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How pricing of business intelligence and analytics SaaS applications can catch up with their technology

How pricing of business intelligence and analytics SaaS applications can catch up with their... Purpose – The purpose of this paper is to investigate the development of software pricing, following the advent of cloud-based business intelligence & analytics (BI & A) Software. A value-based conceptual software model is developed to ignite and structure further research. Design/methodology/approach – A two-step research approach is applied. In step one, the available literature is screened and evaluated, and this is followed by ten semi-structured expert interviews. With that input, a conceptual software pricing model is designed. In step two, this model is validated and refined through discussions with representatives of the five leading business intelligence suites. Findings – The paper sheds light on the value perception of customers and suggests a clear focus on the interaction between customers and vendors, and less on technical issues. The developed customer-centric, value-based pricing framework helps to improve pricing techniques and strategies. Research limitations/implications – The research is focused on the pricing strategy of software houses and excludes differentiations of technical specifications and functionalities. Practical implications – The research can support practitioners in the field of BI & A in rethinking their pricing methods. Placing the customer at center stage can lead to lower customer churn rates, higher customer satisfaction and more pricing flexibility. Originality/value – This empirical study reveals the importance of a customer-centric pricing approach in the specific case of BI & A. It can also be applied to other fast-developing sectors of the software industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Systems and Information Technology Emerald Publishing

How pricing of business intelligence and analytics SaaS applications can catch up with their technology

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References (34)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1328-7265
DOI
10.1108/JSIT-03-2015-0024
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate the development of software pricing, following the advent of cloud-based business intelligence & analytics (BI & A) Software. A value-based conceptual software model is developed to ignite and structure further research. Design/methodology/approach – A two-step research approach is applied. In step one, the available literature is screened and evaluated, and this is followed by ten semi-structured expert interviews. With that input, a conceptual software pricing model is designed. In step two, this model is validated and refined through discussions with representatives of the five leading business intelligence suites. Findings – The paper sheds light on the value perception of customers and suggests a clear focus on the interaction between customers and vendors, and less on technical issues. The developed customer-centric, value-based pricing framework helps to improve pricing techniques and strategies. Research limitations/implications – The research is focused on the pricing strategy of software houses and excludes differentiations of technical specifications and functionalities. Practical implications – The research can support practitioners in the field of BI & A in rethinking their pricing methods. Placing the customer at center stage can lead to lower customer churn rates, higher customer satisfaction and more pricing flexibility. Originality/value – This empirical study reveals the importance of a customer-centric pricing approach in the specific case of BI & A. It can also be applied to other fast-developing sectors of the software industry.

Journal

Journal of Systems and Information TechnologyEmerald Publishing

Published: Aug 10, 2015

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