Prototyping pricing and revenue models for new digital offers

Purpose and goal

The project´s aim has been to create new knowledge about how price and revenue models can be developed for digitized services and to understand how industrial companies can apply that knowledge to price and capture the value of new offers. The goal has been to develop new ways for industrial companies to prototype and experiment with price and revenue models for products with increased digital content. The project has resulted in new knowledge about factors that need to be taken into account as well as developed and tested new ways of testing and prototyping revenue and price models.

Expected results and effects

The project has resulted in new knowledge about the challenges associated with developing new digital offerings in industrial companies and specifically with the design of new revenue and pricing models. Furthermore, the project has identified and developed new ways of addressing these challenges through the development and evaluation of practical tests and prototypes and identified the issues and factors that developers and decision makers in industrial companies need to take into account when evaluating new pricing and revenue models for new digital offers.

Planned approach and implementation

Two industrial companies participated in the project; Sandvik and Husqvarna, an intermediary, Pollen and researchers at Integrated Product Development and Design, KTH. The challenges in current working methods for price and revenue models in the participating organizations were identified through interviews and literature studies. Through experiments and tests to evaluate value, revenue model and price for new digital offerings and through workshops with all participants in the project, the project has developed new knowledge and new ways to prototype and experiment.