The Private Equity Digital Transformation Show

Solo episode with Bruce Sinclair, the host of the show, discussing how to smart digital value creation can augment and improve these traditional value drivers.

On boosting buy & build performance excerpt: Smart digital is a new lens from which to spot add-on companies and a new way to integrate their products with the platform.  Unlike consolidating IT systems, orchestrating multiple products to work together produces not only a more innovative solution, but a less expensive one too. 

On market share expansion excerpt: This pricing optimization approach is based on pure customer data – clean and unbiased.  By using APIs or sensors to understand how customers make money with their software or physical products, pricing becomes an analytical exercise that can stand up to the scrutiny of any skeptical CFO.  This is true value pricing.

In this episode, Bruce discusses:

  • How to make your buy-and-build strategy more profitable than your competitors’.
  • Using outcomes to source add-ons and integrate their products with the platform’s.
  • Case study of outcome thinking.
  • The two roles smart tech can play in market share expansion.
  • Example of using AI to increase the competitiveness of a medical device.

Related links you may find useful:

Direct download: bruce_s_7_mixdown-A.mp3
Category:general -- posted at: 10:04am PST

Our guest Prabhu Soundarrajan is President Elect of the International Society of Automation where he is responsible for strategy to create a better world through automation. He has over 20 years experience as tech executive in Fortune 100 and VC/PE-backed companies with various roles including business transformation.

In this episode Prabhu and Bruce discuss:

  • The concept of the digital dress up.
  • The different value drivers used.
  • Profile of digital dress up candidate companies.
  • Case study where multiple was expanded from 10x to 15x.

Related links you may find useful:

Direct download: prabhu_mixdown-A.mp3
Category:general -- posted at: 12:30am PST

Solo episode with Bruce Sinclair, the host of the show, discussing how to improve pricing optimization and customer retention by gathering primary customer data with smart tech.

On pricing optimization: Some companies use cost-plus pricing and others use competitive-based pricing, but the gold standard is value-based pricing.  Since price is exchanged for value, to get the price right we need to understand how much value the product produces… which is easier said than done.  Until recently, understanding what exactly the customer values and how much they value it is a qualitative research project at best.  But now we have virtual products – native and virtualized.  Software and tech products that can use APIs to gather the primary data needed to calculate produced value and smart products that can use sensors to gather the primary data needed to calculate produced value…

On customer retention: As we all know, it’s far more profitable to keep a customer than to acquire a new one, whether that’s to sell them more of the same or new products or services.  The absence of a direct relationship results in a loss of customer control and potentially a loss of customer without ever knowing why.  Today selling a physical product doesn’t have to mean the end of the customer relationship.  Smart products are connected to the internet and just like software, they are forever connected to the customer…

In this episode, Bruce discusses:

  • Why using secondary data for pricing optimization is risky and a qualitative research project at best.
  • How smart apps and products can capture primary data for pricing optimization.
  • Example sims and what they are.
  • The limitations of customer visits for fetching primary customer data.
  • The OEM business killer of not having direct customer contact.
  • The competitive advantage Netflix, Autodesk and Amazon have that can now be applied to virtual and physical products.

Related links you may find useful:

Direct download: bruce_s_6_mixdown-A.mp3
Category:general -- posted at: 12:30am PST

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