Would Columbus be Allowed to Set Sail Today?

There are a lot of success stories from companies down to their last dollar trying something desperate and finally getting it right. There are very few instances of companies doing well and the founder having the vision to change tack and take the company to the next level.

You will enjoy reading Mark Leslie’s account of leading Veritas from a $4M initial investment to a $1B company in 11 short years: http://www.sandhill.com/opinion/daily_blog.php?id=62.

Mark is on Model N’s board as well and it is encouraging to see the common traits of capital efficient and patient investments and a laser focus on innovation and the needs of the marketplace. In addition to Revenue Management solutions purpose-built for specific verticals, Model N is now adding analytics to the transactional platform to elevate the strategic need for holistic Revenue Management.

Timing is good because price transparency and global visibility comes up in every conversation with executives. Contrast how Columbus travelled five hundred years ago. No GPS. No radar. No idea what it will take to get to India. Ended up on the other side of the world. Would a CEO of a global business today consider this “good execution”? Is this an example of “predictable growth” that shareholders demand from public companies today?

But, a half a millennium later, a lot of Life Science manufacturers are in the same boat (pun intended). No idea which country has higher contribution margins and why. No radar to tell them where the next storm is looming. No idea which sales rep in which country is giving away discounts on a deal that will have a ripple effect across other geographies. Bravery is to be applauded, but trust me, today’s shareholders are a lot less forgiving than the Queen of Spain was five hundred years ago.

Check out this Boston Scientific presentation and see how an industry leader is using Revenue Management Intelligence to get full visibility and insight into their pricing and margins. Smart money is on companies like Boston Scientific who want GPS, radar, and satellite-fed weather maps before they set sail to find new riches.