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Case Overview
In 2004, Anne Rothman named new Executive Vice President of Global Sales
Quantium Technology’s biggest challenge: Sales Force Automation (SFA)
In 2002, Quantium purchased Siebel Sales, an SFA software solution
Big price tag and even bigger problems with Siebel Sales:
1. Sales reps abandoning system
2. Sales managers state pipeline data not accurate
3. System unable to increase win rates
4. Does not shorten sales cycle
5. No company buy-in
6. Customer experience still compromised
Rothman interviews sales & IT to determine what went wrong.
Quantium Technology’s Background
Provides computer hardware & software for large enterprises
Founded in 1989
Server market suffers from late 1990’s to early 2000’s
Strong competition from Dell Computer, IBM, Hewlett-Packard & Sun Microsystems
Competitors highly successful at “solution selling” (hardware, software and services)
Quantium success tied to Internet & dot-com companies
In 2000, height of Internet boom: $3.6 billion in revenue
In 2003, post dot-com bust: $2.2 billion in revenue
Quantium Technology’s Sales Organization
Sales Reps (Client Executives) in designated markets/assigned territories
U.S., Europe, Middle East, Africa, the Americas, Asia Pacific
Each sales rep had $2 million annual quota
Different types of sales reps: client needs, product specialists (high-speed servers), and industry-focused (financial services)
Sales Engineers provided tech support
Eric Mather ran Quantium sales org from 93’ – 04’
Consistently failed to meet sales quota during bust
Built sales force but lacked skills to turn things around
Left Quantium end of 03’
Supporting Facts: SFA Project (Siebel Systems, Inc.)
Siebel Systems, Inc., founded in 1993, became leader in CRM enterprise software
Siebel Sales’ SFA software provided a “tool for companies to automate and integrate business processes in marketing, sales and service.”
“A tool to automate workflow across the entire sales process.” In 2003, revenues of more than $1.35 billion Notable customers: Bank of America, British Telecom, Deutsche Bank,
DHL, HP, IBM, and Microsoft Siebel System Features: Scripts for prospecting Tools for collaboration Contact management systems Centralized customer databases Analytical tool for sales forecasting Pipeline management
Why Quantium Chose Siebel Sales…
Centralized customer info across the company Provided sales managers and executives insight into
sales pipeline Eliminated revenue surprises Gave global sales org common language Standardized sales processes Strong analytics package for sales managers
Quantium Technology’s IT Plan of Attack
Jacob Tate, Director of IT Special Projects Implement Siebel Sales ASAP Roll out to sales force all at once Customize analytics dashboard and forecasting
tools (against Siebel Consultants suggestion) Increase integration between SFA database and Quantium’s back office databases Once launched, training program for 2,000 sales
managers and reps
Siebel Sales’ Strengths
Pipeline Visibility (sales opportunities, forecasting, pipeline analysis) Sales Effectiveness (customer profiles, quotes,
proposals, presentations) Motivation & Focus (quota plans, incentive plans, compensation plans) Analytics Engine (dashboard to view data in the
sales process) Best Practices (Siebel target account selling, Siebel
enterprise selling process)
No clear differentiation
between sales reps
Managers with little to no insight into the
org
Culture is disconnected
making change difficult
Poor training on new systems
Siebel Tech support MIA during transition
Launch of Siebel Sales was too fast –
no testing
Quantium’s technology
infrastructure too complex
Quantium’s Weaknesses
Organizational culture change: new system = new devotion to company and its support systems
Quantium can segment its work force according to product/service offerings
Seamless entry into “solution selling” market
Greater database forecasting equates to revamped sales quotas
Shorter sales cycle with adoption of Siebel Sales
Quality assurance across all Quantium Tech locations
Centralized database to house valuable customer data
Accurate revenue projections for management (no more surprises)
Greater brand loyalty via satisfied customers; repeat business = greater profits
Opportunities
Threats
Internal Threats:
Sales reps unable to reach quota w/Siebel Sales
Sales managers will little insight into company
Technology change during shift from product company to solutions company
Information is unreliable on Siebel Sales (pipeline inaccurate)
Consistent loss of valuable customer data
No company buy-in of new system
Continued performance issues w/speed External Threats: Competitors monopolizing server market Cheaper servers and workstations threaten Quantium market
presence Movement toward service business instead of products “Solution selling” is longer sales process = more resources
Instant performance problems with Siebel Sales launch Launched was too fast and to entire sales force Customization to Quantium Technology was not suggested but done anyway –
cause of system issues Quantium’s existing technology infrastructure was a major issue (outdated
system supporting smaller sales offices) Data in new SFA pipeline useless Data did not accurately reflect true picture of sales situation in the field Win rates projected at 80 – 90%, in reality they were 35 -30% New deals not showing up in system Lack of Employee Buy-In Training was not widespread – only 75% of sales reps Independent reps reluctant to enter sales data: “Big Brother” Reps kept their own customer contact spreadsheets in lieu of Siebel Reps felt new system was tax on time Customers continued to suffer with miscommunication from sales reps
Stated Conclusion From Case
Prior to launching new SFA initiative, clearly define company objectives to all departments Company-wide training for all parties using the system Dispel any myths about “Big Brother”- type system Prior to launching new software system, set up testing environment to
ensure compatibility Simplify technology infrastructure to ensure optimal performance Adjust sales quotas/performance to ensure fairness between job
types Assess then clearly illustrate the impact of Siebel Sales during first few
weeks of launch (increase buy-in) Keep Siebel Sales consultants on board during initial launch phase Have back-up SFA system in place
Recommendations
Reference:
Nunn, D., Lattin, J. & Leslie, M. (2005). Implementing Sales Force Automation at Quantium Technology. Stanford Graduate School of Business. Case M-311. Nov. 5, 2005.
