Understanding Value-based Pricing for Industrial Internet of Things

Dimitri Petrik; Virginia Springer; Gero Strobel; Frederik Möller; Thorsten Schoormann

Understanding Value-based Pricing for Industrial Internet of Things

Dimitri Petrik
, Virginia Springer
, Gero Strobel
, Frederik Möller
, Thorsten Schoormann

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

Abstract

Digital industrial platforms are increasingly implemented as an inter-organizational digital infrastructure to unlock numerous sources of value. Establishing an appropriate pricing strategy is pivotal for platform providers’ success. To profit from these value sources, existing research considers value-based pricing as a superior and customer-oriented pricing strategy, enabling platform organizations to capitalize on the technological platform integration in the manufacturing domain. However, little is known about value-based pricing in the Industrial Internet of Things (IIoT) and how platform organizations understand and establish it. To advance the understanding of value-based pricing at the nexus of IIoT and digital platforms, we report on a qualitative study spanning 19 interviews with digital industrial platform providers. Our preliminary findings incorporate core characteristics, preconditions, outcomes, challenges, and guiding principles experienced by the experts, connecting the fragmented research streams on value-based pricing and digital platforms in IIoT and supporting platform organizations in crafting financially sustainable business models.

Original language	English
Title of host publication	International Conference on Information Systems, ICIS 2023 : "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"
Volume	IoT, Smart Cities, Services, and Government
Publisher	Association for Information Systems
Publication date	Dec 2023
ISBN (Electronic)	9781713893622
Publication status	Published - Dec 2023
Externally published	Yes
Event	44th International Conference on Information Systems: Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies - Hyderibad, India Duration: 10 Dec 2023 → 13 Dec 2023 Conference number: 44

Conference

Conference	44th International Conference on Information Systems
Number	44
Country/Territory	India
City	Hyderibad
Period	10/12/2023 → 13/12/2023

Bibliographical note

Publisher Copyright:
© 2023 International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Hu. All Rights Reserved.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

digital industrial platforms
Internet of Things
pricing strategy
Value-based pricing

Access to Document

https://aisel.aisnet.org/icis2023/iot_smartcity/iot_smartcity/9/

Citation Styles

Petrik, D., Springer, V., Strobel, G., Möller, F., & Schoormann, T. (2023). Understanding Value-based Pricing for Industrial Internet of Things. In International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies" (Vol. IoT, Smart Cities, Services, and Government). Association for Information Systems. https://aisel.aisnet.org/icis2023/iot_smartcity/iot_smartcity/9/

Petrik, Dimitri ; Springer, Virginia ; Strobel, Gero et al. / Understanding Value-based Pricing for Industrial Internet of Things. International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Vol. IoT, Smart Cities, Services, and Government Association for Information Systems, 2023.

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title = "Understanding Value-based Pricing for Industrial Internet of Things",

abstract = "Digital industrial platforms are increasingly implemented as an inter-organizational digital infrastructure to unlock numerous sources of value. Establishing an appropriate pricing strategy is pivotal for platform providers{\textquoteright} success. To profit from these value sources, existing research considers value-based pricing as a superior and customer-oriented pricing strategy, enabling platform organizations to capitalize on the technological platform integration in the manufacturing domain. However, little is known about value-based pricing in the Industrial Internet of Things (IIoT) and how platform organizations understand and establish it. To advance the understanding of value-based pricing at the nexus of IIoT and digital platforms, we report on a qualitative study spanning 19 interviews with digital industrial platform providers. Our preliminary findings incorporate core characteristics, preconditions, outcomes, challenges, and guiding principles experienced by the experts, connecting the fragmented research streams on value-based pricing and digital platforms in IIoT and supporting platform organizations in crafting financially sustainable business models.",

keywords = "digital industrial platforms, Internet of Things, pricing strategy, Value-based pricing",

author = "Dimitri Petrik and Virginia Springer and Gero Strobel and Frederik M{\"o}ller and Thorsten Schoormann",

note = "Publisher Copyright: {\textcopyright} 2023 International Conference on Information Systems, ICIS 2023: {"}Rising like a Phoenix: Emerging from the Pandemic and Reshaping Hu. All Rights Reserved.; 44th International Conference on Information Systems : Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies, ICIS 2023 ; Conference date: 10-12-2023 Through 13-12-2023",

year = "2023",

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booktitle = "International Conference on Information Systems, ICIS 2023",

