Reducing Pricing Uncertainties with a CPQ Configurator : Point of View of Prefabricated House Manufacturing

Abstract

This development thesis aims to enhance the Summium® CPQ SaaS product by creating new pricing features and profitability tools, primarily conceptualized from the perspective of the prefabricated house manufacturing sector. The goal is to help user companies reduce pricing uncertainties and forecast project profitability during the sales stage. The proposed solution utilizes predicted costs (and inventory costs) in product configurations to calculate sales margins in the user interface. This enables the creation of various cost scenarios, which can be used for stress testing quotations. Additionally, the thesis explores various pricing models and methods, aiming to design a flexible framework that allows customization of the quotation interface through administrative tools. This will enable companies to align the system with diverse pricing models, providing a native solution for their specific business requirements. Ultimately, the thesis seeks to empower companies to better manage their pricing strategies and improve decision-making by offering practical solutions for reducing pricing uncertainty and improving financial planning. The methodology consists of a literature review and theoretical framework on pricing models, complemented by a development project focused on developing adaptable pricing features and profitability tools within Summium® CPQ. When implemented, these tools will enable simulation and scenario analysis, allowing client companies to apply various pricing models in real-world contexts. Additionally, the thesis offers an outlook on potential advancements in CPQ systems, exploring emerging trends and technologies that could further optimize profitability tools across different industries.