Digital Pricing Strategy provides a best-practice overview of how companies design, analyze, and execute digital pricing strategies. Bringing together insights from academic and professional experts globally, the text covers essential areas of the value and pricing of data, platform pricing, pricing of subscriptions and monetization of the global environment.
Case studies, examples and interviews from leading organizations, including Zuora, Honeywell, Relayr, Alcatel Lucent, ABB, Thales, and General Electric, illustrate key concepts in practice. To aid student learning, chapter objectives, summaries, and key questions feature in every chapter, alongside PowerPoint slides and a test bank available online for lecturers.
Comprehensive and applied in its approach, this text provides postgraduate, MBA, and Executive Education students with an understanding of the capabilities, processes, and tools that enable executives to effectively implement digital transformations and capture value from digital innovations.
Table of Contents
Section 1: Digital Pricing
Chapter 1: The Essential Ingredient for More Effective Digital Pricing: Value, by John Porter
Chapter 2: Publish Your Prices, by Kyle T. Westra
Chapter 3: Dynamic Pricing Process: How to Transition from Fixed to Dynamic Pricing?, by Arnd Vomberg
Chapter 4: Realizing Your Monetization Potential Needs Customer Value Management, by Mrinal (MG) Gurbaxani and Alex Smith
Chapter 5: Measure and Quantify the Value of Your Digital Solution, by Stephan M. Liozu, PhD
Section 2: Software and Subscription-Based Pricing
Chapter 6: Price Increase for Discounted Customers in SaaS: Pricing Research Description and Success Story, by Maciej Wilczynski
Chapter 7: SaaS Pricing: From Subscriptions to Usage-Based Pricing Models, by Andreas Hinterhuber
Chapter 8: The Digital Pricing Framework: Best Practices in B2B Pricing and Offer Design, by Scott Miller
Chapter 9: Tapping into the Subscriber Psychology with Good-Better-Best: Is There an Optimal Ratio Between Tiers?, by Gaurav Sonpar and Michael Mansard
Chapter 10: Value-Based Pricing of Smart-Product-Service Offerings in the Manufacturing Industry, by Tobias Leiting, Calvin Rix, Regina Schrank, and Lennard Holst
Chapter 11: Price Sensitivity Meter and Conjoint Analysis as Tools to Set Your Industrial Subscription Pricing, by Maciej Wilczynski and Matt Johnston
Section 3: The Value and Pricing of Data
Chapter 12: Overcoming Real-World Challenges in B2B Digital Pricing Transformation, by Lalit Wadhwa
Chapter 13: Holistic Approach to Market Segmentation of Industrial Smart Services: What Is the True Value of Data?, by Luis Prato
Chapter 14: Three Considerations for Data Monetization and Value Creation in the Digital Age, by Bill Schmarzo
Chapter 15: The Economics of AI: How to Shift Data Projects from Cost to Revenue Center, by Alex Fournier and Claire Gubian
Chapter 16: The Pricing of Data: An Interview with Jian Pei, Simon Fraser University
Section 4: The Pricing of Platforms and Marketplace
Chapter 17: Marketplace Monetization Methods, by Jacek Łubiński
Chapter 18: The Monetization of Marketplaces and Platforms in the Context of Web 3.0, by Murali Saravu
Chapter 19: Pricing in Platforms and Marketplaces: A Primer in Understanding All the Dimensions of the Pricing Problem and Opportunity in Marketplace-Platforms, by Simone Cicero
Chapter 20: Online Pricing Experimentation, by Robert Phillips
Section 5: Pricing and Artificial Intelligence
Chapter 21: AI and Its Impact on Pricing Technology, by Louis Columbus
Chapter 22: Why AI Transformations Should Start with Pricing, by Joël Hazan, Camille Brégé, Jean-Sébastien Verwaerde, and Arnaud Bassoulet
Chapter 23: Digitization of the B2B Pricing—A Fundamental Shift Required, by Craig C. Zawada
Chapter 24: Value-Based Offers Assisted by Artificial Intelligence, by Stella Parks and John V. Colias
Chapter 25: Digital Transformation: How to Convert a Buzzword into Real Bottom-Line Value, by Mitchell D. Lee and Darius Fekete
'The "must read" book for the C-level and executives, combining theories and best practices and providing practical considerations and guidance on how to drive digital transformation successfully.'
Jens Pfennig, Global Head of Pricing & Business Operations, Software AG
'This book reinforces the message I have been spreading for many years—that digital innovations and data-driven opportunities need to be monetized and priced the right way! Data, analytics, and AI without a value mindset bring organizations no benefits.'
Bill Schmarzo, Dean of Big Data and author of The Economics of Data, Analytics, and Digital Transformation: The Theorems, Laws, and Empowerments to Guide Your Organization’s Digital Transformation
'Pricing is a matter of life and death in the digital age. Digital transformation changes business models; it should also change pricing. This book is a trailblazer that has managed to bring together the knowledge of leading experts in highly relevant areas such as value-based pricing, the value of data, and artificial intelligence in pricing. A must-read for both service providers and service buyers to reach win-win.'
Ari Hirvonen, Chief Digital Officer, University of Jyväskylä, President of Finnish Universities CIO Network
'This well-rounded book features a wealth of information and thought-leader expertise on all the digital pricing challenges your organization will face. By focusing on monetization, new business strategies, data projects, and real-world challenges, Digital Pricing Strategy: Capturing Value from Digital Innovations will give you and your team a blueprint for success for today and times ahead. Liozu and Hinterhuber have assembled a great roster of collaborators here to help guide companies forward.'
Kevin Mitchell, President of the Professional Pricing Society