SAN MATEO, Calif.--(BUSINESS WIRE)--
Model
N, Inc. (NYSE: MODN), the leader in cloud revenue management
solutions, today announced the 2019 State of Revenue Report. The
research study, commissioned by Model N, polled 300 life sciences and
high tech executives in North America. The study shows the macro trends
impacting revenue, the top challenges life sciences and high tech
companies face regarding revenue management, and what best-in-class
organizations look like.
In summary, the report shows there are three macro trends impacting
these organizations: artificial intelligence (AI), digital
transformation, and a proliferation of channels. Most of the respondents
(78 percent) report AI is changing the way revenue management operates
and another 69 percent identified digital transformation as a key factor
reshaping the industry. Additionally, the survey shows that life
sciences and high tech companies depend upon a broad and deep set of
partners for their revenue. 90 percent of respondents work with 20 or
more partners and 70 percent work with 40 or more.
To further understand what is hindering organizations from achieving
their goals, Model N then asked the respondents about their major
challenges. The top three include:
-
Controlling revenue leakage (48 percent)
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Managing global pricing (47 percent)
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Regulatory compliance (47 percent)
Model N also examined the results from an industry-specific perspective.
Life sciences organizations, particularly pharmaceutical organizations,
also prioritize predicting revenue (45 percent) as a major challenge as
it becomes more difficult to manage the complex go-to-market process
governed by multiple stakeholders and regulatory bodies.
High tech organizations are facing unique challenges to accurately
predict revenue and ensure that discounts granted to customers are
appropriate (43 percent) as poor discount management can lead to
additional revenue leakage and lower profit margins.
Finally, the study shows that companies that overcome these challenges
and meet their goals are best in class across several dimensions. These
companies tend to:
-
Manage their sales processes and contracts via systems
-
Manage their channels and third parties using systems and data
-
Proactively set strategies and systems to manage regulatory
requirements and gain visibility into revenue at all stages.
Across the board, organizations that were more likely to be doing well
are seeing fantastic results:
-
63 percent were more likely to be doing well with improving profit
margins – the companies’ #1 goal.
-
57 percent were more likely to be doing well with reducing revenue
leakage – the companies’ #1 challenge.
-
85 percent of top organizations were more likely to be doing well with
the ability to cross-sell products to increase their share of wallet.
-
79 percent were more likely to be doing well with stock price growth.
“The 2019 State of Revenue Report shows that revenue management is a
strategic imperative for life sciences and high tech companies,” said
Jason Blessing, chief executive officer, Model N. “The fact that
top-tier companies significantly outperform their peers in meeting their
revenue goals demonstrates the impact systematic, end-to-end revenue
management can have on top line growth.”
For more information or to download the full report, visit https://www.modeln.com/resources/modelns-2019-state-of-revenue-survey-report
About Model N: Model N (NYSE: MODN) is the leader in revenue
management solutions. Driving mission-critical business processes such
as configure, price and quote (CPQ), contract and rebate management,
business intelligence, and regulatory compliance, Model N solutions
transform the revenue lifecycle from a series of disjointed operations
into a strategic end-to-end process. With deep industry expertise, Model
N supports the complex business needs of the world’s leading brands in
pharmaceutical, medical device, high-tech manufacturing, and
semiconductor across more than 100 countries, including Johnson &
Johnson, AstraZeneca, Novartis, Microchip Technology and ON
Semiconductor. For more information, visit www.modeln.com.
Model N® is the registered trademark of Model N, Inc. Any other company
names mentioned are the property of their respective owners and are
mentioned for identification purposes only.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190319005036/en/
Sherri Walkenhorst
swalkenhorst@modeln.com
(801)
373-7888
Source: Model N, Inc.