Towards value-driven strategies in pricing IT solutions

A1 Journal article (refereed)


Internal Authors/Editors


Publication Details

List of Authors: Natalia Reen, Magnus Hellström, Kim Wikström, Olga Perminova-Harikoski
Publisher: Palgrave
Publication year: 2017
Journal: Journal of Revenue and Pricing Management
Volume number: 16
Issue number: 1
Start page: 91
End page: 105
eISSN: 1477-657X


Abstract

The objective of this paper is to discuss the challenges and opportunities involved in the pricing of industrial IT solutions and to propose practical advice on how to implement value-driven strategy in pricing. A case study of an organisation moving towards value-based pricing is presented. The results provide clarification of new pricing strategies for managers by defining work packages for implementing the transition towards a value-based approach. The findings show that value-based pricing is related to the ability of the organisation to create value for its customers, to charge them according to the value, and implies severe changes in the company’s business model.


Keywords

business services, capability

Last updated on 2019-19-10 at 04:04