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Firstname LastnameInstructors NameCourse Number7 April
2015Getting OrientedIt is quite true that the corporate software
customers look for an integrated suites of the software
applications while Siebel deals with just one application i.e.
customer relations management. Therefore, the CEO Tom Siebel would
need to give up the idea of focusing on one thing only. Siebel
systems would adapt to the needs of its corporate customers and
integrate the software applications which is sought by the
corporations into one system.Identifying the ProblemThe corporate
customers need a user friendly, integrated and cost effective
software systems. They require applications for the corporate
planning, financial data and human resources and CRM as well which
is already offered by Siebel systems. Thus, Siebel systems need to
reconsider the modification of its software for integrating with
the rival programs which is basically not a long term solution for
the company. Additionally, Siebel systems will not be able to
satisfy its corporate customers if they cannot buy, create or
develop a partnership with several other software applications.
However, if that is not possible then Siebel should extend the CRM
to SMBs i.e. small and medium businesses and partner ecosystems.
Furthermore, they are experiencing too many economic challenges due
to which they need to deal with this issue while working with the
leading integrators of SMBs so as to develop a fixed price emulated
by a fixed time implementation package. Appropriate AnalysisMany
customers have expressed an interest in shifting the risk of a CRM
implementation to those who are best equipped to mitigate this
risk. In order to get rid of the issues like reduction in the stock
price or an intense competition from several competitors like
salesforce.com, they need to develop a fixed implementation
package. Such a package would incorporate the deployment of up to
200 sales users, call center or a service for a price of $54,000.
The partners would definitely do each and everything so as to draft
a project charter to setting up administrators and users. They can
also implement a low fixed price since their vanilla application
will get to be optimized for the small and medium sized businesses
that required a low minimal customization. The fixed price
implementation is illustrated below:Cost Scenarios50 users100
users
Software cost$50,000 $100,000
Fixed Price Implementation$54,000 $54,000
Total Cost$104,000 $154,000
Cost Per User$2,100 $1,540
RecommendationsIn accordance with the calculations illustrated
above, there would be a deep product functionality and usability.
This would drive adoption and the costs will also be reduced that
are associated with customization. The packaging that will be
offered would offered expandability and flexibility with the
recommendation of this fixed price implementation. This would
further result in the simplification of the deployment and hence,
the business would definitely grow which can further withstand the
competitive concerns and other economic fluctuations. It would
result in the competitive price where there would never be any
hidden costs. There would be a partner network with the profound
domain expertise of CRM which would ensure that customers get what
they really need and when they need it for the price they really
pay. This would be the solution that would address the needs of an
evolving business through their migration to Enterprise and
deployment in an environment that is based on hybrid hosting.
