Diagnostics Revenue Model (R)evolution: How Dx Companies Master Strategy and Operations to Make Innovative Revenue Models a Success
Moving from transactional pricing to innovative revenue models has been a focal point of diagnostic companies in the last decade. And the advantages are clear: Innovative revenue models offer economic benefits and certainty for customers, while suppliers profit from long-term contractual engagements as well as upselling opportunities. However, this win-win situation only comes to life if Dx companies transform their strategy and operations successfully, which was not the case in recent years.
Two ends of the spectrum: From pay per item to pay per diagnosis
The benefits of innovative business models are significant: Although the offering is becoming more complex when moving from pay per item to pay per diagnosis, it provides unique opportunities for customers and suppliers. This becomes obvious when looking at a range of revenues models with differing degrees of innovativeness:
