Every year, Model N, in partnership with Dimensional Research, surveys c-level executives who are directly responsible for revenue management at semiconductor, electronic component manufacturing, and high-tech companies. The resulting 2022 State of Revenue Report uncovered that the high-tech industry continues to grapple with data and channel-related challenges, while facing new uncertainties caused by changing business models and the immediate aftereffects of the pandemic.
During the 2022 State of Revenue for High Tech webinar, Model N’s Bernard Gutierrez, vice president of global solutions consulting; Charlie Abrams, senior solutions consultant; and Jim Holland, associate director of product marketing discussed some of the key findings from the report and associated industry implications.
The impact of new business models
A third of the high-tech executives surveyed indicated that business model changes – including value-based contracting and subscription-based pricing – are having a big impact on how they manage revenue. As companies move to secure more recurring revenue, they must adjust the way they incentivize partners and embrace new types of partners, particularly non-transacting ones, into their channel ecosystem.
Data concerns abound
High-tech executives struggle with data management and real-time data visibility. As new channel partners onboard, companies must improve their data gathering processes. Without timely data into sales, inventory, and incentives, companies will find it difficult to understand the effectiveness of their channels and overall partner performance, as well as be able to optimize pricing and accurately account for financial liabilities.
Staffing an ongoing concern
The high-tech industry isn’t immune to human resource challenges. In fact, finding and retaining qualified staff for revenue management tasks is an issue for 94% of high-tech executives. To combat these challenges, many organizations are turning to automation, especially for quoting. Embracing automation helps protect internal resources’ workloads, while making it possible to turn quotes and other partner and customer requests much faster.
Along with the three themes outlined here, the State of Revenue for High Tech webinar dives deeper into the opportunities executives see for process improvement, reasons why financial compliance in the channel is so difficult, and how to effectively manage inventory despite supply chain issues. Watch the State of Revenue for High Tech webinar on demand to get the full story. And don’t forget to download your copy of the 2022 State of Revenue Report.
