Topic > Siebel Systems - 1135

Siebel would like to successfully conclude the sale of its SFA system to Q&R/FleetBoston since the sales figures for the quarter are largely dependent on this sale to Q&R. To achieve this goal it must convince the company's board of directors of the superiority of its products over its closest competitors. Additionally, Siebel would like to gain FleetBoston's trust in its products. While much of the deal has already been done by representatives and department heads at Q&R, it is essential to convince new FleetBoston buyers of the feasibility of using Siebel Systems over their existing Scopus product. Currently Siebel also needs to sustain their competitive advantage over prevailing competitors. They can do this by convincing Q&R and FleetBoston of the superiority of their SFA system over the existing Oracle system. This could be done via demonstration, eliminating the need for an integrator and resulting in a huge financial transaction for Siebel Systems. Additionally, as they transition to the new software, Siebel would like to discourage the use of the old Scopus system. While FleetBoston could very well use the existing Scopus system with the help of integration, it is to Siebel's advantage both financially and legally that the new Siebel SFA system is used in this case. Problem SetFleetBoston has excess licenses for its older Scopus software, which Siebel now owns the rights to. FleetBoston does a significant amount of business ("$30 million in cross-selling in play... over the next two years") with Siebel and should not be overlooked by losing its investment in these licenses. Currently they could push Scopus into a reluctant Q&R and "get the job done" while saving a lot of money. Since Q&R was just acquired by another company, it would be difficult for those at Siebel to break through FleetBoston's upper ranks and change their minds about the new distribution without taking additional time. The people with whom Mr. Carman had developed contacts and relationships have now significantly diminished in importance within the new company, which complicates the future direction of the sales push. With the acquisition of Q&R came new policies and management. One of the factors that hindered the transaction's progress was the six months of paperwork required to complete it. If the same project were to proceed within FleetBoston, Siebel could face significant delays that could allow its competitors (namely Oracle) to catch up..