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Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
Ein Subscription-Geschäftsmodell – das klingt nach maßgeblichen wirtschaftlichen Vorteilen. Daher stellt sich die Frage: Warum haben bisher noch nicht alle produzierenden Unternehmen diese Art der partizipativen Geschäftsmodelle aufgebaut?
Die Antwort: Der Aufbau und die Umsetzung von Subscription-Geschäftsmodellen gehen einher mit zentralen Herausforderungen, die Unternehmen im Zuge einer Geschäftsmodelltransformation bewältigen müssen. Hierbei hilft dieses Expert-Paper.
A subscription business model - that sounds like significant economic advantages. Therefore, the question arises: Why haven't all manufacturing companies established this type of participative business model yet?
The answer: The development and implementation of subscription business models go hand in hand with central challenges that companies have to overcome in the course of a business model transformation. This expert paper helps with this.