For the fourth straight year, Model N commissioned a research study to better understand how executives are dealing with the challenges of revenue optimization and channel management at high-tech, semiconductor, and electronic component manufacturing (ECM) companies.
According to the results of the 2022 State of Revenue Report, more executives believe their industry is doing a better job at revenue management in 2022 than in 2021. However, 99% report they have challenges with revenue management within their own companies. Within the high-tech industry, data issues were the most pressing. Approximately one-third of executives listed both data management and real-time data visibility into pricing, sales, and rebates as their top challenge.
These issues with data are directly impacting revenue management. Of the executives surveyed, 91% indicate they have difficulties surfacing insights from their data, and 73% are less certain about the accuracy of their revenue reports than they were five years ago.
With the uncertainty surrounding their data, it’s also no surprise that financial compliance rounds out the top three revenue management challenges facing high tech. This holds particularly true for their channel business; 81% of executives state that financial control and compliance in the channel is more challenging than other forms of financial control. Given that this percentage is virtually unchanged from 2021 indicates that high-tech companies need solutions and processes that will help them eliminate overpayments and ensure accurate accruals.
Technology promises substantial benefits
A range of innovative data technology – including advanced analytics, artificial intelligence and machine learning, and APIs and real-time data – are enabling better revenue management. High-tech executives believe that harnessing better technical capabilities will deliver substantial benefits. Along with an increase in revenue, high-tech executives believe they would be able to:
- Funnel more investment into innovation (51%)
- Realize an increased competitive advantage (46%)
- Improve financial controls and compliance processes (43%)
Read the 2022 State of Revenue Report and attend the State of Revenue for High Tech webinar for more in-depth findings on how revenue and channel management is evolving in this industry and what executives are most excited about.
