Companies that have an improved process and armed sales and pricing management teams with on-line information are demonstrating annual margin improvements in the range of 2-4%, and the use of applications like Model N Deal Analytics provides companies with powerful new capabilities to address the pricing challenges head on.
Redwood Shores, CA (PRWEB) March 21, 2007
Model N, Inc., the leader in Revenue Management solutions, today introduced version 7.5 of the Model N High Tech Revenue Management Suite featuring a powerful new application for Deal Analytics. Model N Deal Analytics brings real-time, operational business intelligence to the price negotiation process with advanced customer and quote analysis functionality, designed specifically for the high-tech semiconductor and electronic components industry. It empowers sales and marketing staff to maximize profit from each transaction and to evaluate more special pricing quotes faster without leaving money on the table. With built-in integration to the full Model N High Tech Revenue Management Suite, Deal Analytics delivers the first in-process analytics applications with one click access to complete customer and pricing data and powerful drill down to the transactional level to enable companies to compete for and win more business, more profitably.
"Based on recent research done by the Yankee Group, managing exceptions to standard pricing is one of the top price and revenue management challenges for semiconductor and electronic components companies," said Sheryl Kingstone, Director of Yankee Group's Enterprise Research. "Companies that have an improved process and armed sales and pricing management teams with on-line information are demonstrating annual margin improvements in the range of 2-4%, and the use of applications like Model N Deal Analytics provides companies with powerful new capabilities to address the pricing challenges head on."
The new Deal Analytics application is designed for marketing teams and senior sales management to quickly assess a sales opportunity and approve or suggest pricing. The application provides two primary areas of analysis. Customer analysis provides a comprehensive, up to date view of the customer including: revenue and profitability trends featuring views across products to spot cherry-picking trends, compliance to contracts and quotes, comparisons to like-type customers, and access to all customer transactions, opportunities and registrations.
"Too often sales and marketing price managers make 'Assumptive Pricing' decisions. They respond to a quote request assuming that they know the customer's track-record or the pricing levels at which they are winning against the competition. Often their perceptions are wrong and they leave margin on the table, or worse, lose the deal," said Doug Guilbeau, Director of Implementation Services for Levementum, Inc. "Many semiconductor and electronic components companies have asked us to help them address this risk, and the Deal Analytics application from Model N is crucial in eliminating that risk by making it easy for the manufacturers to get the facts before giving a price."
The second set of capabilities in Deal Analytics involves flexible, user controlled quote analysis that enables pricing decision makers to look at all aspects of a quote as a foundation for improving pricing decisions including: win/loss data filterable by similar customers, products or channels and by competitors, price guidance from relevant historical transactions, compliance to pricing guidelines and rules, margin analysis, and comparisons to past and current quotes. Taken together these customer and quote analytics empower decision makers with actionable information to increase the conversion of quotes at better margins and with relevant information that can be used by sales to defend pricing and handle objections. In addition, the system captures all pricing information and approvals, providing documented support for the company's financial reporting requirements such as Sarbanes-Oxley.
"Instead of analysis being a separate and primarily after the fact exercise, companies can now merge the high volume transaction capabilities required for price quoting and analysis based upon the complete information on registrations, opportunities, customers, orders, competitive win/loss, and POS data already in Model N applications," said Stephen Zocchi, General Manager for Model N High Tech. "This in-process analytics approach is the key to proactively driving to sales and profitability goals, and being able to tune sales execution to market realities in real-time."
About Model N High Tech Revenue Management
More than 30,000 users worldwide rely on Model N to improve gross margins for both direct and channel sales opportunities, making it the leading Revenue Management solution for the semiconductor and electronic component market. Designed to complement and bridge the gaps in generic ERP and CRM solutions, Model N's solution includes a suite of applications that manage pricing analysis and price list management processes, contracts, price quoting and ordering, as well as channel revenue management related to price protection and inventory tracking. It includes unique features for high tech companies such as design registration, web-based interactive quoting for channel partners, and debit processing to align design registrations and direct opportunities, to contracts and pricing agreements that are enforced at the time of negotiation and order, and then reconciled with POS reports from channel partners. The solution enables customers to realize better deal conversion rates with improved transaction profitability, reduce revenue leakage, and derive better visibility to demand and revenue for both operational needs and financial reporting requirements such as revenue recognition and Sarbanes-Oxley.
About Model N
Model N is the leader in Revenue Management solutions, offering an integrated suite of applications for analytics, pricing strategy and execution, contracts, compliance, rebates, fees and chargebacks optimized for the industry practices of life sciences and high tech companies. Enabling the creation of a seamless, end-to-end process from pricing setting through settlements payment, Model N's uniquely integrated approach eliminates revenue leakage and delivers the visibility and controls needed to avoid the risks of non-compliance to government reporting regulations such as Sarbanes-Oxley and government pricing requirements. Customers include: Boston Scientific; Bristol-Myers Squibb; Cypress Semiconductor; Intersil Corporation; Linear Technology Corporation; Medtronic, Inc.; Microchip Technology, Inc.; Micron Technology Inc.; Ortho-Clinical Diagnostics, a Johnson & Johnson company; ON Semiconductor, Inc. and Pfizer, Inc. Model N is located in Redwood Shores, California. For additional information visit http://www.modeln.com