Operating model for global pricing governance
Palola, Lasse (2019)
Palola, Lasse
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201904094701
https://urn.fi/URN:NBN:fi:amk-201904094701
Tiivistelmä
The objective of this thesis was to build an operating model for global pricing governance for the case company.
The case company is a Finnish listed trading sector company operating internationally in the building and technical trade. The scope of the thesis includes operations in seven countries. The case company includes a centralized unit responsible for global pricing coordination and development of related tools and processes. The case company has identified the need for global pricing governance, and recent mergers and acquisitions have emphasized the situation further.
The thesis first focuses on building a conceptual pricing governance framework based on best practices from literature. This theoretical framework was utilized throughout the different phases of the thesis and identified key elements were considered in all phases.
The current state analysis describes the differences in how pricing is managed and controlled in different organizations and seeks opportunities to improve pricing performance. The analysis describes the overall business environments, provides information about the pricing management and pricing capabilities and identifies development areas, possible issues and positive findings. The study was mainly conducted as qualitative research consisting of interviews, surveys and reviews of existing documentation. Quantitative research was applied to confirm the findings. Due to restrictions set by the case company, the current state analysis was published only partially. The whole content was available for instructors in a separate appendix.
The conceptual framework and findings from the current state analysis were combined to build an initial suggestion of the operating model. The operating model was validated in a feedback session with the case company’s instructors.
In conclusion, the operating model consists of different interconnected elements including pricing strategy, pricing policy, pricing process, pricing metrics and KPIs, organizational structure and pricing systems. The benefits of the operational model include immediate and long-term pricing performance increases.
The case company is a Finnish listed trading sector company operating internationally in the building and technical trade. The scope of the thesis includes operations in seven countries. The case company includes a centralized unit responsible for global pricing coordination and development of related tools and processes. The case company has identified the need for global pricing governance, and recent mergers and acquisitions have emphasized the situation further.
The thesis first focuses on building a conceptual pricing governance framework based on best practices from literature. This theoretical framework was utilized throughout the different phases of the thesis and identified key elements were considered in all phases.
The current state analysis describes the differences in how pricing is managed and controlled in different organizations and seeks opportunities to improve pricing performance. The analysis describes the overall business environments, provides information about the pricing management and pricing capabilities and identifies development areas, possible issues and positive findings. The study was mainly conducted as qualitative research consisting of interviews, surveys and reviews of existing documentation. Quantitative research was applied to confirm the findings. Due to restrictions set by the case company, the current state analysis was published only partially. The whole content was available for instructors in a separate appendix.
The conceptual framework and findings from the current state analysis were combined to build an initial suggestion of the operating model. The operating model was validated in a feedback session with the case company’s instructors.
In conclusion, the operating model consists of different interconnected elements including pricing strategy, pricing policy, pricing process, pricing metrics and KPIs, organizational structure and pricing systems. The benefits of the operational model include immediate and long-term pricing performance increases.