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Revenue execution applications target compliance to deal terms, regulations around pricing

South San Francisco, CA — June 9, 2003 — Software company Model N has released the latest version of its flagship revenue execution suite, which includes features supporting cross-departmental processes and providing visibility into compliance to deal terms and to government regulations around pricing.

Model N starts with the premise that many companies continue to manage their revenue execution process through a combination of spreadsheets, off-line databases and e-mail, resulting in dollars left on the table every year because companies do not have the tools to properly execute and manage the steps in the revenue execution process across the marketing, sales and finance departments.

"Companies that we talk to feel like they are leaving millions on the table each years," said Jamie Schein, chief marking officer for Model N, "and they can see it, they know what's happening, but they just don't have the business systems in place to collect this revenue."

For example, a company may negotiate the right to increase prices based on inflation but fail to actually do so because of the time-consuming, manual processes for applying the increases by going through paper contracts and making the updates to their enterprise resource planning systems. Or a company's sales force may regularly offer deep discounts in part because they lack business guidelines or processes that prevent them from doing so.

In addition, Model N asserts that these manual processes leave companies at risk of audit and legal exposure through the difficulty of complying with government pricing regulations, which require analysis of pricing terms extended to all customers and monitoring of customer performance against those terms.

To address these challenges, the provider offers a suite intended to address the revenue execution process with applications for pricing strategy, contract management, pricing management, compliance and settlement. Model N currently offers vertical solutions for the medical device, transportation and consumer goods industries.

"Revenue and profit are the most critical drivers of company value," said Zack Rinat, CEO and founder of Model N. "Automating the revenue execution process provides the single greatest opportunity to unlock company value."

According to Model N, the suite captures a company's pricing strategy in a centrally located system accessible by dispersed sales and customer support teams, and it automates the contract management process, including internal approvals, passing new customer pricing to an enterprise resource planning (ERP) system and managing renewals and expirations.

Besides helping a company monitor customers' compliance to contract terms and automating the tracking of compliance to government pricing terms, the software also automates the set-up and tracking of such settlement processes as those for incentive rebates, according to the solution provider.

"The new Model N software suite supports the cross-departmental processes required for strong revenue execution," continued Rinat. "Perhaps most importantly, it provides critical visibility into compliance, both customers' compliance to deal terms and a company's compliance to government regulations around pricing."

Currently both C.R. Bard and Guidant Corporation have purchased Model N Revenue Execution 4.0, according to the provider. Other Model N customers include Ortho-Clinical Diagnostics, Owens Illinois and EFS Network. The provider says it typical deals range in size from $1.5 million to $6.5 million.
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