ABSTRACT

Business model innovation has emerged as an inevitable innovation methodology used by the organizations around the world. This chapter proposes ten considerations as one prepare his/her business model for pricing model innovation. These considerations are related to strategy, to organizational design and to the quality of the segmentation and value proposition design within the business model generation process. Pricing model innovation begins with the essential parts of business models: customer segmentation and value proposition. It is easier to innovate in pricing when the value one bring to his/her best customers is high, validated and highly demonstrable. Bringing a new customer value proposition and pricing model to market is not as easy as designing it. Designing the business model and the pricing models might be easy conceptually. Pricing model generation is one of the last things to develop and test in a business model.