Adaptation is key

Bernard Biolchini, VP of sales and general manager, AMD META, on the importance of cash flow management and why the channel needs to adapt as market conditions continue to evolve.

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Adaptation is key Biolchini says key to a healthy business is a regular and even cash flow.
By  Bernard Biolchini Published  July 24, 2012

Bernard Biolchini, VP of sales and general manager, AMD META, on the importance of cash flow management and why the channel needs to adapt as market conditions continue to evolve.

Global and local economies have undergone tumultuous change over the last few years, and it’s likely that more upheaval is on the way. After the initial shock, most of us are simply getting down to business and working out what can – and can’t – be done, and adjusting spending and planning to match the new reality. It’s meant that, on a personal and business level, different spending rules apply. For the technology channel, adapting to utterly new economic requirements has become imperative.

This change is significant – so what matters to the channel currently? Foremost, I would suggest that key to a healthy business is a regular and even cash flow. Our AMD Fusion Partner Programme has long focused on linearity; rather than concentrating on quarterly targets, which can lead to dramatic sales charts and unrealistic pressure on all parts of the channel at certain times. AMD uses regular check points to spread the goals more evenly. Not only does this make for a smooth cash flow for the parties involved, but it helps spread credit and incentivise staff by providing regular benefits throughout each quarter.

Product innovation

Another area that I believe is of vital importance to the regional channel is product innovation; both consumers and business buyers are increasingly looking for value for money rather than the out-and-out fastest at any price. Innovation has been a key priority for AMD, and the APU, which combines CPU and GPU on a single piece of silicon, provides excellent performance but at superior value than competing solutions which need specific GPU, CPU and motherboard combinations.

This isn’t to say that AMD does not also play at the very top of the market, performance-wise – of course we do – just have a look at the AMD FX CPUs, processors that have been inducted into the Guinness Book of World Records for achieving the highest ever frequency by a computer processor. However, what makes us different is that we’re able to offer a full range of products that address the needs of a very wide range of buyers.

In short, this year is going to require resellers, distributors and vendors to display incredibly high levels of adaptation as market conditions continue to change - almost on a day-to-day basis. Be it creating a commission and goals structure that helps ensure even cash flow, bringing products to market that help address the budget needs of buyers with high performance demands or spotting new trends and practices amongst one’s target market, this year is going to be all about adapting to new circumstances and making headway in a stormy regional economy.

Note from the author:

The opinions expressed in the article are Bernard Biolchini’s own views and may not in anyway represent AMD’s perspective, position, strategies or outlook of its business in the Middle East region.

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