

13%EmployeeProductivity Gains

13%CustomerSatisfaction Increase

8%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

UtilityCity of Los Angeles

Department of Water and Power

EDF EnergyElectricité de FranceEndesa Servicios S.L.Gas Natural Informatica SAHydro-Quebec Inc.Integral Energy AustraliaKeySpan Energy CorporationNuon ICT B.V.TXU Energy

Services CompanyZapadoceska energetika a.s.

Oil and GasKey Energy Services, Inc.Shell Oil Products US

ChemicalsAkzo Nobel OrganonBASF AGBayer AGEngelhard Corporation

Industry Imperatives

• Adapt to new market complexityand competitiveness

• Leverage existing IT investments• Efficiently deliver products

and services• Improve customer service

• Maintain margins• Segment customer base• Efficiently deliver service

in the field• Consolidate customer information

Utilities Oil, Gas, and Chemicals

Siebel Solution Sets for Energy

• Streamlined Customer Care:Streamlines the execution ofcustomer care processes, resultingin lower operating costs, improvedservice levels, and increasedcustomer satisfaction

• Intelligence-Driven Marketing:Improves customer segmentationand campaign targeting, resultingin increased marketingeffectiveness

• Optimized Field Service: Enablesmore efficient dispatch andscheduling of work, resulting in improved customer service,reduced service costs, and betterasset utilization

• Optimized Transactions: Improvescontract and pricing management,resulting in faster revenuerecognition, reduced credit risk,and improved contract renewalrates

• Pricing Agility: Enables companiesto conduct in-depth analyses ofpricing trends and rapidly respondto changing market conditions

• Single View of the Customer:Consolidates customer informationacross disparate systems, leadingto greater customer intimacy andimproved customer service

• Contract Automation: Automatesthe entire contract managementprocess, from analysis of contracthistory and renegotiation of validterms to approval management andcontract compliance evaluation

• Optimized Field Service: Enablesmore efficient dispatch andscheduling of work, resulting in improved customer service,reduced service costs, and betterasset utilization

Utilities Oil, Gas, and Chemicals

www.siebel.com/energy

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49 Siebel Systems, Inc. 2003 Annual Report

Shifting to a Customer Focus at Nuon Business“Prior to deregulation, we had verylittle customer management becausewe knew our customers couldn’tgo anywhere else. In the changingenvironment, we realized thatunless we developed a completeunderstanding of our customers,our competitors would have us for breakfast.”

Rob Weerts, Information Manager,Nuon Business

Nuon is a leading energy distributorin the Netherlands, providingelectricity and natural gas toapproximately 2.7 million residentialand business customers in thecountry. The company also investsin utilities and energy generationprojects—including facilitiesharnessing renewable resourcessuch as wind power—worldwide.Nuon employs more than 10,000people and has annual sales ofmore than $5 billion.

Until 2001, Nuon was one of threeregulated regional suppliers ofenergy in the Netherlands. Then,the Dutch market was opened todomestic and foreign competition,starting with large businesscustomers consuming more thanone gigawatt of electricity. Nuonrecognized that it had to transformitself into a customer-centricbusiness—and fast—focused onmore effective sales and marketingand highly responsive service.

“What little contact we had with ourbusiness customers was throughour billing system—the invoiceserved as the primary form ofcustomer communication,” saysKevin Mahon, Program Manager,Nuon Business. “On the sales side,all the information developed byour account managers was lockedaway in different paper-based andelectronic information silos, whichmade it extremely difficult tounderstand the type and volume of energy that each businesscustomer was buying, the pricethey were paying, and the historyof sales calls.”

The solution was a customerrelationship management systemthat could provide the companywith the in-depth customerunderstanding and insight tocapitalize on sales opportunities,improve service, and combatcompetitive threats both at homeand abroad.

Prepackaged CRM SolutionAccording to Rob Weerts,Information Manager at NuonBusiness, Siebel Systems was in a class by itself in terms of CRM experience, knowledge, andprepackaged product functionality.“We needed a best-of-breed CRMapplication that we could launchstraight out of the box withoutexpensive customization,” Weertssays. “Siebel Energy fit our needsperfectly. We also liked the fact thatSiebel Energy integrated quicklyand closely with our SAP IS-Ubilling and provisioning system.”

Today, the Siebel CRM solution isthe foundation of Nuon’s strategyto efficiently acquire new customersand retain existing ones. At anytime, Nuon Business can review a complete record of eachcustomer’s profile; the type andvolume of products customers areusing; and their buying history,preferences, and contract conditions.The company uses this informationto identify the most important andprofitable customers and to targetresources accordingly; to cross-sellrelated services, including gas andrenewable energy; and to supportsales pipeline management.

Thirty Percent Conversion RateSiebel Energy has already played a key role in supporting severalhighly successful marketingcampaigns for Nuon. “Using Siebel,we quickly identified 6,000 businesscustomers who were most of theway through their contract. We thenbuilt a product offering specific to this audience and mailed offerdetails to customers. Of the 6,000recipients, 1,700 signed up for a newthree-year contract—a conversionrate of more than 30%. Thatrepresents an exceptional return on investment,” explains Mahon.

While Nuon has already seensignificant benefits from its Siebelimplementation, the journey is farfrom complete. The next steps arethe launch of a multichannelcustomer contact center, followedby Web-based self-service and theuse of the Siebel CRM solution to market energy services to morethan 2 million customers in theNetherlands and overseas. As Nuonreinvents itself, the ability to getcloser to customers will provide a distinct advantage every step of the way.

Energy

“Knowledge is power, andSiebel gives Nuon thepower to create profitable,long-lasting relationships.”Kevin Mahon, Program Manager, Nuon Business

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50 Siebel Systems, Inc. 2003 Annual Report

Complex Manufacturing

Median ROI for Siebel ComplexManufacturing and High TechCustomers

8%Revenue Increase

13%Customer RetentionIncrease

23%EmployeeProductivity Gains

18%CustomerSatisfaction Increase

8%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

Aerospace and DefenseAirbus S.A.S.Aviall Services, Inc.The Boeing CompanyDassault AviationHoneywell AerospaceLockheed Martin

CorporationNorthrop Grumman

Commercial Information Services, Inc.

Raytheon Aircraft

Industrial ManufacturingHoneywell InternationalIngersoll-Rand CompanyITT Industries

Goulds PumpOtis Elevator CompanyRockwell AutomationSKF Data Services ABToshiba CorporationVictaulic Company

of AmericaYork International

Corporation

Creating the Customer-DrivenManufacturing Company

Siebel Solution Sets for ComplexManufacturing enable companies in theaerospace and defense, industrial electronics,industrial machinery, and generalmanufacturing industries to managerelationships across the demand chain andthroughout the entire service life cycle,leading to greater after-market parts andservice revenue, lower customer servicecosts, and improved customer loyalty.

• Improve sales effectiveness• Provide consultative and

solution expertise• Deliver world-class

customer service• Optimize ISO/supplier channels• Improve effectiveness of

marketing events

• Understand the customer• Improve sales effectiveness• Streamline the buying experience• Optimize distributor channels• Deliver world-class

customer service

Aerospace and Defense Industrial Manufacturing

Siebel Solution Sets for Complex Manufacturing

• Collaborative Sales: Leveragesproven sales methodologies androbust sales automationcapabilities to streamline cross-divisional sales processes

• Consultative Solution Selling:Streamlines the quote-to-orderprocess and enables product/service solution bundling, leadingto shorter proposal turnaroundtimes and higher revenue pertransaction

• World-Class Fleet Life CycleService and Support: Providesemployees with a 360-degreeview of customer information,comprehensive data on productsand parts, and a deep solutionsknowledge base, resulting inshorter service cycle times andgreater after-market parts andservice revenue

• ISO/Supplier Network Optimization:Provides comprehensive partnerrelationship managementcapabilities in the areas of sales,order management, and service,resulting in improved collaborationwith ISOs and greater ISO loyalty

• Closed-Loop Air Show EventMarketing: Enables marketingorganizations to orchestrateclosed-loop campaigns to increaseattendance at air shows and otherkey marketing events

• Intelligence-Driven Marketing:Improves customer segmentationand campaign targeting, resultingin increased marketingeffectiveness

• Collaborative Sales: Leveragesproven sales methodologies androbust sales automationcapabilities to streamline cross-divisional sales processes, leadingto increased forecast accuracyand higher deal closure rates

• Perfect Order Creation:Streamlines the quote-to-orderprocess by ensuring solutions areaccurately configured and priced,leading to shorter proposalturnaround times, lowertransaction costs, and highercustomer satisfaction

• Distributor Network Optimization:Improves collaboration across the demand chain, leading toimproved distributor sales andservice effectiveness

• World-Class Equipment Life CycleService and Support: Providesemployees with a 360-degreeview of customer information,comprehensive data on productsand parts, and a deep solutionsknowledge base, resulting inshorter service cycle times,improved customer satisfaction,and greater after-market partsand service revenue

Aerospace and Defense Industrial Manufacturing

Industry Imperatives

90%

9 of the top 10 Global 500aerospace and defensecompanies have chosenSiebel applications

7 of the top 10 Global 500industrial manufacturingcompanies have chosenSiebel applications

www.siebel.com

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51 Siebel Systems, Inc. 2003 Annual Report

Serving Customers in a Spirit of “Unlimited Partnership”Honeywell Aerospace, an $8.8 billion division of Honeywell International with42,000 employees, is a leadingglobal provider of integratedavionics, engines, systems, andservice solutions for aircraftmanufacturers, airlines, businessand general aviation, military,space, and airport operations.Honeywell Aerospace focuses on enhancing customer value by making flight safer, morereliable, and more cost-effective.Known for its excellence intechnology, as well as for itsstrong after-market service andsupport, Honeywell Aerospaceproactively pursues its mission to be the aerospace company most admired by its customers.

The Business Challenge: Providinga Single Face to the CustomerUpholding this commitment to serveand satisfy customers in a spirit of “unlimited partnership” becamea principal challenge in 1999 whenAllied Signal merged with divisionsof Honeywell International to formtoday’s Honeywell. The combinedentity brought together multipleaerospace business units withdisparate systems, making itdifficult for Honeywell Aerospace to share information on salesopportunities, the status ofmaintenance requests, and theproducts customers had installedon their aircraft.

“Customers were telling us that wewere too hard to do business with,”says Darryl Carroll, Senior Directorof Defense and Space BusinessOperations, Honeywell Aerospace.

