| dc.description.abstract | The concept of value and price is overlooked across many for-profit organizations, often considered as an afterthought rather than one of the key pillars of a business. This perception of value and price can lead to a situation where organizations are not developing capabilities and competencies to be able fairly to monetize their existing and new offerings. This situation can possibly lead to a huge risk (economic and non-economic) for larger organizations, such as enterprises, when they fail to monetize their existing or the next product or service. However, for a small organization like a startup, not getting the concept of value right might turn into an insurmountable risk that threatens the very existence of this organization, for instance missing the so-called “product-market” fit.
At the same time, this topic has not raised much attention in both the academic and business communities, and therefore, many studies have covered this issue either at a relatively high or low level. Thus, this thesis attempts to propose a price excellence framework that covers the whole spectrum on this matter based on an extensive literature study. This framework can help potentially for-profit organizations to bridge the gap mentioned-above and give some step-by-step guidance on the price transformation journey for better monetization of their hard work. This thesis continues to validate the proposed roadmap using both qualitative, i.e. survey, and quantitative data gathering and analysis.
According to our survey study, 21.38% of companies stand at level one of the maturity spectrum, 36.1% and 26.33% have scored level 2 and 3, respectively. At the same time, only 6.1% of companies enrolled in this survey have scored full price excellence maturity. Plus, 10% of companies were not fully aware of their maturity position in the price excellence space, according to our survey.
This landscape confirms that there are still significant improvement points at for-profit organizations globally for better monetizing the value of their product and services.
On top of this, the quantitative data analysis on the parameters of various digital pricing transformation programs shows that the rate of adoption of these programs and consequently the monetary benefit generated has a positive correlation with the commitment and investment in these programs, i.e., the scope product portfolio and duration of these programs. | |