- Posted February 11, 2014 by
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Enterprise Revenue Dynamics: The time is now
Even with the emergence of e-commerce, the use of indirect channels continues to be both strategically and tactically important. For starters, according to a Deloitte survey, 25 percent of the high-tech companies surveyed generate more than 75 percent of their revenue through channel partners. Additionally, the combination of shorter product lifecycles, shrinking margins, fierce global competition, and rapid changes in end-user demand and preferences have put pressure on the success of these vendor-channel relationships. To support and grow these critical relationships, companies have invested billions of dollars in new IT systems for customer relationship management (CRM) and partner relationship management (PRM).
While companies adopted these select systems, most organizations still rely on their 15 to 20 year old revenue management processes. So, if companies continue to invest in new CRM and PRM systems to meet changing market and channel requirements, why haven’t revenue management practices changed?
While most manufacturing companies aggressively look to improve their supply chain operations, identify new growth markets, and increase their new product introduction success rates, they often fail to advance their approach to revenue management. This is the quintessential cart-before-the-horse problem.
Companies that rely on channel partners to help grow their revenue and market share must manage complex agreements, promotions, rebates, and incentives to keep partners successful. But without an automated and integrated system that provides visibility across all these business functions, companies can suffer from revenue leakage and flimsy bottom lines.
Some organizations will turn to enterprise resource planning (ERP) systems or stand-alone contract lifecycle management, revenue management, or compliance tools to manage these processes. But as siloed solutions, they do not address the multifaceted revenue management challenges organizations face. The answer is adopting an integrated and automated solution for sales contracts, post-sales incentives, and compliance management, known as Enterprise Revenue Dynamics (ERD).
ERD helps information and transactions flow seamlessly from one group and system to the next, allowing users to easily monitor and manage their business processes, solve common business pains, and improve outcomes by:
Speeding deal cycles
Automating claims validation
Optimizing channel seller performance
Maximizing intellectual property revenue
Protecting profit margins
Establishing pricing compliance
Ensuring accurate financial reporting
ERD integrates offer and contract development, pricing validation, and compliance management, creating a truly closed-loop, data-driven revenue and incentive management process.
Organizations that incorporate ERD into their core business strategies improve channel effectiveness, create impactful incentives, and ensure compliance with commercial, government, and financial regulations. With all these facets easily managed under a single, scalable system, companies regain control over key business functions, and in turn boost their bottom lines.
Whether you’re in sales, contract management, finance, or legal, ERD is a bold new concept that can make your organization more efficient and profitable. To learn more about ERD, visit www.revitasinc.com and The Revitas Blog.