Model N made its bones with the concept of revenue management: in life sciences, analyzing the elements of commercial contracts to maximize profitability and minimizing poorly executed incentive or rebate programs. Now, in a commissioned 2019 survey across its prospect base of life sciences and high tech companies, Model N finds that the top concerns for financial well-being are:
- Controlling revenue leakage (48%)
- Managing global pricing (47%)
- Regulatory compliance (47%).
Especially in the current era of intense questioning of the life sciences practices in working with PBMs and other intermediaries, revenue leakage is a key priority. “It makes perfect sense why this is so important,” says Jason Blessing, Model N CEO. “Revenue leakage, often from incentive overpayments, reduces top line revenue and negatively impacts margins.”
The survey, announced at the company’s annual Rainmaker Conference (Miami Beach, March 11-13), has recommendations based on what top-performing companies are doing to maximize revenue and minimize leakage and compliance problems:
- Adopt software solutions that bridge the gap between CRM and ERP, thereby aligning sales and rebates. This could be especially powerful in the current debate of switching pharma rebates from an after-the-fact reconciliation with trading partners to a near real-time point-of-sale rebate with patients.
- Automate data collection and accurately track, evaluate, and automate rebate programs, thereby responding more quickly to market trends and inventory issues.
- Modernize and integrate across the revenue execution lifecycle, from quoting and contract development to pricing and channel management.
The full survey is available for download at Model N’s website.