Innovative Pricing Models For It Services In The Digital Era

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Innovative Pricing Models For It Services In The Digital Era - AD-TEAM - 01-29-2025

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Innovative Pricing Models For It Services In The Digital Era
Published 1/2025
MP4 | Video: h264, 1920x1080 | Audio: AAC, 44.1 KHz
Language: English | Size: 8.14 GB | Duration: 12h 58m

Gain practical expertise in IT services pricing with strategies, models and key factors impacting pricing in digital era

What you'll learn

1. Acquire 'practical pricing concepts and insights' that greatly enhance BID win probability

2. Understand how business environment, customer needs, and market dynamics shape the best pricing strategy

3. Build expertise in the six leading pricing models and their variants to recommend win-win pricing solutions for customers

4. Gain in-depth knowledge of outcome-based pricing models and their significance, especially in the Digital Era

5. Develop an in-depth understanding of 'key factors' influencing efforts and pricing in every digital technology solution

6. Gain clarity on the ideal pricing models for Agile engagements, with strong justification for their suitability.

7. Discover the leading strategies for effectively pricing intellectual properties

Requirements

Recommended Experience: At least 5 years in the IT services industry for optimal benefit.

Customer Interaction: Prior experience interacting with customers is beneficial for better relatability but not mandatory.

Requirements: A mobile device or PC with internet access

Tools: No specific tools or software required

Description

Welcome..!You may already have some answers to the first couple of questions below, but together, we'll uncover new insights and perspectives.A) Why is pricing more complex, especially in the IT business?1. Intangible nature of deliverables: Unlike physical products, most IT services are intangible. This makes it challenging to quantify their value and justify pricing effectively.2. Complex technological environments: IT services often involve evolving and highly customized solutions. In the current digital environment, rapidly changing technologies and global market dynamics add significant complexity to determining the right price.B) What are the key practical challenges for delivery leaders in gaining in-depth knowledge about pricing?1. Their technical background and focus: Many delivery leaders are highly skilled in technical aspects and naturally focus more on them. As a result, they often have limited exposure to commercial and pricing concepts.2. Pressure of on-the-job self-learning: Managers often learn commercial and pricing knowledge the hard way, relying on personal experience instead of leveraging others' insights. This approach consumes significant time and adds considerable work pressure.C) Why this course? How will it help delivery leaders in the IT business?This course is designed to empower IT services delivery professionals by providing comprehensive and 'practical knowledge' on pricing. It aims to:Save at least 25-30% of their self-learning efforts on the ground.Enhance their confidence and efficiency when working on or reviewing effort and price estimations for various digital technology-based solutions.D) What exactly is covered in this course?This course covers the following key aspects:Section-0: An interesting real-world case study on innovative pricingSection-1: Key concepts of pricingSection-2: Key pricing strategiesSection-3: Leading pricing modelsSection-4: Pricing for Agile projects deliverySection-5: Pricing in digital technology-based engagementsSection-6: Strategies for intellectual property pricingSection-7: Plan of actionSection-0: An interesting real-world case study on innovative pricingThe course begins with an engaging case study of a construction company that developed an innovative pricing model for an elevated metro line project, by thinking outside the box.This world-class case study highlights the power of creative pricing solutions, illustrating how to conceive, design, and propose impactful pricing models that add customer value, differentiate from competitors, and drive business success-all based on real-world insights.Section-1: Key concepts of pricingThis section covers the key concepts essential for gaining a deep understanding of pricing. You will learn how to effectively apply these concepts in real-world customer engagements.These concepts include:Understanding the 'true relationship' between price, cost, and margin - and how to enhance your bid win probability (one of the key takeaways from this course).Low price vs. Premium price - learn when to apply each strategyKey factors required for computing the 'Rate card.'Key factors required for computing the 'Final price.'Customer engagement maturity levels and recommended pricing models for each levelStakeholder expectations for a new bid and how to engage and influence them effectively - Practical tips and best practices to improve your success rateEtc.Section-2: Key pricing strategiesThis section explores the five most widely adopted pricing strategies in the IT industry, providing insights into each approach. By the end of this section, you will learn how to assess customer needs, market trends, and competitive conditions to apply the most suitable pricing strategy.Pricing Strategies Covered:Cost-based pricingCompetitive pricingValue-based pricingPrice skimmingPenetration pricingIn-depth exploration of each of the above strategies covering its Big Grin

