Monthly Webinar Series – September 19, 2012




Competitive Intelligence and Pricing
               with
         Brian Clarke, IDC

                                                                                                         Copyright © 2012 by LeveragePoint Innovations Inc.
                                  No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —
                                 electronic, mechanical, photocopying, recording, or otherwise — without the permission of LeveragePoint Innovations Inc.
                         This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.


                                                                                                                    COMPANY CONFIDENTIAL
Sponsored by LeveragePoint
    the Software Solution for Value-based Pricing




2
Today’s Presenter
Competitive Intelligence and Pricing



                Brian Clarke is Program Vice President of IDC's Pricing
                Evaluation and Leasing Evaluation Services. His services are used
                by all of the major IT vendors to assist them in establishing
                successful price and product positioning strategies, by dozens of
                lessors and financial institutions to predict the residual risk of
                their portfolios, and by hundreds of corporate IT buyers and
                lessees who want to make informed purchase and lease
                decisions. His opinions are often quoted in numerous business
                and daily newspapers including USA Today, The Wall Street
                Journal, Investor's Business Daily, Business Week and The New
                York Times.




3
The Golden Age of Competitive Pricing
 Intelligence
Never been easier to collect
competitive pricing intelligence

Democratic – Competitors and
customer have access to tools

Heightened market awareness –
Amplifies pricing actions and
reactions




 © IDC                             Source:/Notes:   Sep-12   4
Growing Complexity of Competitive
 Pricing Intelligence
More data equals a glut of information

Trend towards marketing custom or “build to order” solutions
modularizes offerings into endless pricing combinations

Additional markets to cover – geographies, and buying groups

Shortened product lifecycles, plus more products grouped into more
segments

New pricing models SaaS, cloud, utility




 © IDC                                                               Sep-12   5
A Challenge For Those Tasked With
 Pricing Products and Services
Competitive price tracking typically part of the job

However, outside inputs are typically limited:
 Reliance on “inwardly-focused tools” such as CRM
ď‚§ Ad-hoc spreadsheets, like bid analysis, or web collection




 © IDC                                                        Sep-12   6
Data and Tools to Collect Pricing
Widely Available

  Wealth of Data in Public Domain
   Published price lists – GSA, state
  ď‚§ Online stores, both vendor and retail
  ď‚§ Media monitoring

  Many tools for data collection
  ď‚§ Web Harvesting (spiders, scrappers)
  ď‚§ OCR software
  ď‚§ Cheap labor

  You Can Build Competitive Pricing Tools
  ď‚§ As simple as an automated spreadsheet
  ď‚§ Or complex as a large scale business intelligence tool



© IDC                                                        Sep-12   7
Still Not a Complete Picture

ď‚§ Vendor and retail pricing typically reflect only MSRP or single quantity
street
ď‚§ Published contracts show discounts but only to one buying segment and
timestamp is questionable.
ď‚§ A large segment of enterprise products have minimal pricing on the web.
ď‚§ Representative pricing hard to determine, will always be anomalies




© IDC                                                                   Sep-12   8
Getting to the Whole Pricing Story
Expand Collections and Tools

Dig deeper into pricing
ď‚§       Special bid
ď‚§       Customer buy price
ď‚§       Channel cost
Combine with supporting data
ď‚§       Product specifications
ď‚§       Sales rank
       Other pricing impacts –promotions, rebates,
        inventory
Build analysis that is flexible, repeatable




© IDC                                                 Sep-12   9
The Many Lenses of Pricing

A product or service can have any number of combined pricing
lenses, each with a unique set of pricing


   Geography          Customer                                Size     Delivery

• Region          •   Corporate CIO’s Office• Segment
                                             CIO
                                                                     • BTO
• Country         •   Government              (SOHO)
                                  VP IT Strategy & Planning
                                             CTO                     • SaaS
• City            •   End user              • Purchase
                             Product or Service

                  •   Educational
                                  Sourcing
                                              band (50-
                                   VP Global IT Sourcing

                                              100 seats)
                                    VP/Dir IT Sourcing
                                   VP xyz Tech Sourcing




Showing a price without its context is dangerous




 © IDC                                                                        Sep-12   10
How IDC Enhances Competitive
Pricing Intelligence
Syndicated Feeds                                                                                  Reports
Consistent, fresh, proven                                                                         Reliable, repeatable

                                                                                                      Historical Pivot Table
   Retailers
    Retailers               End-user (Street) Pricing
      Retailers
        Retailers
                            End-user Rebates



                                                         eValuator
                            Est. Cost                    Database
  Retailers
   Retailers                                                                         Product Data Spreadsheet
                            Channel Promotions
     Retailers
     Distributors
                            Channel Inventory



                                                        MS Excel API
                                                        Flexible, extendable
 Retailers                                              Example: =IDC_LIST_HISTORY_QUARTER(A1,"US")
  Retailers                  List Pricing
    Retailers
       Vendors
                             Specifications                                                           Product Comparison Builder




© IDC                                                                                                                          Sep-12   11
Using MS Excel IDC Functions


An HP product web page enhanced with
a wealth of competitive intelligence




© IDC                                  Sep-12   12
Product Comparison Tools




© IDC                      Sep-12   13
Detailed Analysis of Combined
Hardware, Software and Services




Complex multi-vendor
review of multiple pricing
lenses




© IDC                             Sep-12   14
Up Coming Events in October




          “Pricing… It Matters!”              Professional Pricing Society
     Western PA Pricing Professionals               Fall Conference

