Method and system for yield managed service contract pricing

• US 6,526,392 B1
• Filed: 08/26/1998
• Issued: 02/25/2003
• Est. Priority Date: 08/26/1998
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Dietrich, Brenda Lynn, Rushmeier, Russell A., Hood, Sarah Jean, Kim, Daeki
• Primary Examiner(s): Dixon, Thomas A.
• Application Number:
  US09/140,642
• Time in Patent Office: 1,644 Days
• Field of Search: 705/400, 705/7, 705/8, 705/9, 705/10, 705/30, 370/369
• US Class Current: 705/400
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A computer implemented method pertinent to yield managed service contract pricing. The method comprises the steps of inputting first information comprising a baseline profiling services contracted to zero or more existing customers; inputting second information comprising a profile of the services to be contracted to one or more new customers; and analyzing second information in the context of first information for the purpose of determining a range of prices to be considered for the services to be contracted.

Claims

1. A computer system comprising:

1) means for inputting first information comprising a baseline profiling services contracted to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) means for inputting second information comprising a profile of the services to be contracted to one or more new customers, wherein the services consume resources over an extended period of time; and

3) means for analyzing second information, to perform an analysis, in the context of said first information for determining a range of prices to be considered for the services to be contracted over an extended period of time,

wherein said means for analyzing outputs said range of prices,

wherein said means for analyzing performs the analysis with respect to third information associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said means for analyzing includes means for determining a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and

wherein said possible allocation comprises generation of a hypothetical allocation, based on a forecast of generated scenarios of requirements.

2. A computer system according to claim 1, wherein the first information is selected from a group consisting of service requirement history, contractual obligations, cost information, and location information.

3. A computer system according to claim 1, wherein the second information is selected from a group consisting of proposed contractual obligations, cost information, and location information.

4. A computer system according to claim 3, wherein the second information is analyzed or augmented to include service requirements over at least one of specified service intervals, locations, and service classes.

5. A computer system according to claim 1, wherein said means for analyzing comprises a price range generator, said generator receiving said first and second information and calculating a price range for each new customer.

6. A computer system according to claim 1, further comprising means for outputting said price range.

7. The system of claim 1, wherein said means for determining a possible allocation includes utilizing at least one of linear programming, a network flow algorithm, and integer programming.

8. The system of claim 1, wherein said analysis uses a set of resources, and includes consideration of resource allocation.

9. The system of claim 1, wherein said analysis is for supporting sales of service contracts.

10. The system of claim 9, wherein the analysis is for pricing of service contracts spanning a predetermined period of time and which include a plurality of individual requests for service.

11. A computer implemented method comprising:

1) inputting first information comprising a baseline profiling services contracted to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) inputting second information comprising a profile of the services to be contracted to one or more new customers, wherein the services consume resources over an extended period of time;

3) performing an analysis by analyzing second information in the context of said first information for determining a range of prices to be considered for the services to be contracted over an extended period of time; and

4) outputting said range of prices,

wherein said analysis is performed with respect to third information associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said analyzing determines a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and

wherein said possible allocation comprises generation of a hypothetical allocation, based on a forecast of generated scenarios of requirements.

12. A computer implemented method according to claim 11, wherein said analyzing of said second information comprises analyzing service requirements over specified time periods.

13. A computer implemented method according to claim 11, wherein said analyzing of said second information comprises analyzing service requirements over specified locations.

14. A computer implemented method according to claim 11, wherein said analyzing of said second information comprises analyzing service requirements based on resource usage.

15. A computer implemented method comprising:

1) reading first input data associated with services to be provided to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) reading second input data associated with services being proposed for at least one new customer, wherein the services consume resources over an extended period of time;

3) performing an analysis by analyzing said first and second data for creating at least one customer profile describing a demand for the services over an extended period of time;

4) using a cost function for evaluating an incremental cost of adding a new customer requiring the service;

5) using the incremental cost for determining a price range for the service to the new customer over an extended period of time; and

6) outputting the price range,

wherein said analysis is performed with respect to third input data associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said analyzing determines a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and

wherein said possible allocation comprises generation of a hypothetical allocation, based on a forecast of generated scenarios of requirements.

16. A program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform method steps for yield managed service contract pricing, said method steps including:

1) inputting first information comprising a baseline profiling services contracted to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) inputting second information comprising a profile of the services to be contracted to one or more new customers, wherein the services consume resources over an extended period of time;

3) performing an analysis by analyzing second information in the context of said first information for determining a range of prices to be considered for the services to be contracted over an extended period of time; and

4) outputting said range of prices,

wherein said analysis is performed with respect to third information associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said analyzing determines a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and

wherein said possible allocation comprises generation of a hypothetical allocation, based on a forecast of generated scenarios of requirements.

17. A computer system comprising:

1) means for inputting first information comprising a baseline profiling services contracted to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) means for inputting second information comprising a profile of the services to be contracted to one or more new customers, wherein the services consume resources over an extended period of time; and

3) means for analyzing second information, to perform an analysis, in the context of said first information for determining a range of prices to be considered for the services to be contracted over an extended period of time,

wherein said means for analyzing outputs said range of prices,

wherein said means for analyzing performs the analysis with respect to third information associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said means for analyzing includes means for determining a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and wherein said analysis is for supporting sales of service contracts,

wherein the analysis is for pricing of service contracts spanning a predetermined period of time and which include a plurality of individual requests for service,

wherein, once a service contract has been executed, the service provider is obligated to provide all requested services that are covered by the contract, for the price specified in the contract, such that the provider is unable to change a price on an existing contract in response to a resource shortage.

18. A computer system comprising:

1) means for inputting first information comprising a baseline profiling services contracted to zero or more existing customers, wherein the services consume resources over an extended period of time;

2) means for inputting second information comprising a profile of the services to be contracted to one or more new customers, wherein the services consume resources over an extended period of time; and

3) means for analyzing second information, to perform an analysis, in the context of said first information for determining a range of prices to be considered for the services to be contracted over an extended period of time,

wherein said means for analyzing outputs said range of prices,

wherein said means for analyzing performs the analysis with respect to third information associated with resources that are available for use in satisfying the one or more new customers'"'"' requirements,

wherein said means for analyzing includes means for determining a possible allocation of the available resources to the set of requirements and computes a cost of the allocation, and

wherein a price for a service provided for in a service contract is set in advance, in a predetermined term contract with service guarantees.

19. A computer system comprising:

1) means for inputting first information comprising a baseline profiling services contracted to zero or more existing customers wherein the services will consume resources over an extended period of time;

2) means for inputting second information comprising a profile of the services to be contracted for one or more new customers, wherein the services will consume resources over an extended period of time; and

3) means for analyzing second information in the context of first information for the purpose of determining a range of prices to be considered for the services to be contracted over an extended period of time,

wherein said means for analyzing outputs said range of prices.