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

2. 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

3. 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.

4. 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

5. Illinois Commercial Banking Market Potential
Single series method (calculates MP)
Selecting a statistical series
Determining the relationship
Determining the market potential

6. 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 website we found “85,223” employees in Illinois

7. Determining the Relationship
The trade association estimates that IT expenditures per employee are $250 in the commercial banking industry

8. 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

9. Questions or comments?