2025 HP Team
Expanding the Total Addressable Market for Services
At A Glance:
Capstone Sponsor: HP
Faculty Advisor: Dr. Onur Seref
Capstone Team Members: Turner Bass, Daniel Kalegha, Bea Heratsch, Eddie Ozycz, Sean Raines
Solution Summary: Developed a model to integrate HP’s services and solutions into its total addressable market calculations, providing clearer revenue forecasts for strategic decision making.
The Challenge
HP relies on its Total Addressable Market (TAM) model to guide high-level strategic decisions and revenue projections. While the model worked well for hardware sales, it did not fully account for the growing importance of HP’s services and solutions — especially as the company shifts toward long-term, relationship-based contracts rather than one-time transactions.
The Solution
The student team redesigned the TAM approach to include lifecycle services within the Enterprise sector, HP’s largest and most data-rich segment. They analyzed historical sales data, average selling prices, and purchasing patterns, then developed new conversion rates and reference tables to estimate services revenue more accurately.
Their four-step model calculates company-specific conversion rates, adjusts for outliers, builds a reliable reference table, and annualizes results for clearer forecasting. With this integrated approach, HP’s decision-makers can now see how services influence revenue potential alongside hardware sales — adding critical context to strategic planning.
The Impact
Implementing the new services expansion increased HP’s TAM estimate by nearly 4% within the tested Enterprise lifecycle services branch. By scaling this approach across all service branches and sectors, HP can sharpen its growth strategies, better understand customer behavior, and strengthen long-term forecasting — giving leadership clearer insights for expansion and resource planning.
2025 HP Team Public Presentation