The Digital revolution promises trillions of dollars in created value by 2030. Consultants and researchers are projecting massive and disruptive disruption in entire industrial sectors. As a results, PwC reports in their DigitalIQ report that 73% of executives say that they are investing in internet of things (IoT) and 54% in artificial intelligence. ABB predicts that 33 billion things or objects will be connected to the internet by 2020. So we are experiencing a deluge of digital investments, programs, and large-scale transformations.
Yet, and despite this tsunami of activities, in 2017, Cisco reported that 60% of IoT Initiatives stall in the Proof of Concept phase and that only 26% of companies have had an IoT initiative that they consider a success. In 2017, Siemens also revealed that less than a fifth (18%) of surveyed companies analyze more than 60% of production data they collect. Finally, Simon-Kucher & Partners (SKP) reports that 3 out of 4 firms that invested in digitalization in the past 3 years fail in their efforts due to the lack of monetization strategies, the focus on the wrong priorities, the lack of customer intimacy, and the neglect of digital pricing best practices. In fact, only 18% of these firms are true digital heroes.
Despite the high level of interest and investments, the reality is that most companies are just getting started. The digital champions are not yet reaping the fruit of their investments. Most companies tend to struggle with the process of designing digital business models, with the development of truly differentiated offers, and with the monetization and pricing of their data-based offers.
This book focuses on the topics of data monetization and of the value-based pricing of data-driven offers. The authors introduces a newly-developed practical data monetization roadmap that can be used by digital project teams, incubators, and digital factories to better frame their offers and to apply the principles of value-based pricing. They present options in digital pricing models and practical guidelines on how to deploy them.
Readers will learn:
- The various monetization and value creation models for data-enabled offers
- The 8 steps of the data monetization framework
- The best practices in designing differentiated data-enabled offers
- The value-based pricing of data and options in digital pricing models
- Business model implications of switching from ownership to consumption model
Stephan M. Liozu is Chief Value Officer of the Thales Group (thalesgroup.com) and Chief Marketing Officer of Thales North America. He is also the founder of Value Innoruption Advisors, a consulting company focused on B2B value management, value-based pricing, and data monetization located in Phoenix, AZ (valueinnoruption.com). He is also an adjunct professor and research fellow at Case Western Research University’s Weatherhead School of Management.
Stephan holds a PhD in Management from Case Western Reserve University (2013), an MS in Innovation Management from Toulouse School of Management (2005), and an MBA in Marketing from Cleveland State University (1991). He is a Certified Pricing Professional (CPP), a Prosci® certified Change Manager, and a Strategyzer Business Model Innovation Coach.
Wolfgang Ulaga is a marketing professor on the faculty of INSEAD, one of the world’s leading and largest graduate business schools, with campuses in Europe, Asia, and the Middle East. He works with firms, executives, and students around the globe on improving their competencies and skills in marketing and sales of products, services, and customer solutions, with an emphasis on B2B markets.
His executive education and teaching activities focus on companies to (co-)create value for (and with) B2B customers, capture value through better pricing, strategically compete through service excellence, grow digital service businesses, translate data and analytics in revenues and profits, and differentiate from competition through outstanding customer experiences in professional services and industrial goods markets. For more than 20 years, he has been a frequent keynote speaker and has consulted with companies in diverse industries and designed and delivered customized executive education programs for corporations in a broad cross-section of industries and professional services markets.
Dr. Ulaga holds a PhD from the University of Paris 1 Panthéon-Sorbonne and received a Honorary Doctorate from Turku School of Economics, Finland, for his pioneering research on customer value and servitization strategies in B2B. His research investigates how firms implement value-based marketing and sales, craft service-growth strategies, develop new service business models, design B2B service portfolios, capture more value through better service pricing, and manage the change from a product-centric to a service-savvy salesforce.
