Episode 43
Guest: Nils Olsson

Creating Value with CPQ

Feb 2 / Magnus Billgren
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Creating Value with CPQ
It is impressive how a coffee shop can create so many products from just three ingredients, coffee beans+water+milk. The coffee shop serves Espresso, Macchiato, Caffe Latte, Cappuccino, and regular coffee. Same ingredients but different configuration and process. They might all be solving the same problem, but the solutions have different values and price levels.

Value is delivered by looking at the solution!

The Product Manager can and should not limit themselves to be problem managers. It is in the architecture, the process, and the solution where we connect problems with Value.

Nils Olsson from Tacton shared the secrets of CPQ (Configure, Price, Quote). CPQ has grown into a category of best practice for doing mass customization. CPQ allows us to connect the problem space with the Value. Scania, Ericsson, Elekta, Komatsu, Daimler, Whirlpool are all using CPQ to define and deliver Value. The trick is to build the configuration on the Value to be had. Not by building configuration based on technical components.

CPQ methodology connects the user need with the optimal value delivery. CPQ is almost like the best salesman you have ever met.