        Friday, October 12th                  October 23rd – 26th

        Rivers Club, Pittsburgh, PA           Omni Orlando Hotel, Orlando, FL

        For More Information: bit.lyOaHeDv   For More Information: bit.lyS2wPoc


15
Thanks for Watching!


                            Brian Clarke
                            bclarke@idc.com
                            (508) 935-4765


                            sales@leveragepoint.com
                            www.leveragepoint.com
                            (617) 252-2876



16

Competitve Intelligence and Pricing

  • 1.
    Monthly Webinar Series– September 19, 2012 Competitive Intelligence and Pricing with Brian Clarke, IDC Copyright © 2012 by LeveragePoint Innovations Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of LeveragePoint Innovations Inc. This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion. COMPANY CONFIDENTIAL
  • 2.
    Sponsored by LeveragePoint the Software Solution for Value-based Pricing 2
  • 3.
    Today’s Presenter Competitive Intelligenceand Pricing Brian Clarke is Program Vice President of IDC's Pricing Evaluation and Leasing Evaluation Services. His services are used by all of the major IT vendors to assist them in establishing successful price and product positioning strategies, by dozens of lessors and financial institutions to predict the residual risk of their portfolios, and by hundreds of corporate IT buyers and lessees who want to make informed purchase and lease decisions. His opinions are often quoted in numerous business and daily newspapers including USA Today, The Wall Street Journal, Investor's Business Daily, Business Week and The New York Times. 3
  • 4.
    The Golden Ageof Competitive Pricing Intelligence Never been easier to collect competitive pricing intelligence Democratic – Competitors and customer have access to tools Heightened market awareness – Amplifies pricing actions and reactions © IDC Source:/Notes: Sep-12 4
  • 5.
    Growing Complexity ofCompetitive Pricing Intelligence More data equals a glut of information Trend towards marketing custom or “build to order” solutions modularizes offerings into endless pricing combinations Additional markets to cover – geographies, and buying groups Shortened product lifecycles, plus more products grouped into more segments New pricing models SaaS, cloud, utility © IDC Sep-12 5
  • 6.
    A Challenge ForThose Tasked With Pricing Products and Services Competitive price tracking typically part of the job However, outside inputs are typically limited:  Reliance on “inwardly-focused tools” such as CRM  Ad-hoc spreadsheets, like bid analysis, or web collection © IDC Sep-12 6
  • 7.
    Data and Toolsto Collect Pricing Widely Available Wealth of Data in Public Domain  Published price lists – GSA, state  Online stores, both vendor and retail  Media monitoring Many tools for data collection  Web Harvesting (spiders, scrappers)  OCR software  Cheap labor You Can Build Competitive Pricing Tools  As simple as an automated spreadsheet  Or complex as a large scale business intelligence tool © IDC Sep-12 7
  • 8.
    Still Not aComplete Picture  Vendor and retail pricing typically reflect only MSRP or single quantity street  Published contracts show discounts but only to one buying segment and timestamp is questionable.  A large segment of enterprise products have minimal pricing on the web.  Representative pricing hard to determine, will always be anomalies © IDC Sep-12 8
  • 9.
    Getting to theWhole Pricing Story Expand Collections and Tools Dig deeper into pricing  Special bid  Customer buy price  Channel cost Combine with supporting data  Product specifications  Sales rank  Other pricing impacts –promotions, rebates, inventory Build analysis that is flexible, repeatable © IDC Sep-12 9
  • 10.
    The Many Lensesof Pricing A product or service can have any number of combined pricing lenses, each with a unique set of pricing Geography Customer Size Delivery • Region • Corporate CIO’s Office• Segment CIO • BTO • Country • Government (SOHO) VP IT Strategy & Planning CTO • SaaS • City • End user • Purchase Product or Service • Educational Sourcing band (50- VP Global IT Sourcing 100 seats) VP/Dir IT Sourcing VP xyz Tech Sourcing Showing a price without its context is dangerous © IDC Sep-12 10
  • 11.
    How IDC EnhancesCompetitive Pricing Intelligence Syndicated Feeds Reports Consistent, fresh, proven Reliable, repeatable Historical Pivot Table Retailers Retailers End-user (Street) Pricing Retailers Retailers End-user Rebates eValuator Est. Cost Database Retailers Retailers Product Data Spreadsheet Channel Promotions Retailers Distributors Channel Inventory MS Excel API Flexible, extendable Retailers Example: =IDC_LIST_HISTORY_QUARTER(A1,"US") Retailers List Pricing Retailers Vendors Specifications Product Comparison Builder © IDC Sep-12 11
  • 12.
    Using MS ExcelIDC Functions An HP product web page enhanced with a wealth of competitive intelligence © IDC Sep-12 12
  • 13.
  • 14.
    Detailed Analysis ofCombined Hardware, Software and Services Complex multi-vendor review of multiple pricing lenses © IDC Sep-12 14
  • 15.
    Up Coming Eventsin October “Pricing… It Matters!” Professional Pricing Society Western PA Pricing Professionals Fall Conference Friday, October 12th October 23rd – 26th Rivers Club, Pittsburgh, PA Omni Orlando Hotel, Orlando, FL For More Information: bit.lyOaHeDv For More Information: bit.lyS2wPoc 15
  • 16.
    Thanks for Watching! Brian Clarke bclarke@idc.com (508) 935-4765 sales@leveragepoint.com www.leveragepoint.com (617) 252-2876 16