For the last six years, Model N, in partnership with Dimensional Research, has set out to uncover trends and executive perceptions toward revenue management within the high-tech and life sciences industries. The resulting 2024 State of Revenue Report uncovered that data is playing an increasingly more important role in helping high-tech companies optimize revenue in the wake of ongoing supply chain challenges and changing market dynamics.
Harnessing the power of data
Executives view data as an important asset as they transition from managing revenue to truly optimizing it. Nearly all (98%) executives believe that leveraging benchmarking data aids their revenue management and decision-making processes. However, when it comes to purchasing peer benchmarking data, excluding market share data, not everyone is bought in. Only 69% of high-tech companies and 57% of semiconductor companies are participating in this process – potentially leaving plenty of insights unmined.
A perfect example of this data gap is in price intelligence. Only 27% of high-tech executives consistently use channel sales data to inform price management. Given the influences pricing has on all aspects of revenue, finding ways to manage and analyze channel sales data efficiently could go a long way in reducing price erosion, maximizing profit, and providing a competitive edge.
Ongoing supply chain challenges
Supply chain woes continue to plague the high-tech industry, with 43% of semiconductor manufacturers and 36% of high-tech manufacturers naming it as a key concern for 2024. Also capturing the attention of high-tech executives is customer demand. Four out of 10 executives at semiconductor and high-tech manufacturing companies listed customer demand as a key concern for the coming year.
While the survey did not delve into what about customer demand is particularly concerning, it’s clear that the high-tech industry is facing pressure across the manufacturing lifecycle – providing a strong business case for finding better ways to gain visibility and control over the complexities of commercial operations.
Along with these topics, the State of Revenue for High Tech webinar dives into the key themes impacting the high-tech industry and where executives see opportunities for improvement. Watch the State of Revenue for High Tech webinar on demand to get the full story. And don’t forget to download your copy of the 2024 State of Revenue Report.
