The Siebel Observer
August 31, 2004

NEWS

An Interview With Accenture's Saj Usman

Siebel Systems Launches Global Business Process Outsourcing Alliance Program

EDS Joins Siebel Systems' New Global BPO Alliance Program

Brakes Chooses Siebel Systems

Oracle Extends Tender Offer

ATG to Acquire Primus Knowledge Solutions

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Quote

"History has shown that time and market forces often provide equilibrium in balancing interests, whether the new technology be a player piano, a copier, a tape recorder, a video recorder, a personal computer, a karaoke machine, or an MP3 player."

Judge Sidney R. Thomas



Upcoming Events

DCI's CRM Conference and Exhibition
San Francisco, California
August 31 - September 2, 2004

Siebel User Week
Los Angeles, California
October 3 - October 6, 2004



Papers

BUSINESS PROCESS OUTSOURCING (BPO)
Outsourced Communications
2004 Edition - India
Bryan Mekechuk

  An Interview With Accenture's Saj Usman
Saj Usman recently became head of Siebel's Accenture practice. We sat down with him to get an insider's view regarding the transformations taking place within Siebel:

SO: What attracted you to head Accenture's Siebel Practice?

Saj: Siebel is one of Accenture's most strategic alliances, with a major presence globally across many industries, and to be asked to be the leader of our 4,000+ person Siebel Practice is a great honor --- and challenge.

SO: What past experiences will you be able to draw from in your new role?

Saj: I've been working with Siebel almost since they drew up their original business plan, and I've been part of a number of 'firsts' for implementation of products. Over the years, I've architected and/or led engagements in virtually every industry. Accenture and Siebel have truly been CRM pioneers, and it's been great to be a part of that evolution.

SO: Do you think all of the bad news about Siebel Systems is justified?

Saj: For a long time Siebel was one of the fastest growing software companies in the world, with an un-matched vision and offering in the marketplace. But these days they are faced with the realities of a slower market, tighter purse strings, and other established enterprise software providers moving aggressively into the CRM space. These dynamics inevitably bring growing pains and challenges, but Siebel is addressing their organizational and previous customer-facing shortcomings, not only with the recent changes in leadership, but with the culture changes that are clearly starting to come from within. To borrow a phrase, "The reports of Siebel's demise are greatly exaggerated." CRM as a capability area is still in its infancy, and Siebel remains the dominant software provider.

SO: What do you think are the biggest problems facing Siebel Systems?

Saj: I think the increased competition from seasoned enterprise players, and the threats from upstart business models are forcing changes to Siebel's product as well as go-to-market practices. While still the dominant CRM leader, Siebel has to be more nimble in how it reacts to changing market forces - from customer demands to product strategy to teaming with alliance partners.

SO: What do you think the future holds for Siebel Systems?

Saj: CRM as an industry is just starting to hit its stride, and will deliver a tremendous upside to those companies addressing it appropriately with their clients. I expect Siebel to be in - and lead - the race every step of the way. Their new CEO, Mike Lawrie, brings a burst of energy and new thinking to Siebel, so I'm optimistic about their future (otherwise I would not have taken the role!).


Siebel Systems Launches Global BPO Alliance Program
Siebel Systems announced the launch of its Global Business Process Outsourcing (BPO) Alliance Program. This new program expands Siebel Systems' Global Alliance Program to deliver product, maintenance and support offerings that meet the needs of its alliance partners in the BPO marketplace. The addition of the Global BPO Alliance Program enhances Siebel's alliance programs to cover the full spectrum of the more than 750 technology partners that meet the needs of Siebel Systems customers worldwide.

Important program elements include:

BPO-Specific Pricing Models: Siebel Systems designed unique pricing structures that allow partners to map expense and value for a variety of client engagement models. In addition, Siebel now offers various subscription models with flexible term options to help partners meet their revenue needs.

Flexible Inventory Management: Partners have the ability to apply BPO pricing to all product configurations to accommodate the broadest range of user type; from entry level call center personnel to sophisticated business analysts.

