SOURCE: PricewaterhouseCoopers LLP
Shifts in Software Market Model Reveal Potential for Revenue Increase
Constant innovation and evolution in the software industry markets and business models require new pricing strategies. For companies that want to reduce undisciplined pricing, inconsistent analytics and decision making without competitive insights, revamping pricing strategy can facilitate improved price decision making and enhance the identification of business opportunities, the report states.
"By combining analytics with formalised processes and standards, companies can get on a path towards a more coherent, organisation wide pricing model that delivers proven results," said Mark McCaffrey, PwC's Global Software Leader. "Companies today are focusing more on pricing excellence. Those who coordinate a pricing strategy framework with organisational processes and structure, systems, data and culture can obtain notable increases in ROI and decreased revenue leakage among other benefits."
PwC's four point pricing management framework centres on key factors effecting pricing maturity and financial results: pricing strategy, price formulation, transaction management and performance management. These four factors, working together in a functioning business, affect and are affected by process, organisation and technology and data analytics.