Pricing Digital Products and Data - Part 8
In the final part of our series, we bring together all the aspects of riding the Third Wave of Digital Transformation and actually making it. Today, we’d like to summarize a few final thoughts to leave you with. We hope that these will guide your thinking in how you’ll take part in the enormous business opportunity that will be created from data in the next five to ten years.
Experiences Are Perishable
Digital experiences are born from the knowing and for the moments of experiencing. In that sense, they are perishable.
Recall how hotels and airlines view their rooms and airline seats? A hotel room not occupied today is revenue foregone or an airline seat not sold today is the lost revenue forever. When it comes to data driven services, experiences, and transformations, unlike how we think of services today, these experiences and transformations are also “perishable.” So get on this wave as soon as your analytics and value innovation processes are ready.
Digital experiences are born from the knowing and for the moments of experiencing. In that sense, they are perishable.
You can never really catch up in digital
Remember how long it took most organizations to become a digital enterprise? It took more than two decades to operationalize the added layers of digitization in an integrated manner. Riding this wave of digital transformation is not really something that you ever catch up. The later you develop new digital experiences, the later you will monetize your data.
Innovating for monetization requires translating product success into business success
Finally, keep in mind, even the most successful products fail because we cannot translate the product success into business success. A good monetization strategy means designing and engineering your business outcomes that you aim to achieve into your product and offer structure itself. And the concepts of value gap, value innovation, value stack, and value metric can help you get there as these are all measurable and quantifiable things.
And to sum it all up, a good monetization process takes you from wishing for success to knowing it – but it can only happen if you integrate pricing and monetization into your innovation process early on.
