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

In the fall of 2001, championship softw be pioneer Thomas M. Siebel was giddy as he looked ahead. Sure, the street corner 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 going to be naked, Siebel said with relish. Were going to understand 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 unique time. Two months later, he confidently predicted that the high-tech downturn was about to end. He could be certain, he said, because of the forecasting capabilities in his own software. Well, both turkey cock Siebel and his software get failing grades for prognostication. The tech industry is still mired in slow growth, and Siebel Systems, softwares highest flier in the go-go 90s, has tumbled farther than its d ilettante affects. Revenues last category tumbled 22%, to $1.6 billion, compared with a drop of only 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 keel 94% from its peak in 2000 of $119. It wasnt just the economy that hobbled Siebel Systems. A 2001 return upgrade was so difficult to install that customers were reluctant to buy it. The companys constitution suffered from bad publicity about its customer- bliss record. And it lost 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. zero(prenominal) 2 SAP gained ... ...ness-software maker Siebel Systems has seen revenues slide 44% over the past times two years. Heres a look at why, and at its prospects going forward. complexness INCOMPATIBILITY PROBLEM Customers complain Its ap plications dont work Siebels software is easily with rival software complex and hard to that handles financials and install. Major projects human resources. can control a year to com- plete. FIX A team of 60 consultants bracing integration technologies helps customers plan improve things, but rivals that projects, but something make blanket(a) suites of products must still be done to have an advantage. simplify the products. TARNISHED study 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.