Dirk Beyer

In 2004, IBM introduced a set of broad OR-based initiatives designed to improve the efficiency and productivity of its global sales force. The first solution, OnTARGET, provides a set of analytical models designed to identify new sales opportunities at existing IBM accounts as well as non-customer companies. The objective of the second solution, the Market Alignment Program (MAP), is to optimally allocate sales resources based on field-validated analytical estimates of future revenue opportunity in each operational market segment. The development of both sets of analytical models, as well as the underlying data models and web sites used to deliver the overall solutions, will be described. The combined initiatives have resulted in a revenue impact estimated to be in the hundreds of millions of dollars annually.

HP offers a wide spectrum of innovative products to meet diverse customer needs. While this has helped the company achieve unparalleled market reach, it has come with significant costs and challenges. HP developed two powerful OR-based solutions for product variety management that address the diverse needs of its businesses throughout their products’ lifecycles. The first uses custom-built ROI calculators to evaluate each proposed new product before it is introduced. The second, HP’s Revenue Coverage Optimization (RCO) tool, is used to manage product variety after it has been introduced. By identifying a core portfolio of products most important to order coverage, RCO enables HP businesses to increase operational focus on the most critical products in their offerings. Using these tools, HP achieved over $500M in profit improvements across several business units since 2005. HP also streamlined its product offering, improved execution, achieved faster delivery performance, lowered overhead, and increased customer satisfaction and market share.