By Melonie Warfel, VP General Manager, Life Sciences
According to IDC, life sciences (pharma and biotech) organizations lose about 4% of their annual revenue to revenue leakage, and we’ve even seen as much as 6% in the organizations we support. To help plug the leak, Mike Townsend, research director for IDC’s Worldwide Life Sciences Commercial Strategies practice, predicts more manufacturers will embrace cloud-based contract automation and revenue management technology in 2020.
Digital transformation in life sciences is already well underway. Of the biopharma companies surveyed in the IDC Global IoT Decision Maker 2019 survey, 40% have invested in IoT digital transformation capabilities and 30% have invested in cloud.
Turning to cloud-based technology enables pharma companies to quickly achieve ROI and maximize value in less time than using a traditional implementation on a legacy system. Along with the flexibility to scale as the business grows, a cloud-based revenue management system also allows for faster updates to address changing regulatory or business requirements.
Couple the advantages of the cloud with an end-to-end revenue strategy and the benefits are numerous. The Guide to Revenue Execution for Pharmaceutical Manufacturers explains how organizations that take a comprehensive approach to revenue execution can achieve a strategic advantage.
By eliminating silos and addressing cross-functional operations, pharma companies are able to:
- Manage global pricing, tenders, contracts, and chargebacks, from one easy-to-use system.
- Improve accuracy of rebates and avoid overpayments.Ensure adherence to complex pricing regulations and contracts.
- Achieve detailed visibility into gross-to-net across all channels.
Key aspects of any revenue management solution are intelligence and analytics. IDC predicts that by 2023, 30% of the business and clinical decisions made by health and life science organizations will be informed by artificial intelligence (AI) insights. This will only be possible if actionable analytics are integrated into workflows, making the right information available to the right people at the right time. Automation and robotic process automation (RPA) take the first step toward AI. RPA helps automate legacy business processes, minimizing human error and making information available to decision-makers, when and where they need it.
Through solutions like Model N Revenue Cloud for Pharma, we are providing pharma companies with a flexible, end-to-end revenue management solution. We continue to innovate and design for clean data and achieving data excellence through good data governance. Read the Guide to Revenue Execution for Pharmaceutical Manufacturers to see what systems, tools, and processes are needed to effectively manage risk today and prepare for tomorrow, as well as level of flexibility, agility, and innovation that you can achieved through them.