61st Digital Dialog: Service Pricing

f.l.t.r.: Wolfgang Knöbl (FH CAMPUS02), Stefan Grünwald (FH CAMPUS 02), Alexandra Knefz-Reichmann (FH CAMPUS 02), Georg Jungwirth (FH CAMPUS 02),Stefan Kraxberger (secinto GmbH)

61st Digital Dialog: Service Pricing

The 61st Digital Dialogue event, which was organised on the 27th of November 2018 by the Silicon Alps Cluster together with the FH CAMPUS 02– Fachhochschule der Wirtschaft (University of Applied Sciences), focused on the growing importance of (digital) services and their pricing. The Digital Dialogue titled “Service Pricing” was opened with the welcome and moderation of Mr. Stefan Grünwald, Head of Studies in the field of IT & Business Informaticsas the host of the event.

5 fields of study – 1 project

The beginning and the end of the event contained lectures on the research project “E-Service-Pricing” of the FH CAMPUS 02, which has been running for 18 months and in which all 5 fields of study are involved. The aim of this project is the development of an SME-suitable procedure model for the pricing of e-services. Alexandra Knefz-Reichmann (Accounting & Controlling) and Georg Jungwirth (International Marketing & Sales Management) presented the results of three empirical studies on e-service pricing in Austria. Key findings from these studies include: “E-services are important, but there is no clear pricing”, “determinants of pricing are mostly cost factors, therefore mainly accounting tools are known and used” and “the ideal pricing tool should meet methodical and technical requirements”. The final conclusion from the studies and, therefore, from the presentation as well, was that an integration of customer value into existing cost accounting procedures was needed in order to develop a pricing tool for SMEs.

Based on these findings, the procedure model developed by Wolfgang Knöbl (field of study: Innovation Management)was presented for the first time. In three steps, SMEs can determine price ranges by applying the procedure model for both new and existing e-services, taking into account one client up to a large number of clients. Step 1 of the procedural model comprises the identification of the user and cost drivers of e-services. An overview of the benefits and costs of individual components can be created by breaking them down into main and additional applications. In the second step, information on substitutes and competitors, as well as their market prices, target groups and market potential, is collected on the basis of a market analysis. On the basis of standardised queries and methods adapted to the target group, a lower and upper price limit can ultimately be determined within the framework of the procedure model. At the end of the presentation, Wolfgang Knöbl gave an outlook on future project steps concerning the development of an IT-supported tool and its evaluation in pilot applications.

Service Pricing – from Stepchild to Revenue Pearl

The presentations by Thomas Haller (Simon-Kucher& Partners GmbH) and Stefan Kraxberger (Secinto GmbH) were in line with these findings on the subject of service pricing, which were developed and presented by CAMPUS 02. Under the title “Service Pricing – from Stepchild to Revenue Pearl”, the former gave insights into the subject of service pricing from the perspective of an internationally active consulting firm. His conclusion was that the pricing of services is right and, above all, important. Creating transparency and starting the project “Pricing for Services” with small amounts was only one of Mr Haller’s core statements. Pointing out the numerous examples of companies that have dared to take this step, not only starting with the pricing of services, but have also dared to transform from a product-oriented to a service-oriented business model, Thomas Haller drew a concrete picture of what service pricing means in business practice.

Pricing for a cloud service product (simple2secure) in beta testing

It is understandable that service pricing is a practice carried out for large companies, but what about the smaller companies, which are, after all, shaping the Austrian corporate landscape? Stefan Kraxberger pointed out how a microenterprise deals with this topic when a newly developed software product is to be launched on the market, but there is uncertainty about “what can one expect for it”. With his newly developed cloud service risk analysis software simple2secure, he sought support from the IT & Business Informatics course of studies in order to obtain answers to this question. The results of the survey provided initial insights into potential customers’ willingness to pay, a positive surprise.

In the concluding discussion, the speakers took questions from the audience. “How do you deal with services being given away?”, “What’s an e-service?” or “What problems do SMEs have in pricing newly developed services?” were only some of the topics of this discussion, which could be deepened at the following networking session at the buffet.

Präsentationen:

E-Service-Pricing in Österreich | Alexandra KNEFZ-REICHMANN und Georg JUNGWIRTH
Service Pricing – Vom Stiefkind zur Ertragsperle | Thomas HALLER 
Preisfindung für ein Cloudservice-Produkt (simple2secure) im Betatest | Stefan KRAXBERGER
E-Service-Pricing – Vorgehensmodell | Wolfgang KNÖBL