Siebel Sees Farther on Shoulders of Giants

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Siebel Sees Farther on Shoulders of Giants
S. McVey - March 10th, 2000

Event Summary

Siebel Systems recently announced joint marketing agreements with the top two supply chain management vendors, i2 and Manugistics. Both alliances will involve integration of Siebel's customer management interface applications with best-of-breed fulfillment capabilities to deliver improved customer satisfaction.

i2 will use customer profile data captured in Siebel's call centers, over the Internet, or through other channels to offer personalized product and fulfillment services to customers. i2's Internet Fulfillment Server is the planned point of integration between Siebel eBusiness Applications and i2's customer relationship management and back-end optimization software.

Manugistics will use demand and replenishment data, collected through customer interactions tracked in Siebel applications, to update Manugistics NetWORKS Demand and NetWORKS Fulfillment solutions. NetWORKS will in turn provide inventory information directly to Siebel Call Center and Siebel eSales users when placing orders.

Market Impact

The alliances make sense from many perspectives. i2 and Manugistics will connect their supply chain management suites to Siebel eBusiness in slightly different ways, but both alliances expand the overlap between CRM and SCM. From the front-end perspective, a tightly integrated solution can enable call center personnel to speak confidently to customers by giving them access to real-time inventory and availability of alternatives in the event requested items are out of stock. Looking from the back-end, CRM data gives plant managers insight into a customer's buying preferences so that trends and desired product configurations can be better anticipated.

Siebel has made good choices in i2 and Manugistics, whose combined customer bases exceed 1500 corporate licenses. Both have implemented solutions for joint customers so some of the groundwork is already in place.

User Recommendations

Users should applaud the new alliances. If nothing else, the interchange of ideas between the parties will hasten understanding of issues surrounding the combination of SCM and CRM. Of greatest benefit to users would be for the collaboration to solve problems at the technological and strategic levels, something that is suggested in the announcements, but is too often abandoned due to aggressive product release schedules. In this case, users will have to wait until mid 2000 to see if the two alliances deliver.


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