Model N's 2024 Report: Manufacturing Priorities & Challenges
Model N, Inc. has today released its sixth annual State of Revenue Report, revealing executives’ top business priorities - and their biggest challenges.
Based in San Mateo, California, Model N was founded in 1999 and is a leader in revenue optimisation and compliance for high-tech innovators, as well as in the pharma sector. Its intelligent platform powers digital transformation by using integrated technology, data, analytics and expert services.
Its 2024 report identifies process efficiency and cost-saving measures as the greatest priorities for executives, with stronger emphasis put on advanced analytics and AI. Unsurprisingly, supply chain disruption is one of the biggest obstacles to innovation.
Challenges for pharmaceutical manufacturers
The 2024 survey results examined industry-specific challenges, showing that pharmaceutical manufacturing executives are worried about the influence of regulations on future revenue.
Execs from the US said that they are preparing for a ‘significant revenue impact’ from the price negotiations with Medicare under the Inflation Reduction Act, twice the amount from the 2023 survey.
94% of pharmaceutical executives said that they were experiencing challenges with formulary validation, a verification process which proves that payers are meeting contractual agreements.
The execs surveyed also said that the top challenges to assuring compliance were:
- Manual audits (49%)
- Limited access to formulary data (48%).
Report shows high-tech manufacturers embrace AI and RPA amidst supply chain challenges
Gloria Kee, Vice President, Product Management at Model N, says that these insights from Model N’s 2024 State of Revenue Report, reveal high-tech manufacturers are actively responding to shifting market dynamics.
“With ongoing supply chain disruptions and component inventories piling up, nearly 60% of executives stated that they will ramp up investments in artificial intelligence to optimise revenue operations, and nearly half will do the same in robotic process automation,” says Kee. “The survey also uncovered opportunities such as sharing pricing information for industry benchmarking purposes and utilising channel sales data for more informed pricing adjustments. With only 27% of companies leveraging channel data today, most are missing out on key information to optimise price points in markets worldwide. As economic uncertainty persists, channel insights are a largely untapped resource to help manufacturers make more data-driven decisions.”
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