IBM Global ServicesIBM Global Services

Tram TranTram TranBreanne SchmidtBreanne Schmidt

Rich MilosRich MilosMichaelMichael

OverviewOverview Case backgroundCase background

IBM Global ServicesIBM Global Services Washington MutualWashington Mutual

Illinois banking market potentialIllinois banking market potential Selecting a statistical seriesSelecting a statistical series Determining the relationshipDetermining the relationship Determining market potentialDetermining market potential

Questions and answersQuestions and answers

IBM Global ServicesIBM Global Services World’s largest IT serviceWorld’s largest IT service More than 125,000 employees in 160 More than 125,000 employees in 160

countriescountries IBM Global services accounts for IBM Global services accounts for

nearly 1/2 of all IBM revenues which nearly 1/2 of all IBM revenues which include; services, hardware, include; services, hardware, software, and research.software, and research.

Washington MutualWashington Mutual Profitable and rapidly expanding bank Profitable and rapidly expanding bank Outsourced IT services with IBMOutsourced IT services with IBM WAMU wanted to integrate internet WAMU wanted to integrate internet

based strategies into existing IT based strategies into existing IT infrastructureinfrastructure

WAMU signed IBM to a 10 year WAMU signed IBM to a 10 year outsourcing contract worth $533 millionoutsourcing contract worth $533 million

Illinois Commercial Banking Illinois Commercial Banking Market PotentialMarket Potential

Single series method (calculates MP)Single series method (calculates MP) Selecting a statistical seriesSelecting a statistical series Determining the relationshipDetermining the relationship Determining the market potentialDetermining the market potential

Selecting a statistical seriesSelecting a statistical series IBM uses “the # of employees” as IBM uses “the # of employees” as

the statistical seriesthe statistical series Using the NAICS, we determined how Using the NAICS, we determined how

many employees are in the Illinois many employees are in the Illinois commercial banking industrycommercial banking industry

Using Using http://www.census.govhttp://www.census.gov website website we found “85,223” employees in we found “85,223” employees in Illinois Illinois

Determining the Determining the RelationshipRelationship

The trade association estimates that The trade association estimates that IT expenditures per employee are IT expenditures per employee are $250 in the commercial banking $250 in the commercial banking industryindustry

Determining Market Determining Market PotentialPotential

The demand or usage factor is multiplied The demand or usage factor is multiplied by the forecast of the statistical seriesby the forecast of the statistical series

MP = 85,223 x $250 = $21,305,750MP = 85,223 x $250 = $21,305,750 (employees) (employees) xx (expenditures per employee) (expenditures per employee)

The MP is $21,305,250 dollars per yearThe MP is $21,305,250 dollars per year

Questions or comments?Questions or comments?