This is the second blog in a series that discusses the key findings in Gartner’s MarketScope for Price Optimization and Management (PO&M) Software for B2B: 2013.
Gartner Key Finding: Managing price optimization through internally developed spreadsheets and database tools is no longer viable. The increasing sophistication and capacity of the analytic, data, and application tools used for PO&M are increasing the granularity of pricing, while the growing volumes of data, the ability to use advanced analytic and visualization tools to enable the parallel analysis of product and price data, market segment insight, sales and customer data, inventory and competitive data, and the integration of both internal and external data sources are enabling the ability to create and manage microsegments.
Let’s compare running a business with driving a car. Sure, a map helps a driver arrive at the final destination, but it doesn’t take into account detours due to construction or traffic, a stalled car or weather. A map also doesn’t have predictive capabilities that allow a driver to estimate the final time of arrival, or provide updated driving directions to steer the car back onto the proper route after taking a wrong turn.
Thanks to technology advances of the past decade – and a little device called a smart phone – drivers readily have access to a GPS, and no longer need to rely on outdated maps. Similarly, businesses no longer need to depend on manual, error-prone spreadsheets to manage prices. In fact, outperforming organizations stack the odds in their favor by leveraging PO&M software applications with data science capabilities for better forecasting with predictive and prescriptive analytics.
It’s no surprise that large organizations operating in global markets face challenges managing pricing, with portfolios comprising thousands of products. Just like changing road conditions, pricing isn’t static. Gartner’s key findings recognize that for organizations to outperform, PO&M application tools should be leveraged to reduce the complexity and inconsistency of manual pricing. Here’s where PROS comes into play.
PROS is “the GPS” for customers. Our big data applications use data science, with predictive and prescriptive analytics, to help organizations more precisely identify the best opportunities that will win. Customers analyze their data and predict outcomes across their businesses and in the marketplace – outcomes related not just to their own pricing moves, but also the anticipated moves of their competitors. Our scientific, market-leading software solutions give clients the information they need so they can confidently negotiate optimal pricing with greater accuracy and flexibility, and respond to changing market conditions.
Most drivers wouldn’t consider navigating an unknown route without the assistance of a GPS. One day, in the not-so-distant future, organizations will look back and wonder how they ever conducted business without the knowledge provided by price optimization software.