RecVue Blog

As the economy continues to shift to a services economy vs. a purely product-oriented economy, traditional enterprises are forced to make a fundamental shift or face extinction. This shift from an economy based on making things to one that is increasingly powered by knowledge, creativity, and ideas, demands new ways of serving customers, delivering products and pricing those offerings.

Revenue Leakage Defined
Revenue leakage is the unnoticed or unintended loss of revenue from your company. While leaks can come from both the revenue and the expenditure side, most commonly, revenue leakage refers simply to not billing (or under-billing) your customer for products and services provided. How big a problem is it? Statistics surrounding revenue leakage vary, but estimates indicate that most companies stand to lose between 1 and 5 percent of their earnings before they can be realized. For enterprise companies, this type of loss can add up to a significant impact to the bottom line. Here are four ways to prevent revenue leakage.

RecVue’s founders spent more than two decades implementing contract management and billing solutions for global, high-growth enterprises. They saw first-hand the enormously complex challenges these organizations faced as they shifted from traditional business models to recurring revenue models.

Ah, the customer relationship management (CRM) system. Quite frankly, it’s the enterprise application that can make almost any CFO feel a little… well, let’s say “ambivalent.” That’s because, in many ways, the CRM system can be “the Wild West” for sales, marketing, and finance – a place where there are fewer rules, fewer controls, and fewer audits that companies rely on to maintain GAAP and Sarbanes-Oxley compliance. Instead, sales and marketing often have freer rein to hammer out customer-friendly agreements with generous (non-standard) terms before moving on to the next deal, leaving others including the CFO to pick up the pieces and make it work.

As we come away from a fantastic week at Oracle Open World, we at RecVue would like to give everyone a run down. It was so great to see so many of our customers and partners and hear how our data-driven billing platform is helping them grow and succeed. It was invaluable to meet with the analyst community who cover this ever evolving and complex space.

In many ways, the very nature of corporate finance is undergoing significant changes as businesses strive to innovate in all areas of their organizations. That’s particularly true given the rapid proliferation of creative pricing and business models. These new ways of doing business – think subscriptions, consumption pricing, and new ways of bundling/packaging – have quickly swamped the capabilities of traditional (and outdated) billing systems that rely far too much on labor-intensive, time-consuming manual intervention.

We were pleased to be featured in a recent article by CFO Tech Outlook. In this article, they highlight how: