Information Technology Strategy Incorporating Dynamic Pricing in the Business Model of the Future
With the continuous development of Information Technology towards the Consumer Electronic area, consumers are provided with invaluable and powerful information for consumption purposes. This has imposed strangle-hold competitive pressures on businesses, especially retailers. The proposed Dynamic Pricing Model discussed in this research will provide the supply chain business partners of industry a strategic weapon to counter-balance the increased consumer competitive power. The main thrust of the model is predicated on the use of Information Technology to massively collect consumer data (Big Data) and apply pertinent Business Analytics to develop appropriate Consumer Utility-Value in the form of an index. This complex index can give businesses, especially retailers the ability to price their products/services according to the utility value it can generate based on the real-time desires/necessities of the consumers. By such practice, it is perceivable that additional revenues can be obtained without increase in costs, with the exception of the Information Technology and Business Analytics efforts.
KeywordsInformation technology Dynamic pricing Utility value Business analytics
- 1.Anonymous.: Automotive Suppliers Need E-Commerce. IIE Solutions 33(6), 12 (2001)Google Scholar
- 2.Kopczak, L.R., Johnson, E.: The supply chain management effect. MIT. Sloan. Manage. Rev. 44(3), 27–34 (2003)Google Scholar
- 3.Lewis, T.: Corporate R&D in the age of e-commerce. Res. Technol. Manage. 43(6), 16 (2000)Google Scholar