Price & Revenue Management at L&T Infotech
1. Colours :
L&T Yellow Pantone 1235C
L&T Black Pantone Process Black C
Price and Revenue
Management
Driving profits with the science of optimization
Issue 1
2 Welcome
3 Introduction to Price and Revenue Management (PRM)
4 Emerging Technology Analysis: Price Optimization and Management
Software for Business-to-Business Boosts Margins in a Down Economy
8 Price and Revenue Management Practice
12 Pricing is a journey not a destination
13 About L&T Infotech
Featuring research from
2. 2
Welcome
Your Business is now, more than ever, facing fierce competition in all
geographies. Your distribution channels are more complex than they used
to be, and you have to be more transparent with your clients than you used
to be. Therefore, maintaining your competitive edge is not only difficult
but is also a key factor for the success of your business. In these times,
businesses are going back to their drawing boards to bring out a sustainable
and competitive strategy.
It is in keeping with these market realities that your strategy has to be
dynamic. Successful strategies are the ones that can predict consumer (market) behavior in order to
maximize the revenue or profit. You need a strategy that can predict the behavior before your peers
do and that can allow your business to adapt to these changes quicker than your peers. In doing so,
you have to ensure that the change percolates to every client-facing aspect of your business, be it
your website or your distribution partner. Every client-facing aspect has to reflect the change that you
wish to implement. Thus, it is clear that a great strategy is incomplete without an agile process to
implement it.
Price and Revenue Management practice, which is now being imbibed as a discipline across all
industries that face a dynamic market, serves as the key differentiator in a fiercely competitive
environment. Price and Revenue Management helps develop an internal strategy which is hard to
replicate. Design, development and execution of such a management practice calls for framing of
robust processes and selection of appropriate tools that seamlessly integrate within the existing
system. Needless to say, effective change management is a crucial element for effective ‘migration’ to
a new set of tools embodying the practice.
In order to achieve pricing power, it is imperative to discover the improvements required in the current
process and technology, evaluate the right solution to achieve the identified improvements and finally
implement the analyzed solution to gain a competitive edge. L&T Infotech, with its team of experienced
pricing professionals, industry experts, IT integration experts, professionals with implementation
experience on different vendor tools and rich partner network spanning across the globe, offers
unparalleled and complete end-to-end support in your pricing journey.
This report features research from Gartner on the topic ‘Emerging Technology Analysis: Price
Optimization and Management Software for Business-to-Business Boosts Margins in a Down Economy’
and gives L&T Infotech’s perspective on ‘Price and Revenue Management’ subject.
Price and Revenue management is an ever-evolving field that has some elements of art, science and
economics. We hope this report will bring some new insights in your business.
Warm Regards,
Kavindra Sharma,
Head of Consulting, L&T Infotech
3. 3
Introduction to Price and Revenue
Management (PRM)
There is always a need for companies globally Going beyond the traditional measures of cutting
to continuously increase revenues while cost to boost volumes, pricing strategy and
maintaining and improving profit margins. corresponding scientific analytics implemented
Keeping in mind the competitive landscape in using tools (off-the-shelf or home grown) are
which companies operate, a careful analysis being increasingly looked upon by companies to
of discount policies, product pricing, revenue plug revenue leakages and make faster pricing
leakage, market segmentation and cost-to-serve decisions. This is because improvements in
for clients needs to be carried out. price have far better impact on bottom line as
compared to improvements in volume. The most
Also, pre-deal and post-deal analytics needs to effective way for many companies to optimize
be done so that deal negotiations are profitable profitability is to get their pricing strategy right -
and assessment of historical deals could be used a concept that has been proven in all sectors of
to develop future strategy. Price and Revenue business.
