Executives Identify Technology and Digital Transformation as the #1 Way to Bolster Innovation Amidst Challenging Market Conditions

Rhea-AI Summary

Model N (NYSE:MODN) released its fifth annual State of Revenue Report, highlighting challenges faced by pharmaceutical and high-tech sectors. Key issues include supply chain disruption (43%) and inflation (84%) impacting revenue optimization. The report indicates that 70% of executives believe poor revenue management costs billions, emphasizing the need for technology investments. Compliance remains a crucial concern, with 97% of pharma executives preparing for regulatory changes. Despite these challenges, 98% of respondents are optimistic about future industry conditions with upcoming legislation like the CHIPS Act.

Positive

• 100% of executives are interested in data-driven applications to improve revenue management.
• 98% of high-tech executives are optimistic due to the CHIPS and Science Act of 2022.

Negative

• Supply chain disruption remains the top concern for revenue optimization for two consecutive years.
• 70% of executives report that inadequate revenue management practices cost billions.

2023 State of Revenue Report from Model N identifies pharmaceutical, medical technology and high-tech manufacturer perspectives on market challenges

SAN MATEO, Calif.--(BUSINESS WIRE)-- Model N, Inc. (NYSE: MODN), the leader in revenue optimization and compliance, today announced the results of its fifth annual State of Revenue Report. The report captures detailed data intended to help life sciences and high-tech executives proactively plan and implement strategies to grow company revenue and market share. All executives agreed that innovation is critical to business growth and ranked technology and digital transformation as the #1 focus to strengthen innovation in 2023. Executives also named several market headwinds such as supply chain disruption (43%) and inflation (84%) as having an impact on revenue optimization, compliance, and innovation.

“Our findings show that innovation continues to be critical to business success and while market conditions have an impact on that, technology, digitization, and the use of revenue optimization and compliance solutions present the biggest opportunities for continuous innovation,” said Rehmann Rayani, Model N Chief Strategy and Marketing Officer. “As organizations continue to navigate the current economic climate, the quality and efficiencies generated through technology investments are more important than ever.”

Role of Technology in Revenue Optimization and Compliance

Supply chain disruption was cited as the #1 theme impacting revenue optimization and compliance strategies for the second year in a row. Seventy percent of executives also agreed that their industry was losing billions of dollars because of poor revenue management practices, such as ineffective or inaccurate pricing and quoting, which makes a strong case to increase technology investment. In fact, 100% of executives reported that they are actively interested in pursuing data-driven applications and tools, as well as commercial data offerings to bolster revenue management.

Market Factors Impacting Life Sciences and High Tech

While macroeconomic challenges prevailed across the board, a few industry-specific obstacles surfaced, as well. For pharmaceutical executives, compliance requirements such as price transparency reporting and the Inflation Reduction Act of 2022 held true, with 97% of pharma executives preparing for further changes in compliance regulations.

As for high-tech and semiconductor manufacturers, supply chain and logistics problems prevailed, with 41% of respondents naming customer demand as a significant concern. However, 98% of respondents saw a reason for optimism with the passage of the CHIPS and Science Act of 2022. In addition, 4 in 10 executives expect to see industry challenges ease as soon as this year.

“Executives were clear that many of their current revenue management strategies were insufficient to address looming issues such as supply chain disruption, inflation, manufacturing capacity, and staffing shortages,” said Suresh Kannan, Model N Chief Product Officer. “This report demonstrates why organizations need comprehensive revenue management solutions that enable them to accurately capture real-time information and improve operational efficiency.”

For more industry-specific statistics and commentary about revenue management in life sciences and high tech, download the full 2023 State of Revenue Report.

To view today's recorded webinars discussing the 2023 State of Revenue Report findings, please see here for life sciences and here for high tech.

More About the 2023 State of Revenue Report

This report, commissioned by Model N with research conducted by Dimensional Research, is based on the results of a survey of more than 300 C-suite executives directly responsible for revenue management at large pharmaceutical, medical technology, high-tech manufacturing, or semiconductor companies. Certain questions were repeated from similar studies in 2020, 2021, and 2022 to enable trend analysis.

About Model N

Model N is the leader in revenue optimization and compliance for pharmaceutical, medtech and high-tech innovators. Our intelligent platform powers your digital transformation with integrated technology, data, analytics, and expert services that deliver deep insight and control.

Our integrated cloud solution is proven to automate pricing, incentive and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 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.

About Dimensional Research

Dimensional Research provides practical market research for innovative companies. We partner with our clients to deliver actionable information that reduces risks, increases customer satisfaction, and grows the business. Our researchers are experts in the processes, applications, and systems used by modern businesses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230207005112/en/

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Source: Model N, Inc.

FAQ

What key challenges did Model N report for the pharmaceutical sector?

Model N identified supply chain disruption (43%) and compliance requirements as significant challenges for pharmaceutical executives.

How does inflation affect Model N's report on revenue management?

The report states that inflation is a major concern, affecting 84% of executives in terms of revenue optimization and compliance.

What is the significance of the CHIPS and Science Act according to Model N?

Model N reports that 98% of high-tech executives see the CHIPS Act as a reason for optimism amid supply chain challenges.

How many executives participated in the 2023 State of Revenue Report?

The report surveyed over 300 C-suite executives responsible for revenue management.

What percentage of executives believe technology investment is crucial for revenue management?

The report indicates that 100% of executives are interested in pursuing data-driven applications to bolster revenue management.