The INFORMS Prize, first awarded in 1991 when it was known as the ORSA Prize, recognizes organizations that effectively integrate OR/MS into their decision-making process at all levels of management, and use it in novel, varied and lasting ways. The Prize Committee, which makes on-site visits during a year-long selection process, looks for depth and breadth of all OR/MS applications as well as their qualitative and economic impact on a company. The INFORMS Prize is considered the highest honor the Institute bestows upon an organization.
The Prize was announced at the INFORMS meeting in New Orleans by Hung-po Chao, chairman of the 1995 selection committee. Chao was joined on the committee by Richard W. Cottle, Robert M. Freund, Linda V. Green, Shmuel S. Oren and Oliver S. Yu.
Operations research was instrumental in Bellcore's development of a sophisticated procurement decision support system used by its clients. OR/MS has also played a critical role in Bellcore's project selection methodology, organizational cost planning, scheduling and quality control of software development projects, and allocation of internal support service resources. Using OR/MS has allowed the company to be cost efficient without degrading the quality of service it offers internally and to clients.
In his presentation remarks Chao cited Bellcore for its wide-range use of OR/MS in fulfilling its corporate mission. "(Bellcore's) exemplary integration of operations research and management science into the corporate culture at all levels of management make it a role model," Chao said.
The citation read in part:
"Bellcore has become a major developer and user of operations research and management science methodology. Some of its significant contributions have been recognized in the Edelman Prize competitions over the last decade.
"However, Bellcore has gone beyond the development of tools for its client organizations and has set an example by integrating OR/MS into its corporate culture and through its internal use of OR/MS at all levels of management in ways that significantly enhance corporate goals. Bellcore's use of quantitative approaches in its internal operation and planning is pervasive throughout the business, ranging from detailed operational functions to top management decision making. Its scope spans a wide variety of applications, including organizational cost planning, scheduling and quality control of software development projects, determining employee compensation, allocation of internal support service resources, and support of marketing functions and project evaluation at the top management level using decision/risk analysis techniques.
"Bellcore has over 200 full-time OR/MS professionals with advanced degrees who are consistently recognized for their achievements and are the recipients of several prestigious industry, technical and professional awards. They provide services to the regional Bell Operating Companies and other industry clients, as well as to internal organizations. There has been a consistent pattern of internal application of tools developed for the client organizations as well as export of tools (as products) originally developed for internal use." Chao added that during site visits, committee members heard testimonials from various senior officers in the company that OR/MS methodologies had yielded client benefits in excess of $100 million.
Robert W. Lucky, Bellcore corporate vice president-applied research, was on hand in New Orleans to accept the Prize. Saying he was anxious to bring the award to the attention of other company officers, Lucky explained that Bellcore's business "is conducive to this kind of work."
"What's really important," he added, "is the quantifiable benefits that can be obtained. I can tell people what we're getting for our money."
Lucky acknowledged Bellcore's 200 OR/MS professionals, including Amir Sadrian, project director-robust network and risk management solutions, who played a key role in the Prize process.
Past winners of the INFORMS Prize include American Airlines, AT&T, Federal Express, New York City's Office of Management and Budget, San Miguel Corp., United Airlines and U S West Technologies.