Charter Report

IoT Ignites Interest In Outcome-Based Pricing In Manufacturing

Alternative Pricing Models Are Worth Exploring Only When All Sides Agree On Key Metrics

September 24th, 2021
Paul Miller, Vice President, Principal Analyst
Paul Miller Vice President, Principal Analyst
Michele Pelino, Principal Analyst
Michele Pelino Principal Analyst
With contributors:
Glenn O'Donnell , Renee Taylor-Huot , Karen Traikovich

Summary

The internet of things (IoT) shows how machines and other physical assets are really being used, making IoT well-suited to support alternative contractual models such as those designed around outcome-based or value-based product pricing. This report highlights examples of outcome and value-based pricing and provides guidance on situations where these alternative contractual relationships make sense — and where they don’t.

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