High Tech

A global leader in the technology hardware industry was challenged by a changing market environment that increasingly viewed its once dominant products as commodities. In a move to improve its value proposition with customers, our client began developing value-adding software to support its hardware business. Our client identified two opportunities where they wanted to bring software to market; however, they were uncertain which opportunities to focus on, which customers to target, and how to quantify the value of this new software in different market segments. Our client asked SPG to create a value-based product development process that ensured the highest valued and most profitable software was brought to market quickly. After determining the potential value from the new software products, SPG recommended that key product attributes be developed first, which optimized both the product value to end customers and our client's overall profitability. In addition, we trained marketing and product managers on the fundamentals of value-based pricing to help sustain their new product development efforts. After a successful launch, this new software is on track to help our client improve their overall margins and regain their preeminent position in the marketplace.