Formation of the Aerospace TotalAccount SystemIn response, Honeywell Aerospacelaunched a companywide customerexcellence initiative as part of itsenterprise-wide Six Sigma qualityimprovement program. Central tothis effort was the enterprise-widerollout of the Aerospace TotalAccount System (ATLAS), anintegrated customer relationshipmanagement platform designed to improve front-end businessprocesses and speed theorganization’s transition from a product-centric strategy based on selling products and parts to a customer-centric strategy basedon delivering systems, solutions,and services. Honeywell Aerospaceselected Siebel CRM applicationsas the ATLAS platform on the basisof their robust sales, service, andmarketing functionality; ease ofimplementation; and ability tointegrate seamlessly with ERP and other back-end applications.

To date, Honeywell has deployedATLAS to more than 3,000 usersspanning executive management,sales, field service engineers, and program and product linemanagers in both the commercialand defense aviation markets.ATLAS automates four key front-endprocesses: tracking of customerservice requests and issues, salesand opportunity management,campaign and marketingmanagement, and measuring ofcustomer satisfaction through aninternal program called Voice ofthe Customer.

The benefits of the ATLAS systemhave been significant. The companyhas increased annual after-marketspare parts revenue by 100% from $45 to $100 million, withapproximately 20% of the increasedirectly attributable to Siebel CRMand Siebel Analytics applications;increased the number of identifiedopportunities by 40%; improved its sales opportunity win rate;improved cross business unit andteam communication by 40%;improved its service request closurerate from 45% to 83%; reducedaverage customer service responsetime by 27%; and increasedcustomer satisfaction by 38%.

“Our investment in Siebel hasalready paid for itself in productivitysavings alone,” says Carroll, “butthat’s just the start of its value toour organization. It has definitelyimproved our customer satisfaction,and it has increased our ability torespond much faster to customerissues. It’s also helping us improveproduct performance by identifyinglong-standing systemic issues andgetting them fixed.”

Com

plex Manufacturing

“Our investment in Siebelhas already paid for itself in productivity savings alone.”Darryl Carroll, Senior Director of Defense and Space BusinessOperations, Honeywell Aerospace

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52 Siebel Systems, Inc. 2003 Annual Report

Retail

Median ROI for Siebel ConsumerGoods and Retail Customers

8%Revenue Increase

23%Customer RetentionIncrease

20%EmployeeProductivity Gains

20%CustomerSatisfaction Increase

13%Operating CostsDecrease

Return on SiebelInvestment:12 Months

Source: Satmetrix Systems surveys, 2003.Figures are median values based on allquantitative responses provided on all 2003quarterly customer surveys.

Select Siebel Customers

Administradora de Serv. Comp. y de Crédito CMR Falabella Ltda

Burberry Spain S.A.CompUSA, Inc.Famous Smoke Shop Pa Inc.Gateway, Inc.Marks & Spencer PlcThe Pep Boys—Manny,

Moe & JackThe Sports Authority, Inc.Staples, Inc.

Becoming Customer-Centric in the Retail Industry

Siebel Solution Sets for Retail enable retailersin the hardline, softline, grocery/food, and mailorder/direct business to achieve a 360-degreeview of the customer, increase marketingeffectiveness, optimize store operations,improve the customer buying experience,and maximize service effectiveness.

Industry Imperatives• Understand customers: Need to gain a deeper understanding

of customer needs and buying patterns• Increase share of wallet with existing customers: Retailers seeking

to retain core customers must offer new complementary products and services without substantially increasing operating expenses

• Develop profitable new customer segments: To drive top- and bottom-line growth, retailers must find new segments to which they can sellexisting products

• Streamline the buying experience: With greater product commoditization,retailers must deliver a superior buying experience to attract and retain customers

• Deliver world-class service and support: Customers evaluate retailbrands—and base future buying decisions—on the quality of servicedelivered across the entire product purchase and usage life cycle

• Optimize retail execution: Retailers derive 95% of their revenue frombrick-and-mortar store operations, and aligning the goals and tactics of a geographically dispersed organization is a significant challenge

• Improve collaboration with franchise/partner channels: Retailers whoserve customers through franchises and/or partners must ensure a seamless customer experience across their franchisee/partnerecosystem and maximize channel profitability

Siebel Solution Sets for Retail• One View of the Customer: Unifies customer information across business

units and disparate systems. Leveraging a single, consistent view of thecustomer, retailers can maximize cross-selling opportunities and improvethe overall customer experience while reducing data management costs.

• Fact-Based Retailing: Transforms the volumes of enterprise data scatteredacross disparate systems into relevant and up-to-the-moment customerand business insight, allowing retailers to monitor and drive businessperformance in real time.

• Intelligence-Driven Marketing: Streamlines the marketing planningprocess, improves segmentation, and optimizes marketing execution,resulting in greater marketing effectiveness and lower marketing costs.

• Drive Customer Loyalty: Allows retailers to develop loyalty programs toidentify customers; maintain profitable, long-term customer relationships;and build brand loyalty.

• Store Manager Workbench: Automates and simplifies administrative tasks,enabling retail store managers to spend more time selling and workingwith sales associates.

• Frictionless Selling: Streamlines sales planning, operations, and execution,resulting in lower operating costs, increased sales, and an improvedcustomer buying experience.

• Deliver World-Class Service: Reduces problem resolution times, acceleratesin-home installations, and maximizes cross-selling opportunities, leadingto increased revenue and higher customer satisfaction.

• Franchise/Partner Network Optimization: Improves collaboration withpartners and franchisees, leading to improved service, lower supportcosts, and greater customer satisfaction and loyalty.

Staples Business DeliveryTeleservices increased overall outbound talk times(productivity) by 22%using Siebel

www.siebel.com/retail

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“Siebel practices what itpreaches, which is listeningto the customer andputting what you learnback into the product.”Scott Johnson, IT Director, CRM Applications, CompUSA

53 Siebel Systems, Inc. 2003 Annual Report

Improving Internal and External Support at CompUSA“Using Siebel Call Center, we havegreatly increased the quality ofinformation gathered during the service request life cycle. This allows us to more efficientlyallocate IT resources and proactivelyaddress recurring issues.”

Scott Johnson, IT Director, CRM Applications, CompUSA

CompUSA Inc. is one of the nation’sleading retailers and resellers oftechnology, products, and services.The company currently operatesapproximately 226 stores in 90major metropolitan markets. These Superstores serve retailcustomers, small to medium-sizedbusinesses, corporate customers,and government and educationcustomers and include technicalservice departments. Many of thestores include classroom trainingfacilities. CompUSA also operatesa Web site that offers an assortmentof more than 80,000 items atwww.compusa.com.

CompUSA first became a Siebelcustomer in 1998, when it purchased1,800 licenses of Siebel Call Centerin an effort to replace a patchworkof disparate customer informationapplications with a centralizedCRM system. That effort not onlyimproved the company’s ability to serve its customers, but it alsoenabled CompUSA to become a model of customer serviceproficiency. As a result, othercompanies began to outsourcetheir own call center operations toCompUSA. Eventually, CompUSAspun off this outsourcing business,renaming it Telvista. Today, Telvistacontinues to service CompUSAcustomer support, as well as thoseof many other businesses, on theSiebel Call Center platform.

Improving Help Desk OperationsCompUSA, meanwhile, hasleveraged its Siebel investment by expanding its service capabilityboth internally and externally.Internally, the company deployedSiebel Call Center to operate a helpdesk through which its internal ITdepartment—25 call center agentsand about 250 technicians—couldprovide more reliable and rapidsupport to the company’s ownemployees. “We deployed theapplication to our help desk in only two weeks and now use theapplication to handle more than15,000 employee inquiries a month,”says Scott Johnson, IT Director,CRM Applications, CompUSA.

Enhancing Field ServiceExternally, CompUSA added to its service capability by deployingSiebel Field Service to its 1,600 fieldservice technicians. The Siebelsolution permits automatic skills-based scheduling and dispatching,much fuller recording of bothcustomer and asset information,and—thanks to Siebel 7’s zero-footprint client platform—a virtualend to concerns about maintenanceand upgrading. “Users also like the intuitive user interface,”Johnson says. “It’s faster, moreefficient, and more customer-friendly. And, because it’s Web-enabled, we can even give servicecustomers a unique URL, so theycan check the status of theirservice requests online.”

Overall, says Johnson, SiebelSystems has been an importantpart of CompUSA’s evolving servicecapability—and will continue to be so. “Siebel practices what itpreaches,” he says, “which islistening to the customer and puttingwhat you learn back into the product.As a Siebel customer since 1998,we’ve seen that process at work.For our business, the goal isn’t justto use the product, but to exploit it to full advantage. We’re verypleased that Siebel Systems ishelping us to do that.”

Retail

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54 Siebel Systems, Inc. 2003 Annual Report

Automotive

Industry Imperatives

Dealers manage the vast majority of customerinteractions in theautomotive industry

Captive financecompanies have the ability tomaintain an ongoingrelationship withcustomers during theownership life cycle

Siebel Automotive is the only solutiondesigned specificallyfor the automotiveindustry that enablesCRM across theenterprise—providingfunctionality for and collaborationbetween OEMs,dealers, and captivefinance providers

Improving Collaboration across the Enterprise

Siebel Solution Sets for Automotive enablevehicle manufacturers, captive financeorganizations, and dealers to collaboratethroughout the customer life cycle, leading to lower customer acquisition costs, higherrevenue per customer, and greater customersatisfaction and loyalty.

• Deliver targeted marketing• Provide world-class service• Improve dealer collaboration• Maximize supplier contribution

• Maximize customer profitability• Grow dealer business• Increase operational effectiveness• Deliver differentiated service• Increase customer retention

Vehicle Brand Owner Captive Finance Company

Siebel Solution Sets for Automotive

• Closed-Loop CollaborativeMarketing: Improves customersegmentation and campaigntargeting to increase marketing ROI

• Loyalty-Building CustomerService: Provides employees withcomplete view of customer,vehicle, and dealer information,leading to improved customersatisfaction and retention

• Customer Order Management:Streamlines the quote-to-contractprocess, reducing transactioncosts and improving the customerbuying experience

• Seamless Dealer Collaboration:Enables efficient collaboration onsales, service, and marketing,leading to increased revenue,higher customer satisfaction, andlower costs

• Supplier Management: Ensuresboth the automotive enterpriseand its suppliers benefit from a collaborative relationship thatenhances brand value

• Value-Generating Marketing:Allows captive financeorganizations to segmentcustomers and develop customer-specific strategies to retain high-value customers, increase cross-selling, and improve prospectconversion rates

• Dealer-Centric Sales and Service:Provides complete view of dealerfinancing needs and history,leading to higher revenue for thecaptive finance organization andincreased dealer satisfaction

• Customer Value-DrivenCollections: Enables captivefinance organizations to identifyand segment delinquent accountsand empowers agents withinformation to effectively collectoutstanding bills while preservingcustomer loyalty

• Single Contact Service: Providesservice agents with a 360-degreeview of customer information toeliminate redundancy and reduceresolution times

• Retention-Focused Lease End:Increases customer retention byfocusing end-of-leasecommunications on retention

Vehicle Brand Owner Captive Finance Company

Select Siebel Customers

ManufacturersAmerican Suzuki

Motor CorporationBMW of North America, LLCBridgestone/Firestone

Europe S.A.Caterpillar, Inc.DaimlerChrysler AGDucati Motor Holding S.p.A.Ford Motor Company, Inc.Mitsubishi Motors

North America, Inc.Renault S.A.

