For the last four years, Model N has taken the pulse of C-suite executives in the high-tech and life sciences industries to understand how they’re grappling with the pace of innovation, as well as the economic and market forces that are beyond their control. With our fifth annual State of Revenue Report, we see the growing importance of data analytics emerge and how advanced technologies like AI are being leveraged across a broad range of functions, from sales to finance to marketing, and helping businesses hold steady in the face of inflation and supply-chain woes.
One of our most striking findings was that C-level executives universally cite one major factor impacting their innovation plans in 2023: inflation. Eighty-four percent of executives said that inflation is affecting strategic decision-making. That’s more than the next two factors combined – supply chain and logistics (46%) and global instability (36%).
Each specific industry – medtech, pharma, and high tech ¬– had its own take on factors impacting their respective areas. Here’s what they shared:
Medtech: Putting data first with a CDO
Recently, there have been many anecdotes about companies adding to their leadership teams to address key focus areas. LinkedIn found that there are now a possible 51 C-level roles in larger enterprises or even startups with special concerns, such as privacy, data, or customer service. Among the respondents to the survey, the medtech executives stood out in that 56% of them said their companies added a chief data officer, a higher proportion than executives in pharma or high tech. While this may not necessarily indicate a lack of the importance of data and analytics for the two other industries, medtech’s accelerated investment in creating such roles certainly showcases a strong plan for its need for clean and accurate data in revenue management.
High-tech: Supply chain challenges; optimism about C-suite expansion
Supply-chain disruption rose to the top of the list of challenges across all industries but appeared to hit high tech the most. 47% of executives cited supply chain and manufacturing capacity as the two major factors impacting their revenue management success.
Offsetting some of these concerns might be the changes taking place at the executive level. Among the companies that expanded their C-suite in the past five years – whether by splitting, elevating, or adding new roles – 94% of executives are positive about how these changes have improved revenue management. This change was particularly noticeable in high-tech companies, where 61% of executives reported that they were “very positive” about the change.
Pharma: Ahead in solving the staffing crisis
The pharmaceutical industry is faring better than medtech and high tech in its ability to find qualified personnel. Eight percent of pharma executives report that they are not facing any issues with staffing or expertise – up from zero in 2022. Pharma companies are also dealing with less attrition and more balanced workloads than the previous year as well as finding it easier to hire highly skilled workers – with 12% reporting fewer problems with this issue than in 2022.
Want to learn more? Download the report to compare and contrast the findings with what your own company is experiencing. You will also access valuable insights into how to create your own revenue optimization and compliance strategy – one that will translate into both short- and long-term tactical successes.