Unlocking scalable growth through smarter pricing.
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Sales Efficiency
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Market Entry
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The situation.
As an outgrowth of its work helping large organizations manage complex technology projects, Booz Allen Hamilton was able to leverage its expertise to develop certain proprietary software solutions.
One such development project involved solutions within the Artificial Intelligence realm. After years of building and testing these different solutions, the BAH Modzy platform was born.
As the software became available, BAH faced the challenge of figuring out not only how to price and sell it to the DOD but also how to eventually commercialize it to other large enterprises.
"Quote quote quote."
-NAME, Booz Allen Hamilton TITLE
The challenge.
Due to the highly sensitive nature of AI combined with deployments to classified networks, BAH would not have any visibility into how its software would be used, including the number of users or volume of transactions.
This seemingly negated the potential for a consumption model of any kind and presented overarching challenges:
- As the software would ultimately replace some of the work that BAH was being paid services fees to manage, it had to deliver enough revenue to overcome that reduction.
- To commercialize the platform, BAH would need to develop a partner channel and determine effective and fair compensation.
- It was critical to the firm that this engagement deliver them the internal capability to self perform ensuing tasks to implement, analyze and refine their pricing model.
The solution.
To correctly monetize such a complex platform, Software Pricing Partners dove into the underpinnings of the software and its technology.
Understanding System Performance
SPP worked with Booz Allen Hamilton’s Artificial Intelligence model builders and their enterprise architect team to review the architecture of the platform. This provided insight into the technology, data and infrastructure layers.
Defining the Packaging
We discovered that a feature originally believed to be an optional add-on was actually central to the platform’s value proposition—and therefore, needed to be included within the base price.
Defining the partner ecosystem
Because BAH needed to commercialize their software, SPP assisted them with identifying the value of becoming a partner with BAH. We also worked with them to prove out an infrastructure and compensation structure that was far more advantageous to BAH than originally anticipated.
The success.
Software Pricing Partners’ engagement with Booz Allen delivered significant and positive results, including :
Cool Stat
XX%
growth in 3 years following SPP's engagement
In the end, Booz Allen Hamilton was awarded the contract with the Department of Defense for $800M.
Now, BAH has a solution and a business model that scales to any customer size—from moderate to mega-sized deals.
The way in which the software was delivered— including the pricing and packaging model—was instrumental in getting the deal.
BAH can now manage and adapt the model internally, including adjusting the model over time and identifying triggers for pricing changes.
SPP helped BAH future-proof their offering by fundamentally changing the capabilities of the product around its core value. Our involvement with the product architecture led BAH to better align its software, packaging and user experience.
