Simon Kucher’s 7th Scandinavian Profitable Growth Conference
As pricing becomes a challenge for companies worldwide, experts share critical factors for succeeding in the digital age.
Stockholm – Digital technologies impact all levels of society and disrupt the way we do business, so it’s no surprise that many business leaders are unsure of how to capture the value that their companies create. Regardless of the sector or environment, digitalization is a massive opportunity to find new ways of monetizing business.
At Simon-Kucher & Partners’ recent Scandinavian Profitable Growth Conference in Stockholm, industry executives and Simon-Kucher associates shared their expert insights and presented real world case studies on how to monetize in a digital world. Speakers included:
- Prof. Dr. Dr. h.c. mult. Hermann Simon, Founder and Chairman of Simon-Kucher (Pricing in the Digital Age)
- Dr. Andreas Jonason, Managing Partner (Nordics) at Simon-Kucher (Monetizing: Getting Paid for the Value You Deliver)
- Dr. Christoph Bauer, Managing Partner (Banking, Nordics) at Simon-Kucher (Digitalization Strategy)
- Bjoern Dahmen, Partner at Simon-Kucher (Challenges and Opportunities of the Omni-channel World: How to Cope with the Online Pricing Challenge)
- David Vidal, Partner at Simon-Kucher (Steering Pricing Image, Understanding and Managing Key Levers to Protect Volumes)
- Andree Radloff, Senior Director at Simon-Kucher (Commercializing Digital Innovations in B2B Industrials)
- Jan Haemer, Director at Simon-Kucher (Customer Experience: Translating Strategy into Execution)
- Tommy Arvinell, Director at Simon-Kucher Sweden (Sustainable Profit Improvements Through New and Effective Product Pricing)
In addition, the conference featured a guest keynote presentation by:
- Bodil Sonesson, Vice President of Global Sales at Axis Communications (Creating the Long-term Growth Company )
In his concluding keynote speech, Professor Simon invoked the idea of McLuhan’s “global village”, explaining that the internet brings everyone so close to strangers that online market dynamics are more like those of a traditional village where gossip and reviews have a large impact on purchasing decisions. The dishonest salesman’s days are numbered. Moreover, he highlighted, that online players truly catering to their customers’ needs will see a significant increase in pricing power, while those providing a sub-standard service will see their business decline.
Managing Partner Jonason discussed the implications and innovations of a more digitalized approach to monetization. He stated that annual global investments in AI are predicted to reach USD 46.3 billion by 2020, raising the question of what this means for pricing power, both now and in the future. According to Jonason, AI is still far from replacing sound commercial decisions. Machines are good at finding correlations and patterns in data, but the creative questions posed by digital offerings are harder to answer through machine learning or AI. He argues that pricing in the digital world often comes down to soft questions such as “how should I charge?”, “which channels should I use?” and “how can I incentivize my value chain partners?” Jonason explains that, in this domain, AI still has a long way to go.
Bodil Sonesson shared valuable insights from Axis Communications, a hidden champion that has revolutionized network printing and network cameras and is now taking on smart safety. Sonesson highlighted the importance of having a genuine performance culture where innovation is the cornerstone and each employee is always encouraged to challenge themselves. Moreover, she stated that no Axis product left the idea phase nor the factory without thorough testing, ensuring both relevance and functioning for the intended customers.
Between the speeches, breakout sessions were held by Simon-Kucher industry experts, tackling more specific issues such as how to “commercialize digital innovations in B2B industrials” or how to achieve “sustainable profit improvements through effective new product pricing”.
Jonason summarized the event: “The fundamental problem of monetizing the value you create remains the same. But the number of different ways this can done has exploded thanks to digitalization. We are moving away from businesses of transaction to those of relationships and subscriptions”.
Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consultancy with over 1,000 professionals in 34 offices worldwide focusing on TopLine Power®. Founded in 1985, the company has more than 30 years of experience providing strategy and marketing consulting and is regarded as the world's leading pricing advisor.