|Revitas's hot topics for 2013|
2013 was filled with stories about spreadsheet mishaps, healthcare uncertainty, and weak contract lifecycle management. These hot topics kept the high-tech and life sciences industries on their toes, and allowed us to lend our insights on managing contracts, revenue, and compliance in the year’s uneven landscape.
Top life sciences and government compliance news for 2013
2013 was plagued by healthcare-centric government rulings. With the implementation of the Physician Payment Sunshine Act, the roll out of the Affordable Care Act (ACA), and the looming Average Manufacturer’s Price final rule, pharmaceutical manufacturers faced uncertainty. These new mandates add an additional strain on pharmaceutical manufacturers’ ability to boost their bottom lines while maintaining compliance to unclear regulations.
This year, multiple pharmaceutical companies have embraced Revitas solutions to get a step ahead of mandates and ensure future compliance and revenue management. Allergan and Glenmark Generics both went live on the Revitas Flex platform to better manage data via a single, strategic platform and increase visibility into contracts, revenue, and compliance. A mid-market specialty healthcare company also turned to Revitas, implementing RevitasNOW to automate chargebacks and rebates, increase creative incentive strategies, and scale with expected company growth.
Accrual calculations ranked as another top topic for the life sciences industry. When maneuvering razor thin margins, pharmaceutical companies have no room for errors, especially in terms of accrual calculations. Yet many companies still rely on spreadsheets and other manual processes to complete thousands of calculations, exposing their systems to errors. Jon Brier discussed the challenges of accurate accrual management and gave tips on how to better manage this process in an article on Business-Software.com.
Top incentive and channel management news for 2013
High-tech businesses continued to grapple with spreadsheet management in 2013. The JP Morgan spreadsheet scandal kicked off the year, with a simple manual error leading to a $6.2 billion trading loss. Michael Kerman addressed this mishap in an article on The Huffington Post, where he discussed the dangers of using outdated tools and how JP Morgan could have bypassed this multibillion-dollar flub.
JP Morgan isn’t alone when it comes to committing spreadsheet errors. In fact, many companies could potentially lose between 1 and 2 percent of gross revenue due to inefficient revenue processes, such as mismanaged spreadsheets, contracts, pricing agreements, and rebates. EBN featured an article by Michael in which he discussed how companies like Apple and Samsung could potentially be losing billions of dollars throughout their supply chain.
Another source of supply chain revenue losses is inaccurate post-sales incentives. In an independent research study titled “The Power of Three,” 51 percent of manufacturing and technology companies surveyed used post-sales incentives in 50 percent or more of their channel sales deals. While the technology industry highly values post-sales incentives, not all programs are effective. The study revealed that companies surveyed experienced a loss of between 11 and 50 percent of revenue by overpaying on promotional incentives. The study also underlined the importance of integrating contracts, pricing, and compliance management.
The main reason companies -- especially high-tech and manufacturing organizations -- overpay on incentives isn’t necessarily a flaw in the program itself, but a lack of visibility into the current state and outcome of initiatives. Michael addressed this topic in an article featured on EBN, citing lack of analytics as the main culprit in incentive overpayment. He addressed how traditional metrics from measuring incentives lack the depth needed to truly understand success or failure.
Top Revitas news for 2013
Revitas maintained a strong industry presence throughout the year, presenting at the IACCM Europe Forum and IACCM Americas. In April Revitas presented with Chart Industries at the IACCM Europe Forum to discuss the value of a global contract lifecycle management system for improving compliance and risk management.
Brock Coughlin of Revitas presented at the IACCM Americas Forum to address the value of an integrated contracting solution. Brock discussed how integrated contract management can help companies protect revenue, improve efficiencies, and reduce risk across the entire contract lifecycle.
In August, Revitas Chairman and CEO Paul Winn spoke with SmartCEO Magazine to discuss seven tips for developing a sustainable business growth strategy, highlighting a clear vision, an operational framework, and a winning culture as keys to long-term success.
There you have it, the top Revitas and industry news of 2013. The year ahead is sure to offer even more exciting highlights and events. As always, we’ll continue posting all of our news and industry updates right here on The Revitas Blog. Stay tuned!