Captive Finance ProvidersBMW Financial

Services, NA, LLCCaterpillar Financial

Services CorporationMitsubishi Motors

Credit of America, Inc.Nissan North America, Inc.

67%

10 of the top 15 globalautomotive companies havechosen Siebel Automotive*

*Based on 2002 industry data; 2003 data notavailable as of the date of this Annual Report.

www.siebel.com/automotive

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“Siebel allows us to see theentire customer relationshipso we can respond to eachcustomer according to theirtotal expected lifetime value.”Robert Costantino, President & CEO, Mitsubishi Motors Credit of America, Inc.

55 Siebel Systems, Inc. 2003 Annual Report

On the Road to Closer Cooperation at Mitsubishi Motors“We had the customer service groupworking hard to make customershappy, while our collections groupwas chasing down some of thosesame people for late payments.This created a real disconnect—internally, and in interactions with customers.”

Robert Costantino, President &CEO, Mitsubishi Motors Credit of America, Inc.

Mitsubishi Motors North America,Inc. (MMNA) is the U.S. distributorfor Tokyo-based Mitsubishi MotorsCorporation, offering Americanmotorists a full line of passenger carsand sport utility vehicles. It employsmore than 4,000 people at itsCypress, California headquarters;parts and manufacturing facilities inthe U.S.; and wholly owned “captive”finance subsidiary, Mitsubishi MotorsCredit of America, Inc. (MMCA).

While MMNA has made goodinroads into the North Americanmarket, it has wrestled with anissue facing many automotivemanufacturers and financial servicescompanies: After the initial salesand financing, customers aregenerally regarded as numbers, not as individuals.

Recently, MMNA and MMCA beganimplementation of a broad-basedcustomer relationship managementsolution from Siebel, designed to enhance customer intelligenceand improve cooperation amongvarious business units. “Previously,customers were too often viewedas VINs—vehicle identificationnumbers,” says Robert Costantino,President & CEO, MMCA. “Therewas simply no visibility intomultiple relationships. It was onecustomer, one account.”

Phased RolloutMMCA decided to roll out theSiebel solution in phases to allowtime for fine-tuning the system and further development of thecompany’s CRM business model.Initially, the solution was deployedin MMCA’s call center facilities.Callers with relatively simpleproblems could either servethemselves through an interactivevoice response (IVR) directory orget routed to a Texas-based callcenter managed by business partnerSITEL. Escalated calls wereseamlessly directed to MMCA casemanagers in California. “Anyinteraction that couldn’t be handledin Texas was redirected with allrelevant customer information toCalifornia, so customers did nothave to repeat themselves,”Costantino explains.

Cost per call dropped by 38%, andMMCA’s abandon rate improved8%. In addition, efficiency gainshave increased productivity somuch that even though incomingcall volume has risen 75% over the past two years, it has beenhandled with virtually no increasein staffing levels.

Building Bonds Drives Bigger BenefitsThe biggest benefits of the CRMsolution lie ahead. MMCA has nowseamlessly integrated its customerservice, credit, and collectionsgroups under the Siebel CRMumbrella. Credit reviews will be streamlined with the help of consolidated data on eachcustomer. And for the first time,people in the collections group will have a full view of eachcustomer’s relationship with MMCA before they pick up thephone or send a notification.

“For example, John could havepurchased five vehicles from us,financed them all through ourcaptive credit group, and fallenbehind on one,” commentsCostantino. “Bill has bought his first car and has alreadymissed three payments. In thepast, we would have treated themequally, when clearly, if a personhas purchased five cars fromMMNA, you’d want to continue that relationship if you could.”

The Siebel CRM solution will also improve the efficiency of theregulation-burdened, paper-chokedcollections and repossessionprocess, which requires extensivemanual intervention and has a substantial cost per car. Key stepswill be automated and synchronized,rechecking and duplication will beminimized, and the risk of furtherloss or depreciation of the vehiclewill be reduced.

“The savings should be tremendous,”Costantino remarks. “In addition,employee morale has improved as everyone works together tobuild customer relationships and improve service. We expect a significant return on ourinvestment in 2004.”

Autom

otive

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56 Siebel Systems, Inc. 2003 Annual Report

Call Center and Service

Improving Customer Satisfaction, Retention,and Profitability with Siebel Call Center andService Applications To win the battle for customers in today’s marketplace,companies must optimize their service processes andprovide employees with the information and tools theyneed to deliver a superior customer experience. Siebel CallCenter and Service applications meet these requirements,enabling organizations to interact with customers moreprofessionally and consistently across all touchpoints,including the telephone, email, wireless devices, face toface, and over the Web. By enabling companies to deliverpersonalized service across all channels of communication,Siebel Call Center and Service applications enableorganizations to increase customer satisfaction, reducecost per contact, and increase overall service profitability.

Wisconsin Department of Employee TrustFunds Becomes Model of Service Excellencewith Siebel Call CenterThe tenth-largest public retirement system in the U.S., the WisconsinDepartment of Employee Trust Funds (ETF) recognized the need toreengineer the processes and systems it was using to serve its morethan 500,000 members. Membership had grown 87% during the previousten years, and the small bank of conventional phone lines used to handlephone inquiries could no longer support prompt, effective, and efficientservice. In response, ETF redesigned its customer-facing processes andimplemented a modern, multichannel customer contact center solutionpowered by Siebel Call Center. The Siebel application has enabled ETF to reduce the time required to answer phone inquiries by 93%, to improve email response time by 71%, and to eliminate labor-intensivetransaction coding and scanning of 30,000 pages of documents per year.

“Throughout the state, we have heard glowing reports regarding the responsiveness and professionalism we have achieved in our call center with the help of Siebel Systems.”

Julie Reneau, Administrator, Retirement Services Division, Department of Employee Trust Funds, State of Wisconsin

Improving Telesales and TelemarketingEffectiveness at StaplesThe pioneer of the office supply superstore industry, Staples, Inc. reliesupon its Staples Business Delivery Teleservices (SBD Teleservices) unitto market to and sell to its growing base of small business customers.Facing the prospect of rapid expansion, SBD Teleservices decided toreplace its proprietary account and campaign management systems with Siebel Call Center. Since deploying the solution, SBD Teleserviceshas improved its ability to develop and execute outbound campaigns,increased its margins, and increased overall outbound talk times by 22%.

“The primary productivity measure of success in an outbound callcenter like ours is how much time we spend talking to prospects orcustomers. The less time my teleservices reps spend on previouslymanual tasks, the more they can spend talking to customers andgenerating revenue.”

Jeri Holland, Director of Teleservices, Staples, Inc.

Key Business Benefits• Improves service optimization

by capturing all customerinteractions, whether face to face,over the phone or Internet, or through email

• Increases agent productivity bystreamlining the agent desktop

• Reduces call handling timesthrough computer telephonyintegration (CTI)

• Improves revenue generationthrough targeted offer deliveryand flexible call scripting

• Reduces call load by offering Web-based self-service

• Reduces training costs• Decreases emergency dispatch

costs by scheduling preventivemaintenance

• Improves first-time fix rates byproviding instructions and best-practice maintenance steps

• Eliminates costs due to unnecessarycross-departmental escalations

• Helps coordinate delivery of labor and materials

• Improves off-warranty and servicecontract capture rates

Product Capabilities• Intelligent scripting• Real-time targeted offer

presentment• Patented computer telephony

integration• Bi-directional collaboration

and workflow• Automated email response

and routing• Automatic or one-button

escalations• Contract and warranty

management• Blended sales and service• Preventive maintenance scheduler• Dispatch and scheduling

optimization• Prebuilt dashboards and reports• Service inventory and parts

logistics• Asset management• Automated alerts and exception

notifications

Select Siebel Customers

Barclays Bank PlcBMC Software, Inc.BTCenters for Medicare & Medicaid Services

Deutsche Bank AGDIRECTV Operations, Inc.Dresdner Bank AGIBM CorporationIntuit, Inc.Northrop Grumman Commercial Information Services, Inc.

NTT DoCoMo, Inc.Renault S.A.Reuters LimitedSociété GénéraleStaples, Inc.State of Wisconsin,Department of Employee Trust Funds

Sun Microsystems, Inc.Telecom Italia Mobile S.p.A.Telecom Italia S.p.A.Telstra Corporation Limited U.S. Postal Service

ETF has reduced the timerequired to answer phoneinquiries by 93%

www.siebel.com/callcenter

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CallC

enter and Service/S

ales57 Siebel Systems, Inc. 2003 Annual Report

Aviall has improved salesproductivity by 200%

Sales

Maximizing Sales EffectivenessSiebel Sales helps selling organizations grow revenuesmore quickly, predictably, and profitably by helping salesprofessionals focus on the right deals at the right time.Siebel Sales provides unparalleled visibility into the salespipeline, enabling sales professionals to “see” the mostpromising opportunities and develop specific actions tohelp manage those opportunities to rapid closure. SiebelSales also facilitates discovery of customer needs andsharing of knowledge across the entire sales force, leadingto improved sales collaboration, higher revenue pertransaction, and increased customer satisfaction.

Improving Sales Productivity at AviallAviall, Inc. is the world’s largest independent provider of new aviation partsand related after-market services for the commercial, military, and generalaviation sectors. Aviall was not always in such a powerful market position,however. As Aviall approached the year 2000, it was faced with shrinkingmarket share and declining sales, the results of intensifying competition.Thanks to a new management team, Aviall developed a visionary planfor revitalizing its customer service focus and transforming itself into a value-added partner to its OEM suppliers. Deploying Siebel Call Centerand Siebel Sales as the core of a new customer relationship managementsystem, Aviall has improved customer satisfaction by 30% and improvedsales productivity by 200% on sales calls and processed orders. In fact,despite being in an industry hurt badly by the 9/11/2001 terrorist attacks,Aviall’s annual sales have soared from $371.9 million in 1999 to over $1 billion in 2003.

“Siebel Sales and Siebel Call Center were both attractive because of their robust functionality. When we looked at the other options, there wasn’t even a close second.”

