Price-to-Win (PTW) is an integral process in building a strategic approach to critically capture decisions and provides a mechanism to understanding the overall competitive position, risk tolerance and results in an optimal bid strategy. The eventual outcome is achieved through a series of alternative “what-if” and “sensitivity” analysis, yielding a solid business case that enables management to make an informed and strategic decision. Accurately estimating the cost is critical to identifying an executable offering at a profitable and winning price.
PRICE Systems implementation process for PRICE Cost Analytics (PCA) for PRICE-to-Win support is a six-step process that enables you to quickly create “head-to-head” comparisons of proposed solutions against your competition. PCA enables you to model and analyze the impact of areas of discrimination between competitor solutions including management/organizational productivity, system engineering experience and robustness of design solutions.
- PCA can estimate the effort, cost, price, schedule and duration for your proposed solution as well as that of each of your competitors to support ‘head-to-head’ comparisons, and support trade studies to obtain a winning solution
- PTW Support in a Step-by-Step Process:
- Step 1: Assess Customer Budget Constraints
- Step 2: Identify Preferred Solution, model for expected cost
- Step 3: Determine Competitive Discriminators, develop comparative estimates
- Step 4: Review Cost Rankings, assess possible curveballs
- Step 5: Identify PTW, based on lowest expected price as an outcome of the competitive analysis
- Step 6: Re-Iterate on design and/or strategic approach or make bid/no bid decision
- Competitor Analysis Matrix
- Determine the discriminators
- Specific TruePlanning capability for PTW
Many of the commercial providers of Price-to-Win consulting services, use PRICE Cost Analytics’ PredictivePower at the core of their offering.