A new survey finds that 99 percent of high technology and life science executives report revenue management challenges within their organization. This is according to new research from the fourth annual ‘State of Revenue Report’ produced by Model N.
In terms of the survey population, this includes semiconductor, electronic component manufacturers (ECMs) and high-tech manufacturing companies. For the survey, 306 individuals were questioned. The findings relate to the U.S. business market.
This startling figure matters because 70 percent of executives indicate that their industry loses billions of dollars due to these revenue issues. More specifically, the executives single out supply chain disruptions (44 percent) and artificial intelligence (40 percent) as having the greatest impacts on revenue management. In addition, 98 percent of executives indicate they face staffing issues in their revenue management program
This suggests that executives have an ingrained understanding that technology-based solutions and that these are seen as critical for tackling revenue leakage and enterprise-wide revenue management issues.
Other concerns faced by key players in technologically driven companies include the process of managing and controlling data (expressed by 34 percent) and with achieving real-time data visibility (raised by 31 percent).
Other notable issues include financial compliance (30 percent); managing global pricing (29 percent); and with managing the different needs of channels and segment (also mentioned by 29 percent of the study participants).
Technological changes represent another area that the sector needs to take note of. This includes, within the U.S., the necessity for pharmaceutical companies to be compliant with all state-level price transparency regulations.
Also, of importance is maintaining regulatory compliance. This was expressed as a concern for 81 percent of executives at life sciences organizations. The regulatory path is not standing still and nearly two-thirds (60 percent) of pharmaceutical executives expect managing compliance to become even more difficult in 2022.
There are signs that the impact of the coronavirus pandemic is declining. When asked about the COVID-19 impact, this was described as a critical revenue management challenge by 37 percent of executives, a figure that is down from the 58 percent mentioned when a similar survey was run during the prior year. The reason for the decline appears to be connected to the aforementioned issues of supply chain disruptions and staffing.