management helps an organization in solving
these aforementioned issues. Effective price and revenue management
practices incorporated by companies help them
In the B2B industry, pricing decisions are in developing pricing as an internal strategy to
subject to complex array of environmental and outweigh competition. This can be successfully
competitive forces. A company sets not a single accomplished by:
price, but rather a pricing structure that covers
different items in line. This pricing structure • Developing price and revenue management as
changes over a period of time, factoring in the a strategic function
lifecycle of the product. The price is adjusted to
reflect changes in cost, demand and variations in • Making the practice seamlessly integrate with
buyer behavior. relevant departments
With the change in competitive environment • Assessing the maturity of existing pricing
companies consider price change initiatives. process and system landscape with reference
Thus, pricing decisions are critical for an to best practices
organization to achieve favorable output in both
supplier side and demand side negotiations. • Creating and enforcing processes which
Better visibility of historical data, margin and would help in effective pre-deal and post-deal
profitability view coupled with intelligence of analytics
deal negotiators can help a company to tie up
these crucial ends of supply chain efficiently. • Adoption of technology which would
introduce mature pricing practices
Source: L&T Infotech
4. 4
From the Gartner Files:
Emerging Technology Analysis: Price Optimization
and Management Software for Business-to-Business
Boosts Margins in a Down Economy
This research profiles the technological rising • Both entrants and incumbents should consider
adoption and impact of price optimization and hosting capabilities to facilitate initial
management software for business-to-business implementation work as well as to extend
(B2B) commercial relationships. This segment their reach into midmarket organizations of
is gaining popularity because solutions assist $300 million to $500 million in revenue.
enterprises in identifying shortcomings in pricing
policies and practices that erode revenue and STRATEGIC PLANNING ASSUMPTION
margins, and more intelligently discern prices Through 2010, price optimization technology will
that target markets will bear. have a more-direct impact on increasing revenue
or margins than any other CRM technology.
Key Findings
• Adoption of price optimization and ANALYSIS
management solutions has been growing in 1.0 Technology Description
organizations with more than $500 million
Price optimization and management software
in revenue, particularly in industries with
offers the promise of helping firms better identify
complex pricing requirements.
underlying shortcomings in pricing practices that
• The greatest interest in these technologies is erode revenue and margins, more intelligently
primarily from manufacturing and distribution discern prices that target markets will bear,
and logistics organizations, although as well as realize efficiencies in deploying,
awareness is growing in a diverse mix of administering, and enforcing prices and pricing
vertical industries such as medical devices, policies. The price optimization and management
business services and consumer goods. software market for B2B commercial
relationships encompasses three segments that
• Market growth is accelerated by growing can help organizations implement or improve
expertise within professional service closed-loop pricing processes supporting sales
organizations, more efficient implementation activities between businesses. These segments
cycles, maturing software offerings, as well as are price analytics, price optimization and price
widespread concern among enterprises over execution.
managing margins and costs.
• Price analytics supports discovery processes
Recommendations to identify and explain historical trends in
realized pricing (typically from transactional
• As a new entrant to the market, choose a data), the impact of market dynamics and
specific vertical or functional area of emphasis pricing anomalies.
such as analytics, optimization or execution
as your initial focus to develop and productize • Price optimization is primarily concerned
expertise and differentiate your offering. with supporting modeling and forecasting
requirements to identify and define optimal
• As an incumbent, focus on developing pricing strategies and price bands.
solutions further to comprehensively
address the three pricing segments – • Price execution focuses on functionality
analytics, optimization and execution – and that supports the dissemination of pricing
support greater flexibility in satisfying information and guidance on pricing practices
different vertical industry practices through and deal development, the defining of pricing
configuration. rules and models for ordering and quoting
systems, and the automation of approval
processes.
