The Value Driven Approach of the Next Generation

The Value Driven Approach of the Next Generation CRM Siebel Systems, Inc.

Agenda § Driving Factors § Value Driven Approach of the Next Generation CRM § Siebel’s Offering

Number of integrated Business Processes CRM Wave - late 90’s into Post 9/11/2001 Late 90’is Global Initiatives Country Wide Initiatives Local Initiatives 9/11 Complexity of Customization & Integration

Product-Focused Divisions Division A Division B Division C

Need to Support Multiple Channels Customer Division A Division B Division C

Inconsistent, Inefficient Business Processes Customer Division A Division B Division C

Lack of Employee Alignment Customer Division A Division B Division C

Applications Not Integrated Customer Division A Division B Division C Legacy ERP Legacy Custom HR ERP CIF Custom SAP ERP OSS SCM CIF Custom

Common Vision: “One Company” Focused on the Customer Multichannel Sales, Mktg, Service & Partner Best Practices Business Intelligence and Analytics Employee Alignment Division A Division B Division C Process and Data Integration HR ERP SCM Order Mgmt UCM Service Custom Legacy

Industry Solution Sets Bundle All Siebel Offerings Industry Solution Sets Auto Sales Comm Chem Consumer Marketing High Tech Fins Life Oil and Sciences Gas Service Orders Process-based CRM applications Public Travel Sector & Trans Intelligent Analytics apps Partners Analytics Employee productivity & performance apps ERM Business Integration apps Universal Application Network HR SAP ERP CIF OSS SCM Custom Legacy

Strategic Imperatives for the Industry Optimize Partner Channels Deliver World-Class Service Reduce Labor Costs Understand Customers Customer Grow High Margin Businesses Streamline the Buying Experience

High Tech Solution Sets Enable the Customer-Driven Company • Collaborative planning, mktg, sales & service • Programmatic channel operations • Knowledge-driven service • Entitlements-based service and support • Multidimensional segmentation Partner Network Optimization Service Life Cycle Mgmt. • Multi-functional Help desks • Customer-driven quality management • Integrated “Market to Sell” Intelligence- Processes (Campaign > Lead > Oppty > Quote > Order ) Driven Marketing Complex Selling Customer Employee Productivity • Streamlined sales management and operations • Methodology-based execution Customer Order Mgmt. • Intelligent “asset-based” quoting • Integrated Quote > Order > Contract > Entitlements

Strategic Imperative: Streamline the Buying Experience Customer Order Mgmt. leverages customer information to streamline quote-to-contract, reducing transaction costs and improving the customer buying experience. Key Solution Components § Pricing, packaging and order analysis § Guided product recommendations § Complex configuration and pricing § Asset-based quote-to-contract Customer § Simplified self-service. Order purchasing Mgmt. § Collaborative order management § Pre-built integration to back office systems

Typical Quote-to-Contract Process § Significant sales effort to quote customized solutions Customer Inquiry (800) #, sales call Sales Rep Develops Quote Manual quote system Customer Feedback on Quote Discussion w/ Sales Rep 10 - 30 days § Multiple handoffs (sales quote, mfg order, legal contract) result in slow transaction cycle § Buyers frustrated by complexity and delays Create Contract Manual Process Customer Accepts Quote Discussion w/ Sales Rep Create Manufacturing Order from Quote Manual Process Refine Quote to Meet Mfg Constraints Discussion w/ Sales Rep

Siebel High Tech Solution for Customer Order Management Asset-Based Quoteto-Contract Process § Intelligent quotes offer comprehensive, customized solution § “Easier to buy from” becomes a competitive advantage § Increased order efficiency & velocity Customer inquiry; customer’s info recognized Customer Portal Configures custom “delta” quote from assets Customer Portal Validate quote, generate order and update contract Customer Portal 1 -3 days Online order tracking Customer Portal Siebel Business Integration Application

Streamlined Asset-based Quote-to-Contract Process Lowers Costs Typical Quote-to. Contract Process Quote-to-Contract Process with Siebel Solution Set Orders per year 100, 000 Processing cost $100 Processing cost $50 Order error rate 15% Order error rate 5% Cost/order to fix $500 Total Cost $17, 500, 000 Total Cost Reduction in Quote-to-Contract Process Cost $7, 500, 000 57%

Order Management Impact at Storage. Tek Operational KPIs Improvement Order Processing Time Decreased by 75% Quote-to-Order Cycle Time Shortened by 17 days Order Management Time Decreased by 40% Time to Generate Proposals Reduced from 40 hours to 5 hours

Order Management Impact at Fujitsu Siemens Operational KPIs Improvement Order Processing Time Decreased by 65% First Level Support Requests 40% handled automatically via system “The faster you implement Siebel, the faster you see ROI benefits, ” Ralf Russ, Director, Front Office Solutions, Fujitsu Siemens Computers

Median ROI Achieved by Siebel High Tech Customers 23% 18% 13% Revenue Increase Employee Productivity Gains Customer Satisfaction Increase 13% Customer Retention Increase Operating Costs Decrease Source: Satmetrix Systems surveys, 2003. Figures represent median values, based on customers who are in production and provided quantitative responses to the survey questions.

Next Steps: Discovery Process You Provide We Engage You Receive § Access to § Business executives § Process owners § Finance team § Analyze existing processes § Develop recommendations for solution § Executive Report on existing business processes § Recommendations on high impact solution sets § Quantified business value of recommendations

CRM Enterprise Global Initiatives CRM Professional Country Wide Initiatives CRM On. Demand Local Initiatives Po st 20 01 Business Processes Siebel Delivers CRM For Everyone Customization and Integration

Flexible Packaging Allows SMBs to Create Custom CRM Bundles § Build the Application You Need § Start with a Sales, Service, Marketing or Call Center base § Choose 6 -8 additional modules at no extra cost § Solution Grows with Business § Purchase additional functionality a la carte § Select from over 50 modules Option 1 Option 2 Customer Choice Option 3 Option 4 Customer Choice Option 5 Option 6 Customer Choice Base Application

Siebel Delivers CRM for Everyone CRM any way users prefer CRM for any size Organization § Hosted CRM § Enterprises § On premise CRM § SMBs § Hybrid Hosted/On Premise § Workgroups CRM for any industry CRM for any type of user § 27 Industry Solutions § Power User § 1000’s of business processes § Casual Users § Universal Application Network § Mobile Users Enabling companies to deliver seamless and superior customer experiences by extending CRM to everyone in their organizations and partner ecosystems

The Value Driven Approach of the Next Generation CRM Siebel Systems, Inc.