TSIA examined the building blocks and technology industry practices for an effective monetizing strategy in XaaS businesses and identified a responsibility and performance gap. While the responsibilities and organizational constructs vary across the industry, many product managers and product management leaders don’t consider pricing as part of their core responsibilities. The vast majority do, however, consider target markets, driving market share growth, differentiated product strategies, and portfolio lifecycle management as a central part of their remit. These are the pillars of pricing power.
This paper reviews the following:
- What is pricing power?
- Why is pricing power even more important in XaaS businesses?
- When do XaaS businesses care about pricing power?
- The building blocks of XaaS pricing power.
- The results of pricing power.
- Plays to improve pricing power.