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Petrik, D, Springer, V, Strobel, G, Möller, F & Schoormann, T 2023, Understanding Value-based Pricing for Industrial Internet of Things. in International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". vol. IoT, Smart Cities, Services, and Government, Association for Information Systems, 44th International Conference on Information Systems, Hyderibad, India, 10/12/2023. <https://aisel.aisnet.org/icis2023/iot_smartcity/iot_smartcity/9/>

Understanding Value-based Pricing for Industrial Internet of Things. / Petrik, Dimitri; Springer, Virginia; Strobel, Gero et al.
International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Vol. IoT, Smart Cities, Services, and Government Association for Information Systems, 2023.

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

TY - GEN

T1 - Understanding Value-based Pricing for Industrial Internet of Things

AU - Petrik, Dimitri

AU - Springer, Virginia

AU - Strobel, Gero

AU - Möller, Frederik

AU - Schoormann, Thorsten

N1 - Conference code: 44

PY - 2023/12

Y1 - 2023/12

N2 - Digital industrial platforms are increasingly implemented as an inter-organizational digital infrastructure to unlock numerous sources of value. Establishing an appropriate pricing strategy is pivotal for platform providers’ success. To profit from these value sources, existing research considers value-based pricing as a superior and customer-oriented pricing strategy, enabling platform organizations to capitalize on the technological platform integration in the manufacturing domain. However, little is known about value-based pricing in the Industrial Internet of Things (IIoT) and how platform organizations understand and establish it. To advance the understanding of value-based pricing at the nexus of IIoT and digital platforms, we report on a qualitative study spanning 19 interviews with digital industrial platform providers. Our preliminary findings incorporate core characteristics, preconditions, outcomes, challenges, and guiding principles experienced by the experts, connecting the fragmented research streams on value-based pricing and digital platforms in IIoT and supporting platform organizations in crafting financially sustainable business models.

AB - Digital industrial platforms are increasingly implemented as an inter-organizational digital infrastructure to unlock numerous sources of value. Establishing an appropriate pricing strategy is pivotal for platform providers’ success. To profit from these value sources, existing research considers value-based pricing as a superior and customer-oriented pricing strategy, enabling platform organizations to capitalize on the technological platform integration in the manufacturing domain. However, little is known about value-based pricing in the Industrial Internet of Things (IIoT) and how platform organizations understand and establish it. To advance the understanding of value-based pricing at the nexus of IIoT and digital platforms, we report on a qualitative study spanning 19 interviews with digital industrial platform providers. Our preliminary findings incorporate core characteristics, preconditions, outcomes, challenges, and guiding principles experienced by the experts, connecting the fragmented research streams on value-based pricing and digital platforms in IIoT and supporting platform organizations in crafting financially sustainable business models.

KW - digital industrial platforms

KW - Internet of Things

KW - pricing strategy

KW - Value-based pricing

M3 - Article in proceedings

AN - SCOPUS:85192571526

VL - IoT, Smart Cities, Services, and Government

BT - International Conference on Information Systems, ICIS 2023

PB - Association for Information Systems

T2 - 44th International Conference on Information Systems

Y2 - 10 December 2023 through 13 December 2023

ER -

Petrik D, Springer V, Strobel G, Möller F, Schoormann T. Understanding Value-based Pricing for Industrial Internet of Things. In International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Vol. IoT, Smart Cities, Services, and Government. Association for Information Systems. 2023