Joe Lacik, CIO, Aviall

Capitalizing on New Opportunities at SGL CarbonThe market for specialized carbon and graphite products is one of themost concentrated in the world. For this reason, it is crucially importantfor SGL Carbon—the world’s leading manufacturer of carbon, graphite,and composite materials for industrial and aerospace applications—to forge loyal, lucrative, long-term relationships with its customers. To improve its customer relationship management capabilities, SGL is deploying Siebel Sales to all of its sales professionals worldwide.Seamlessly integrated with the company’s SAP R/3 back-office system,the Siebel application is helping SGL gain a deeper understanding of itscustomers, capitalize on new sales opportunities, and improve customersatisfaction across the globe.

“Using Siebel Sales, we can select all of the customers in a particularmarket or product segment, ones in a particular geographic area, orones of a certain revenue threshold. This improved targeting enhancesevent attendance and brand exposure.”

Markus Mirgeler, VP of Sales and Marketing, SGL Carbon

Select Siebel Customers

American HeartAssociation, Inc.

Aviall Services, Inc.Bayer AGBMC Software, Inc.Cable & Wireless plcDeloitte ConsultingDresdner Bank AGFleetBoston Financial Corporation

Honeywell AerospaceHPMisys Healthcare SystemsNovell, Inc.Quick & ReillySGL Carbon GmbH

Key Business Benefits• Increases average revenue

per transaction• Improves sales efficiency

and effectiveness• Improves customer retention• Lowers customer acquisition costs• Reduces operational costs• Improves forecasting accuracy• Lowers human resource costs• Reduces order errors

Product Capabilities• Account planning• Opportunity management• Quoting, pricing, and solution

configuration• Territory and lead management• Pipeline and forecast

management• Proposals and presentations• Incentive compensation• Sales methodologies (such

as Target Account Selling andEnterprise Selling Process)

• Sales performance analytics

www.siebel.com/sales

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58 Siebel Systems, Inc. 2003 Annual Report

WilTel has improvedcustomer satisfaction rates by 59%

Customer Order Management

Streamlining End-to-End Order ManagementSiebel Customer Order Management applications provide a unified view of customer, quote, order, contract, andpricing information, enabling organizations to create moreprofitable orders and build stronger customer relationships.

• Siebel Quote and Order Life Cycle Management allowscompanies to create, validate, and manage customerquotes and orders across multiple enterprise systems

• Siebel Product and Catalog Management enablescompanies to publish dynamic product catalogscontaining customizable sales bundles, configurecomplex products, and analyze product information from all customer channels

• Siebel Pricing and Contract Management enablescompanies to plan, deploy, execute, and analyze contractand pricing policies across all lines of business

Setting a New Standard for CustomerService at WilTel In a highly price-sensitive industry that is crowded with players, WilTelCommunications realized that the way to competitive advantage wasthrough customer service. To this end, WilTel implemented Siebel Salesand Siebel Customer Order Management to streamline its orderprovisioning system and provide the foundation for a fully automatedfuture. Using the Siebel solution, WilTel has been able to reduce orderentry error rates by 25%, improve customer satisfaction rates by 59%,and achieve promised delivery dates 98% of the time, all while beatingindustry-standard delivery times by 50%.

“When our users saw a demo of the Siebel solution, they took one lookand realized that it met at least 80% of our needs right out of the box.Due to our extremely complex products, we had an intense need for a good product configurator. We thought, ‘Why should we custom-buildsomething that Siebel can do already?’”

Brent Harris, Siebel Development Manager, WilTel Communications

Reducing Order Processing Time at BMC SoftwareWith more than 6,000 employees and revenues exceeding $1.3 billion,BMC Software is one of the world’s largest suppliers of enterprisemanagement software. During the past several years, BMC has beenhighly focused on integrating its business processes across the enterprise,with the goal of improving customer satisfaction, increasing operationalefficiency, and capturing the full potential of its acquisitions. In line withthis strategy, BMC used Siebel Customer Order Management applicationsand Universal Application Network to streamline and automate its Webstore order management process.

“Siebel Systems has the vision in the marketplace of what CRM can dofor a business, and I believe it has the premier technology for executingagainst that vision.”

Mark Meyer, Director of CRM, BMC Software

Select Siebel Customers

Asyst Technologies, Inc.Bally Gaming, Inc.BMC Software, Inc.Brooks AutomationBTDeutsche Telekom AGDIRECTV Operations, Inc.Harris CorporationIBM CorporationInfonet Services CorporationMaintenance Warehouse, Inc.Reuters LimitedTelecom Italia Mobile S.p.A.Telenor NetworksTelstra Corporation LimitedWilTel CommunicationsYork International Corporation

Key Business BenefitsOperational Efficiency• Lowers order costs by reducing

quote and order errors • Reduces order cycle time • Reduces customer inquiries

Revenue Optimization• Increases quote-to-order close rates• Increases margins through

consistent discount control and by providing consistent,personalized pricing across all channels

• Increases average order size by providing cross-sell/up-sellrecommendations

Customer Intimacy• Increases customer satisfaction

by providing personalizedofferings based on customerpreferences and assets

• Ensures existing contracts are enforced

• Provides customers with self-service tools

Product Capabilities• Multichannel order capture• Product and pricing management• Product and service configuration• Customer contracts and

entitlements• Account- and contract-specific

pricing• Quote and order approval• Comprehensive view of customer

order activities• Product and order analysis

www.siebel.com/order

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59 Siebel Systems, Inc. 2003 Annual Report

Custom

er Order M

anagement/M

arketing

Marketing

Meeting Today’s Marketing ChallengesAcross industries, marketing organizations are being askedto do more with less while justifying and accounting for eachdollar spent. In addition, they are expected to rapidly developand execute one-to-one campaigns that are synchronizedacross communication channels. The Siebel Marketingproduct suite enables organizations to address thesechallenges by providing a complete solution for planning andexecuting targeted, multichannel marketing campaigns.With Siebel Marketing, organizations can accelerate campaigndevelopment and execution, increase marketing effectiveness,and maximize the value of each customer relationship.

Implementing Marketing Best Practices at L’OréalL’Oréal, the world’s largest cosmetics company, is focused on maximizingbrand loyalty and revenue per sale. To support these goals, the companyrecently launched a CRM initiative aimed at reengineering its consumermarketing processes and systems. As a first step, L’Oréal has implementedSiebel Marketing and Siebel Analytics in two of its luxury business units.The Siebel solution has helped L’Oréal gain a deeper understanding of itsconsumers, segment its customer base by demographic and buyingpatterns, and improve the efficiency and ROI of its campaigns.

“Siebel is the solution we have found that will allow us to manage anend-to-end process from consumer analysis and segmentation to creation,execution, and measurement of the success of marketing campaigns.”

Georges Edouard Dias, Strategic Business Development Division, L’Oréal

Improving Cross-Selling and Customer Loyalty at NykreditFacing new competition in the mortgage services market it had oncedominated, Copenhagen-based Nykredit decided to diversify into banking,insurance, and real estate services. To support this transformation, thecompany deployed Siebel Marketing to its marketing teams while rollingout Siebel Sales to its call center staff. Siebel Marketing enables thecompany to efficiently develop and execute multichannel marketingcampaigns that reflect a deep understanding of customer preferences.Moreover, seamless integration with Siebel Sales ensures that agents are aware of which customers have been targeted for which campaigns,leading to improved cross-selling and customer satisfaction.

“Since the system was introduced, 40% of our customers have boughtmore than one Nykredit product. Together, improved cross-selling andenhanced loyalty have enabled Nykredit to maintain its market share in the face of fierce competition.”

John Anker Moller, Vice President, Nykredit

Achieving Marketing Excellence at HPOptimizing integrated marketing activities on a global basis presents a tremendous challenge. HP’s technology solutions span IT infrastructure,personal computing and access devices, global services, and imagingand printing and are marketed worldwide to consumers, businesses, andinstitutions via every imaginable channel. HP is standardizing on SiebelMarketing Resource Management (MRM) to deliver a set of best-in-classmarketing processes that improve collaboration and accountability andmake assessing results easier.

“We chose Siebel Marketing Resource Management at HP to enable us notonly to see which programs deliver the best ROI, but also to enable usto optimize our marketing investments by repeating successful programsand enhancing others to increase overall effectiveness.”

John Yelland, Director of Marketing Operations, HP

Key Business Benefits• Improves customer insight• Makes marketing planning more

effective and less time-consuming• Ensures that global spending is

aligned to corporate objectivesand priorities

• Enables the implementation ofstandardized processes based onbest practices

• Improves coordination andalignment between marketing,sales, and partners

• Improves the quality and speed of execution

• Reduces campaign developmenttime and costs

• Lowers customer acquisition costs• Increases response rates• Increases lead conversion rates• Increases repeat purchases and

customer loyalty• Synchronizes marketing

communications across channels• Enables the management and

enforcement of customerpreferences and contact policies

• Improves visibility into marketingROI

Product Capabilities• Planning and budgeting• Marketing resource management• Data management and integration• Segmentation and analysis• Predictive modeling and data

mining• Campaign management• List management• Multichannel execution, including

support for mail, email, phone,field/branch, Web, and wirelesschannels

• Event-triggered and real-timemarketing

• Marketing events management• Response and lead management• Content management• Loyalty program management• Measurement and reporting

Select Siebel Customers

3Com CorporationCo-Operative Insurance Society Limited

Eli Lilly & CompanyHPIBM CorporationInformatica CorporationItron, Inc.L’OréalMCI Worldcom International Limited

NovartisNykredit A/SPitney Bowes, Inc.Vodafone Telecel Comunicacoes Pessoais,S.A.

Within one year ofdeployment, VodafoneTelecel reduced campaigndevelopment time by 71%

www.siebel.com/marketing

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60 Siebel Systems, Inc. 2003 Annual Report

Partner Relationship Management

Enhancing Partner Relationships with Siebel PRMIn today’s “do more with less” environment, companiesincreasingly rely on partners to market, sell, and supporttheir products. Partners provide a cost-effective means ofreaching a broader audience and frequently offer servicesand solutions that enhance the value of a company’s own offerings.

Siebel Partner Relationship Management (PRM) providescompanies with an enterprise-wide platform for managingrelationships with partners and resellers. Using Siebel PRM,companies can plan and execute collaborative sales,marketing, and service programs; enhance forecastingaccuracy and pipeline visibility; reduce partner managementcosts; and improve their ability to orchestrate channeloperations on a global basis. Moreover, Siebel PRM providesnative support for industry-specific PRM best practices,leading to greater partner program effectiveness andincreased end customer and partner satisfaction.

Streamlining Partner RelationshipManagement at XeroxXerox Corporation, the worldwide leader in document managementtechnologies, products, and solutions, deployed Siebel PRM in 2003 toapproximately 1,000 users across its Dealer, Xerox Business Partner, and internal Channel Management organizations. The Siebel solution has helped Xerox reduce its partner management costs, accelerate timeto market, increase channel operations productivity, and adapt morequickly to its partners’ changing needs.

