Product Strategy - Business Aspects
5 important questions on Product Strategy - Business Aspects
To which subjects do business aspects refer?
- Defintion and selection of relevant business measures
- Performance management
- Risk Management
- Business planning
- Costing
- Business case
- Pricing
What are the elements of pricing?
- The importance of price with regard to business success, i.e. in relation to the relevant measures
- Market- and value-based pricing
- Problems of cost-based pricing for software offerings
- Strategic Pricing Pyramid
- Typical pricing models for software including freemium
What are the top to bottom levels of the strategic pricing pyramid?
- Price Level (Price-setting)
- Price Policy (Negotiation tactics and Price setting procedures
- Price Value Communication (Communication, Value Setting Tools)
- Price Structure (Metrics, Fences, Controls)
- Value Creation (Economic Value, Offering Design, Segmentation)
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What is a Business Case?
What information should a Business Case communicate to be effective?
- The description of the undertaking including the underlying assumptions,
- an estimate for the required investment,
- the approach to generate business benefits with impact on earnings over time,
- and a sensitivity, risk and contingency analysis.
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