Nearly Two-Thirds of Life Sciences and High-Tech Executives Set Sights on Advanced Analytics and AI to Improve Revenue Optimization and Profitability in 2024

Model N’s 2024 State of Revenue Report uncovers how pharmaceutical, medical technology, and high-tech manufacturing executives solve for revenue optimization and compliance.

SAN MATEO, Calif., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Model N, Inc. (NYSE: MODN), the leader in revenue optimization and compliance, published its sixth annual State of Revenue Report, revealing life sciences and high-tech executives’ top business priorities and challenges. The company’s 2024 report named process efficiency and cost-saving measures as priorities for executives, with greater emphasis placed on advanced analytics and artificial intelligence (AI) to achieve these priorities. For a second year in a row, supply chain disruption emerged as one of the top obstacles to innovation across all industries.

Other innovation hurdles include changing and unpredictable customer demand, fluctuating materials availability, constant regulatory changes, and staffing challenges. In terms of process efficiencies, three-quarters of executives say their current approach to revenue optimization needs improvement, and survey responses showed plans to bolster revenue operations by incorporating advanced analytics (68%), AI (59%), and robotic process automation (46%).

“AI and analytics are ushering in a new era of revenue optimization and compliance across the life sciences and high-tech industries,” said Rehmann Rayani, Model N Chief Strategy and Marketing Officer. “Outdated, manual, and/or patchwork sales and revenue processes can undermine profitability for even the most innovative companies, and new technologies will unlock data-driven insights that manufacturers need to maximize revenue and remain compliant.”

Sixty percent of executives do not consider their organizations very data-driven today, yet nearly every executive surveyed uses external data resources from a variety of sources to inform business decisions. To augment these data sources, 94% of executives are open to anonymously contributing data to create industry benchmarks that can help inform revenue strategy.

Life Sciences Executives Identify Compliance and Communications Challenges
Beyond persistent macroeconomic headwinds, 2024 survey results highlighted several industry-specific challenges. Among pharmaceutical manufacturers, most executives are worried about the influence of regulations on future revenue. Half of the leaders surveyed are bracing for a significant revenue impact from price negotiations with Medicare under the Inflation Reduction Act, more than double the results from the 2023 survey.