High Tech Companies Need Better Financial Controls to Overcome Growing Revenue Challenges According to New Model N State of Revenue Report

Model N, Inc. (NYSE: MODN), the leader in cloud revenue management solutions, today announced findings from its 2021 State of Revenue Report, which examines current issues around revenue execution and management in the high tech manufacturing sector. Model N polled 300 C-level executives during January-February 2021, and 97% say they face revenue management challenges. Some 93% of respondents report that revenue management is a “business-critical” issue, describing the global COVID-19 pandemic as the biggest factor impacting revenue management today.

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To download a copy of Model N's 2021 State of Revenue report, visit www.modeln.com. (Graphic: Business Wire)

The Evolution of Channel Sales

In response to these changing marketplace dynamics and the ongoing revenue execution crisis, almost all companies reported adopting new business models (96%), changing processes (98%), and seeking out innovative technologies for revenue management (99%). And while nearly half (49%) recognize that improved revenue management capabilities can increase revenue, a surprising 96% depend on spreadsheets for some revenue management tasks. However, companies do recognize the need for change, as more than 90% say revenue management is business-critical and needs to modernize in the digital era, with 68% of firms reporting an increase in revenue management moments in 2020.

“Today’s volatile and constantly changing channel environment places even greater competitive pressure on high tech companies, and the issue of revenue management has become particularly critical as companies seek to recover from the effects of the pandemic,” said Chanan Greenberg, senior vice president and general manager, High Tech, for Model N. “The need to align channels, pricing and incentive programs to the end-customer buying journey has created increased complexity as well as uncertainty about the accuracy and integrity of financial controls. By leveraging AI-powered platforms like Model N’s Revenue Cloud, high tech companies can drive channel alignment and maximize revenue opportunities.”