“The Siebel application provides a fast, cost-effective way to ensurepartners have the information and skills they need to provide high-quality, consistent service to their customers, increasing their revenueand ours.”

Bob Jacob, Xerox Business Partner Management, Xerox Corporation

Improving Dealer Collaboration at Saab Cars USAGeorgia-based Saab Cars USA, Inc., a subsidiary of the Swedish companySaab Automobile AB, has deployed Siebel Dealer (the automotive industryversion of Siebel PRM)—in conjunction with Siebel Call Center and SiebelMarketing—to help it more efficiently and effectively manage leads amongits network of 240 U.S. dealers. Sales leads generated through a multitudeof different marketing activities and channels are delivered rapidly throughthe Siebel system to the right dealerships. Saab then tracks the status ofreferred leads by monitoring key events such as the salesperson’s initialcall to the customer, the scheduling of a test drive, and the completion ofa test drive. These tracking capabilities enable Saab to measure the salesresults of specific leads, recommend more efficient selling techniques,and target leads more precisely in the future. Deploying the Siebel solutionhas enabled Saab to improve dealer follow-up on leads from 38% to 70%,reduce direct marketing costs by 5%, and increase overall satisfactionwith Saab services from 69% to 75%.

“We realized that Saab had the power to convert more leads into salesby helping improve its dealers’ interactions with prospective and currentcustomers. The key was to improve the quality of our information flowto and from dealers.”

Al Fontova, Direct Marketing Manager, Saab Cars USA

Key Business Benefits• Improves efficiency and

consistency of partnermanagement across product linesand geographies

• Increases channel revenue andpipeline visibility

• Streamlines quote-to-orderprocess

• Simplifies synchronization of product catalog and pricinginformation

• Reduces channel support costs• Improves partner satisfaction • Enables efficient management

of co-op funds and claims• Enhances joint marketing

execution and measurement• Accelerates cycle times by

supporting direct business-to-business integration

• Improves real-time visibility of sales, marketing, and serviceactivities across partner ecosystem

• Improves end customersatisfaction by increasing qualityof third-party service delivery

Product Capabilities• Partner recruiting and training • Partner profiling • Partner performance management• Collaborative marketing and sales• Collaborative eCommerce• Collaborative service• Partner analytics• Real-time business-to-business

integration

Select Siebel Customers

3Com CorporationBlue Cross and Blue Shield of Louisiana

Deutsche Telekom AGFirst Service Networks, Inc.Fujitsu Siemens Computers GmbH

Gas Natural Informatica SAHPHydro-Quebec Inc.IBM CorporationLeeds City CouncilMicrosoft CorporationRenault S.A.Rockwell AutomationSaab Cars USA, Inc.Telecom Italia S.p.A.Telenor ASVector LimitedXerox Corporation

Saab has improved dealerfollow-up on leads from38% to 70%

www.siebel.com/prm

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61 Siebel Systems, Inc. 2003 Annual Report

Field Service

Partner Relationship M

anagement/Field S

ervice

Improving the Profitability of Field ServiceOperations Siebel Field Service enables service organizations todramatically improve the productivity and effectiveness of their field service professionals, increase revenue, andenhance customer satisfaction. The application supportsclosed-loop problem resolution with wireless messaging,call handling, schedule optimization, shipping, receiving,depot repair, parts logistics, and inventory managementand invoicing functionality. It is fully integrated with allSiebel applications and can be seamlessly integrated with existing third-party applications and legacy systems to provide service organizations with a comprehensive,multichannel solution that allows them to better satisfytheir customers.

Taking Customer Service to the Next Level at Honeywell AerospaceFocused on customer satisfaction and total quality, Honeywell Aerospacedeployed Siebel Sales, Siebel Service, Siebel Field Service, and SiebelAnalytics to consolidate customer information across its organizationand integrate its customer-facing processes. Siebel Call Center andSiebel Field Service route service requests to the right personnel, enable call center service engineers and field service engineers to logcases by product and severity (for example, Aircraft on Ground, orAOG), and provide these professionals with access to a knowledge baseand documentation for rapidly providing a response. Through the use ofthis closed-loop system, Honeywell Aerospace has improved its on-timeclosure rate of service issues from 45% to 83% and reduced customerresponse times by 27%.

“In our business, where product cycles are long and there is a strongemphasis on after-market service and success, relationships areespecially important. Unless you have tools, processes, andmanagement focused on customer relationships, you will not besuccessful in this industry long-term.”

Darryl Carroll, Senior Director of Defense and Space Business Operations,Honeywell Aerospace

Key Business Benefits• Coordinates delivery of labor

and materials to addresscustomer needs

• Improves labor resourceutilization through efficientdispatch and scheduling

• Enables the creation of newservice offerings to improverevenue, market share, andcustomer loyalty

• Improves billing accuracy bymanaging entitlements associatedwith complex service offerings

• Improves off-warranty capture and service contract renewal rates

• Minimizes errors andadministrative burdens associatedwith service inventory management

• Increases visibility into servicedelivery effectiveness

• Improves first-time fix rates• Improves on-time arrival• Reduces missed service call

appointments

Product Capabilities• Automated appointment booking• Schedule optimization• Asset management• Contract management• Automated entitlement verification• Invoice automation• Service inventory and

parts logistics• Support for preventive

maintenance• Wireless dispatch• Warranty management

Select Siebel Customers

Alcatel Internetworking, Inc.American Power Conversion Corp.

ASML Netherlands B.V.C3i Inc.Caterpillar, Inc.CompUSA, Inc.CymerDIRECTV Operations, Inc.First Service Networks, Inc.Gen-Probe, Inc.Honeywell AerospaceIBM CorporationKey Energy Services, Inc.Lexmark International, Inc.Maytag CorporationNorthrop Grumman Commercial Information Services, Inc.

Pitney Bowes Inc.SKF Data Services ABWhirlpool CorporationYork International Corporation

Honeywell Aerospace has improved its on-timeclosure rate of serviceissues from 45% to 83%

www.siebel.com/fieldservice

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62 Siebel Systems, Inc. 2003 Annual Report

Employee Relationship Management

Improving Organizational Skills and Knowledgewhile Reducing Training Costs at TeleApAs TeleAp expanded, the leading Italian systems integration specialistexperienced an eightfold increase in headcount, making it increasinglydifficult to keep its employees up to date on changes and additions to its service offerings. Now using Siebel Training, TeleAp is able tocertify consultants on business skills prior to sending them on anengagement, leading to lower training costs, faster time to market, and greater performance.

“With Siebel Training, we are able to rapidly certify our workforce on the skills and knowledge they need to provide world-class service to TeleAp customers.”

Roberta Rossi, General Manager, TeleAp

Aligning Employees to Improve BusinessExecution at FortisHaving grown rapidly through acquisitions, Fortis needed a solution thatwould enable the company to align its workforce around key initiatives andstandardize its performance management processes. Siebel PerformanceManagement enables Fortis to measure employee performance andprovides a platform that will support future organizational growth.

“By deploying Siebel Performance Management, we are able to providea unified employee performance environment to align all of our peoplearound our key business drivers. We are now able to translate corporatestrategy into actionable business unit and individual objectives, and inturn measure our individual achievements objectively. This is key tosuccess in a highly people-based environment.”

Phil Smith, Global Head of Human Resources, Fortis

“The key benefit of Siebel ERM has beenreducing our call center volume, increasingour first touch resolution rate to 92%.”John Edward Smith, Program Manager, Microsoft

Key Business Benefits• Siebel Learning

—Helps employees develop skillsrelevant to job function andcareer path

—Links training to performance—Reduces the cost of training

• Siebel Performance Management —Ensures rapid organizational

alignment—Establishes a pay-for-

performance culture—Identifies and retains

high-performing employees• Siebel Employee Service

—Reduces employee supportcosts

—Improves service levels—Improves employee productivity

Product Capabilities• Siebel Learning

—Single platform for employee,partner, and customer training

—Support for instructor-led,distance, and media-basedlearning

—Embedded learning analytics • Siebel Performance Management

—Support for goal setting,performance review, andcompensation processes

—Performance dashboards —Competency management

• Siebel Employee Service—Preemptive and self-service tools—Enhanced assisted service —Embedded service analytics

Select Siebel Customers

Alcatel Internetworking, Inc. Barclays Bank PlcCeridian CorporationDeutsche Bank AGFortis Investment

ManagementFujitsu Siemens

Computers GmbHGas Natural Informatica SAItron, Inc.Leeds City CouncilMicrosoft CorporationRSA Securities Inc.TeleAp

Siebel ERM Customers

2001

133

234

2002 2003

309350

300

250

200

150

100

50

0

Improving Business Execution and EmployeeProductivity with Siebel ERMWith more than 300 customers across a range of industries,Siebel ERM is an integrated suite of solutions that allowscompanies to drive dramatic improvements in the areas of organizational learning, employee performance, andemployee service:

• Organizational Learning—Siebel Learning allowscorporations to build organizational skills more efficientlyand cost-effectively. Using Siebel Learning, organizationscan help employees acquire the competencies they needto support corporate objectives.

• Employee Performance—Siebel Performance Managementallows organizations to consistently align employees withkey business objectives and track, evaluate, and rewardemployee performance. The net results are improvedexecution of corporate operating plans and increasedcustomer satisfaction.

• Employee Service—Siebel Employee Service allowscorporations to provide more effective employee supportacross key areas (HR, IT, facilities, and others), as well as across diverse systems and geographies. The result ishigher employee productivity at lower organizational costs.

www.siebel.com/erm

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63 Siebel Systems, Inc. 2003 Annual Report

CRM Professional Edition

Em

ployee Relationship M

anagement/C

RM

Professional Edition

Meeting the Unique Needs of Small andMidsize Businesses with Siebel CRMProfessional EditionWith an installed base of more than 1,800 small andmedium-sized businesses (SMBs), Siebel Systems hasgained a deep understanding of the factors that drive CRMsuccess in the midmarket. Companies in this category needCRM solutions that offer deep sales, marketing, and servicefunctionality; that can easily be expanded; and that delivergreat value for their price.

Siebel CRM Professional Edition explicitly addresses theserequirements. The product line—formerly known as SiebeleBusiness Applications, MidMarket Edition—provides best-in-class CRM functionality in easy-to-deploy modules,allowing organizations to choose the specific CRM capabilitiesthey need to run their business. Moreover, the product offersa seamless migration path to Siebel enterprise applicationsand can be deployed in conjunction with Siebel CRMOnDemand, providing SMBs with multiple ways to deliverworld-class CRM functionality.