5. 5
Vendors offering price optimization and Discussions with Gartner clients and input
management solutions for B2B include: from vendor references indicate four common
objectives drive technology adoption:
• Model N
• Defend and improve profitability (across
• Oracle E-Business Suite product lines and on a deal-by-deal basis)
• Oracle-Siebel • Defend and grow revenue
• PROS • Improve governance and consistency in
pricing practices and realized prices (such as
• Servigistics eliminating rogue discounting)
• SignalDemand • Increase agility in tailoring pricing for specific
markets or sales cycles
• Symphony Metreo
2.1 Factors That Will Drive Adoption
• Vendavo
Supply- and demand-side factors driving adoption
include:
• Vistaar Technologies
• Economic uncertainty and volatility encourage
• Zilliant
interest within firms struggling to manage
2.0 Technology Adoption costs, defend margins and determine what
prices their target markets will bear.
The price optimization and management software
market is gaining traction with enterprises • The widespread use of spreadsheets for
in increasingly varied B2B vertical industries analyzing and managing prices is increasingly
such as distribution, electronics, industrial viewed as inadequate and error-prone,
manufacturing, high-technology manufacturing demanding more technically-robust solutions.
and chemicals. Gartner inquiries for price
optimization and management in 2009 indicates • Many software offerings currently satisfy
that, as of August 2009, approximately 30% of all about 70% of common customer requirements
inquiries originate from manufacturing firms, with out-of-the-box or through the configuration
distribution and logistics as the next highest at of software features, decreasing the need for
just under 20%. Growing interest has also been custom code extensions or integration with
observed in industries such as medical devices, other software add-ons.
business services and consumer goods. Sectors
showing more-limited activity include industries • Vendors’ professional service organizations
based on intangibles or with a high services are acquiring greater experience in supporting
focus such as software, banking, insurance, projects of varying scope and complexity in
communications and media. various B2B segments in different regions of
the world.
This market is earning increasing recognition
because defining and defending optimal prices • Third-party external services providers are
are fundamental imperatives for enterprises that increasing their focus on this subject, growing
are responsible for producing shareholder returns. available expertise, raising awareness and
Gartner estimates that the total worldwide legitimizing solution adoption.
revenue from software vendors’ product sales
and services to the B2B market reached • Many vendors are launching programs to
approximately $180 million in 2008, or about decrease implementation cycle times and
2% of the worldwide CRM market based on total requirements for specific capabilities, often
software revenue, after growing about 20% year based on a temporarily hosted software
over year. Based on the “Forecast: Enterprise solution.
Software Markets, Worldwide, 2008-2013, 3Q09
Update,” Gartner expects price optimization and
management to represent from 3.5% to 4% of the
CRM market by 2013, or more than $425 million.
6. 6
2.2 Factors That Will Inhibit Adoption Pricing is a significant variable that directly
Factors inhibiting adoption reflect solution impacts a company’s revenue, profitability
complexity and a developing supplier base: and customer relationships. With the
appropriate consultancy and pricing expertise,
• The number of installations remains modest, price optimization software offers strategic
and the market is distinguished by small opportunities to companies with acquiring
vendors concentrating on specific vertical insights into underlying relationships that can
industries. substantially improve efforts to win more-
profitable business more consistently. This often
• Most of the vendors offering software and entails helping firms with transitioning pricing
services for this market are small and may and selling methodologies that are based on
not be able to scale up quickly to satisfy rapid cost-plus or match-the-competition practices, to
increases in customer demand. ones supporting effective value-based pricing, or
pricing that accounts for relationships.
• Many vendors’ software offerings are still
maturing, often by productizing work from This market differs from most other application
client engagements. segments because it offers strategic benefits
in helping organizations grow revenue and
• Sales cycles tend to be long because margins, as well as operational efficiencies
investments are significant, in many cases (helping companies save time and cut costs).
