How well-equipped are you to effectively manage your channel revenue processes? It’s a rarely asked question but an important one. After all, most high-tech manufacturers depend on the channel for a significant proportion of sales. Poorly managed channel-revenue processes almost inevitably lead to profitability and business growth declines.
What’s needed? Data. Good, clean, and comprehensive data. Channel-revenue processes rely both on the data itself and savvy data management. Only then can semiconductor and electronic component manufacturers make informed decisions about partners, programs, people, and processes.
“Leverage Data Management Solutions to Connect and Drive Channel Revenue,” a 2023 Forrester Consulting Opportunity Snapshot commissioned by Model N, evaluated the state of channel revenue processes in high-tech and semiconductor and electronic component manufacturing industries.
The survey of 216 senior leaders responsible for revenue management and channel strategy found that most companies are not well equipped to manage their channel revenue processes to drive profitability and business growth.
In this study, channel-management decision-makers said their ability to make accurate decisions in real-time is the top objective impacting their firm’s profitability. Other objectives impacting finance teams, such as protecting margins from fraud, measuring and improving the efficacy of incentive programs, and protecting their companies from making overpayments, were also surfaced.
The study also found that too many respondent organizations take a scattered approach to applying automated solutions to the channel revenue challenge. Most rely on multiple vendor solutions (40%) or a mix of in-house and vendor solutions (32%). This adds to process complexity as systems and data fail to talk with one another, obscuring a holistic view of channel performance.
Indeed, most decision-makers (62%) confess that they currently don’t have consistent capabilities to turn data into insights and recommendations, revealing ample room for channel program improvement.
The study delivered an enormous amount of other valuable insights to would benefit anyone involved in their organization’s revenue-management processes. The study also makes recommendations on what to seek in a channel-revenue process solution provider. Better channel revenue management can align departments, improve budgeting, and enhance company performance.