Human Capital Management Ibm

Optimization models have been used for decades in the supply chain management system. These models have reduced inventory levels, reduced overall operating costs, and maximized profits. Altering these models to fit a human supply chain is distinctly different than these traditional uses of modeling. The people aspect is quite different from machine parts and transportation routes. People can change, learn, adapt, perform differently in different situation, and dynamic. These differences from parts and pieces pose a challenge to making an effect model.

The service industry employees 75 percent of the labor force and they produce 70 percent of the total industry output. The ability to put the right person, in the right place, at the right time is a critical component of this industry and one that can substantially change the business success rate and profitability. IBM has taken this task head on developing a model to aid their human capital management practices, specifically their Integrated Technology Services department. Their annual revenues are approximately $4 billion with its 10 service lines they offer a range of integration and support service products. This part IBM’s business is based on human talent; the people that make up the department are not used up and written off after they have performed a service, they are used again and again. Workload and utilization are key components of effectiveness, people are capable of deploying more than one skill at a time and using their skills across multiple engagements simultaneously. Modeling is further complicated by uncertainty in staffing, allocation of multiple people, and timesharing their skills across different engagements. To solve these complex problems IBM developed OnTheMark with the ability to forecast engagement demand and human-talent requirements.

“We derive stochastic modeling and optimization methods to support risk-based capacity planning that determines human-talent levels to...