NBC's Optimization Systems Increase Revenues and Productivity

Srinivas Bollapragada (), Hong Cheng, Mary Phillips, Marc Garbiras, Michael Scholes, Tim Gibbs and Mark Humphreville
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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

Interfaces, 2002, vol. 32, issue 1, 47-60

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.

Keywords: Industries: communications; journalism; Programming: multiple criteria (search for similar items in EconPapers)
Date: 2002
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