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Global Price Management – Incentives for Implementing an IT-based Price Management System

Sjöström, Martin; Blidberg, Christopher and Åhlin, Ludvig (2006)
Department of Business Administration
Abstract
Problem discussion: Syncron experience a challenge in realizing the full market potential of its newly developed IT-based price management system, Global Price Management (GPM). The system has already been implemented and is currently running with success within the IT-structures of the first customer. The fact that the development of the system has been initiated by a customer, and thereby has left Syncron oblivious of the real underlying drivers and incentives for the development, is part of the problem. Understanding the customers’ incentives for developing their pricing process thus reducing the application uncertainty is a good starting point. A multifaceted picture of the incentives for an IT-based price management system will... (More)
Problem discussion: Syncron experience a challenge in realizing the full market potential of its newly developed IT-based price management system, Global Price Management (GPM). The system has already been implemented and is currently running with success within the IT-structures of the first customer. The fact that the development of the system has been initiated by a customer, and thereby has left Syncron oblivious of the real underlying drivers and incentives for the development, is part of the problem. Understanding the customers’ incentives for developing their pricing process thus reducing the application uncertainty is a good starting point. A multifaceted picture of the incentives for an IT-based price management system will contribute to a description of what constitutes good price management in the interaction with IT. This is something sparsely discussed in existing literature, which is another part of the problem. Purpose: The purpose of this master thesis is to map and analyze the incentives for an IT-based price management system, and to discuss how these incentives could be used by sales representatives. Methodology: The system approach was considered to best harmonize with the three constituents of the research process of this master thesis. The research strategy chosen was a multiple case study of three different companies, all in different stages of their price management development process. The primary data have been gathered through in-depth interviews thus generating qualitative answers. Results: The result of this master thesis is a map of the incentives for IT-based price management. Each incentives has been appointed to one of the three levels; strategic, tactical or operational level. The precision of the map is enhanced by the division of the incentives into needs and arguments. Strategic needs - Centralizing, Integration
Strategic arguments - Holistic fit, Process control, One company Profit maximization
Tactical needs - Pricing logics support, Sources of value
Tactical arguments - Strategic pricing
Operational needs - Precision, Feedback
Operational arguments - Negotiations The results also contribute to the general body of knowledge regarding the use of IT-based systems in price management. An important part of the results is thus the presentation of a theoretical framework which combines price and organizational issues with IT. Furthermore, since the IT-system is based on a Service-Oriented Architecture (SOA), it contributes to, and complements the somewhat insufficient contemporary evidence of this architecture. The usefulness of the GPM solution has been shown and thus also the usefulness of SOA. (Less)
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author
Sjöström, Martin; Blidberg, Christopher and Åhlin, Ludvig
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Price Management, Service-Oriented Architecture, Enterprise Service Bus, Information Technology, Management of enterprises, Företagsledning, management
language
Swedish
id
1344279
date added to LUP
2006-05-18
date last changed
2012-04-02 15:59:03
@misc{1344279,
  abstract     = {Problem discussion: Syncron experience a challenge in realizing the full market potential of its newly developed IT-based price management system, Global Price Management (GPM). The system has already been implemented and is currently running with success within the IT-structures of the first customer. The fact that the development of the system has been initiated by a customer, and thereby has left Syncron oblivious of the real underlying drivers and incentives for the development, is part of the problem. Understanding the customers’ incentives for developing their pricing process thus reducing the application uncertainty is a good starting point. A multifaceted picture of the incentives for an IT-based price management system will contribute to a description of what constitutes good price management in the interaction with IT. This is something sparsely discussed in existing literature, which is another part of the problem. Purpose: The purpose of this master thesis is to map and analyze the incentives for an IT-based price management system, and to discuss how these incentives could be used by sales representatives. Methodology: The system approach was considered to best harmonize with the three constituents of the research process of this master thesis. The research strategy chosen was a multiple case study of three different companies, all in different stages of their price management development process. The primary data have been gathered through in-depth interviews thus generating qualitative answers. Results: The result of this master thesis is a map of the incentives for IT-based price management. Each incentives has been appointed to one of the three levels; strategic, tactical or operational level. The precision of the map is enhanced by the division of the incentives into needs and arguments. Strategic needs - Centralizing, Integration
Strategic arguments - Holistic fit, Process control, One company Profit maximization
Tactical needs - Pricing logics support, Sources of value
Tactical arguments - Strategic pricing
Operational needs - Precision, Feedback
Operational arguments - Negotiations The results also contribute to the general body of knowledge regarding the use of IT-based systems in price management. An important part of the results is thus the presentation of a theoretical framework which combines price and organizational issues with IT. Furthermore, since the IT-system is based on a Service-Oriented Architecture (SOA), it contributes to, and complements the somewhat insufficient contemporary evidence of this architecture. The usefulness of the GPM solution has been shown and thus also the usefulness of SOA.},
  author       = {Sjöström, Martin and Blidberg, Christopher and Åhlin, Ludvig},
  keyword      = {Price Management,Service-Oriented Architecture,Enterprise Service Bus,Information Technology,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Global Price Management – Incentives for Implementing an IT-based Price Management System},
  year         = {2006},
}