November 21 by Sunil Masand
The session, entitled “Meet MAX…AI for Pricing & Contracting for Medtech & Pharma Manufacturers” was led by industry veteran and thought leader, Gopkiran Rao, Apttus SVP Industries and Solutions. Gopkiran systematically explained that in order to advance from a cost-focused, relationship-centered, and document (contract) driven engagement model to a value and risk share based pricing and contracting model, enabled via secure, centralized, self-service portals, and familiar mobile and conversational engagement channels, it is essential to invest in both:
• a single integrated business process that connects pricing, catalog, and revenue processes across the board, and
• a unified data model that acts as a single source of truth for pricing.
This is where Artificial Intelligence (AI) comes into play.
Apttus has been investing in harnessing the power of a single integrated process and data model together with the next generation form of engagement to deliver an intelligent experience across the Quote to Cash process. Traditionally, Life Sciences manufacturers have managed to build out their own unified data warehouses to produce descriptive analytics such as Net Price Analysis, Contract Compliance and Profitability Reporting by IDN. This is great, but puts the burden on analysts and reps to run accurate reports, and interpret their results meaningfully.
Enter machine learning – with its ability to derive knowledge.
Machine learning algorithms help build rules on the fly because they classify and categorize data, which enables real-time decision making. Machine learning is dynamic, capable of re-categorizing and evolving as the business evolves, where rules remain static. A rep putting a deal together for a hospital can benefit through a real time machine learning recommendation to offer a rebate instead of an on-invoice discount to a hospital because other hospitals of similar size within the same IDN have shown a propensity to perform better when offered such rebates.
Finally, in this session, Gopkiran walked us through Apttus’ friendly and intuitive agent that performs tasks such as quote and contract creation, leveraging the key building blocks of Quoting, Contracting, Tendering, Rebates, Chargebacks, Contract Compliance and Gross to Net Analytics, to deliver an integrated process, unified common data model through AI. Apttus has packaged the machine learning experience and its conversational agent into a product called Max. With the elimination of error prone human actions and interpretation of data, Max is a timely game changer for the Life Sciences industry that is on the cusp of technology and business transformation.