approaching or exceeding $2 million for Many software segments emphasize the latter
agreements for both licenses and services. – helping organizations cut costs. Results from
implementations during the past four years
• Long implementation cycles (more than 18 have been dramatic, with cases of gross margin
months) are common for acquiring a broad set increases of 2% to 5% being commonly achieved
of pricing capabilities. with revenue under management. This typically
has been accomplished through more-accurate
• Substantial organizational change may forecasting and planning of prices for specific
be required within buying centers, segments, as well as the elimination of revenue
including winning acceptance of new price leakages, particularly damaging discounting
recommendation practices from sales, practices. There have also been instances of
acquiring necessary analytic skill sets and re- projects driving gross margin increases that
engineering processes across departments. exceeded 15% for specific product lines and
divisions. The value of this segment continues to
3.0 Technology Impacts be substantiated by conversations with leading
3.1 Which Markets and Users Will Be firms in various industry vertical markets in
Affected which projects have successfully maintained or
increased gross profit margins by 50 basis points
This technology emphasizes support for B2B
or more in the face of a down economy.
commercial relationships because requirements
can substantially differ from business-to-
3.2 What Actions to Take Now
consumer (B2C) models with respect to
managing pricing for sales cycles with corporate For vendors entering the market:
buying centers, negotiated agreements and
implications of pre-existing account relationships. • Choose an area of emphasis such as analytics,
For example, formal bidding processes and optimization or execution as your initial focus
securing approval from multiple stakeholders to develop expertise and differentiate your
within prospective firms are common. Typically, offering.
transaction costs can be high, and the duration
of sales cycles longer. In addition, more-defined • Focus solutions selectively on a key vertical
deal management processes are required to or two to gain experience with solution
communicate and enforce pricing policies, development and validate internal capabilities
especially with high-value deals or agreements (professional services, sales and marketing,
that encompass complex combinations of items, technical skills, and so forth).
options and terms. More complex internal
process requirements create the need for more
coordination between the sales and marketing
departments to provide support for external field
sales forces.
7. 7
• Leverage existing vertical market expertise • Focus on rounding out solutions to
in other solution areas to complement and comprehensively address the three pricing
differentiate product development and segments – analytics, optimization and
marketing of new price optimization and execution.
management tools.
• Invest in greater product flexibility to more
• In turn, view the addition of a price easily apply existing functionality to different
optimization and management suite as vertical industries, as well as to accommodate
strategic, for the deal sizes are substantial a wider range of requirements through
(often reaching or exceeding $2 million), configuration (employing rules editors,
initiatives within corporate buying centers libraries of templates and mathematical
often have C-level executive mind share, and functions, selections of features without
the impact of successful implementations can coding, and so forth).
be substantial to clients.
• Consider hosting capabilities to facilitate
3.3 What Actions to Take During the Next Six initial implementation work, acquire
to 18 Months efficiencies in delivering services and
For incumbent price optimization and acclimating clients to new pricing
management vendors: technologies, as well as to extend reach into
midmarket organizations of $300 million to
• Focus on developing well-honed processes, $500 million in revenue.
more packaged capability and hosting
support to extend market reach downward 4.0 References
into organizations with $300 million to $500 “Hype Cycle for CRM Sales, 2009”
million in revenue.
Source: Gartner RAS Core Research Note G00172349, Sharon A. Mertz,
Michael Dunne, 17 November 2009
8. 8
Price and Revenue Management Practice
The B2B industry has always operated in a very grows beyond the existing features that the tool
challenging environment characterized by fierce provides. There is a need to enhance & modify
competition and extremely competitive prices. the tool to make it more relevant to current
As a result, the focus on margin and profitability business dynamics.
has traditionally been quite high. To add to this
highly charged business scenario are the difficult While organizations grapple with these strategic
market conditions experienced by the industry in and tactical challenges, they cannot afford to
the past few quarters. Organizations have been lose sight of the opportunity in horizon. As the
through elaborate corporate and departmental global recovery from financial crisis is underway,
cost cutting measures. most companies are clearly beginning to focus
on positioning themselves for an economic
Many companies in the B2B segment are upturn. This provides an opportune time for
highly decentralized, which means the sales corporations to see beyond the traditional cost
organization has a large role to play in major cutting measures and look for the “perfect” price
pricing decisions. Companies are increasingly level, pushing decision makers to assess if their
feeling the need to enable their sales force, business has the appropriate pricing strategy and
“Pricing is a significant to make informed pricing decisions through execution capabilities to respond to the market.
