As competitive pressures and regulatory changes such as health care reform mandates and fees squeeze industry margins, more and more manufacturers are looking at ways to improve contract sales effectiveness and organizational agility,
Redwood Shores, CA (PRWEB) September 13, 2010
Achieving contract sales performance and effectiveness is a major goal for Life Science manufacturers according to a recent Revenue Management Industry Benchmarking Survey of more than 50 pharmaceutical leaders sponsored by Model N and Accenture. Now in its seventh year, the industry-specific survey provides pharma companies the opportunity to gain a better understanding of industry trends and benchmark their Revenue Management best practices against competitors and peers.
This year's survey focused on industry perceptions of sales effectiveness, integration of analytics for evaluation and planning, and regulatory compliance. Systems upgrade plans, including evaluation or adoption of Software as a Service (SaaS) solutions, were also examined. Respondents represent a cross-section of pharma, including generic and specialty manufacturers with revenues evenly spread between companies reporting less than $100M in revenue and more than $3B in revenue.
- Analytics/Performance Measurement: Seventy-five percent of respondents expect managed care and government programs such as Medicare Part D to grow substantially in the coming years, yet many key analysis processes are still handled via spreadsheet. A majority state that sales and customer performance measurement, deal analysis, price and regulatory impact analysis, and effective price management are either ongoing initiatives or pressing priorities in their organizations.
- Contract Management: Half of all respondents cannot determine what percentage of contracts are tracked for compliance and 58% cannot estimate overall non-compliance rates; reported use of spreadsheets in contract life cycle management, contract compliance, and price setting is high
- Settlements: More than half of respondents are automating wholesaler rebate requests with only 17% using manual processes
- Regulatory Compliance: The vast majority of respondents feel their organizations can adequately or more than adequately comply with government programs mandates, including the ability to respond to an audit
- System Upgrades: More than three quarters of respondents indicate their business or division has requested system upgrades over the next 12 to 18 months; 57% of respondents say that their organizations are evaluating or have already deployed an SaaS solution in the enterprise
"As competitive pressures and regulatory changes such as health care reform mandates and fees squeeze industry margins, more and more manufacturers are looking at ways to improve contract sales effectiveness and organizational agility, "said Gopkiran Rao, Senior Director of Industry Marketing at Model N. "Our 2009 benchmarking survey revealed that a vast majority of pharma companies were not utilizing performance, deal, impact, or price analysis solutions. This year's survey results show that performance analysis, deal analysis, price, and regulatory impact analysis have become a top priority and that SaaS is being seriously evaluated as a way to enhance business agility and reduce IT costs. These trends reflect the shifting dynamics of an industry that is increasingly exposed to global competition and ever evolving government mandates. This survey is a valuable tool for companies that understand the importance of benchmarking themselves against the industry for ongoing revenue performance. I encourage companies to contact Model N for a detailed complimentary survey report and personalized evaluation of their Revenue Management scores."
"With the changing landscape of the increasingly global health care system and the changing needs of key stakeholders, including patients, providers, payers, physicians, and governments, driving sustainable growth and delivering improved health outcomes are more challenging than ever. The 2010 pharma Revenue Management survey Accenture conducted with Model N reveals that pharma is increasingly using analytics to make smarter, better decisions to drive performance and meet these varying needs," said Christopher Zant, Managing Partner of Accenture's Managed Markets Group. "As the survey indicates, taking control of revenue processes is a key requirement for pharmaceutical leaders to address the gap between market access planning and effective execution. Understanding current benchmarks and how to quickly leverage best practices in contract management, analytics, and sales effectiveness are invaluable in creating a successful commercial model in the future that can flex to meet the changing demands of key stakeholders."
A more in-depth look at the results from the pharma survey will be presented at an upcoming Model N and Accenture hosted Web Seminar on September 28.
Undertake a custom benchmark study with Model N and Accenture
With minimal time investment, this valuable benchmarking exercise will provide pharmaceutical and biotech manufacturers with a deep understanding of how their organizations compare with world-class companies in their industries across more than 30 process and system metrics relating to pricing, contracting, rebates, and analytics. For more information on this unique offer, contact grao(at)modeln(dot)com.
About Model N
Model N is the leader in Revenue Management solutions, offering an integrated suite of applications for analytics, pricing, contracts, compliance, and settlements optimized for the industry practices of Life Science and High Tech companies. Enabling the creation of a seamless, end-to-end process from price setting through settlements payment to analytics, 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: Atmel Corp.; Boston Scientific Corp.; Bristol-Myers Squibb Company; Cypress Semiconductor; Medtronic, Inc.; Microchip Technology Inc.; Ortho-Clinical Diagnostics, a Johnson & Johnson company; Pfizer, Inc.; and STMicroelectronics. Model N's worldwide headquarters are located in Redwood Shores, California. http://www.modeln.com.
Accenture is a global management consulting, technology services, and outsourcing company, with more than 181,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009. http://www.accenture.com.
About Accenture's Life Sciences Practice
Our Life Sciences industry group works with pharmaceuticals, biotechnology, medical products, medical technology, regulators, distributors, wholesalers and other companies to help bring life-enhancing health solutions to people around the globe. We provide consulting, technology and outsourcing services across the entire life sciences value chain, from large-scale business and technology transformation to post-merger integration. Our key offerings include: Research and Development, including pharmacovigilance and regulatory outsourcing; Supply Chain and Manufacturing Optimization; and Marketing and Sales, including commercial services, analytics and digital marketing.
Model N is a mark of Model N, Inc. All other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.