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IBM Global Services. Tram Tran Breanne Schmidt Rich Milos Michael. Overview. Case background IBM Global Services Washington Mutual Illinois banking market potential Selecting a statistical series Determining the relationship Determining market potential Questions and answers.
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IBM Global Services Tram Tran Breanne Schmidt Rich Milos Michael
Overview • Case background • IBM Global Services • Washington Mutual • Illinois banking market potential • Selecting a statistical series • Determining the relationship • Determining market potential • Questions and answers
IBM Global Services • World’s largest IT service • More than 125,000 employees in 160 countries • IBM Global services accounts for nearly 1/2 of all IBM revenues which include; services, hardware, software, and research.
Washington Mutual • Profitable and rapidly expanding bank • Outsourced IT services with IBM • WAMU wanted to integrate internet based strategies into existing IT infrastructure • WAMU signed IBM to a 10 year outsourcing contract worth $533 million
Illinois Commercial Banking Market Potential • Single series method (calculates MP) • Selecting a statistical series • Determining the relationship • Determining the market potential
Selecting a statistical series • IBM uses “the # of employees” as the statistical series • Using the NAICS, we determined how many employees are in the Illinois commercial banking industry • Using http://www.census.gov website we found “85,223” employees in Illinois
Determining the Relationship • The trade association estimates that IT expenditures per employee are $250 in the commercial banking industry
Determining Market Potential • The demand or usage factor is multiplied by the forecast of the statistical series • MP = 85,223 x $250 = $21,305,750 (employees) x (expenditures per employee) • The MP is $21,305,250 dollars per year