Consortium Project: Pricing Digital Products

Motivation

During the last years, many industrial companies have invested greatly and introduced different smart services and digital products into their business. However, many companies are not able to run these offerings profitably, which is why many companies are re-thinking their business models. From our experience, the mismatch between the providers expectation's and the customer's willingness to use and pay for services, such as Predictive Maintenance, is strongly related to an unclear understanding of the value provided by these digital offerings.

 

Whereas in some cases, the value of digital products and services is unclear, often also their prices are not related to the benefits for the customer and restrain him from trying it out. Potential customers have consequently become sceptical when it comes to investing own resources in order to try out a new digital product. Hence, this development leads to the questions: What can companies do to overcome these barriers?

 

From our point of view, the key is to transform the revenue model away from cost-based or guess-based approaches towards value-based pricing models, where the price of a digital product is determined by the value created for the customer. However, the path towards value-based approaches is rocky. It is not only about implementing a new revenue model, with new pricing approaches and pricing metrics but also about quantifying a value for which often no pre-existing KPI's or value-drivers can be used as a reference. Overall, the transition towards value-based methods requires a deep transformation in all dimensions of how a company interacts with its customers. 

 

In order to address these great challenges, our new consortium project Pricing digital products” explores this topic systematically. On the one hand, the projects objective is to learn from “Successful Practice” companies that have successfully introduced value-based offerings and managed the transformation. On the other hand, we would like to individually support your company to find answers for the relevant questions needed to transform your organization successfully.

 

Currently, we are looking for consortium partners to join the our project. We are looking forward to getting in touch with you for additional information!
 

 

Your Benefits

Specific recommendation for actions and a guideline to master the transformation value-based pricing in your company
Get to know successful practices through case studies and direct exchange with other companies
Gaining valuable contacts and insights as well as experience from different industries for the pricing of digital products
Individual workshop for the direct application of the recovered results
Learn from industry experts and profit from our experience in knowledge transfer from over 30+ industry-, and 4+ industry related research projects per year 
 

 

Project Overview
Time Frame
  • Duration: Approx. 8 months
  • Planned Kick-off: 04/2020
Meetings
  • Kick-off Meeting (1 day)
  • 1st Workshop (1 day)
  • 2nd Workshop (1 day)
  • Final Meeting (1 day)
Participation fee € 30'000

 

Timeline4

Downloads

For further information, download the following files below:

  • • Description of our consortium project "Pricing Digital Products" (German) 
  • Description of our consortium project "Pricing Digital Products" (English)
Broschuere_Pricing_Digitaler_Produkte_DE
application/pdf 1.28 MB
Broschuere_Pricing_Digitaler_Produkte_EN
application/pdf 1.55 MB

Contact Form

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Contact

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Christoph Tienken
Research Associate & PhD Candidate
Profilfoto
Jonathan Rösler
Research Associate & PhD Candidate