A Software Application Enables Compliancein Revenue ExecutionA Software Application Enables Compliancein Revenue Execution
September 14, 2003
Originally Published MPMNSeptember 2003INDUSTRY NEWSA Software Application Enables Compliancein Revenue ExecutionRita Emmanouilidou
A software suite is designed to help medical device manufacturers manage their revenue execution processes. Revenue Execution version 4.0 from Model N (South San Francisco, CA;www.modeln.com) captures all the stages of the process, from pricing strategies to compliance tracking. "Revenue and profit are the most critical drivers of company value," says Zack Rinat, CEO and founder of Model N. "Automating the process provides the opportunity to unlock company value."
Traditional revenue tracking systems involve the use of spreadsheets and off-line databases. However, these are not shared by all users. Therefore, they cannot be kept completely up-to-date. Moreover, certain procedures--such as the calculation of payments for incentives--are manual, and therefore prone to error. Most importantly, companies may risk audit and legal exposure because of the difficulty of complying with government pricing information requirements. Pricing changes alone have an enormous impact on a company's overall financial health. Medical device manufacturing and supply firms are particularly susceptible to erosion of pricing because of constantly evolving contracts and multiple levels of government regulation.
Model N software acts as an internal control mechanism, ensuring complete transparency and access to the most up-to-date information. First, it captures a company's pricing strategy in a centrally located system. All information is accessible by sales and customer support teams. The suite also automates the contract management process, including internal approvals, renewals, and expirations. Customers' compliance with contract terms, as well as the company's compliance with government pricing rules can both be monitored through the system. The software also automates the setup and tracking of settlement processes such as those for incentive rebates.
"The new Model N software suite supports the cross-departmental processes required for strong revenue execution," says Rinat. He adds, "Perhaps most importantly, it provides critical visibility into compliance--both customers' compliance to deal terms and a company's compliance to government regulations around pricing."
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