TCO Comparison Analysis Salesforce'com vs' Siebel Onpremise vs' Siebel Ondemand

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TCO Comparison AnalysisSalesforce.com vs. Siebel
On-premise vs. Siebel On-demand

• CRM Program Manager
• Nations Largest Health Management Organization

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Agenda

• Company overview
• Business problems
• Planned solution
• Priority requirements
• TCO analysis
• Siebel On-premise
• Siebel On-demand
• Salesforce.com
• Lessons learned

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Company Overview A Confederation of Feudal States

• Massive organization
• 8.2 Million subscribers
• 1000 internal sales reps
• Distributed Model
• Separately managed divisions in 9 states
  Washington D.C.
• Diverse selling audience large commercial
  accounts, trade unions, brokers
• National accounts subject to federal AND state
  regulations
• Disparate systems
• Access, Excel, ACT!, Goldmine, Onyx, homegrown
  systems, index cards
• Databases included Oracle, Microsoft and IBM DB2
• Platforms spanned Java, .NET and IBM Websphere

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Business Problems No Unified Processes

• Cross-functional management lacked national
  oversight of critical data
• Invoices due, division-level discounts, contract
  negotiation history
• 3-month wait to generate basic business reports

• Sales executives lacked insight into sales
  activities
• Thousands of new leads generated weekly - no
  visibility of conversion rates
• No understanding of reasons for deal loss
• Unable to set strategic business goals - "We are
  working on X volume of leads to pull in Z
  dollars"
• Inability to hold reps accountable for poor
  performance

• Sales reps had no understanding of key contacts
  or their engagement history
• 6 sales reps would pursue a single customer

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Solution Planning A Nationwide CRM System

• Considered multiple vendors
• Salesforce.com
• Siebel On-premise
• Siebel On-demand
• Onyx (eliminated due to lack of required
  features)
• PeopleSoft (distracted by merger, lacked
  resources)
• Gathered prioritized business requirements
• Conducted TCO analysis to make the right decision

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Requirements Gathering Make it work the way we
sell
Ensure Support for a Relationship Selling Model

• Provide historical data for long sales cycles
• Push customer intelligence into standard SFA
  screens
• Competitive positioning
• Population data
• Integrate with critical backend systems
• Leverage Web Services as interface to Mainframe
  databases
• Take a phased approach
• Track 1 Roll-out to Strategic Accounts team,
  basic integration
• Track 2 integration to Common Members database
• Track 3 ramp up users to 825, Partner Portal for
  broker access

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• TCO Analysis

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Siebel On-premise TCO
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Siebel On-demand TCO
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Salesforce.com TCO
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TCO Summary
8.7M
3.1M
1.2M
Siebel On-premise
Siebel On-demand
Salesforce.com

• Primary cost contributors
• Siebel On-premise
• 3 separate environments, customization
  integration, PC upgrades
• Siebel On-demand
• 6 month investment in customization
  configuration, solution failure

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Lessons Learned

• Extend your requirements gathering beyond Sales
• Take the time to do the math
• Do not underestimate the time expense required
  to make the solution adapt to your business needs
• Discourage rogue deployments