variable that directly appropriate data availability and price guidance. Pricing clearly is one lever that most companies
impacts a company’s This is to ensure that the quoted price leaves are focusing on.
revenue, profitability the office on time and, while doing so, is both
and customer competitive and profitable. According to Gartner’s research featured in this
relationships. With the newsletter, “Pricing is a significant variable
appropriate consultancy Key business drivers for embarking on a pricing that directly impacts a company’s revenue,
and pricing expertise, journey are as follows: profitability and customer relationships. With the
price optimization appropriate consultancy and pricing expertise,
software offers • Manage a complex portfolio of product and price optimization software offers strategic
strategic opportunities prices opportunities to companies with acquiring
to companies with insights into underlying relationships that can
• Stock Keeping Unit (SKU) proliferation substantially improve efforts to win more-
acquiring insights into
underlying relationships profitable business more consistently.”
• Need for market-based price guidance for
that can substantially
improved negotiation L&T Infotech believes that in order to calibrate
improve efforts to
win more profitable this significant pricing variable, a structured
• Manage list price at a granular level methodology needs to be followed which would
business more
consistently.” result in attainment of client’s pricing goals. L&T
• Central repository of information for near real Infotech thinks that it is important to:
Source: Gartner Inc, Research time data availability for data driven decision
Note G00172349, Sharon A.
Mertz, Michael Dunne, 17
making • Carefully assess client’s current process and
November 2009 system landscape to discover improvements
• Measure profitability required in process and technology
• Ensure customers/transactions are profitable • Meticulously evaluate the best-fit vendor
at the operating margin level tool or identify the improvements required
in existing system which can deliver the
• Measure and manage the cost-to-serve maximum benefit; and finally
elements to avoid margin erosion
• Integrate the solution to realize client’s
• Need for differentiated pricing for better pricing goal
customer connect
In order to do so, L&T Infotech leverages
In order to achieve the aforementioned business collective intelligence of its experienced pricing
drivers, L&T Infotech observes that companies professionals, industry experts, system integration
today use spreadsheets, databases, paper reports specialists, tool experts and rich partner network
and team of analysts to help drive pricing across the globe.
decisions. Often the organizations build a custom
tool to suit their business needs. But business
9. 9
Source: L&T Infotech
Clients can use our Discovery, Evaluation and • Identified improvements are prioritized taking
Implementation services to gain the pricing into account industry best practices
advantage. These services can be selected
individually or all together, based on client’s • Waterfall analysis which helps in identifying
convenience and requirements. key discount components, including both
on-invoice and off-invoice items, is carried out
Elaboration on these services is as follows: and potential revenue leakage is detected
1. Discovery Phase Benefits
In order to commence the journey it is imperative
to analyze the current pricing process and system • Discovery of hidden opportunities for process
landscape. The Discovery phase does the same improvements
by viewing the current pricing process from
the perspective of marketing, sales, finance, IT • Predictive and data driven decision making
and other relevant stakeholders. This provides a through enhanced analytics
strong foundation to the entire analysis. Before
• Short term and long term recommendations to
the Discovery phase, clients can take L&T
address problems and seek opportunities
Infotech’s pre-Discovery assessment ‘Price Sense’
to get a first-cut opinion on ‘as-is’ practices.
Before moving to the value proposition of the
This assessment sets the tone for the actual
‘Evaluation’ phase, let us look at how the MIMA
‘Discovery’ phase. During the Discovery phase,
framework helps in the discovery phase.
