Building a Business Case for Product and Pricing Lifecycle Management

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“I understand that customer centricity is the future of banking, but how do I get started? Where do I start? How do I get funding?”

These are questions we’re often asked when we talk to financial institutions about creating a customer-centric strategy with Product and Pricing Lifecycle Management (PPLM). Indeed, there are a number of interrelated factors to consider as part of your PPLM journey, so it’s understandable that the prospect of a large-scale change initiative can seem somewhat daunting.

Subscribe to Zafin's Relationship Banker PodcastOur Zafin Advisory team breaks down a systematic approach to building a business case for PPLM and implementing change.


Special guests:

Des Farrell
Executive Consultant
Zafin Advisory

 

Charles Raj
Principal Consultant
Zafin Advisory

 


Part 1: PPLM as a strategic platform (15:52)

  • The paradigm shift from a product-centric model to a customer-centric model
  • The dimensions of revenue management
  • Why the Henry Ford model of product creation and distribution won’t work for the future of banking
  • The digital disruptions that transformed the music and book industry are also transforming the banking ecosystem
  • Legacy banking systems are simply not equipped to offer the level of flexibility required for future product and pricing innovation

 


Part 2: Business drivers for PPLM (14:57)

  • Revenue, from managing revenue leakage to optimizing revenue in the future
  • Regulatory compliance
  • Customer experience
  • Organizational/operational risk and efficiency
  • Technology rationalization

 


Part 3: Common challenges associated with large-scale change projects (9:28)

  • Identifying and allocating people resources
  • Priorities: Balancing short-term “business-as-usual” requirements with long-term strategic needs
  • Data management
  • Demonstrate a need for PPLM with a “baby” business case or feasibility study to provide quicker insight into the viability of a PPLM initiative

 


Part 4: Best practices for building a business case (12:26)

  • Taking stock of current product and pricing landscape
  • Map critical themes and benefits to PPLM capabilities
  • Workshops = end-to-end insights
  • Measurable metrics
  • Engage with and test changes with customers early on

 


Part 5: The benefits of a phased implementation approach (16:04)

  • Unfortunately, the ideal world (a “big bang”) doesn’t exist
  • Very few bank staff have a complete end-to-end view of the process
  • It’s all about flexibility and balancing risk with reward
  • With NPV cash flow analysis, smaller projects result in quicker benefits
  • Checkpoints to gauge progress
  • Layering in functionality and tackling low-hanging fruit

 


Part 6: Three steps to a typical phased implementation (13:15)

  • A better managed, logical pathway to drive future steps of the project
  • From Enhanced Current State to Simple Optimization to Complex Optimization
  • Initial phases help staff familiarize themselves with PPLM
  • Phases can be structured according to strategic priorities and requirements

 


Part 7: Zafin Advisory engagement model and timelines (8:12)

  • Advisory services can assist in accelerating implementation timelines
  • The journey: What does a typical Zafin Advisory engagement look like?
  • Consider resource constraints, product roadmap and willingness for change

 


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For more information on how miRevenue can deliver complete Product and Pricing Lifecycle Management (PPLM) for your banking needs, or how Zafin Advisory can help you get started on your PPLM journey with business case support, please contact us at info@zafin.com.