Electronic Data Systems Corporation (EDS): Foundation for a Value-Based Business Model

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Electronic Data Systems Corporation (EDS): Foundation for a Value-Based Business Model

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This Best Practice Case Study describes how EDS went about winning the proposal to provide a new parking enforcement system for the City of Chicago.

This Best Practice Case Study describes how EDS went about winning the proposal to provide a new parking enforcement system for the City of Chicago. Although the parking enforcement system project was far from the largest deal that EDS has ever won, it still represented a significant deal to EDS over a period of five years. But more important than the potential revenue was the fact that EDS wrested the project away from the market segment leader; established the foundation for a new line of business within one of EDS’ strategic business units; and through some deft publicity gained acclaim for its creative solution and the value that it delivered to the client, the city of Chicago. We also believe that some of the things that happened during this engagement became the seeds for EDS rethinking its underlying philosophy of how to deliver and share in the value provided to its customers. The fundamental shift in thinking moved from a focus on providing cost savings to achieving significant business benefits and has evolved today to the concept of CoSourcing or value-based agreements.