New Model N Executive Report Places Technology as Central to Solving Revenue Management Issues in 2022
“2022 State Of Revenue Report” Shows Revenue Management Remains Susceptible to Changing Business Dynamics, Including Supply Chain, AI and Staffing Issues
Model N, Inc., a leader in cloud revenue management solutions, 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.”
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“Our research illustrates that revenue management remains a challenge and that the revenue management function is still a top-priority for the C-suite”
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.”
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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%).
