While engaging with high tech and semiconductor companies recently, Model N has seen significant shifts in business models that reshape today's channels and ultimately pricing and revenue management. Companies that have a tradition of indirect channels often representing 70% or more of revenue, see changes in their business models to reach new customers and stay relevant.
"Today's channel no longer focuses solely on a primary route to market, such as heritage resale motion. Instead, suppliers are transitioning from being transactional partner channels to becoming dynamic partner ecosystems that align with buyers' changing needs and preferences" shares Forrester in recent research.
This evolution in primary routes to market will create new partners not seen in high tech companies. Accenture shared in a study, that "76% of business leaders state that current business models will be unrecognizablein the next five years" shares.
How will these new business and partner models impact pricing and revenue management?
While pricing and revenue management trends have shifted to modern price optimization, adding intelligence through AI to deal management, more high tech companies are being challenged with how to integrate channel strategies with proper revenue management.
"A pricing and revenue management system should be able to create effective notifications that place intelligence into the hands of the people involved in the business process who are responsible for maximizing margins and customer relationships." Mark Smith, CEO and Chief Research Analysts, Ventana Research.
Providing strategic integration, intelligence and insights into the hands of channel sales, pricing, and other teams is key to success as business models change and partner ecosystems expand.
To learn how Model N can improve your revenue and channel strategies, and provide the ecosystem you need, as business models and channel evolve, go here.
Model N Inc. published this content on 18 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2021 17:31:08 UTC.