efinition: What the strategy is and how it functions.Application: When to use it and when not to.Execution: How to implement it effectively.Prevalent pricing techniques: You will also understand various prevalent pricing techniques, gaining clarity on how each operates and the types of products or services best suited to each technique.Section-3: Leading pricing modelsThis is one of the two major sections of the course.By the end of this section, you will have developed expertise in all six leading pricing models. You will be able to recommend pricing solutions tailored to client maturity and requirements.Pricing Models Covered:1. Time and Material model2. Fixed price model3. Usage-based pricing model4. Transaction-based pricing model5. Unit / Element-based pricing model6. Outcome-based pricing modelFor each of the above pricing models, we will discuss the following aspects in detail:What is the model about ?How does the model work ?Which types of engagements are most suitable for the model and why ?How is the service provider's price determined ?How is payment made to the service provider ?What are the roles and responsibilities of both the customer and the service provider ?How is control maintained in the model, and who holds overall control ?What risks are involved for both the customer and the service provider ?What are the advantages and disadvantages for both parties ?How can the disadvantages and challenges be handled efficiently ? (best practices / TIPS)What are the dos and don'ts for the service provider ?Discuss about the popular variants of each model, with calculations, examples, and case studies.Variants Breakdown by Pricing Model:• Time & Material: 4 variants• Fixed Price: 3 variants• Usage-based: 6 variants• Transaction-based: 1 variant• Unit / Element-based: 3 variants• Outcome-based: 6 variantsIn-depth focus on Outcome based pricing: This section provides an in-depth discussion (in addition to the points mentioned above) on the Outcome-based pricing model, considering its extensive adoption in the majority of digital technology engagements worldwide.Detailed coverage of the Outcome-based pricing model includes:What and why of outcome-based pricing ?How this model is unique ?Why this model is 'need of the hour' ?Evaluating the suitability of an engagement for outcome-based pricingPractical implementation challengesNegotiating payment terms and structureRoles and responsibilities for both the customer and service providerDifferent categories of this model depending on expected outcomesDos and don'ts for both the customer and service providerLeading pricing scenarios with detailed computationsSection-4: Pricing for Agile projects deliveryThis section discusses the pricing models most suitable for delivering Agile-based projects, providing clear justifications for their suitability. It also explains why certain models are less effective in Agile engagements and highlights their limitations.Additionally, this section offers practical tips and guidelines to help you effectively convince customers to adopt the right pricing models for their Agile initiatives, ensuring alignment with the iterative and flexible nature of Agile delivery.Section-5: Pricing in Digital technology-based engagementsThis is the second major section of the course and a vital topic in today's digital world. It delves deeply into the key factors that significantly impact the efforts and costs of developing digital technology solutions, making it essential for the majority of digital technology projects.The insights provided in this section are invaluable for participants working on digital solutions, helping them make informed decisions and design effective pricing strategies tailored to these technologies.Key technologies covered in this section:1. Mobile2. Cloud3. Big Data4. Analytics5. IoT6. Artificial IntelligenceFor each of these technologies, this section provides insights into:Recommended pricing models with clear justificationKey factors influencing efforts, costs, and priceBy understanding these critical aspects, participants will develop the expertise needed to manage the financial and commercial aspects of digital technology projects, leading to successful and impactful engagements.Section-6: Strategies for Intellectual Property pricingWith the surge in new IP registrations in recent years, fuelled by dynamic digital technologies, intellectual property (IP) has become a cornerstone of innovation across industries. As new inventions emerge daily, professionals must possess clarity and knowledge about effective IP pricing strategies.Pricing IP assets is a complex challenge that requires a thorough understanding of various valuation approaches to balance their value and potential accurately.This section provides an overview of the three primary IP valuation methods, detailing their processes, advantages, and limitations:Cost-based valuationIncome-Based ValuationMarket-Based ValuationBy gaining a basic understanding of these valuation strategies, participants will be better equipped to approach IP pricing with confidence and make informed decisions.Section-7: Plan of action"Knowledge is like paint. It does no good unless it is applied."This section provides participants with a clear and actionable plan to review and effectively apply the insights gained throughout the course.The suggested actions are practical and designed to be implemented easily within your professional environment, ensuring that your learning translates into measurable outcomes in your day-to-day work.E) What Makes This Course Unique and Standout?This course stands out as a one-of-a-kind offering on the complex subject of pricing due to the following five distinctive aspects:1. Expert-led design and delivery: Created and delivered by an industry veteran with 3.5 decades of proven experience in both IT service delivery and training.2. Practical orientation: The course emphasises real-life experiences, examples, and case studies, ensuring practical applicability over theoretical abstraction.3. Digital technology focused: This course explores key factors across digital technologies that influence effort and price estimation. In today's digital world, this essential knowledge empowers participants to price solutions effectively.4. Engaging Delivery: The faculty uses an engaging and relatable storytelling approach, with a touch of humour, to make the sessions enjoyable and memorable, all while maintaining a free-flowing delivery style.5. Visual-rich Content: The course features highly visual, context-sensitive, and intuitive pictorial content for better understanding and retention.Additionally, I plan to offer free consultancy support to participants who may require assistance while implementing the concepts learned, ensuring continued guidance beyond the course. I would be more than happy to assist you in your implementation journey.F) What is the expected change in your behaviour post-attending this course?Attending this course will significantly boost your overall comfort and confidence on the subject of pricing. You can expect the following key changes in your approach and behaviour while working on the pricing:Thinking from the customer's perspective to enhance win probability.Adopting a strategic approach before computing detailed pricing.Selecting and justifying pricing models relevant to customer needs.Improved confidence in pricing digital technology-based solutions.Exploring opportunities for outcome-based pricing proposals.Applying effective IP pricing strategies for proprietary assetsThese behavioural changes will collectively lead to more effective IT service delivery, greater client satisfaction, and enhanced organisational profitability.Best of luck in applying these insights to your work..!