L&T Infotech uses its proprietary Multi Index
Maturity Assessment (MIMA) framework (refer 1.1. Multi Index Maturity Assessment (MIMA)
section 1.1 for details) to perform a structured
analysis. L&T Infotech uses its proprietary MIMA
framework (Figure 1) developed in-house, to take
Highlights of the process adopted by L&T a snapshot of current practices adopted by the
Infotech and subsequent benefits to clients for organization impacting the pricing and revenue
the discovery phase are: management area. It takes into account strategy,
process, organization and technology level
Process inputs from client team. MIMA which has inputs
from management science pertaining to price
• Existing pricing processes are analyzed using and revenue management embedded in it also
Multi Index Maturity Assessment (MIMA) uses best-in-class practices and L&T Infotech’s
framework knowledge repository to report on the current
state of the organization.
10. 10
Figure 1: Multi Index Maturity Assessment (MIMA) Framework
“The widespread
use of spreadsheets
for analyzing and
managing prices is
increasingly viewed
as inadequate and
error-prone, demanding
more technically-robust
solutions.”
Source: Gartner Inc, Research
Note G00172349, Sharon A.
Mertz, Michael Dunne, 17 Source: L&T Infotech
November 2009
2. Evaluation Phase the platform for an appropriate tool selection
This phase looks at various options available in from functional and technical perspective. L&T
front of business to tackle some of the tactical Infotech has been part of such journeys and has
and strategic problems related to price and helped clients select the best-tool leading to
revenue management. The solution could be to substantial business benefits.
implement a best-fit tool, customize the existing
system or re-engineer some of the key processes. Highlights of process adopted by L&T Infotech
Based on unique business environment and and subsequent benefits to clients for the
company needs, solutions are logically derived evaluation phase are as follows:
after taking into account all the relevant aspects.
Process
There are sizable number of vendors in the
• Various tool options are explored using P-SAT
market which offer price optimization and
(refer section 2.1 for details)
management solutions. Some of the vendors offer
services encompassing different sectors whereas
• Implementation roadmap and detailed roll out
others specialize only in a particular industry. For
strategy is formulated
a company which needs to adopt a new vendor
tool, it becomes essential to identify the right
• Existing pricing processes are benchmarked
vendors, screen them on requirements, measure
against industry best practices
their experience in similar situations and ensure
that requirements cover industry best practices. Benefits
(Refer the Gartner report for in-depth insight
into various price optimization and management • Tool-based approach captures inputs from
software’s in the B2B segment). various stakeholders
Product vendors come with their own • Structured evaluation process takes emotions
specialization to address specific business areas out of decision making
and industry segment. L&T Infotech uses its
proprietary Pricing Solution Assessment Toolkit • Objective analysis of vendors is carrier out to
(P-SAT) in the selection process to ensure access fulfillment of client requirements
that strategic objectives of the client are met.
We engage in a structured manner to provide Let us look at the contribution of P-SAT, which is
an integral part of the entire evaluation phase.
11. 11
Figure 2: Pricing Solution Assessment Toolkit (P-SAT)
Source: L&T Infotech
2.1. Pricing Solution Assessment Toolkit integrating it with client’s current IT landscape.
(P-SAT) L&T Infotech engages with its clients to manage
In the entire evaluation process, P-SAT (Figure the implementation risk from a timeline and
2) is used as a mechanism to rate all the tools budget perspective and also draws experience
under consideration in a structured fashion thus of handling large-scale enterprise-level
keeping emotions out of the selection process. implementations to ensure that transition to the
new environment is handled smoothly.
