SYSTEMS AND METHODS FOR AN OUTCOME BASED PRICING
Systems and methods for outcome based pricing may be useful in conjunction with an enterprise resource planning system in order to generate desired outcomes for a customer and provide optimized profitability for the vendor. Outcome based pricing is achieved by first generating a bundle of line items. The line items are selected from a listing of known goods and services, and each line item includes an output. The summation of the outputs for the bundle of line items achieves a desired outcome. The desired outcome includes a quantity value and a quality value, and is received from a customer. Next, the bundle of line items is priced to determine invoice price, pocket price and margin. More than one such bundle is generated for the desired outcome, each bundle containing different combinations of line items. The pricing for each of these bundles is compared to identify a preferred bundle.
1 . A method for outcome based pricing, useful in conjunction with an enterprise resource planning system, the method comprising:
receiving a desired outcome for a deal;
generating a plurality of bundles of line items using a processor which each achieves the desired outcome, wherein the line items are selected from a plurality of known goods and services, and wherein each line item includes an output, further wherein a summation of the outputs for each of the bundles of line items achieves the desired outcome;
pricing each of the plurality of bundles of line items;
selecting a preferred bundle from the plurality of bundles based upon bundle profitability and competitiveness; and
outputting the preferred bundle of line items.
2 . The method of claim 1 , wherein the desired outcome includes a quantity value and a quality value.
3 . The method of claim 1 , wherein the desired outcome is received from a customer.
4 . (canceled)
5 . The method of claim 1 , further comprising wherein each of the plurality of bundles is priced to determine invoice price, pocket price and margin.
6 . The method of claim 5 , further comprising comparing the pricing for each of the plurality of bundles to identify at least one preferred bundle.
7 . The method of claim 6 , wherein the at least one preferred bundle is identified by an objective function which weights profitability of each bundle and overall price of each bundle.
8 . The method of claim 6 , wherein the at least one preferred bundle is output to an enterprise resource management system.
9 . The method of claim 1 , further comprising monitoring the output bundle for performance.
10 . The method of claim 9 , further comprising updating the output of each line item in response to the monitored performance.
11 . A system for outcome based pricing, useful in conjunction with an enterprise resource planning system, the outcome based pricing system comprising:
an interface configured to receive a desired outcome for a deal;
a bundle generator configured to generate a plurality of bundles of line items using a processor which each achieves the desired outcome, wherein the line items are selected from a plurality of known goods and services, and wherein each line item includes an output, further wherein a summation of the outputs for each of the bundles of line items achieves the desired outcome;
a price evaluator configured to price each of the plurality of bundles of line items;
an optimizer configured to select a preferred bundle from the plurality of bundles based upon bundle profitability and competitiveness; and
an interface configured to output the preferred bundle of line items.
12 . The system of claim 11 , wherein the desired outcome includes a quantity value and a quality value.
13 . The system of claim 11 , wherein the desired outcome is received from a customer.
14 . (canceled)
15 . The system of claim 11 , wherein the bundle price evaluator prices each of the plurality of bundles to determine invoice price, pocket price and margin.
16 . The system of claim 15 , wherein the bundle price evaluator is further configured to compare the pricing for each of the plurality of bundles to identify at least one preferred bundle.
17 . The system of claim 16 , wherein the at least one preferred bundle is identified by an objective function which weights profitability of each bundle and overall price of each bundle.
18 . The system of claim 16 , wherein the interface outputs the at least one preferred bundle to an enterprise resource management system.
19 . The system of claim 11 , further comprising a bundle monitor configured to monitor the output bundle for performance.
20 . The system of claim 19 , wherein the bundle monitor is further configured to update the database for the output of each line item in response to the monitored performance.