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

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

Number of integrated Business Processes Complexity of Customization & Integration Global Initiatives Country Wide Initiatives Local Initiatives CRM Wave - late 90’s into Post 9/11/2001 Late90’is 9/11

Product-Focused Divisions Division ADivision BDivision C

Need to Support Multiple Channels Customer Division ADivision BDivision C

Silos of Customer Information Customer Division ADivision BDivision C

Inconsistent, Inefficient Business Processes Customer Division ADivision BDivision C

Lack of Employee Alignment Customer Division ADivision BDivision C

Applications Not Integrated Customer Legacy OSS HR Custom CIF ERP CIF SCM Custom SAP ERP Custom ERP Legacy Division ADivision BDivision C

Common Vision: “One Company” Focused on the Customer LegacyUCMHRCustomERPSCM Order Mgmt Service Process and Data Integration Division ADivision BDivision C Employee Alignment Business Intelligence and Analytics Sales, Mktg, Service & Partner Best Practices Multichannel

Industry Solution Sets Employee productivity & performance apps Process-based CRM applications Intelligent Analytics apps Business Integration apps LegacyOSSHRCustomSAPERPCIFSCM Universal Application Network Industry Solution Sets Bundle All Siebel Offerings ERM Analytics Sales Auto MarketingPartners CommChemConsumer High Tech Fins Life Sciences Oil and Gas Public Sector Travel & Trans ServiceOrders

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

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

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

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

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

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

Order Management Impact at Network Engines Operational KPIsImprovement Quote Response TimeReduced by 83% (from 24 to 4 hours) Follow-up Activity on Quotes Increased from 25% to 80% Quotes ConversionIncreased by 25%, significant bottom line impact Shipping ErrorsReduced by 15% “Our sales representatives have the opportunity to understand customers’ product needs before they even get on the phone with them,” Greg Augustine, Director CRM and eCommerce, Network Engines

Order Management Impact at StorageTek Operational KPIsImprovement Order Processing TimeDecreased 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 KPIsImprovement Order Processing TimeDecreased 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 Source: Satmetrix Systems surveys, Figures represent median values, based on customers who are in production and provided quantitative responses to the survey questions. Customer Retention Increase 13% 18% Customer Satisfaction Increase Employee Productivity Gains 23% Revenue Increase 13% Operating Costs Decrease 13%

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

Business Processes Customization and Integration CRM Enterprise CRM Professional CRM OnDemand Siebel Delivers CRM For Everyone Post 2001 Local Initiatives Country Wide Initiatives Global Initiatives

Flexible Packaging Allows SMBs to Create Custom CRM Bundles Option 5 Customer Choice Option 6 Customer Choice Option 3 Customer Choice Option 4 Customer Choice Option 1 Customer Choice Option 2 Customer Choice Base Application   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

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

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