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Towards value-driven strategies in pricing IT solutions

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Journal of Revenue and Pricing Management Aims and scope

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.

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Acknowledgements

The authors would like to acknowledge the support of the Future of Industrial Services (FutIS) program run by the Strategic Centre for Science, Technology and Innovation FIMECC (Finnish Metals and Engineering Competence Cluster) in the development of this paper.

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Authors and Affiliations

  1. Innotrain OY, Isomäki 19B, 02970, Espoo, Finland

    Natalia Reen

  2. Åbo Akademi University, Biskopsgatan 8, 20500, Åbo, Finland

    Magnus Hellström, Kim Wikström & Olga Perminova-Harikoski

  3. PBI Research Institute, Åbo Akademi University, Biskopsgatan 8, 20500, Åbo, Finland

    Kim Wikström & Olga Perminova-Harikoski

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  1. Natalia Reen
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  2. Magnus Hellström
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  3. Kim Wikström
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  4. Olga Perminova-Harikoski
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Correspondence to Natalia Reen.

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Reen, N., Hellström, M., Wikström, K. et al. Towards value-driven strategies in pricing IT solutions. J Revenue Pricing Manag 16, 91–105 (2017). https://doi.org/10.1057/s41272-017-0079-z

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