The latest report from Model N, Inc. unveils the predominant focus of executives in the life sciences and high-tech sectors for 2024: leveraging advanced analytics and AI to enhance revenue optimization and profitability. This year’s State of Revenue Report sheds light on how leaders in pharmaceuticals, medical technology, and high-tech manufacturing are addressing revenue optimization and compliance challenges.
Key findings indicate that executives prioritize process efficiency and cost-saving initiatives, with a growing inclination towards advanced analytics and AI solutions. Supply chain disruptions persist as a major obstacle to innovation for the second consecutive year, alongside challenges such as fluctuating customer demand, materials availability, regulatory changes, and staffing issues.
The report highlights executives’ acknowledgment of the need for improvement in current revenue optimization approaches, with plans to integrate advanced analytics, AI, and robotic process automation to enhance revenue operations.
Model N’s Chief Strategy and Marketing Officer, Rehmann Rayani, emphasizes the transformative potential of AI and analytics in revolutionizing revenue optimization and compliance, underscoring the importance of leveraging data-driven insights to maximize revenue and ensure compliance.
Furthermore, the report reveals that while a significant portion of executives do not consider their organizations highly data-driven, there is a willingness to contribute anonymized data to establish industry benchmarks for informed revenue strategies.
In the life sciences sector, executives express concerns about regulatory influences on future revenue, particularly regarding price negotiations with Medicare and challenges with formulary validation. Similarly, medical technology executives highlight communication gaps between field sales and operations teams, while grappling with the transition to recurring revenue models.
High-tech manufacturers are urged to capitalize on channel sales data for strategic decision-making and to mitigate risks associated with unauthorized sales, emphasizing the importance of monitoring and optimizing revenue processes.
Model N’s Chief Product Officer, Suresh Kannan, emphasizes the imperative for businesses to evolve existing practices and harness the potential of data and advanced analytics to navigate industry challenges, optimize revenue, and meet business objectives.
For a comprehensive overview of industry-specific statistics and insights on revenue optimization, the full 2024 State of Revenue Report is available for download.