Monday, May 01, 2006

Oracle & Siebel CRM

John Wookey talks about the synergy between Siebel and Oracle:

“There are four very strong parts of Siebel's business that made it an attractive acquisition target for Oracle.

One, obviously, is the core CRM technology. Siebel is clearly the world leader in this marketplace by all measures: customer success, market share and technology. The company has rich, deep CRM functionality and their success shows it.

But Siebel also has amazing industry-specific capabilities. I've come to appreciate that horizontal CRM is a fantasy. Dream CRM is about specific vertical marketplace requirements. Siebel took a very strong core set of functionality around service, marketing and sales, and developed best practices and specific capability around specific industries--such as high-tech, pharmaceuticals, and CPG. And they did it in an innovative way. They invested a lot in industry-specific domain expertise and built some very unique industry content and capabilities on top of the CRM components.

The third very powerful capability from Siebel is the company's business analytics. They acquired analytic technology about six years ago and really invested in it to create market-leading analytics capabilities. And of course, because they were an applications company, it wasn't just a BI engine. They'd invested a lot in building content-rich dashboards--again, by industry. That allowed them to go out and help customers understand what was happening in their business. And to do it from data sources beyond just Siebel applications--including other applications, and custom systems that customers themselves had created.

Additionally, the combination of Oracle and Siebel also created the world's largest and most comprehensive on-demand offering. The combined talents, expertise, and vision of the Oracle/Siebel organization will give customers access to the industry's broadest range of enterprise computing solutions delivered with a services-based approach. That means continued innovation and flexibility, but with additional options and at a lower cost.”

IMHO: Seems like Siebel will be leading Oracle’s CRM charge. Also, there has been speculation (confirmed???) that Oracle is going to segregate its CRM business from its other application businesses and treat is as different from other applications. Makes sense too, in that CRM technology is unique as far as Enterprise Applications are concerned. It deserves a dedicated, focused approach to development, implementation and change management. Another point to note here is that Oracle’s latter acquisitions—Retek and Portal—nicely complement and enhance the vertical specific functionality. I think they will form important pieces in Oracle strategy going forward, providing rich, deep vertical functionality and built-in best practices. Sounds good, but the challenge will be to seamlessly and efficiently integrate these disparate technologies.

We’ll see how it pans out, but for now Siebel seems to Oracle’s flagship CRM product.

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