Selecting a Pricing Software Solution
Confidential
Selecting A Pricing Software Solution
October 21, 2010
Copyright © 2010 by LeveragePoint Innovations Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of LeveragePoint Innovations Inc. This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
1
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Agenda
Maturation of B2B Pricing
Current State of the Pricing Management Space
Business Case for Pricing Partner Selection
LeveragePoint Solution
2
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Maturation of B2B Pricing
late 90’s-’02 E-procurement 1990’s Supply Chain Optimization
2002-Now Price Management Solutions
Future requirements: Flexibility • Pricing Processes Defined
1980’s Deregulation
• People Expertise • Technology
3
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Unrealized Potential of the Price Management Space
Price Management Software is a $180 million market (source: Gartner) Procurement Software is a $2.1 billion market (source: Gartner)
4
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
The Payoff for Finding the Right Solution A flexible value-based approach drives significant operating profit.
Source: Building a World Class Pricing Capability, Dr. John Hogan, 2008
5
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Polling Question
6
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Business Case for Pricing Partner Selection Phase 1 Future Revenue Model
Phase 2 Pricing Audit
Phase 3 Case for Action
Phase 4 Design Solution
Identify the Benefit of Aligning Gaps
Technology Selection
Understand the Product/Customer Positioning
Review the Business Vision
Determine the Optimized Pricing Structure
Assess the Supporting Technology Enablers
7
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Business Case Considerations for Pricing Partner Selection Business Pricing Processes
Transaction Management 2X
Business Case Disciplines
Competing Initiatives
Technology Choices
Enterprise Applications High TCO RM
Return on Investment (ROI) Price Management 3X
Price Optimization 4X
Time to Benefit (TTB) Continuous Improvement (CI) Risk Mitigation (RM)
Price Capture 11+X
Total Cost of Ownership (TCO)
8
Internal Spreadsheets Low TCO ROI CI
SaaS Solutions High ROI Low TCO, TTB
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
LeveragePoint – Price Capture Capability Sales and Customers - want to quantify the unique advantages of competitive offers. Sales - “With this I can beat the competition and win the sales negotiation.” Customers - “With this I can make the best decision for my business.”
B2B Companies - want to provide this information to sales and customers, but struggle.
Marketing develops high-level macro value propositions, these are not specific enough for sales to use effectively with a specific customer. Pricing provides guidance but not the rationale that sales needs to persuade customers.
Product Development builds features, without a clear understanding of their economic value for customers.
9
Senior Executives Want the team to invest in segments and offers that will deliver the greatest profitability and differentiation from the competition
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
LeveragePoint for Value-Based Pricing
Open Source Data (WWW) & Data Vendors Sales and Customer collaborate on the value of unique advantages
MARKETING
Sales CRM, Pricing, Finance, Configuration
10
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Value Modeling Screen Shot
11
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Price Setting Screen Shot
12
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Value Communication for Sales Screen Shot
13
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Thanks for Watching!
http://www.leveragepoint.com [email protected] Jay Manson 781-727-5977
14
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Selecting A Pricing Software Solution
October 21, 2010
Copyright © 2010 by LeveragePoint Innovations Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of LeveragePoint Innovations Inc. This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
1
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Agenda
Maturation of B2B Pricing
Current State of the Pricing Management Space
Business Case for Pricing Partner Selection
LeveragePoint Solution
2
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Maturation of B2B Pricing
late 90’s-’02 E-procurement 1990’s Supply Chain Optimization
2002-Now Price Management Solutions
Future requirements: Flexibility • Pricing Processes Defined
1980’s Deregulation
• People Expertise • Technology
3
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Unrealized Potential of the Price Management Space
Price Management Software is a $180 million market (source: Gartner) Procurement Software is a $2.1 billion market (source: Gartner)
4
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
The Payoff for Finding the Right Solution A flexible value-based approach drives significant operating profit.
Source: Building a World Class Pricing Capability, Dr. John Hogan, 2008
5
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Polling Question
6
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Business Case for Pricing Partner Selection Phase 1 Future Revenue Model
Phase 2 Pricing Audit
Phase 3 Case for Action
Phase 4 Design Solution
Identify the Benefit of Aligning Gaps
Technology Selection
Understand the Product/Customer Positioning
Review the Business Vision
Determine the Optimized Pricing Structure
Assess the Supporting Technology Enablers
7
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Business Case Considerations for Pricing Partner Selection Business Pricing Processes
Transaction Management 2X
Business Case Disciplines
Competing Initiatives
Technology Choices
Enterprise Applications High TCO RM
Return on Investment (ROI) Price Management 3X
Price Optimization 4X
Time to Benefit (TTB) Continuous Improvement (CI) Risk Mitigation (RM)
Price Capture 11+X
Total Cost of Ownership (TCO)
8
Internal Spreadsheets Low TCO ROI CI
SaaS Solutions High ROI Low TCO, TTB
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
LeveragePoint – Price Capture Capability Sales and Customers - want to quantify the unique advantages of competitive offers. Sales - “With this I can beat the competition and win the sales negotiation.” Customers - “With this I can make the best decision for my business.”
B2B Companies - want to provide this information to sales and customers, but struggle.
Marketing develops high-level macro value propositions, these are not specific enough for sales to use effectively with a specific customer. Pricing provides guidance but not the rationale that sales needs to persuade customers.
Product Development builds features, without a clear understanding of their economic value for customers.
9
Senior Executives Want the team to invest in segments and offers that will deliver the greatest profitability and differentiation from the competition
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
LeveragePoint for Value-Based Pricing
Open Source Data (WWW) & Data Vendors Sales and Customer collaborate on the value of unique advantages
MARKETING
Sales CRM, Pricing, Finance, Configuration
10
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Value Modeling Screen Shot
11
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Price Setting Screen Shot
12
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Value Communication for Sales Screen Shot
13
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
Confidential
Thanks for Watching!
http://www.leveragepoint.com [email protected] Jay Manson 781-727-5977
14
Copyright © 2010 LeveragePoint Innovations Inc. — Confidential
