Medical Device Link.

MARKET ANALYSIS

Figure 1. (click to enlarge) The marketing, sales, and finance departments drive key business processes contained within the revenue management life cycle.

Key business processes contained within the revenue management life cycle were examined by the 2006 Revenue Management Excellence Survey. They include the following (see Figure 1).

Managing Pricing and Contracting Strategies. Determining and documenting the right customer targets, pricing guidelines, profitable prices (and discounts), as well as the right contract structure to offer the price.

Offer and Contract Development Life Cycle Management. The development of contracts from initial customer negotiations to final signature and loading into relevant systems.

Pricing and Contract Management. The ongoing process of maintaining contracts, contract eligibility, customer commitments, and contractual and pricing updates, and ensuring that appropriate information is provided to distributors, customers, and systems.

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Performance Compliance Management and Analysis. Analysis of pre- and postcontracting impact in order to provide operational and strategic insight and to plan actions that ensure revenue goals are met. This process typically requires coordination between the customer and sales force.

Settlement or Payment Processing. Processing, validation of qualifying purchases or sales, and calculation of the accrued benefits via contract-related payments. Such payments include distributor rebates, institutional rebates, and administrative fees to the trade channels and end customers.