Prioritized Support for Partners: Siebel is offering additional marketing and technology support for partners in market segments defined by industry, geography, application, business process and client size.

"Clients realize their greatest return on investment in Siebel's technology when they focus on business outcomes and re-architect key processes to achieve desired business results," said Marty Sunde, Vice President and GM, Alliances, Siebel Systems. "Business Process Outsourcing firms are experiencing unprecedented growth because they are willing to align their business return in proportion to the business value their clients receive. Siebel is endorsing the power of this alignment with our new BPO offerings."

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EDS Joins Siebel Systems' New Global BPO Alliance Program
EDS is the charter partner in Siebel Systems' new Business Process Outsourcing (BPO) Global Strategic Alliance Program. The agreement expands the long-relationship between EDS and Siebel to provide products and service solutions targeted at the Business Process Outsourcing (BPO) and customer relationship management (CRM) marketplace.

EDS and Siebel Systems will integrate Siebel products with EDS services to create industry-specific outsourcing solutions. The companies will jointly sell to clients looking for business process strategy and solutions.

"This alliance capitalizes on years of experience from two technology leaders that are laser-focused on improving customer interactions and satisfaction in the business process outsourcing marketplace," said Marty Sunde, Vice President and GM, Alliances, Siebel Systems. "Combining EDS' process expertise with Siebel Systems' unparalleled breadth and depth of industry knowledge provides customers with unmatched BPO solutions across the globe in every industry."

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Brakes Chooses Siebel Systems
Brakes, a supplier of food service solutions to caterers in the UK and France, has chosen Siebel Consumer Goods to streamline its sales ordering and service inquiry process as well as target customers with tailored catering offerings.

Brakes will implement Siebel Consumer Goods to integrate customer information from all of its operating subsidiaries, providing the company with a single, multi-channel view of each customer. More than 700 telesales agents will be equipped to provide accurate and comprehensive customer service, spanning order taking, delivery status, reorders, and billing queries. Seamless integration with the company's SAP back-office applications will create real-time, end-to-end business process integration-allowing agents to immediately inform customers about stock availability, order status, and "live pricing" product bundling discounts.

" By providing a unified customer view across all touchpoints, Siebel Consumer Goods will help Brakes to identify new sales and marketing opportunities, segment and target potential customers with personalized campaigns, and deliver first-class service," says Nadia Adrien, Project Director, Brakes.

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Oracle Extends Tender Offer
Oracle announced that it has extended its previously announced tender offer for $21.00 for all of the common stock of PeopleSoft to midnight EDT on Friday, September 10, 2004. The tender offer was previously set to expire at midnight EDT on Friday, August 27, 2004. As of the close of business on Thursday, August 26, 2004, approximately 21,690,141 shares had been tendered in and not withdrawn from the offer.

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ATG to Acquire Primus Knowledge Solutions
ATG and Primus Knowledge Solutions announced that ATG will acquire Primus. Under the terms of the all-stock deal, the transaction is valued at approximately $30 million to $33 million, based upon ATG's closing stock price as of August 9, 2004. For the 12-month period ended June 30, 2004, the two companies had combined revenue of more than $90 million. The transaction is expected to close during the fourth quarter of 2004 and be accretive to ATG's forecasted results for the full year 2005.

ATG's online commerce and marketing software combined with Primus' customer service software solutions will create one of the industry's largest online commerce and service software companies. The combination will produce the most complete consumer-facing platform to work seamlessly through Web, email, call center, and other channels.

As part of the transaction, ATG anticipates that it will be adding two members to its board of directors, bringing the total to nine board members. It is anticipated that Michael Brochu and Daniel Regis, chairman of Primus' audit committee, will become members of the board of directors of ATG.

"The combination of ATG's commerce and marketing solutions with Primus' award-winning customer service and support technologies is a powerful and natural fit," said Michael Brochu, chairman, president and CEO of Primus. "This joint offering will provide enterprises with the industry's most integrated customer experience solution to power their e-business initiatives and is a win-win for our customers, shareholders, employees, and partners."

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