How robust analytics and smart strategic planning pave the way to profit
One version of the truth. It sounds so simple, but for many companies, it’s elusive. And with the complexities in industry today, intelligent revenue management is a slippery beast indeed.
Sure, these seem like simple questions, but it’s often difficult to get a complete and accurate answer. You can’t see the big picture unless you can analyze all your relevant data. Only then will you know which of your programs are the most effective and—just as important—which are the least. You know where revenue comes from, and which programs drive that revenue. You have a detailed and nuanced view of the marketplace. And you can drill down into all this business-critical information and discover why the numbers add up the way they do.
With robust analytics and smart strategic planning, you can wrangle complicated financial processes and idiosyncratic transaction types, including billbacks and chargebacks, complicated incentives, accrual management, intertwined royalties and utilization-, performance- and outcome-based payment models. You can turn mounds of dormant data into insight and action.
Analytics Means One Truth Drives Strategy
So how do you know the objective, comprehensive truth about your organization’s programs, revenue, and performance? First, you need the ability to look at all the transactional data your programs create. This includes master data—such as customer, product, and contracts—as well as pricing, direct, and indirect sales, claims, rebates, and third-party rebates.
If you have an ERP system, you have integrated access to this information, and a direct connection to sophisticated analytical tools. If your organization does not have an integrated system, you likely have siloed data, with no way to structure it, no way to deploy an analytics solution…and no way to increase profitability via revenue management.
Of all the important processes in revenue management, analytics is the key. With access to robust analytics, you’ll know if your strategies are working and how to improve them going forward.
Analytics offer insights that will create a clear path into pricing, enabling you to set pricing floors and ceilings, prohibit (and limit) price exceptions, determine maximum percentages allowed on rebates, and more. Then you can apply these insights into your planning for rebates and incentives, make the impact you need on contract creation, and gain more control over your agreements.
When you have solid data, sophisticated analytics, and a detailed view of performance, you have the information you need to plan, analyze, and make strategic decisions that lead to profit.
Download the eBook, Life Sciences: Revving Up Your Revenue Management. Learn how analytics and smart strategic planning add up to a comprehensive market advantage.