revenue management high tech companies model channel
High Tech Companies Need Better Financial Controls to Overcome Growing RevenueChallenges According to New Model N State of Revenue ReportSAN MATEO, Calif.–(BUSINESS WIRE)–Model N, Inc. (NYSE: MODN), the leader incloud revenue management solutions, today announced findings from its 2021State of Revenue Report, which examines current issues around revenueexecution and management in the high tech manufacturing sector. Model N polled300 C-level executives during January-February 2021, and 97% say they facerevenue management challenges. Some 93% of respondents report that revenuemanagement is a “business-critical” issue, describing the global COVID-19pandemic as the biggest factor impacting revenue management today.> The Evolution of Channel SalesIn response to these changing marketplace dynamics and the ongoing revenueexecution crisis, almost all companies reported adopting new business models(96%), changing processes (98%), and seeking out innovative technologies forrevenue management (99%). And while nearly half (49%) recognize that improvedrevenue management capabilities can increase revenue, a surprising 96% dependon spreadsheets for some revenue management tasks. However, companies dorecognize the need for change, as more than 90% say revenue management isbusiness-critical and needs to modernize in the digital era, with 68% of firmsreporting an increase in revenue management moments in 2020.“Today’s volatile and constantly changing channel environment places evengreater competitive pressure on high tech companies, and the issue of revenuemanagement has become particularly critical as companies seek to recover fromthe effects of the pandemic,” said Chanan Greenberg, senior vice president andgeneral manager, High Tech, for Model N. “The need to align channels, pricingand incentive programs to the end-customer buying journey has createdincreased complexity as well as uncertainty about the accuracy and integrityof financial controls. By leveraging AI-powered platforms like Model N’sRevenue Cloud, high tech companies can drive channel alignment and maximizerevenue opportunities.”What’s more, not all changes brought about by the coronavirus will betemporary. Some 54% of high tech firms say that steps taken during thepandemic will have a long-term impact on revenue management processes. Inaddition, according to those surveyed, telecommuting also poses issues, as 61%said remote work made revenue management more difficult.Revenue Execution ChallengesAgainst a backdrop of channel evolution and the continued potential for lostrevenue, the industry is becoming more aware of revenue execution challenges.Model N’s research findings bear out the urgent need for solutions across thehigh tech sector, which is plagued by price volatility and discount-incentivized channels. Rapid channel growth, new revenue models and a lack ofvisibility, as well as a continued reliance on legacy manual processes, arecausing more audit and control issues. Model N’s survey reports: * 94% of high tech companies face challenges with incentive management * 93% of high tech companies face challenges with financial controls in their channel * 58% of high tech companies face challenges around obtaining accurate partner data Effective High Tech Revenue Management: The Intersection of Technology andExpertiseDeep industry knowledge and expertise are at the core of successful revenuemanagement strategies. And, given the combination of complex channel andincentive sales models and today’s highly competitive global environment,semiconductor, electronic component manufacturers (ECMs), and high techmanufacturing companies are seeking new solutions for management of deals,channels, rebates, and market development funds (MDF).As a result, high tech companies must implement revenue management strategiesand tools that integrate both a nuanced understanding of the industry and themost current technologies – including data science, artificial intelligence(AI) and the cloud – as part of larger, enterprise-wide digital transformationand digitization initiatives. According to Model N’s research, companies arealready on the hunt for solutions: * 99% of companies are looking for innovative revenue management technologies, especially those that incorporate AI and machine learning (ML), at 74% * 91% agree that the ideal delivery method for revenue management is cloud-based and that cloud solutions should come from a vendor with deep sector expertise * More than half (54%) have already augmented their processes with the adoption of additional cloud software In addition, high tech companies are exploring new revenue models to cope withtoday’s dynamic marketplace, which is driving an even greater need for revenuemanagement solutions. Some 47% of firms say they’ve recently adoptedsubscription or recurring revenue models, and 48% of high tech companies saythat more subscription pricing models are causing an increase in revenuemanagement moments.More About the SurveyFielded by Dimensional Research in January-February 2021, the online surveypolled a total of 300 executives in the U.S. with direct responsibility forrevenue management in an executive role. The primary research goal of thesurvey was to capture hard data to understand trends with revenue managementamong key industries. A variety of questions were asked on a range of topics,including current approach to revenue management, opportunities to improve,and the role of technology. Certain questions were repeated from a similar2020 survey to enable trend analysis. To view the complete results, seehttp://www.modeln.com/stateofrevenue2021.About Model NModel N enables life sciences and high tech companies to drive growth andmarket share, minimizing revenue leakage throughout the revenue lifecycle.With deep industry expertise and solutions purpose-built for these industries,Model N delivers comprehensive visibility, insight and control over thecomplexities of commercial operations and compliance. Our integrated cloudsolution is proven to automate pricing, incentive and contract decisions toscale business profitably and grow revenue. Model N is trusted across morethan 120 countries by the world’s leading pharmaceutical, medical technology,semiconductor, and high tech companies, including Johnson & Johnson,AstraZeneca, Stryker, Seagate Technology, Broadcom and Microchip Technology.For more information, visit www.modeln.com.