Tram Tran Breanne Schmidt Rich Milos Michael IBM Global Services Tram Tran Breanne Schmidt Rich Milos Michael

Overview Case background Illinois banking market potential 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

Questions or comments?