February 25, 2020
I have always been amazed at what a price optimization and sales execution project can do for enterprise profitability. The lift is significant. As a long-time management consultant, I’ve had experience bringing real value to enterprises through such pricing projects. Many organizations knew there were benefits to be had, but never thought that optimizing price through their historical transactional data could have such a dramatic effect on their bottom line today.
Price is indeed a magic lever, and the advancements in technology have truly evolved to much more easily drive that value capture. Still, I continued to ask myself, “Is technology the reason or am I just a dedicated professional?”
So I dove deeper into the world of pricing and sales execution to figure out what really makes a pricing project successful.
Research* shows that 78% of technology-related projects fail to realize even half of the originally identified benefits. Companies continue to strive for digital transformation, but technology alone can’t achieve the desired commercial excellence outcomes.
Over the past 20 years, Vendavo has worked to deliver organizations with improved profitability. However, we realized that to be a true market leader in commercial excellence solutions, we needed to move beyond technology and equip our customers with strategies across the continuum of people, process and technology in order to unleash true commercial potential.
We asked for customer input, and through extensive discussion with them supported by third-party research from the ROI Institute, we see five top points of friction that commonly limit additional ROI potential:
- Lack of shared vision and urgency
- Stakeholder alignment
- Tactical rather than strategic approach
- Insufficient KPIs and measurement
- Inefficient change management
These findings matched up well with other research that asked large B2B organizations to identify the biggest barriers to becoming a data driven company: 93% named people and process as the primary challenge. As a result, we designed an offering that is the first of its kind in our technology space.
Introducing Vendavo Value Consulting
Vendavo Value Consulting reduces the risk associated with digital transformation in large scale pricing and CPQ projects by identifying an organization’s current state and areas of optimal value leverage. We have been testing our process over the past year, and we are confident we have identified just how to ensure optimal value. As proof, we’re excited to say Vendavo Value Consulting customers achieved an average of $18 million in additional annual return in 2019 alone.
Think of Vendavo Value Consulting as a partner to your internal team focused on the development of a custom commercial excellence blueprint. Unlike other software companies that leave after a project is implemented, Vendavo Value Consulting stays with you to ensure that value optimization and desired outcomes are achieved. Vendavo Value Consulting is the only service of its kind that assures value outcomes are achieved.
In the end, we’ve learned it isn’t all in the technology and maybe organizations aren’t completely dependent upon a single pricing professional. Instead, it’s the consistent and persistent application of strategy across people, process and technology that moves your bottom line upward.
Learn more about our new Value Consulting Services by watching our webinar.