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NBC's Optimization Systems Increase Revenues and Productivity

Author

Listed:
  • Srinivas Bollapragada

    (General Electric Research and Development Center, 1 Research Circle, K1–5C22A, Schenectady, New York 12309)

  • Hong Cheng

    (General Electric Research and Development Center, 1 Research Circle, K1–5C22A, Schenectady, New York 12309)

  • Mary Phillips

    (General Electric Research and Development Center, 1 Research Circle, K1–5C22A, Schenectady, New York 12309)

  • Marc Garbiras

    (General Electric Research and Development Center, 1 Research Circle, K1–5C22A, Schenectady, New York 12309)

  • Michael Scholes

    (National Broadcasting Company, 30 Rockefeller Plaza, New York, New York 10112)

  • Tim Gibbs

    (National Broadcasting Company, 30 Rockefeller Plaza, New York, New York 10112)

  • Mark Humphreville

    (National Broadcasting Company, 30 Rockefeller Plaza, New York, New York 10112)

Abstract

The NBC television network, a subsidiary of the General Electric Company (GE), uses optimization-based sales systems to improve its revenues and productivity. GE's corporate research and development center (CRD) developed these systems using operations research and management science techniques to improve NBC's sales processes. These systems remove bottlenecks caused by manual development of sales plans, helping NBC to respond quickly to client requests with sales plans that meet their requirements. These systems also enable NBC to make the most profitable use of its limited inventory of valuable advertising slots by estimating demands for airtime by show and by week and to schedule commercials. Between 1996 and 2000, the systems increased revenues by over $200 million, improved sales-force productivity, reduced rework by over 80 percent, and improved customer satisfaction. They have become an integral and essential part of NBC's sales process.

Suggested Citation

  • Srinivas Bollapragada & Hong Cheng & Mary Phillips & Marc Garbiras & Michael Scholes & Tim Gibbs & Mark Humphreville, 2002. "NBC's Optimization Systems Increase Revenues and Productivity," Interfaces, INFORMS, vol. 32(1), pages 47-60, February.
    • Handle: RePEc:inm:orinte:v:32:y:2002:i:1:p:47-60
    DOI: 10.1287/inte.32.1.47.19
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    Citations

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    Cited by:

    1. Giovanni Giallombardo & Houyuan Jiang & Giovanna Miglionico, 2016. "New Formulations for the Conflict Resolution Problem in the Scheduling of Television Commercials," Operations Research, INFORMS, vol. 64(4), pages 838-848, August.
    2. Thierry Benoist & Frédéric Gardi & Antoine Jeanjean, 2012. "Lessons Learned from 15 Years of Operations Research for French TV Channel TF1," Interfaces, INFORMS, vol. 42(6), pages 577-584, December.
    3. Drolet, Steve & LeBel, Luc, 2010. "Forest harvesting entrepreneurs, perception of their business status and its influence on performance evaluation," Forest Policy and Economics, Elsevier, vol. 12(4), pages 287-298, April.
    4. Shen, Yuelin, 2018. "Pricing contracts and planning stochastic resources in brand display advertising," Omega, Elsevier, vol. 81(C), pages 183-194.
    5. Shinjini Pandey & Goutam Dutta & Harit Joshi, 2017. "Survey on Revenue Management in Media and Broadcasting," Interfaces, INFORMS, vol. 47(3), pages 195-213, June.
    6. Saravanan Venkatachalam & Fion Wong & Emrah Uyar & Stan Ward & Amit Aggarwal, 2015. "Media Company Uses Analytics to Schedule Radio Advertisement Spots," Interfaces, INFORMS, vol. 45(6), pages 485-500, December.
    7. Shi, Yang & Zhao, Ying, 2019. "Modeling Advertisers' Willingness to Pay in TV Commercial Slot Auctions," Journal of Interactive Marketing, Elsevier, vol. 48(C), pages 120-133.
    8. José Antonio Carbajal & Wes Chaar, 2017. "Turner Optimizes the Allocation of Audience Deficiency Units," Interfaces, INFORMS, vol. 47(6), pages 518-536, December.
    9. Sylvia Hristakeva & Julie Holland Mortimer, 2023. "Price Dispersion and Legacy Discounts in the National Television Advertising Market," Marketing Science, INFORMS, vol. 42(6), pages 1162-1183, November.
    10. Srinivas Bollapragada & Salil Gupta & Brett Hurwitz & Paul Miles & Rajesh Tyagi, 2008. "NBC-Universal Uses a Novel Qualitative Forecasting Technique to Predict Advertising Demand," Interfaces, INFORMS, vol. 38(2), pages 103-111, April.

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