The document discusses challenges in pricing and revenue execution for life sciences companies and proposes integrating these processes using machine learning. It describes how machine learning could provide recommendations for pricing, contracting, and customer opportunities. Additionally, it suggests that an intelligent agent using conversational interfaces could help simplify usage and drive adoption of machine learning solutions.

1. 1© 2017 Apttus Corporation

2. © 2017 Apttus Corporation
Gopkiran Rao
SVP QUOTE-TO-CASH

3. A common goal is to get fair net price compensation across the full range of contracts:
The Life Sciences Industry
• Large Private Entities,
• Hospitals Groups
• Large Pharmacy Chains
• National Access for
Direct Reimbursement
• Public hospitals
• Regional authorities
• Public sick funds
• Single hospitals
• Pharmacies &
Wholesalers
Big Contracts
Market Access
Agreements
Large Tenders Smaller Deals

4. Medtech
Manufacturer
Public and
Private Health
Franchise
Service
Partner
Payments
Processor
Billing
Partner
Retail
Tender Portal
Group
Purchasing
• Health Economics
• KAMs and NAMs
• Finance & Legal
• Trade & Channel
• Support & Service
Admin Fee Committed Contracts
Tiered Pricing
Rebates
Reference Price
Market Basket Pricing
Promotions
Credit CheckMonth End Billing
Multi-Lot Tender
Chargebacks
Catalogs & Options
Customer
• KOL
• (Clinical/PTN)
• Finance & Legal
• Vendor Mgmt.
• (Provider)
• (HI)
Finance Terms
Order
Capitation
Distributor
Cost-Focused
Value-based | risk-sharing
| bundled payments
Self-Service
Omni-Channel
Mobile, Conversational,
Prescriptive
Contract & Tender - centeredRelationship-oriented
Ship-to-Order
Healthcare and Life Sciences
Cash-to-Cash Processes are Limited by Legacy
A Better Way
Today’s Way
Integrated Business Process, Unified Data Model

5. .
The Business Challenge –
Models to Engage Providers & Payers Are Ever Evolving
Pricing Strategies
(Set Price)
Contract Strategies
(Committed Price)
Revenue Execution
(Realized Price)
Device: Combine cost-plus pricing for the device
with outcomes-based pricing for the contract
strategy and payment discounts
MedSurg: Combine Kits and portfolio pricing for
the SKUs and volume-based rebates for the contract
Equipment: Combine capital list pricing for the device with
Reagent pricing on the contract and zero dollar billing on the
Shipping invoice and retrospective billing for payment

6. A Better Way Starts by Integrating Pricing & Revenue Processes

7. Results in a Powerful Hierarchy of Enterprise Decision Drivers
DESCRIPTIVE
Product, Customer,
Price Reporting
DESCRIPTIVE
Contract & Customer
Compliance Reporting
DESCRIPTIVE
Revenue & Leakage
Reporting
ROI Reporting
Understand
Context
But the on us is still on humans getting it right….
Also known as the the Next Best Action….
QUOTE CONTRACT REVENUEOPPORTUNITY ERPPRICE

8. Enter Machine Learning:
Putting Rule-Based Systems… on Steroids
.

9. Pricing & Contracting Recommendations and Guidance
Product
Starting, Target
and Walkway
Discounts
Account
Asset
Lines
Historical Pricing
Structures
Incentive
Rules
CRM Data
Conversion
Likelihood –
With Rationale
Business
Rules
Product Recommendations
Product Family (Group)
Recommendations
Rebate Tier
Guidance

10. Balancing Descriptive, Predictive and Cognitive Insights

11. Machine Learning is All Around Us

12. Intelligent Agents leverage a Conversational Interface
To Simplify Usage, Drive Adoption
Naturally Aligned With How And
Where Your Users Work
What if you could do this on your
phone? Anytime, anywhere?
Machine Learning, Meet Intelligent Agent

13. Driving the First Best Action
Assist
Guide
Coach
Elliott,
Why? Based on my analysis, I think there is a high probability
to combine a renewal with the the OneOR solution to St.
Lukes.
Good morning Gop,
I have created a New Opportunity for St. Luke Hospital
Click here to start configuring the quote for the new offering
and I will tell you how you should price it and your
compensation on the sale.
Best selling,
Max Profits
NEW OPPORTUNITY LAUNCHED
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