Using The Internet For New Product Pricing Strategies
Pricing and Big Data
Pricing and Big Data
In the software industry there is much talk about Big Data and how new technologies can help manage larger amounts of data. While there is some marketing hype, Big Data technologies can truly help pricing managers gather, process and act or larger data sets than ever before.
When using (Big) Data technologies in pricing, companies and managers must take into consideration various factors:
- Data: New technologies within database systems give the ability to store and crunch billions of data points. The challenge though is a) where to get the data from and b) how to store the data so it makes sense or is actionable.
- Language: What are the key performance indicators derived from the large data sets? Are these concepts/indicators understood and shared by the entire organisation?
- Processes: Make sure data processing is both actionable and repeatable. No point in going through extensive data collection over several months if it cannot be repeated with great ease. Nor does it make sense to collect data that nobody uses in their daily processes and work.
- Tools: Make sure to get the right tools that can handle not only the big data quantities but also help you put the information into order. One key differentiator is to use tools with built-in intelligence and analytics. Instead of having to create all analyses from scratch, benefit from what tool vendors have already created and used with other companies.
- People: Once you have a nice data system with massive quantities of data, the temptation is to expose this to all users with some very sophisticated analytical options, allowing for complete drilling and pivoting of dimensions. In theory, it allows for very detailed insights, however in practice it often confuses or “drowns” users in information overflow. Therefore, it should be part of any Big Data strategy for pricing to segment user groups and define what kind of analytics should be offered. Some users would benefit more from some fixed-format, pre-defined reports that focus on relevant key performance indicators, without the need or even access to fancy drill-down capabilities. This may often be the case in sales or sales management. Other users, such as financial analysts, may require the full drilling capabilities and may also have the experience from spreadsheets, for example, to create their own reports based on the available data dimensions.
At Stratinis we are proud of our Big Data capabilities and would be pleased to provide further insights into how your company could benefit from our pricing solutions. For further information please visit www.stratinis.com.