Nearly 97% of companies surveyed say they face revenue management challenges, while some 93% report that revenue management is a “business-critical” issue, according to a Model N survey.
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, 96% depend on spreadsheets for some revenue management tasks.
“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,” says 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.”
- Some 54% of high-tech firms say that steps taken during the pandemic will have a long-term impact on revenue management processes.
- Rapid channel growth, new revenue models, lack of visibility and a continued reliance on legacy manual processes cause more audit and control issues.
- 99% of companies are looking for innovative revenue management technologies, especially those that incorporate AI and machine learning.