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Leading Aerospace and Defense Companies Choose Siebel Systems to Increase Operational Effectiveness and Gain Competitive Advantage
[July 08, 2004]

Leading Aerospace and Defense Companies Choose Siebel Systems to Increase Operational Effectiveness and Gain Competitive Advantage

SAN MATEO, Calif. --(Business Wire)-- July 8, 2004 -- Siebel Systems Delivers Improved ROI to the Aerospace and Defense Industry

Siebel Systems, Inc. (Nasdaq:SEBL), a leading provider of business applications software, today announced that it is gaining significant momentum with its industry solution designed specifically for aerospace and defense companies worldwide. Siebel Aerospace and Defense enables manufacturers to manage relationships throughout the service life cycle and across the entire demand chain. Marketing, sales, and customer service are fully integrated, allowing manufacturers to improve sales effectiveness, maximize after-market parts and service revenue, collaborate with third-party service providers, and build customer loyalty and demand.



Proven Customer Success

Across each of the sectors within aerospace and defense, leading manufacturers have standardized on Siebel CRM solutions, including Airbus and The Boeing Company in commercial aircraft; Dassault Aviation, Eurocopter, New Piper Aircraft, and Raytheon Aircraft in regional and business aircraft; GE Aircraft Engines and Honeywell Aerospace in aircraft engines and parts; Aviall Services in after-market parts; and BAE Systems, General Dynamics, Lockheed Martin, Northrop Grumman, and Thales-Raytheon in defense.


Aviall Services, Inc. has significantly benefited from its implementation of Siebel Sales and Siebel Call Center as the cornerstone of its corporate growth strategy. Siebel Systems has played a central role in Aviall's transformation into the world's largest independent provider of new aviation parts and related after-market services in commercial, military, and general aviation sectors. Aviall's deployment of these Siebel business applications has resulted in a revenue run rate increase of nearly 100 percent, a sales productivity increase of 200 percent with sales calls and processed orders, a 20 to 30 percent overall improvement in customer satisfaction, a 50 percent reduction in aircraft on ground (AOG) response cycle time, and an accuracy rate of better than 99 percent for orders sent from the warehouse.

"The fruits of our labor are paying off," said Joe Lacik, Vice President, Information Services, Aviall. "Our revenue run rate has nearly tripled in the past three years, and the profits have nearly doubled. The Siebel CRM solution was a key factor in this success because it enabled us to integrate our field sales force and call centers, and provide the tools our sales and service teams need to perform more effectively and efficiently."

Honeywell Aerospace is reporting substantial gains from its ATLAS (Aerospace Total Account System) customer relationship management (CRM) platform that includes Siebel Call Center, Siebel Campaigns, Siebel Field Service, and Siebel Sales. Since implementing ATLAS, Honeywell Aerospace has increased the on-time closure rate of service issues from 45 percent to 83 percent and reduced customer response time by 27 percent, leading to a 38 percent improvement in customer satisfaction. The company has also experienced quantifiable improvements in team cross-selling, with a 100 percent increase in after-market spare part sales, the identification of 40 percent more new sales opportunities, and an improved win rate.

"Siebel Systems has been instrumental in helping us apply Six Sigma principles to our customer-facing processes and improving our customer satisfaction levels," said Darryl Carroll, Senior Director of Defense and Space Business Operations, Honeywell Aerospace. "We have improved insight into operations, enabling us to constantly drive process improvements that impact customer satisfaction."

Developed to address the unique requirements of the aerospace and defense industry, Siebel Aerospace and Defense delivers the most comprehensive suite of packaged customer management applications. Its business process-based functionality enables leading aerospace and defense manufacturers to manage relationships throughout the service life cycle and across the entire demand chain. Marketing, sales, and customer service are fully integrated, allowing manufacturers to improve sales effectiveness, deliver a consultative sales experience, provide world-class customer service, maximize after-market parts and service revenues, optimize collaboration with third-party service providers and suppliers, increase marketing effectiveness, and improve knowledge transfer among their changing workforce.

Delivering Tangible ROI and Strategic Value

Siebel Systems has helped numerous aerospace and defense manufacturers achieve tangible results in driving loyalty, improving operational effectiveness and efficiencies, and lowering IT costs, such as:

-- Global aircraft engines and parts manufacturer: 85 percent reduction in sales proposal turnaround time, 60 percent decrease in service response time, and $5 million in annual cost savings

-- Global regional/business aircraft manufacturer: 50 percent increase in service productivity, 45 percent increase in sales leads handling, and 25 decrease in lost sales leads

-- Global commercial aircraft manufacturer: Projected 25 percent increase in service productivity and projected 25 decrease in annual IT costs

"For aerospace and defense manufacturers, delivering great customer service is a key differentiator," said Craig Fairfield, Director, Siebel Aerospace and Defense. "A comprehensive view and 'memory' of the customer provides the foundation for world-class customer service."

For more information about Siebel Aerospace and Defense, please visit www.siebel.com/aerospace.

About Siebel Systems

Siebel Systems, Inc. is a leading provider of business applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 4,000 customer deployments worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, market-leading analytics products, and business processes, empowering them to consistently deliver superior customer experiences and establish more profitable customer relationships. Siebel Systems' sales and service facilities are located in more than 30 countries.

Siebel is a trademark of Siebel Systems, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the agreements and products described above and the future operating results of Siebel Systems may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with new versions and new products, the availability of Siebel Systems' products and services, implementation of products and services, existence of errors or defects in products, rapid technological change, dependence on the Internet, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Siebel Systems are included in Siebel Systems' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Siebel Systems assumes no obligation to update the information in this press release.

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