What is the role of business, or more specifically finance, when it comes to a global technology player like Avnet? EITN’s interview with Radha Krishnan, VP of Finance, Avnet Technology Solutions, APAC, reveals that finance and IT are very much intertwined.
EITN: What is the role of finance for a global technology distributor like Avnet?
Radha: At Avnet Technology Solutions Asia Pacific, the finance team is tasked to provide the following value-added services:
a.Financial Management: As a strategic partner, we help our business teams achieve their financial targets and goals. We provide timely and insightful analysis and business intelligence and help businesses manage the working capital in a prudent manner. We also identify and implement process improvement opportunities for efficiency and effectiveness in business operations.
b.Fiduciary Management: We help businesses achieve enterprise risk management. We ensure an effective control framework and efficient policies and procedures are in place to manage credit and deal management risk. We also promote an environment that supports the implementation of corporate policies and procedures to ensure all statutory compliances are met.
c.Systems and Process Management: We enable businesses to adopt efficient and appropriate systems to support the achievement of their goals. By promoting a culture of continuous process improvements, we are a change agent that creates a competitive advantage for Avnet Technology Solutions.
d.Apart from the aforementioned management tasks, the finance team and I also work closely with our suppliers’ and customers’ finance leaders to ensure our mutual business, financial and commercial goals are in alignment.
EITN: What are the top 3 financial concerns/challenges that your role entails?
Radha: The TOP three challenges facing the finance functions are:
a.The biggest challenge facing finance is how to best support the achievement of profitable business growth in a dynamic, ever-changing and competitive environment.
b.We must build a scalable and cost-competitive finance support infrastructure that is modular and flexible to support ever-changing business models and new business offerings like cloud computing, capacity on demand, pay per use, etc.
c.Finance talent management is another key challenge. At the end of the day, people are the key differentiator between consistently successful organizations and the rest. We need to hire the right people with the right skills so they can develop opportunities within the company, participate in company’s growth and contribute to the organization’s overall success.
EITN: With the core offering of Avnet being largely centred around technology, what is your approach towards IT in your organisation? Ie. do you view it as a cost centre?
Radha: Personally I’ve always been a believer in, and advocate for, adopting technologies for finance functions. There are many of technologies available on the market that simplify processes and collate and analyse data in an efficient manner. IT is a key enabler for achieving business goals. Leveraging IT provides a competitive advantage for large global organizations like Avnet.
Adoption of IT results in many short- and long-term benefits. For example, use of IT enables a scalable operating model with significant improvement in risk and compliance management and enables world-class practices. It also helps build automated processes, mitigate process and technology complexity, lower technology maintenance costs and increase information and self-service reporting capabilities.
IT is definitely not a cost centre, but a must-have for finance and the entire organization. IT helps improve productivity and efficiencies significantly in the long term.
EITN: What are your top 3 best practices when it comes to approaching technology as a function for your organisation, and as a solution offering from your organisation?
Radha: Avnet Technology Solutions has adopted the following systems/technologies:
a.We have implemented a common ERP system for all operating units across the globe. This has become our core system supporting quotes to collect business cycle activities.
b.We have adopted software that will simplify our expense claims processes and improve expense management across all entities.
c.We have adopted a common tool to support our financial reporting requirements across the globe.
The aforementioned technology adoptions have greatly contributed to the success of Avnet Technology Solutions, allowing us to achieve scale and enter new markets in the most efficient and predictable way.
EITN: What do you think of business/finance-IT integration, and how closely do you collaborate with the CIO (if at all)?
Radha: Clearly, any adoption of IT systems requires close and collaborative teamwork between business, finance and IT organizations. The need is even stronger in large global multinational companies like Avnet.
At Avnet, we have adopted a governance model that evaluates all IT systems proposals with detailed scrutiny. These are reviewed by a cross-functional governance board comprising business leaders, finance and IT functional leaders. This board meets every month to review the various proposals received and conducts a thorough analysis on the merits of each proposal, fully understanding the business case, cost/benefit analysis and the overall strategic fit to the long term goals of the company.
Once the governance board approves a proposal, the IT department will own the implementation of the project with support from the subject matter experts and overall management support. The progress of the project status is also reviewed by the governance board to ensure quality implementation.
