Executives Identify Technology and Digital Transformation as the #1 Way to Bolster Innovation Amidst Challenging Market Conditions
2023 State of Revenue Report from Model N identifies pharmaceutical, medical technology and high-tech manufacturer perspectives on market challenges
Model N Inc., the leader in revenue optimization and compliance, today announced the results of its fifth annual State of Revenue Report. The report captures detailed data intended to help life sciences and high-tech executives proactively plan and implement strategies to grow company revenue and market share. All executives agreed that innovation is critical to business growth and ranked technology and digital transformation as the #1 focus to strengthen innovation in 2023. Executives also named several market headwinds such as supply chain disruption (43%) and inflation (84%) as having an impact on revenue optimization, compliance, and innovation.
“Our findings show that innovation continues to be critical to business success and while market conditions have an impact on that, technology, digitization, and the use of revenue optimization and compliance solutions present the biggest opportunities for continuous innovation,” said Rehmann Rayani, Model N Chief Strategy and Marketing Officer. “As organizations continue to navigate the current economic climate, the quality and efficiencies generated through technology investments are more important than ever.”
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Role of Technology in Revenue Optimization and Compliance
Supply chain disruption was cited as the #1 theme impacting revenue optimization and compliance strategies for the second year in a row. Seventy percent of executives also agreed that their industry was losing billions of dollars because of poor revenue management practices, such as ineffective or inaccurate pricing and quoting, which makes a strong case to increase technology investment. In fact, 100% of executives reported that they are actively interested in pursuing data-driven applications and tools, as well as commercial data offerings to bolster revenue management.
Market Factors Impacting Life Sciences and High Tech
While macroeconomic challenges prevailed across the board, a few industry-specific obstacles surfaced, as well. For pharmaceutical executives, compliance requirements such as price transparency reporting and the Inflation Reduction Act of 2022 held true, with 97% of pharma executives preparing for further changes in compliance regulations.
As for high-tech and semiconductor manufacturers, supply chain and logistics problems prevailed, with 41% of respondents naming customer demand as a significant concern. However, 98% of respondents saw a reason for optimism with the passage of the CHIPS and Science Act of 2022. In addition, 4 in 10 executives expect to see industry challenges ease as soon as this year.
“Executives were clear that many of their current revenue management strategies were insufficient to address looming issues such as supply chain disruption, inflation, manufacturing capacity, and staffing shortages,” said Suresh Kannan, Model N Chief Product Officer. “This report demonstrates why organizations need comprehensive revenue management solutions that enable them to accurately capture real-time information and improve operational efficiency.”
More About the 2023 State of Revenue Report
This report, commissioned by Model N with research conducted by Dimensional Research, is based on the results of a survey of more than 300 C-suite executives directly responsible for revenue management at large pharmaceutical, medical technology, high-tech manufacturing, or semiconductor companies. Certain questions were repeated from similar studies in 2020, 2021, and 2022 to enable trend analysis.
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