Achieving World-Class Performance at EMITampa-based EMI Industries provides the food retailing industry withpoint-of-sale and food service equipment ranging from checkout standsand refrigeration units to carts and display racks. A leading supplier ofsuch store fixtures, EMI was not able to provide its customers with completevisibility into the production process because its Web channel was notintegrated with its phone communication channels, and customer dataremained housed in multiple, disparate applications, including Excel, Access,and Macola, the company’s ERP system. To address these challenges,EMI implemented Siebel CRM Professional Edition (formerly knownas Siebel eBusiness Applications, MidMarket Edition). Deployed in just13 weeks, the Siebel solution enabled EMI to integrate its customer-facingprocesses and create a complete view of the customer. As a result, thecompany has been able to decrease the amount of time required to fulfillcustom orders, decrease lead generation costs, and significantly increasedeal closure rates.

“We have cut 10 to 20% off the time it takes to complete a customproject from proposal to order completion, while improving processquality with Siebel-supported best practices.”

David Hahmann, Vice President, EMI Industries

Improving Sales Productivity at Plumtree SoftwarePlumtree is a leading provider of Enterprise Web technology that allowscustomers and partners to build service-oriented applications. The companylooked to Siebel for assistance in streamlining its sales processes andoptimizing its marketing channels. Thanks to the powerful integrationcapabilities of Siebel CRM Professional Edition (formerly known asSiebel eBusiness Applications, MidMarket Edition) and Plumtree’s openframework, Plumtree was able to seamlessly incorporate Siebel CRMProfessional Edition into its broader IT infrastructure. This integrationresulted in a seamless look and feel across multiple applications, leadingto high end user adoption.

“Customers use Plumtree’s framework to create service-orientedapplications based on Siebel that support the sales process. The newcapabilities available from Siebel CRM Professional Edition not onlycreate additional opportunities to enhance our own operations, butsupport our joint customers’ evolving needs as well.”

Jay Simons, Director of Applications, Plumtree Software

Key Business Benefits• Deep functionality and high

usability reduce the need forexpensive customization andlengthy end user training

• Flexible pricing options and fixed-price implementationpackages enable on-time and on-budget deployments

• Modularized packaging allowscustomers to deploy the exactfunctionality they need todaywhile preserving the ability toexpand the application as theirCRM requirements evolve

• Seamless migration to Siebelenterprise applications issupported, ensuring thatcustomers will never outgrowtheir Siebel solution

• Deployment in conjunction withSiebel CRM OnDemand allowscustomers to enjoy the benefits of both on premise and hostedapplications

• Powerful integration andconfiguration tools allow seamlessintegration with existing businessprocesses and IT systems

Product Capabilities• Opportunity management • Forecasting• Incentive compensation

management• Events management• Quote and order management• Support for Target Account

Selling sales methodology• Service request management• Contract management• Computer telephony integration• Closed-loop service request

management • Closed-loop marketing• Asset management• Integration with Dun and

Bradstreet business analysis tools• Expense reporting• Support for handheld and

wireless• Proposal and presentation

management

Select Siebel Customers

Advertising.com, Inc.EMI Industries, Inc.Lumenos, Inc.Plumtree Software, Inc.Tipper Tie

EMI Industries has cut 10 to 20% off the timetaken to complete a custom project

www.siebel.com/professional

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64 Siebel Systems, Inc. 2003 Annual Report

Incentive Compensation Management

Driving Superior Financial Performancethrough Effective Incentive CompensationManagementTo thrive in today’s ultra-competitive business climate,companies must review and update their corporatestrategies on a regular basis. When revising businessplans, it is imperative that companies also update theirincentive compensation plans—these plans are among themost powerful vehicles for driving employee and partnerbehavior. Siebel Incentive Compensation Managementenables companies to change their compensation plans on a dime and keep their plans synchronized with corporatestrategy. By ensuring that employee and partner behavioris focused on the appropriate objectives, Siebel IncentiveCompensation Management empowers organizations togrow revenue, increase profits, and improve employee andpartner performance.

Simplifying Compensation Management at Acme BrickAcme Brick, a Berkshire Hathaway company, manufactures more than 1.1 billion bricks per year and operates 32 plants, 11 tile distributionwarehouses, and 44 sales offices throughout the south central UnitedStates. Seeking to eliminate redundancy across various enterprisesystems, Acme Brick decided to implement Siebel IncentiveCompensation Management to create an enterprise-wide platform formanaging sales compensation. Working closely with Siebel ProfessionalServices, Acme completed its implementation of Siebel IncentiveCompensation Management in less than 100 days, resulting in a rapidreturn on investment.

“Siebel enables our nontechnical people to handle plan administration,report creation, and performance analysis associated with more than75,000 transactions per month. With Siebel Incentive CompensationManagement, Acme can quickly and accurately calculate commissionsin concert with our new JD Edwards financial modules and existing SAPpayroll systems. This greatly simplifies our compensation processeswhile eliminating redundancy across systems.”

Judy Hunter, Chief Financial Officer, Acme Brick Company

Key Business Benefits• Aligns employee and partner

behavior with corporate objectives• Reduces the amount of time

salespeople spend double-checking their compensation

• Provides timely feedback to payees and management

• Decreases channel conflict• Frees compensation analysts

to analyze compensationeffectiveness versus scrambling to make payroll

• Improves financial performanceby driving the right behavior

• Replaces and consolidatesredundant systems

• Eliminates financial surprises by enabling organizations toproject the cost of compensation

• Reduces compensationcalculation error rates

• Streamlines the quota andterritory setting process

• Allows organizations to makefrequent updates to incentivecompensation programs

• Empowers organizations toprocess incentive compensationmore frequently

Product Capabilities• Flexible compensation plan

administration• Web-based reporting• Role-based dashboards• Dispute resolution• Incentive compensation modeling• Manual adjustments• Detailed audit trails

and traceability• Multicurrency support• Complex organizational

and product hierarchies• Easy-to-use formulas• Extensible data model• Scalable processing• 100% J2EE architecture

Select Siebel Customers

Acme Brick CompanyAustralian Finance Group Ltd.Blue Cross and Blue Shield of Florida, Inc.

Deutsche Telekom AGGroup 1 Software, Inc.National City BankNorthwestern Mutual Life Insurance Company

Reuters LimitedWRQ, Inc.

Acme Brick simplified itscompensation processesand eliminated redundancyacross systems

www.siebel.com

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65 Siebel Systems, Inc. 2003 Annual Report

Analytics

The Need for a New Class of EnterpriseBusiness Intelligence SolutionsCompanies have made significant investments in coreoperational systems such as enterprise resource planning(ERP), finance, supply chain, and customer relationshipmanagement systems. Many have also invested in datawarehousing and various business intelligence (BI) tools.While these systems have yielded significant benefits primarilythrough increased efficiency and automation and providedthe necessary data infrastructure, the challenge now is todeliver new levels of value and insight from the data capturedin these systems. For this reason, business intelligencesolutions are becoming increasingly mission-critical.

Incentive Com

pensation Managem

ent/Analytics

Business Intelligence Is Consistently Ranked as a Top Spending Priority for Organizations

Citigroup Smith Barney CIO Survey—September 2003

Applications Category % of CIOs Indicating Priority

ETL/Data Warehousing/BI 28.7%

CRM 14.7%

Business Application Management 14.0%

ERP 14.0%

Portals 14.0%

SCM 10.7%

Prudential CIO Survey—March 2004

Applications Category % of CIOs Indicating Priority

Financial 30.7%

Business Intelligence 24.0%

Sales Force Automation 22.7%

Employee Self-Service 21.3%

Supplier Management 18.7%

Human Resources 17.3%

Supply Chain Planning 17.3%

Call Center 16.0%

Supply Chain Execution 16.0%

Portals 13.3%

Marketing Automation 13.3%

Strategic Sourcing/Procurement 13.3%

Other 8.0%

Merrill Lynch CIO Survey—January 2004

Software Category % of CIOs Indicating Priority

Security 46%

BI/Data Warehousing 38%

Corporate Portals 32%

CRM 30%

Analytic Applications 26%

Storage 26%

Document/Content Management 26%

Application Integration 24%

Network Management 24%

Database 22%

ERP 20%

Custom Development 20%

PLM 14%

Supply Chain 12%

Systems Management 8%

Application Performance Management 8%

Electronic Medical Records 2%

E-Business Applications 2%

Sources: Citigroup—September 2003 CIO Macro Trends Survey—Software (Priority Projects, Next Six Months); Prudential Equity Research, Apps & Enterprise Software: Proprietary CIOSurvey—Software Spending Expectations for 2004 Show Improvement, March 9, 2004 (2004 Applications Software Priorities); Merrill Lynch—CIO Survey Results—January 2004Software Spending Survey (Top 2004 Spending Priorities).

Key Drivers for Enterprise BI Solutions•Rapid growth in data volumes, spread across manysources and systems

•The need to deliver new levels of insight and value from existing IT investments

•Demand to empower much larger audiences of users with customer and business insight

•Demand for insight that is more timely and actionable and that is delivered in context of everyday business processes

•Increasingly mission-critical nature of businessintelligence solutions

www.siebel.com/analytics

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66 Siebel Systems, Inc. 2003 Annual Report

Analytics continued

Market Needs Are Expanding Far Beyond Traditional Query and Reporting

What should I do right nowat the momentof contact?

What is mybest opportunity?What should I do next?

Here are your reports.

I can exploremy data.

How am I doing vs. goals?

PerformanceManagement

Query andOLAP

TransactionReporting

IntelligentInteraction

Insight-DrivenAction

Siebel Analytics

Legacy BI Tools

Rel

ativ

e Val

ue

Generational Step

Achieving New Levels of Business Insightwith Siebel AnalyticsTo compete effectively in today’s marketplace, companiesrequire business intelligence solutions that deliver morethan reporting and ad hoc analysis. Today, organizationsare looking to empower every member of the organizationwith relevant and up-to-the-moment customer and businessinsight. Insight into historical and emerging trends. Deepinsight about customer behaviors. Predictions about mostlikely future outcomes.

Ultimately, the real need is to deliver the right insight, to theright person, at exactly the moment in time when it is needed,proactively alerting and guiding each user to take the bestpossible next step or action—even enabling intelligentinteractions with customers in real time. Traditional BI toolswere not designed to meet these new demands. A newclass of enterprise BI solutions is needed. Siebel Analyticsis capable of delivering on these emerging needs.

With Siebel Analytics, every employee is empowered with the critical insightnecessary to:

• Make the best possible decisions

• Take action based on facts rather than intuition

• Respond intelligently to changingconditions with customers, suppliers, and business partners

Siebel Analytics enables organizations tobecome truly insight-driven.

