Pricing and Profitability Management: A Practical Guide for Business Leaders

Future Trends in Pricing Technology

In the early 2000s, numerous vendors pitched their competing pricing software. This number dwindled over the next several years as a result of acquisitions and simple market fallout. Some vendors experienced substantial growth, but this was moderated by the economic downturn of 2008–2009, when many technology vendors saw new opportunities either lost or delayed.

Where is the market headed? Many companies recognize pricing as an untapped area of opportunity, so demand is likely to continue increasing. Moreover, major ERP vendors have focused on acquiring pricing solutions to bolster sales as their mainstream products have experienced a drop in demand. All told, relatively few companies have been contracting to date in this emerging marketplace. The future is expected to be active to say the least. Three key factors will fuel this growth:

1. Mindshare of company leadership. Executives in nearly every industry are catching on to the fact that improvements in pricing can materially impact their operations. As mature organizations rethink their go-to-market strategy, they are reconceiving their entire approach to pricing—as well as the need for more sophisticated technologies.

2. A growing ecosystem. Pricing has caught the attention of the academic, analyst, and consulting communities. Graduate programs in pricing are becoming more prevalent. Leading industry analysts are devoting significant resources to the discipline. Major consultancies now have ...