Model N, Inc. announced the
results of its fourth annual
State of Revenue
Report, A Survey of Top Industry Executives.
Overall, 99% of executives report revenue management challenges within their
own companies, and a large majority (85%) of executives surveyed agree that
revenue management - which incorporates the ongoing optimization of revenue
activities, including rebates, compliance, contracts, and pricing models to
maximize growth - is "business critical."
Across life sciences and high-tech
companies, revenue management challenges continue to evolve. Survey respondents
said that "top impacts" on revenue management include supply chain disruptions
(44%) and artificial intelligence (40%), and 98% of executives say they face
staffing issues in their revenue management program. Over half (51%) expect
that issues with staffing and lack of available expertise will have a
"significant" impact on revenue management in 2022.
How Executives Feel About the
Pandemic
In a change from 2021, the
COVID-19 pandemic was described as a critical revenue management challenge by
37% of executives, versus 58% the prior year. This sentiment can be attributed
to other pressing issues in the market such as the prevalence of supply chain
disruptions and staffing issues, which have become as pressing, if not more so,
than the pandemic itself.
Using Revenue Management
Technology
An overwhelming 99.7% of
executives said "yes" when asked if additional technology capabilities would
have specific benefits for their organizations. Looking deeper into what
specific aspects of technology and solutions are needed, 80% of executives identified
needing access to accurate and timely revenue management data.
"Our research illustrates that
revenue management remains a challenge and that the revenue management function
is still a top-priority for the C-suite," said Suresh Kannan, Chief Product
Officer at Model N. "The survey results also show that execs have an ingrained
understanding that technology-based solutions - including the cloud, embedded
AI and data analytics - are critical to tackling enterprise-wide revenue
management issues and revenue leakage in 2022 and beyond."
Model N's Use of Research to
Inform Product Innovation
Model N leverages proprietary
research such as the 2022 State of Revenue Report to help inform ongoing
product development and innovation-developing solutions that help answer
ongoing market demands and needs.
An example of a recent
demand-driven innovation from Model N is the new State Price
Transparency Management solution, which
ensures pharma companies are compliant with all state-level price transparency
regulations.
Additionally, Expert Services,
which is a part of Business Services from Model N help clients address critical
staffing issues around revenue management by enhancing life sciences
manufacturer teams with experts who specialize in government programs,
commercial contracting, finance, and analytics.
Pharma and Medtech: Regulatory
Compliance Takes a Leading Role
According to the report,
regulatory compliance at state and federal levels is a concern for 81% of
executives at life sciences organizations, which include both pharma and
medtech companies. While compliance is an issue for business leaders at
pharmaceutical (83%) and medtech (77%) companies, pharma executives are more
concerned. Nearly two-thirds (60%) of pharmaceutical executives expect managing
compliance to become even more difficult in 2022.
High Tech
In the high-tech sector, which
includes semiconductor, electronic component manufacturers and high-tech
manufacturing, leading concerns centered around managing and controlling data
(34%), but also on maintaining financial compliance (30%) and managing global
pricing (29%).
To get more industry-specific
statistics and commentary about revenue management and the impact of channels
and data for life sciences and high tech, download the full 2022 State of
Revenue Report: www.modeln.com/state-of-revenue-report-2022