Siebel Analytics delivers all of these capabilities on one integrated enterprise BI platform.

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67 Siebel Systems, Inc. 2003 Annual Report

Siebel Analytics transforms data from across the enterprise into actionable intelligence for every user.

Analytics continued

Enterprise DataSiebel Data

Enterprise DW

Department Data Marts

Siebel Siebel RMW ERP SCM Financial HR

Siebel Enterprise Analytics Platform• Complete and comprehensive intelligence across enterprise sources

• Unsurpassed ease of use and interactivity

• Intelligence dashboards, ad hoc query, predictive analytics, proactive personalized alerts, and guided analytics

• Native high-performance access to all major RDBMS platforms and support for multidimensional data sources

• Unrivaled scalability, reliability, performance, and cost of ownership

Siebel Enterprise Analytics Platform

Prebuilt Customer Analytic Applications

Executives Managers Front-Line Users Partners

Sales Analytics

Service Analytics

Marketing Analytics

Partner Analytics

Product and Pricing Analytics

Order Analytics

Executive Analytics

Interactive Dashboards

Ad Hoc Analytics

Predictive Analytics

Proactive Alerts

Siebel Customer Analytic Applications• Prebuilt analytic applications for customer and enterprise insight

• Customer-driven, enterprise-wide

• Industry-specific and role-based, incorporating best practices

• Fast time to value, low risk, and low TCO

• Seamless integration with Siebel CRM solutions provides closed information loop

The Siebel Analytics Offering

The Siebel Analytics Offering—CompleteCustomer Analytic Applications andPowerful Enterprise BI PlatformSiebel Customer Analytic Applications are complete, prebuiltanalytic applications that deliver insight from and areseamlessly integrated with Siebel CRM applications. These solutions are built on a next-generation BI platformthat enables organizations to easily extend the applicationsto leverage customer and business information storedacross enterprise data sources, in addition to data in theirSiebel CRM applications.

For broader BI needs, the Siebel Enterprise Analytics Platformis a line of BI platform products that can be selected todevelop custom analytic solutions leveraging any existingcorporate data sources. Many customers are expandingtheir use of Siebel Analytics well beyond customer analyticsto address a broad set of enterprise BI needs.

Three out of four customers license theEnterprise Edition of Siebel Analytics, theversion that enables users to access andanalyze data stored across the enterprise inaddition to data in their Siebel applications.

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68 Siebel Systems, Inc. 2003 Annual Report

Analytics continued

Siebel Customer Analytic Applications solve a wide range of business problems and are tailored to meet the needs of more than 20 industries.

Siebel Customer Analytic Applications

Sales Analytics

Service Analytics

Marketing Analytics

Partner Analytics

Product, Pricing, Order Analytics

Executive Analytics

Automotive Comms and Media

Complex Manufacturing

Consumer Goods

Energy Finance High Technology

Insurance and Healthcare

Life Sciences

PublicSector

Travel and Transportation

Pipeline Analysis

Triangulated Forecasting

Sales Team Effectiveness

Up-Sell/ Cross-Sell

Discounting Analysis

Lead Conversion

MORE…

Churn Propensity

Customer Satisfaction

Resolution Rates

Service Rep Effectiveness

Service Cost Analysis

Service Trends

MORE…

Campaign Scorecard

Response Rates

Customer Lifetime Value

Product Propensity

Market Basket Analysis

Loyalty and Attrition

MORE…

Channel Lead Conversion

Channel Pipeline Forecasting

Partner Sales Performance

Partner Portal Analytics

Partner Service Trends

Partner Campaign ROI

MORE…

Product Sales Trends

Product Mix

Pricing Analysis

Product Bundling

Average Selling Price

Product Profitability

MORE…

Business Performance

Sales Performance

Marketing Results

Service Effectiveness

Product Trends

Competitive Trends

MORE…

Siebel Customer Analytic ApplicationsBuilding lasting, high-value relationships with customers is critical for business success. Improving an organization’sability to acquire more of the right kind of customers, tobetter serve and retain them, and to maximize their valuewill result in significant bottom-line benefits and has thepotential to create lasting competitive advantage. Realizingthis potential, however, requires expanding the focusbeyond improved efficiencies in customer-facing processesto applying advanced business intelligence and analytics.

Siebel Customer Analytic Applications were designed toaddress these needs, transforming customer and enterprisedata into insights to drive customer interactions andemployee actions. The applications solve a wide range ofbusiness problems, are tailored to meet the analytic needsof more than 20 different industries, and reflect built-inknowledge of industry-specific processes and best practices.These applications can be deployed rapidly at lower totalcost of ownership and deployment risk.

In May 2003, IDC recognized Siebel Systemsas the market share leader in customeranalytic applications, which is forecasted to be the fastest-growing segment of theanalytic applications and businessintelligence market.

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69 Siebel Systems, Inc. 2003 Annual Report

Analytics continued

Select Siebel Analytics Customers

Industry Customer

Aerospace and Industrial The Boeing CompanyCaterpillar, Inc.Honeywell AerospaceRaytheon Aircraft Company

Automotive DaimlerChrysler AGFord Motor Company, Inc.Mitsubishi Motors Corporation

North AmericaNissan North America, Inc.

Communications BTMCI Worldcom International LimitedTelecom Italia S.p.A.Telstra Corporation Limited

Consumer Goods Bayer Consumer CareThe Gillette CompanyHershey Foods CorporationH.J. Heinz Company

Financial Services AbbeyKeyBank National AssociationNykredit A/SRoyal Bank of Canada

High Technology Cisco Systems, Inc.Fujitsu Siemens Computers GmbHHPIBM Corporation

Insurance and Healthcare AXA FinancialBlue Cross and Blue Shield

of Florida, Inc.CC Services Inc.United Healthcare Services, Inc.

Life Sciences Eli Lilly and CompanyPfizer BVPhillips Medical SystemsWyeth

Media and Energy DIRECTV Operations, Inc.EDF Energy PlcReuters LimitedWarner Home Video

Public Sector Citizenship and Immigration Canada

La PosteLeeds City CouncilNew York City 311South African Revenue Service

Travel and Transportation Burlington Northern Sante Fe Corporation

CSX Technology, Inc.Sabre Inc.Union Pacific Railroad Company

Other Akzo Nobel Catalysts BVJostens, Inc.Linkshare Corporation

Improving Safety and OrganizationalResponsiveness at Union PacificUsing the Siebel Enterprise Analytics Platform, Union Pacific Railroad hasdeveloped more than 100 analytic applications to empower employeesto track maintenance personnel with up-to-the-second, personalizedinformation they need to maximize effectiveness.

“Siebel Analytics provides a unique combination of true end user ease with powerful analytic capabilities and best-in-class scalability.These unique capabilities have enabled us to provide actionable, timelyinformation to more than 4,000 users—in a very complex, data-intensiveenvironment. As a result, we are delivering significant business valuewith an exceptionally low TCO.”

James Holder, Director of Engineering Systems, Union Pacific Railroad

Enhancing Pipeline Visibility and Marketing Effectiveness at BTBT is using Siebel Analytics to extend its sales performance and increaseits marketing effectiveness, providing access to billions of dollars ofopportunity pipeline data, improving forecast accuracy, and increasing the effectiveness of marketing programs.

“Siebel Analytics enables BT Major Business to move from disparateand complex sales reporting, whereby individual teams were manuallycompiling disconnected reports, to a standard, consolidated approach to business intelligence. Siebel Analytics provides executives withdeeper insight into business performance and the needs and wants ofour customers. The rich out-of-the-box functionality provides unrivaledmanagement dashboards, together with comprehensive drill-down sales,marketing, and service reporting.”

Steve Dickson, Operations Manager, BT Retail Major Business

Siebel Analytics—Key Milestones in 2003•Recognized by IDC as the market leader in customeranalytic applications and fastest-growing major vendor in the entire BI and analytics marketplace

•Delivered Siebel 7.5.3 and Siebel 7.7 Customer AnalyticApplications, significantly enhancing our market-leadinganalytic applications

•Introduced new intelligent customer interactioncapabilities with Siebel Analytics 7.7

•Delivered Siebel Enterprise Analytic Platform 7.7, a major new release of the enterprise BI platform

•Formed Global Strategic Alliance with IBM focused on customer analytics and enterprise business intelligence

•Added more than 150 new Siebel Analytics customers,expanding the Siebel Analytics total customer base tomore than 350

•Awarded CMP Media’s Intelligent Enterprise ReadersChoice Award for Best Customer Intelligence, Interaction,and Relationship Management Software

•Achieved solid double-digit revenue growth in 2003, which management believes positions Siebel among thefastest-growing companies in the analytics and businessintelligence market

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73 Siebel Systems, Inc. 2003 Annual Report

Achieving a Single View of the Taxpayer“UAN enabled us to integrate 12 separate, independent systemsin four weeks and reduced ourintegration implementation timeframes by 40 to 50%.”

Ken Jarvis, CIO, South AfricanRevenue Service

South African Revenue Service(SARS) provides tax collectionservices for the South Africangovernment. Employing 15,000people, SARS collects more than $30 billion in revenue from multipletax products, including earnedincome, corporation, value added(VAT), and import/export taxes.

Currently, taxpayer information is kept in a variety of different IT systems, making it difficult to perform effective debtequalization—the offset of tax creditsand refunds against taxes payable—and to detect suspicious activityand tax noncompliance. Accordingto Andre van der Post, who managesIT strategy and architecture atSARS, this fragmented viewneeded urgent resolution.

“We were using 12 separate,independent systems to manageindividual and corporate tax and customs affairs,” he says.“Organizations would be separatelyregistered for income tax, VAT, pay-as-you-earn (PAYE), and employeeinsurance, and companies often hadmultiple subsidiaries. One companyhad 196 different points of taxregistration! It could take a memberof the Revenue Service staff up tofour weeks to consolidate the taxsituation of a major South Africancorporation, simply because weneeded to drill down through somany different systems and screens.”

Easy Access to Taxpayers’ Full Taxation Status To address these challenges, SARSenvisioned “Single View,” a systemenabling its call center agents, taxadvisors, and case workers to easilyaccess the full taxation status ofcitizens and corporations in onelocation. To realize Single View,SARS selected Universal ApplicationNetwork (UAN)—a standards-basedapplication integration solution.“We chose UAN because it offeredus a prepackaged solution forsolving our most pressing businessprocess integration issues,” saysvan der Post.

Integration in Four WeeksPhase One of Single View, involvingthe real-time integration of incometax, VAT, PAYE, and employeeinsurance, was completed in fourweeks. Two hundred tax advisorsand case managers can now accessa single, unified view of individualand corporate tax information,including taxpayer profile, completetax history, record of payment, andall outstanding tax inquiries. PhaseTwo of the program, which is still inprogress, involves integrating othertax systems; adding functionality tothe main tax products of Phase One;and providing 5,800 tax workerswith a single, comprehensive viewof the taxpayer.

