Tuesday, May 11, 2010

How One Provider's Solution Covers the Bases of Price Optimization and Management

Zilliant Precision Pricing Suite (ZPPS) combines proprietary pricing science with analytics and workflow automation to support the pricing process continuously throughout the four sales phases: price segmentation, price analysis or sensing, price setting and optimization, and price execution. Each application within ZPPS has been developed to address one or more aspects of the data-driven model. Although the applications are tightly integrated with one another, they are deployed one at a time, and in the sequence best suited for the particular needs and objectives of each customer.

ZPPS applications offer a variety of role-specific interfaces designed to support all key pricing decision makers, including executives and marketing, pricing operations, and sales personnel. Interactive pricing workbenches are provided to supply the necessary drilldown and ad hoc query capabilities combined with user-defined reports and integrated visualizations. In a "different strokes for different folks" (personalized) manner, targeted reports, analytics dashboards, and alerts are provided to keep management well-informed, while scorecards and flexible hypertext markup language (HTML) interfaces provide sales teams with clearer guidance, information, and deal review process support.

Zilliant's Price Optimization and Management Applications

ZPPS science-based pricing applications for enterprises consist of ZPPS Server, ZPPS Analytics, ZPPS Optimization, ZPPS Price Manager, and ZPPS Deal Manager.

ZPPS Server acts as the suite's foundation, and this mandatory application collects data, organizes it, and allows it to be shared with the other applications. Given the need for extracting data from multiple transactional sources, ZPPS's service-oriented architecture (SOA) also enables an easier integration of pricing content directly into other enterprise systems. The relatively young age of the company and the product has had the benefit of being technologically modern, as it is based on Java 2 Enterprise Edition (J2EE) SOA concepts (see Architecture Evolution: From Mainframes to Service-oriented Architecture).

The suite is therefore modular in architecture to support the user enterprise as the user's pricing requirements and technical environment become more sophisticated. ZPPS's open standard technology is designed to work fairly seamlessly with the enterprise resource planning (ERP), customer relationship management (CRM), and database infrastructure the user company might already have in place to administer and calculate pricing.

To that end, ZPPS Server is the integration point for the application suite's incoming and outgoing data. Transactional and master data from CRM, ERP, and data warehouses are typical inputs. Outputs usually include price recommendations by way of price multipliers, policies, or pricing rules. These outputs are fed back into order management applications and pricing engines from, for example, SAP, Oracle (including Siebel), and others. The module propagates the resulting price segmentation model into all ZPPS applications, providing the applications with the more precise subset of market data relevant to operations, such as price indexing, peer grouping, key performance indicator (KPI) calculation, and price optimization.

ZPPS Analytics then drives pricing intelligence and decisions by providing insight through a series of template-based, customized views, and ad hoc querying to enable users (executives and managers) to measure margin, revenue, profitability, sales channel effectiveness, and discounting. Users are also able to measure price waterfalls, price bands, customer scatter plots, and outlier reports.

ZPPS Analytics is a decision support application that yields deeper insight into all price-related performance measures. The application creates a system of record for detailed profit and margin analysis to provide more precise comparative metrics and to identify latent opportunities for enhanced profitability. Underlying ZPPS Analytics is the multi-dimensional online analytical processing (OLAP) engine that leverages Microsoft Analytical Services (sitting on either Microsoft SQL Server or Oracle databases), thus combining scalability and performance with strong data security.

Featuring role-specific interfaces, each tailored to the needs of different business users and situations, ZPPS Analytics enables sales, marketing, and finance personnel to understand buying and selling behavior in greater detail. In addition to being a "pocket margin" system of record (see Know Thy Market Segment's Price Response), the module is a cross-functional management tool for identifying and resolving the most pressing ("top 10") profit improvement opportunities.

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