March 2008 Document H88

ROI CASE STUDY

SIEBEL CRM ON DEMAND
EQUIFAX

THE BOTTOM LINE

Equifax deployed Siebel CRM On Demand to support a standardized sales
process and consistent global reporting, increasing sales and management
productivity to drive greater profitability.

ROI: 392%

Payback: 10 months

THE COMPANY
Equifax Inc. provides businesses and consumers with credit intelligence, portfolio
management, fraud detection, decision-making tools, and other information and
technology to help them make better decisions. With approximately 7,000
employees, the company’s presence spans 14 countries in North America, Latin
America, and Europe.

THE CHALLENGE
In 2005, Equifax found that its Latin American growth strategy — largely fueled by
acquisition — had left it with seven different Latin American CRM strategies. From
paper-based systems to enterprise Siebel deployments, each office leveraged
different processes and strategies, making it difficult for managers to quickly
analyze sales effectiveness. To support further growth, Equifax needed to support
a consistent global sales process and reporting structure.

THE STRATEGY
Equifax decided to start its CRM consolidation project in Latin America, and use it
as a test case for a broader enterprise CRM strategy. The company determined
that an on-demand solution was the most appropriate strategy, as the solution
could be accessed by remote offices via the Internet and would not need local on-
site IT resources. After evaluating both Salesforce.com and Siebel, Equifax
selected Siebel CRM On Demand for several reasons:
Siebel CRM On Demand had the most powerful analytics and reporting
capabilities.
The solution could support the level of drill-down analysis Equifax’s managers
needed.
Because Siebel CRM On Demand and Siebel Enterprise share the same data
model, deploying Siebel would enable greater flexibility if Equifax decided to
deploy on-premise CRM at some sites.

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Beginning in July 2005, Equifax began deploying Siebel CRM On Demand in its
TOPICS
Latin American sales offices, starting with 400 sales people in four countries.
Customer Relationship
Management Initially, users participated in a 2-day training course led in their native language
Software as a Service by a Siebel trainer.

Between July and February 2006, the rollout continued to sales people in the other
offices in Latin America as well as to 200 service and marketing users of Siebel On
Demand service and marketing components. Equifax has continued its rolling
deployment and has now extended the initiative to the United States and Canada,
where the application is being deployed to the company’s consumer products and
business-to-business sales force.

KEY BENEFIT AREAS

Deploying Siebel CRM On Demand has enabled Equifax to drive a consolidated CRM
strategy across its global organization, ensuring that sales people continue to
follow best practices and managers have rapid access to accurate information for
decision making. Key benefits from the application include:
Improved visibility. Because the different stages of Equifax’s sales processes
are embedded in Siebel CRM On Demand, managers know that leads in the
pipeline are qualified and at the appropriate stage. This allows them to
generate pipeline reports and understand sales performance across multiple
countries.
Increased profitability. Streamlining the sales process and reducing the time
needed for sales reviews while minimizing sales administration costs has
enabled Equifax to increase revenues and profit margins.
Increased sales manager productivity. With rapid access to the right
information at the right time, managers spend less time trying to analyze and
understand sales problems and can focus on driving sales growth.
Reduced IT costs. By replacing a number of different on-premise CRM
applications with Siebel CRM On Demand, Equifax eliminated the related
maintenance and support costs.

BENEFITS

Indirect
8%

Direct
92%

TOTAL: $7,874,973

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March 2008 Document H88

KEY COST AREAS

Key cost areas for Equifax’s Siebel CRM On Demand deployment included software,
which made up more than half of the total initial and ongoing project costs,
personnel, consulting, and training.

COSTS

Software
Training 52%
8%
Personnel
29%

Consulting
11%

TOTAL: $2,893,443

LESSONS LEARNED
Equifax’s CIO recognized the need for a common CRM platform across the
companies five business units, which span 14 countries. To achieve this goal, he
enlisted the president of Equifax International to champion the pilot program in
Latin America before driving adoption in the United States, United Kingdom, and
Canada. Taking a pull, rather than push, approach that leveraged key leadership
from the sales force and support from technology was critical to the initiative’s
success. Equifax also took a practical approach to prioritizing its rollout by focusing
on the region with the most immediate need — Latin America. To help ensure its
success, Equifax invested in language-appropriate training and documentation.

CALCULATING THE ROI

Nucleus calculated the costs of software, consulting, personnel, training, and other
investments over a 3-year period to quantify Equifax’s total investment in Siebel
CRM On Demand. Because the company deployed an on-demand solution, no
hardware costs were incurred.

Benefits fell into three main categories:

Direct benefits quantified included the portion of increased profits in Latin
America attributable to the Siebel deployment as well as reduced IT
maintenance and IT staffing costs.
Indirect benefits quantified included increased administrative staff productivity
in building reports for managers and reduced management time spent in
review meetings that can now be devoted to other activities.
Benefits not quantified include increased sales and management productivity
expected from further deployment of Siebel in North America.

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its unique ROI case study approach, for nearly a decade Nucleus Research has delivered insight and analysis
on the true value of technology and strategies for maximizing current investments and exploiting new
technology opportunities. For more information or a list of services, visit NucleusResearch.com, call
+1-781-416-2900, or e-mail info@NucleusResearch.com.

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DETAILED FINANCIAL ANALYSIS
EQUIFAX
SUMMARY
Project: Oracle Siebel CRM On Demand
Annual return on investment (ROI) 392%
Payback period (years) 0.84
Net present value (NPV) 1,733,330
Average yearly cost of ownership 964,481

ANNUAL BENEFITS Pre-start Year 1 Year 2 Year 3

Direct 0 1,106,000 2,996,000 3,156,000
Indirect 0 205,658 205,658 205,658
Total Benefits Per Period 0 1,311,658 3,201,658 3,361,658

DEPRECIATED ASSETS Pre-start Year 1 Year 2 Year 3

Software 0 0 0 0
Hardware 0 0 0 0
Total Per Period 0 0 0 0

DEPRECIATION SCHEDULE Pre-start Year 1 Year 2 Year 3

Software 0 0 0 0
Hardware 0 0 0 0
Total Per Period 0 0 0 0

EXPENSED COSTS Pre-start Year 1 Year 2 Year 3

Software 212,500 425,000 425,000 425,000
Hardware 0 0 0 0
Consulting 122,000 20,000 90,000 90,000
Personnel 9,563 278,460 278,460 278,460
Training 119,000 40,000 40,000 40,000
Other 0 0 0 0
Total Per Period 463,063 763,460 833,460 833,460

FINANCIAL ANALYSIS Results Year 1 Year 2 Year 3

Net cash flow before taxes (463,063) 548,198 2,368,198 2,528,198
Net cash flow after taxes (231,531) 274,099 1,184,099 1,264,099
Annual ROI - direct and indirect benefits 118% 315% 392%
Annual ROI - direct benefits only 74% 270% 348%
Net present value (NPV) (231,531) 6,815 902,164 1,733,330
Payback (years) 0.84
Average annual cost of ownership 463,063 1,226,523 1,029,991 964,481
3-year IRR 226% 226%

FINANCIAL ASSUMPTIONS
All government taxes 50%
Discount rate 15%

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