“UAN enabled us to integrate 12 separate, independent systemsin four weeks and reduced ourintegration implementation timeframes by 40 to 50%,” says KenJarvis, CIO, South African RevenueService. “UAN enabled SARS toovercome the cost, complexity, and time involved in traditionalpoint-to-point integration.”

Single View increases tax liabilityaccuracy; reduces data entry errors;and provides faster, more accurateresponses to tax inquiries andcorrespondence. Creating a fullpicture of a company’s tax situationnow takes 30 seconds, rather thanup to three weeks.

Saves Millions Every Month“Using Single View to create a unified view across 12 differenttax systems has the potential ofsaving the Service almost $3 millioneach day—which is equivalent toapproximately $90 million everymonth,” says Jarvis. “This meanswe have received a complete returnon our investment in just a few days.When we are asked about howsoon we expect to receive a returnon investment, we usually quote a couple of months, simply becauseso few people would believe a return on investment could beachieved in days! But it’s true.”

Siebel B

usiness Integration Applications

“UAN enabled us to integrate12 separate, independentsystems in four weeks…andis saving the South AfricanRevenue Service almost $3 million each day.”Andre van der Post, Manager, Innovation, South African Revenue Service

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75 Siebel Systems, Inc. 2003 Annual Report

Siebel Universal Customer Master

UA

N and S

iebel Business Integration A

pplications/Siebel U

niversal Custom

er Master

Select Siebel Customers

Autodesk, Inc.Bank of MontrealENI SpaInterpolis N.V.MCINTT GroupPutnam Investments, Inc.

Key Business Benefits

Cross-Sell • Improved data integrityEnhancements • Better analysis of product adoption by customer

Improved • Effective customer segmentationCustomer • Better detection of “at risk” customersRetention • Better customer service

Sales • Better alignment of product and pricing withEffectiveness customer needsEnhancement • Improved coordination of sales efforts

Productivity • Reduced time for data capture, data entry,Improvement and data maintenance

• Better focus on high-value activities

Customer • Better focus on high-value customersSegmentation • Better tailoring of products, services, and pricing

Improved • Better targeted marketing campaignsMarketing • Reduced administration overheadEffectiveness

Solving the Fragmented Customer Data Problem

In a typical large company, customerinformation can be fragmented andduplicated across business units andcommunication channels (such as email,phone, and the Internet), resulting in anincomplete and possibly inaccurate view of the customer. Siebel Universal CustomerMaster (UCM) is an application that providesorganizations with a single authoritativesource of customer information.

Large Diversified Financial Institution$57 Million Annual Projected Savings*

Through a series of mergers and acquisitions, a regional bank recentlyachieved nationwide presence, becoming a large diversified financialinstitution. Faced with disparate customer records from five separate lines of business, it wanted to unify its customer information to ensure a high standard of customer service and data integrity throughout all of its interactions.

Other Siebel Master Data SolutionsIn addition to Siebel Universal Customer Master, Siebel provides the following master data solutions:

• Universal Product Master

• Universal Sales Master

• Universal Service Master

• Universal Field Service Master

• Universal Marketing Master

$60

$50

$40

$30

$20

$10

$0 Projected Savings and Business Benefits

*Siebel-estimated savings based on the financial institution implementing Siebel Universal Customer Master.

Total $57M

Ann

ual S

avin

gs (

in m

illio

ns)

Dis

trib

ute Unify

Rationalize

SiebelUCM

CRMERP

Custom

Legacy

SCMOSS

Partner

PLM

BI

Siebel Universal Customer Master Capabilities

In order to effectively manage the enterprise information life cycle,Siebel UCM performs the following master operations:

Unifies customer master data across the enterpriseRationalizes information to create unique,complete, and correct customer profilesDistributes the customer profiles back toother business applications and systems

Customer Segmentation

Productivity Improvement

Sales Effectiveness Enhancement

Improved Customer Retention

Cross-Sell Enhancements

Improved Marketing Effectiveness

www.siebel.com/ucm

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BusinessLogic

DataModel

BusinessLogic

DataModel

Common Architecture

SeamlessData Sharing

SeamlessData Sharing

SiebelCRM OnDemand

UI

Siebel Enterprise Applications

UI

Seamless Data Sharing from Siebel CRM OnDemand to Siebel Enterprise Applications

76 Siebel Systems, Inc. 2003 Annual Report

Siebel CRM OnDemand

Prebuilt IntegrationSiebel CRM OnDemand enables companies to quickly and easily create integrated solutions that allow key sales,marketing, and service data to be shared between SiebelCRM OnDemand and other systems across the organization.Siebel CRM OnDemand supports integration in two ways:

• First, Siebel CRM OnDemand provides prebuilt integrationto Siebel enterprise applications, allowing companies to achieve seamless integration between Siebel CRMOnDemand and Siebel enterprise applications rapidlyand cost-effectively

• Second, Siebel CRM OnDemand provides open interfacesand APIs based on the XML/SOAP Web Services standardsto support easy integration with third-party systems

For ten years, Siebel Systems has raised the bar on CRM.Now, we’re lowering the hurdles.

Siebel CRM OnDemand—an innovativecustomer relationship management solutionfor unifying, tracking, and managing customerinformation and processes across sales,marketing, and customer service, served up on demand by IBM e-business Hosting™

It’s CRM made simple.

It’s CRM made fast.

It’s CRM made smart.

Fast ResultsWith Siebel CRM OnDemand, companies can be up andrunning in no time—sharing critical sales information,automatically routing leads, and providing exceptionalsupport to their customers. Plus, with robust scalabilityfrom IBM e-business Hosting, Siebel CRM OnDemandcustomers can easily add users at any time.

Pay as You GoWith Siebel CRM OnDemand, companies pay just $70 perperson per month. There’s no software to install. No hardwareto buy. No maintenance, upgrade, or support costs. Together,Siebel and IBM e-business Hosting deliver best-in-classCRM at the lowest total cost of ownership.

Industry-Leading Sales, Marketing, and Service CapabilitiesWith more than ten years of CRM experience, Siebel Systemshas unrivaled domain expertise in enabling organizationsto identify, acquire, serve, and retain profitable customers.Embedded directly in Siebel CRM OnDemand are bestpractices that drive the entire customer life cycle, from the first marketing contact through each stage of the salescycle to ongoing customer service and support.

Real-Time Insight with Interactive AnalyticsWith powerful built-in analytic capabilities, Siebel CRMOnDemand provides deep real-time insight into a company’soperations. Insight that unlocks the value hidden in customerdata. Insight that enables companies to act quickly to identifyand capitalize on new opportunities. Insight that helpsmanagement understand the “why”—not just the “what”—when analyzing business performance.

Growing Revenues and Profitability at GalileoGalileo, one of the world’s leading providers of electronic global distributionservices (GDS), selected Siebel CRM OnDemand to transform sales,marketing, and service effectiveness and grow revenues and profitability.Hosted by BT, the solution will be used by more than 300 Galileo sales,marketing, and service professionals in ten countries across Europe,Asia, and Australasia to effectively manage every stage of the salescycle, from contact and opportunity management to sales forecastingand ongoing account management. They will use the best-practiceanalytics capabilities built into Siebel CRM OnDemand to analyzecustomer information, increase sales efficiency, and, most importantly,improve the customer experience, thereby maximizing revenues.

“Siebel CRM OnDemand provides Galileo with an online, cost-effectivegateway to greater customer intimacy. By adopting this ‘pay-as-you-go’BT-hosted model, Galileo is minimizing risk and overcoming the costbarriers often associated with CRM. Together, Siebel and BT willautomate our sales, service, and marketing processes, empoweringGalileo staff worldwide to concentrate on their key responsibility—the customer. We estimate that the Siebel solution will enable us toincrease our prospect conversion by 20% in 12 months and driveincreased return on investment for all our marketing activities.”

Elizabeth Harraway, Vice President, Marketing EMEA, Asia & Australasia, Galileo

www.crmondemand.com

.

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77 Siebel Systems, Inc. 2003 Annual Report

Siebel Contact OnDemand

Siebel C

RM

OnD

emand/S

iebel Contact

OnD

emand

“Hosted CRM is now a significant componentof enterprise CRM strategy going forward.”Sheryl Kingstone, Yankee Group

“Organizations currently pursuing selectionprojects for hosted applications that alreadyhave Siebel in place should put Siebel CRMOnDemand at the top of the list.”Laura Preslan, The AMR Research Alert, October 2, 2003

Today’s activities.How the quarter is shaping up.

Hot new leads.

Increasing Revenue and CustomerSatisfaction at The World’s Finest ResortsThe World’s Finest Resorts, the world’s leading provider of luxury vacationproperty trading and travel benefit services, needed a robust CRM solutionto help the company improve customer satisfaction and enhance saleseffectiveness across its far-flung network of offices. With Siebel CRMOnDemand, The World’s Finest Resorts can quickly respond to customerrequests, offer targeted vacation packages that fit customer desires, andensure that it is exceeding customer expectations for world-class service.

“Simply put, Siebel CRM OnDemand allows me to manage my businessmore effectively. It helps me close deals faster, improve communicationand customer satisfaction, and significantly increase revenues.”

Chris Abbott, Chief Operating Officer and Principal, The World’s Finest Resorts

Siebel Contact OnDemand Extends “CRM for Everyone” StrategySiebel Contact OnDemand is an affordable, hosted contactcenter service that eliminates the need for costly hardwareand software, delivering all of the capabilities of a traditionalcontact center in a robust, hosted solution. Siebel ContactOnDemand delivers hosted voice, voicemail, email, Webself-help, and chat capabilities as a simple, affordablemonthly service, whether a company is a small or medium-sized business or a division of a large company.

Benefits of Siebel Contact OnDemandCompletely HostedEliminates need for costly premise-based call centerequipment. Telephone, PC, and Internet connection are the only tools needed.

Low CostAffordable per-user pricing plans with built-incustomization tools.

Deployed QuicklyWorld-class contact center functionality in weeks—not months.

ScalableEasily add agents based on customer volume during peak periods.

Single VendorPrebuilt integration with Siebel CRM OnDemand allowscomplete view of customer interactions.

“Siebel’s addition of Contact OnDemand isan important milestone in the marketplace.”Denis Pombriant, Managing Principal, Beagle Research Group

AccentureBoise Cascade CorporationBroadVision, Inc.eTelecareGalileoGeneral OrthodonticHaworthHPJones Lang La SalleKodakThe World’s Finest ResortsXerox Corporation

Select Siebel OnDemand Customers

www.crmondemand.com

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