Practical Application of FDC in Software Service Pricing

Authors:
Yan Zheng;Wei Sun;Zhongbo Jiang;Rongzeng Cao;Kuo Zhang
Affiliations:
Tsinghua University;IBM China Research Lab;IBM China Research Lab;IBM China Research Lab;IBM China Research Lab
Venue:
ICEBE '06 Proceedings of the IEEE International Conference on e-Business Engineering
Year:
2006

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Abstract

This paper proposes a modified Fully Distributed Cost (FDC) pricing method with third-degree price discrimination for software service. The method is a feasible and simple method to be used in practice. The pricing process is generalized as involving data collection, strategy analysis and strategy establishment. Then a practical SCM software service pricing in retail industry is described.