Steps involved in the Evaluation process are as
follows: Highlights of process adopted by L&T Infotech
and subsequent benefits to clients for the
• Pre-qualification of vendors and de-brief to implementation phase are mentioned below;
selected vendors on the client RFP
Process
• P-SAT customization based on client
requirements • Make current processes and system ready for
the ‘to-be’ state
• P-SAT workshop for client
• Facilitate smooth integration of the selected
• Process of gathering all the essential inputs to pricing tool with the current system landscape
P-SAT (refer diagram below)
• Support client in training exercises and
• Report on entire evaluation process and workshops
outcome of P-SAT with recommendation
Benefits
• Discussions on tool Implementation
• Team of tool and integration experts provide
3. Implementation Phase complete solution
This phase involves realizing the identified • Proven implementation experience with
potential and management of related risks and different tools
change. Identification and tracking of the right key
performance indicators (KPIs) is vital to success. • Mitigate risks through effective change
management
During this phase, L&T Infotech assists the
client in implementing the shortlisted tool Source: L&T Infotech
or customization of homegrown system and
12. 12
Pricing is a journey not a destination
L&T Infotech created a pricing blueprint for one A technology roadmap was developed to
of the world leaders in high-tech assembly and introduce technology and tools to support the
test services industry. It helped in drawing out business process, bring in enhanced decision-
a refined process landscape and facilitated the making capability and aid in improving the
selection and implementation of the right toolset quote cycle time. The P-SAT framework was
to realize these processes. used to evaluate various vendor tools to identify
the most appropriate.
The client
One of the world’s largest suppliers of outsourced Taking an end to end system view, a tool was
semiconductor assembly and test services with selected for implementation that was aligned
revenues of USD 3 billion. with the organizational strategy. Some of the
key considerations for the tool selection are
The challenge highlighted below:
The client’s business required a quick turnaround • Move from Cost Plus to Value-Based Pricing
of quotes. These often had to be customized
to meet the requirements of key customers. • Introduce a collaborative deal management
Client Testimonial
Considering the competitive environment, the environment
quotes were required to be positioned at an
“L&T Infotech’s
attractive price point while ensuring sufficient • Quote cycle time reduction
performance has
level of granular details. Due to the lack of an
been outstanding,
integrated system, the business processes were • Efficient Reconciliation with Backend
leading to the
broken and operated out of multiple systems.
community of
This lead to duplication of efforts and did not The implementation of the tool ensured all
business users and
provide an inclusive view of the quote process. product prices were available in the system.
IT looking up to
With these limitations, it was difficult to track The pricing team worked on near real time data
them for continuing
and measure the profitability of the transaction. coming from the external systems. The pricing
leadership. Their
Lack of appropriate data points was an inhibitor in tool provided the metrics relevant to the team to
knowledge, skill,
handling special scenarios like rush orders, volume ensure there is a continuous check and measure
professionalism
discounts, long term preferential rates, change on prices of the product. The sales team was
and persistence
orders, etc. empowered with data that enabled them to place
during our journey
competitive quote and provide a better platform
to pricing excellence The as-is process state for pricing did neither for deal negotiation. A workflow system was
were critical to effectively manage margins nor detect revenue developed to ensure all pricing processes are
the success of the leakage. This was due to inadequate visibility to adhered to and enable future audits. This provided
project.” total cost-to-serve, key pricing attributes, metrics an integrated view of the quote process from the
– Director Pricing, North
on volume and competitors, disparate execution point where a request for a quote comes in to the
American Semiconductor of approvals and final prices issued to clients. point where it is dispatched to the end customer.
Packaging Major
To manage the entire business process, the tool
The solution was configured to provide a comprehensive
L&T Infotech worked with key stakeholders dashboard of performance metrics.
from the client side to carry out an exhaustive
study of the current business processes and Benefits
cycle times. Though intense workshops and Business benefitted immensely from an
one on one interviews, the pain points were integrated view of the complete process.
brought out across different functions like sales, Business processes were streamlined, automated
pricing, operations and marketing. Process and and standardized in order to derive maximum
technology gaps were identified and plugged. value from the IT investment. The pricing team
got access to relevant data to set the product
Through a comprehensive plan encompassing prices. The tool provided advanced analytics and
various departments, the business processes dashboards. A collaborative deal environment
were aligned to make them more relevant to ensured improved turnaround time for quotes. The
the needs of current environment and prepare sales force got a better platform to negotiate on
them for future growth. All major processes were prices to ensure the margins are intact. Improved
documented, shared and published to make deal analysis led to differentiated pricing.
sure they are well understood by all entities
participating in the process. Source: L&T Infotech