Can Siebel Stop Its Slide Essay -- Recession, Case Study, solution

In the fall of 2001, business software pioneer Thomas M. Siebel was cockamamie as he looked ahead. Sure, the recession was hurting. But he claimed his company, Siebel Systems Inc. -- the leader in software for managing sales forces and customer-service departments -- would be more resilient than its competitors. Everybody is divergence to be naked, Siebel said with relish. Were going to define out who are the dilettantes. Were going to find out who are the scumbags, and who are the sleazeballs. Everybody is going to be exposed for who they are. Its going to be a remarkable time. Two months later, he confidently predicted that the advanced downturn was about to end. He could be certain, he said, because of the forecasting capabilities in his own software. Well, both Tom Siebel and his software get failing grades for prognostication. The technical school industry is still mired in slow growth, and Siebel Systems, softwares highest flier in the go-go 90s, has tumbled farther than it s dilettante rivals. Revenues last year tumbled 22%, to $1.6 billion, compared with a drop of tho 2% for the overall corporate-applications-software industry. In the first quarter, Siebels revenues dropped 30%, to $333 million. Siebels stock price, at $8.50, is off a staggering 94% from its peak in 2000 of $119. It wasnt on the nose the economy that hobbled Siebel Systems. A 2001 product upgrade was so difficult to lay down that customers were reluctant to buy it. The companys reputation suffered from bad publicity about its customer- expiation record. And it illogical ground to corporate-applications leader SAP. In 2002, Siebel Systems share of the customer-management market it helped pioneer slipped from 29% to 23%, according to Gartner Dataquest. No. 2 SAP gained ... ...ness-software maker Siebel Systems has seen revenues semivowel 44% over the past two years. Heres a look at why, and at its prospects going forward. COMPLEXITY INCOMPATIBILITY PROBLEM Customers complain Its applications dont pasture Siebels software is easily with rival software complex and hard to that handles financials and install. major(ip) projects human resources. can take a year to com- plete. FIX A team of 60 consultants New integration technologies helps customers plan improve things, simply rivals that projects, but something make full suites of products must still be through to have an advantage. simplify the products. TARNISHED REPUTATION PROBLEM It has been accused of overstating customer satisfaction and was slammed by the SEC for a financial disclosure violation. FIX It hasnt adequately addressed customer satisfaction issues and is stingy with financial information.