On October 17th, at 12PM EST I will be presenting the next webinar in PRICE’s Predictive Power Webinar Series, called “Predictive Power for Price-to-Win”. Below you will get a taste of what to expect below.
When visiting TruePlanning users, new and seasoned, they are always asking, “what do other organizations use TruePlanning for?”, and of course there are a million answers. Did you know some organizations are using TruePlanning in up to 17 different business process areas? With the right data and assumptions, PRICE Cost Analytics can support a wide array of cost and price studies. I’d like to share some of my experiences in this blog where TruePlanning plays a critical role.
A Price-to-Win (PTW) analysis involves making cost/capability trade-offs in order to achieve a best value versus competitors for a given customer, usually within certain budget constraints. This can involve a combination of corporate strategy and competitive intelligence, but an important pillar is to understand the costs of your own organization (and others) with a reasonable basis.
Now we can’t help you get proprietary information on your competitors, but we can help you turn the understanding you have into assumptions for an interesting look at the competitive landscape.
The first step is understanding the customer’s budget position, and then understanding how, as a contractor, your technical solutions can reasonably fit into that limitation. You may start with a preferred solution, which coincidentally “costs way too much”, and then make tweaks until you can achieve the requirements at a cost that the customer can afford. The question is, can the competition fit a better performing solution into that same cost envelope, or achieve the same technical requirements for less?
There are always unknowns like: will the other team buy-in to win the competition? Or if you buy in, and continue to win business, will you be able to sustain profit based on the pricing that you initially presented? How much risk is the right amount to take? And what is the probability of being successful?
In my webinar on Predictive Power for PTW, I will show you how to model this competitive scene in TruePlanning and use the model as a basis to inform your ultimate strategic decision. We will look at a step by step process to model various competitive positions and compare results for an informed analysis on how to position your organization for a win.