Overview

Section 1: Welcome to the course

Lecture 1 Brief profile of the faculty

Lecture 2 Course structure and coverage

Section 2: Pricing innovation: An interesting real-world case study

Lecture 3 An interesting real-world case study on innovative pricing

Section 3: Section-1: Key concepts of pricing

Lecture 4 1.1 True relationship between Price, Cost and Margin

Lecture 5 1.2 Low price Vs Premium price

Lecture 6 1.3 Factors considered in determining the 'Rate card'

Lecture 7 1.4 Factors considered for computing the 'Final price'

Lecture 8 1.5 Customer engagement maturity levels

Lecture 9 1.6 Expectation from various stakeholders within the customer organization

Section 4: Section-2: Key pricing strategies

Lecture 10 2.1 An introduction to key pricing strategies

Lecture 11 2.2 Strategy-1: Cost based pricing

Lecture 12 2.3 Strategy-2: Competitive pricing

Lecture 13 2.4 Strategy-3: Value based pricing

Lecture 14 2.5 Strategy-4: Price skimming

Lecture 15 2.6 Strategy-5: Penetration pricing

Lecture 16 2.7 Prevalent pricing techniques

Section 5: Section-3: Leading pricing models for IT services

Lecture 17 Introduction to leading pricing models

Lecture 18 Pricing models for different engagement maturity levels

Section 6: Section-3.1: Time and Material pricing model

Lecture 19 3.1.1 Introduction to T&M pricing model

Lecture 20 3.1.2 Billing categories in T&M pricing model

Lecture 21 3.1.3 Advantages and Disadvantages for the customer

Lecture 22 3.1.4 Advantages and disadvantages for the service provider

Lecture 23 3.1.5 Dos and Don'ts for the service provider

Lecture 24 3.1.6 Key best practice in the T&M pricing model

Lecture 25 3.1.7 Variant-1: T&M model with a fixed number of resources

Lecture 26 3.1.8 Variant-2: T&M model with fixed capacity

Lecture 27 3.1.9 Variant-3: T&M model with capped / NTE

Lecture 28 3.1.10 Variant-4: T&M model with standby resources

Section 7: Section-3.2: Fixed Price model

Lecture 29 3.2.1 Introduction to Fixed Price model

Lecture 30 3.2.3 Advantages and disadvantages for the service provider

Lecture 31 3.2.4 Dos and Don'ts for the service provider

Lecture 32 3.2.5 Variant-1: Firm Fixed Price

Lecture 33 3.2.6 Variant-2: Fixed Price + Incentive Fee

Lecture 34 3.2.2 Advantages and disadvantages for the customer

Lecture 35 3.2.7 Variant-3: Fixed Price with Economic Price Adjustment

Lecture 36 3.2.8 'Open book' system in the Fixed Price model

Section 8: Section-3.3: Usage-based pricing model

Lecture 37 3.3.1 Introduction to Usage-based pricing model

Lecture 38 3.3.2 Implementation of Usage-based pricing model

Lecture 39 3.3.3 Advantages and disadvantages for the customer

Lecture 40 3.3.4 Advantages and disadvantages for the Product vendors

Lecture 41 3.3.5 Dos and Don'ts for the Product vendors

Lecture 42 3.3.6 Variants-1,2,3 of Usage-based pricing model

Lecture 43 3.3.7 Variants-4,5,6 of Usage-based pricing model

Section 9: Section-3.4: Transaction-based pricing model

Lecture 44 3.4.1 Introduction to Transaction-based pricing model

Lecture 45 3.4.2 Advantages and disadvantages for the customer

Lecture 46 3.4.3 Advantages and disadvantages for the service provider

Lecture 47 3.4.4 Dos and Don'ts for the service provider

Lecture 48 3.4.5 Case study

Section 10: Section-3.5: Unit-Element-based pricing model

Lecture 49 3.5.1 Introduction to the Unit-Element-based pricing model

Lecture 50 3.5.2 Advantages and disadvantages for the customer

Lecture 51 3.5.3 Advantages and disadvantages for the service provider

Lecture 52 3.5.4 Dos and Don'ts for the service provider

Lecture 53 3.5.5 Variant-1: Infrastructure as the Unit

Lecture 54 3.5.6 Variant-2: Service ticket as the Unit

Lecture 55 3.5.7 Variant-3: Business user as the Unit

Section 11: Section-3.6: Outcome-based pricing model

Lecture 56 3.6.1 What is Outcome-based pricing ?

