Pricing Analysis

Sometimes looking at the data can drive a culture change in an organization that is even tougher to implement than the analytics tool itself. If an organization practices cost buildup or cost plus pricing, transforming it to a value based or list discounted price is like moving the titanic.
The nature of such organizations is generally decentralized, where sales and sourcing are controlled by the same function or leadership. All the cost productivity that is gained by the organization is passed on to the customer in the name of getting additional volume without regards to aggregate margin. So take for example a product that used to cost $100 and sold for $120. The sourcing manager busts his butt to get 50% cost productivity but in cost buildup pricining a 20% markup maintened so now costs $50 and is sold for $60. The result is a 20% markup but the net margin dollars actually go down because a 50% reduction in price does not necessarily translate to a 100% increase in volume that would be required to maintain margin. This is why cost buildup pricing is not practiced by most progressive organizations.
So what happens if you start looking at the information and realize that you want to change this practice. You have to first change the organization structure in order to enable the digestion of the information and align accountability.
How has your organization responded in this transformation?