Journal of Revenue and Pricing Management

, Volume 16, Issue 1, pp 91–105 | Cite as

Towards value-driven strategies in pricing IT solutions

  • Natalia Reen
  • Magnus Hellström
  • Kim Wikström
  • Olga Perminova-Harikoski
Research Article
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  • 82 Downloads

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

service pricing value-based pricing industrial services pricing strategy value-driven capability 
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Notes

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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Copyright information

© Macmillan Publishers Ltd 2017

Authors and Affiliations

  • Natalia Reen
    • 1
  • Magnus Hellström
    • 2
  • Kim Wikström
    • 2
    • 3
  • Olga Perminova-Harikoski
    • 2
    • 3
  1. 1.Innotrain OYIsomäki 19BEspooFinland
  2. 2.Åbo Akademi UniversityÅboFinland
  3. 3.PBI Research InstituteÅbo Akademi UniversityÅboFinland

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