Making the Most of Company Revenues

Van Diamandakis

March 1, 2005

1 Min Read
Making the Most of Company Revenues

Originally Published MX March/April 2005

FINANCE

To meet the challenges of the medtech marketplace, revenue management is emerging as a strategic focus for medical device companies.

Van Diamandakis

0503x22a.jpgMedical technology manufacturers continue to face a sometimes daunting market challenge: to manage accelerating competitive pressure in a consolidating industry while under heavy regulatory scrutiny. In fact, the arrival of the Sarbanes-Oxley Act has only intensified the government's interest in corporate internal practices. Another source of pressure for some companies is that the enterprise resource planning (ERP) and supplier relationship management (SRM) systems in which they invested over the past decade can now do little to further optimize the cost side of the business. And yet, many of these same device manufacturers leak millions of dollars in potential profits through gaps in their revenue life cycle.

Figure 1. A $1 billion company may leave nearly $40 million on the table annually through faulty management of the revenue life cycle. Source: Computer Sciences Corp.(click to enlarge)

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