Lecture 57 3.6.2 Why Outcome-based pricing ?

Lecture 58 3.6.3 Evaluate the suitability of an engagement for Outcome-based pricing

Lecture 59 3.6.4 Payment structure in Outcome-based pricing

Lecture 60 3.6.5 Roles & Responsibilities in Outcome-based engagements

Lecture 61 3.6.6 Categories of Outcome-based engagements

Lecture 62 3.6.7 Category-1: Support & Maintenance Case study

Lecture 63 3.6.8 Category-1: Development Case study

Lecture 64 3.6.9 Category-2: Case study: Save costs for the customer

Lecture 65 3.6.10 Category-2: Scenario-1: Pay X% as a fixed amt and Y% linked to outcome

Lecture 66 3.6.11 Category-2: Scenario-2: Share X% of the actual saved cost

Lecture 67 3.6.12 Category-3: Case study: Improve revenues-profits for the customers

Lecture 68 3.6.13 Category-3: Scenario-1: Pay X% as a fixed amt and Y% of actual revenue

Lecture 69 3.6.14 Category-3: Scenario-2: Share X% of the actual improved revenue

Lecture 70 3.6.15 Real world case study for outcome based pricing model

Section 12: Section-4: Pricing models for Agile projects

Lecture 71 Pricing models suitable for Agile projects

Section 13: Section-5: Pricing in Digital Technology-based engagements

Lecture 72 Pricing complexity in Digital Technology-based engagements

Lecture 73 3.6.15 Category-3: Real world case study for Outcome-based pricing model

Section 14: Section-5.1: Pricing in Mobile technologies

Lecture 74 5.1.1 Recommended pricing models for Mobile engagements

Lecture 75 5.1.2 Key factors impacting the pricing (Factor-1 to Factor-7)

Lecture 76 5.1.3 Key factors impacting the pricing (Factor-8 to Factor-14)

Section 15: Section-5.2: Pricing in Cloud technologies

Lecture 77 5.2.1 Recommended pricing models for Cloud engagements

Lecture 78 5.2.2 Key factors impacting the pricing (Factor-1 to Factor-4)

Lecture 79 5.2.3 Key factors impacting the pricing (Factor-5 to Factor-9)

Section 16: Section-5.3: Pricing in Big data technologies

Lecture 80 5.3.1 Recommended pricing models for Big data engagements

Lecture 81 5.3.2 Key factors impacting the pricing (Factor-1 to Factor-4)

Lecture 82 5.3.3 Key factors impacting the pricing (Factor-5 to Factor-8)

Section 17: Section-5.4: Pricing in Analytics technologies

Lecture 83 5.4.1 Recommended pricing models for Analytics engagements

Lecture 84 5.4.2 Key factors impacting the pricing (Factor-1 to Factor-4)

Lecture 85 5.4.3 Key factors impacting the pricing (Factor-5 to Factor-11)

Section 18: Section-5.5: Pricing in IoT technologies

Lecture 86 5.5.1 Recommended pricing models for IoT engagements

Lecture 87 5.5.2 Key factors impacting the pricing (Factor-1 to Factor-5)

Lecture 88 5.5.3 Key factors impacting the pricing (Factor-6 to Factor-10)

Section 19: Section-5.6: Pricing in Artificial Intelligence

Lecture 89 5.6.1 Recommended pricing models for AI engagements

Lecture 90 5.6.2 Key factors impacting the pricing (Factor-1 to Factor-5)

Lecture 91 5.6.3 Key factors impacting the pricing (Factor-6 to Factor-8)

Lecture 92 5.6.4 Key factors impacting the pricing (Factor-9 to Factor-11)

Section 20: Section-6: Strategies for Intellectual Property pricing

Lecture 93 6.1 Introduction to Intellectual Property (IP) pricing

Lecture 94 6.2 Strategy-1: Cost-based valuation for IPs

Lecture 95 6.3 Strategy-2: income-based valuation for IPs

Lecture 96 6.4 Strategy-3: Market-based valuation for IPs

Section 21: Section-7: Plan of action

Lecture 97 Plan of action

Project Managers / Senior Project Managers,Delivery Managers / Delivery Heads,Program Managers,Sales and Pre-sales consultants,Quality consultants supporting IT services delivery,Anyone keen to gain in-depth knowledge of IT service delivery pricing

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