By Jim Holland, Model N
For the fourth consecutive year, Model N has ordered a Research study to better understand how executives are addressing the challenges of revenue optimization and channel management in high-tech, semiconductor, and electronic component manufacturing (ECM) companies.
According to findings from the 2022 State of Revenue Report, more executives believe their industry is doing a better job of managing revenue in 2022 than in 2021. However, 99% say they struggle with revenue management within their own company. Within the high-tech industry, data issues were the most pressing. About a third of executives cited data management and visibility into real-time price, sales, and discount data as their top challenge.
These data issues have a direct impact on revenue management. Of executives surveyed, 91% say they have difficulty extracting insights from their data, and 73% are less confident in the accuracy of their revenue reports than they were a while ago. five years old.
With the uncertainty surrounding their data, it’s no surprise that financial compliance complements the top three revenue management challenges facing high tech. This is especially true for their distribution business; 81% of executives say financial control and compliance in the channel is more difficult than other forms of financial control. Given that this percentage is virtually unchanged from 2021, this indicates that tech companies need solutions and processes that will help them eliminate overpayments and ensure accurate accruals.
The technology promises substantial benefits
A range of innovative data technologies – including advanced analytics, artificial intelligence and machine learning, as well as APIs and real-time data – enable better revenue management. High-tech executives believe that harnessing better technical capabilities will bring substantial benefits. Along with increased revenue, tech executives believe they would be able to:
Channeling more investment into innovation (51%)
Obtain an increased competitive advantage (46%)
Improve financial controls and compliance processes (43%)
Read it2022 Income Statement Report and attend theState of Revenue Webinar for High Techfor deeper insights into how revenue and channel management are changing in this industry and what executives care about most.
Model N Inc. published this content on March 18, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on Mar 18, 2022 10:47:00 PM UTC.