Recently, Model N commissioned a research study to better understand how executives are dealing with the challenges of revenue management at high-tech manufacturing, semiconductor, and electronic component manufacturing (ECM) companies. Of the executives surveyed, 93% struggle with financial control in the channel, and 82% consider channel-related financial compliance more difficult than any other type of financial control.
According to the results of the 2021 State of Revenue Report, companies are experiencing 68% more revenue management moments than last year. The volume of pricing updates, quotes, discounts, contracts, and rebates has drastically increased, partly due to business growth but also because 50% of companies have seen a rise in the number of stakeholders and channel partners. With channel relationships numbering well into the thousands, high tech executives are looking for ways to capitalize on opportunities to ensure their pricing, discounting, and rebating decisions are fair, equitable, and executable across their channel ecosystems.
With up to 70% of high tech revenue derived from the channel, improving all aspects of channel management – including data visibility and accuracy – is something that high tech companies absolutely have to get right.
Better revenue management is an opportunity
In high tech, 80% of high-tech manufacturing executives and 56% of semiconductor or ECM executives reported their industry could do better with revenue management. And they see areas of opportunity. High tech executives believe that by more effectively managing revenue activities, they could see positive impacts on business results that extend beyond reducing revenue leakage, such as:
- Financial controls and compliance (41%)
- Price management and optimization (41%)
- Channel management and optimization (27%)
Read the 2021 State of Revenue Report for more in-depth findings on how the high tech industry is dealing with revenue and channel management and where executives see the biggest areas for improvement.