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 - Seite 2

In addition, 94% of pharmaceutical executives reported challenges with formulary validation – the process by which manufacturers verify that payers are meeting contractual agreements with respect to formulary placement. Manual audits (49%) and limited access to formulary data (48%) were cited as top challenges to assuring compliance.

From revenue loss to government penalties, the consequences of poor customer and membership data are many. Yet, only half of executives characterize their membership management process as highly effective.

For medical technology executives, communication between field sales and operations teams is a top concern, with just 38% reporting excellent communication. Improvements in this area can immediately streamline deal execution and boost profitability. The medtech industry continues to adjust to new financing and subscription models for capital equipment and software, evolving from one-time to recurring revenue. Nearly 60% of executives reported difficulties with managing such models.

Channel Data Remains an Untapped Opportunity for High-Tech Manufacturers
While channel sales data can give manufacturers valuable insights into changing market conditions, only 27% of companies consistently use this data to inform pricing decisions. Greater insight into channel data helps execute more strategic sales pivots faster in response to changing market conditions. In addition, channel data helps manufacturers guard against gray market sales. These unauthorized sales put manufacturers at risk with regulators and law enforcement agencies, and most executives surveyed reported concerns ranging from brand reputation damage to financial and legal liability.

“Life sciences and high-tech manufacturers rely on complex, multi-stage revenue processes. Failing to consistently monitor, analyze, and optimize these processes is a recipe for increased risk,” said Suresh Kannan, Model N Chief Product Officer. “This year’s State of Revenue Report underscores how existing business practices must evolve and harness the power of data and advanced analytics to overcome industry challenges, optimize revenue, and meet critical business needs.”

For more industry-specific statistics and commentary about revenue optimization in life sciences and high tech, download the full 2024 State of Revenue Report.

More About the 2024 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 2020-2023 to enable trend analysis.