Analytics and O.R. for IBM’s IT Service Deals
IBM Services provides information technology services for clients worldwide, designing, building, running, and maintaining critical infrastructure and IT systems. IBM competes for highly complex IT services contracts, often involving complex client engagement and negotiations.
To better manage the highly resource-intensive and complex activities related to contract negotiations, IBM Services introduced analytics and operations research tools to transform subjective, time-consuming business judgments into informed decisions based on data-driven insights.
This O.R. and analytics-based toolset allows IBM to negotiate with the client, optimally cost and price IT services solutions, and predict the winnability of each deal being negotiated. Since implementing these tools, IBM Services has increased its relative contract win rate, contributing a significant realized revenue increase.