Institute for Healthcare Improvement: The 5 Million Lives Campaign SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Institute for Healthcare Improvement: The 5 Million Lives Campaign
The Institute for Healthcare Improvement's (IHI) 100,000 Lives Campaign ended in June 2006. This 18-month campaign sought to save 100,000 people from unnecessary death in U.S. hospitals, and is the subject of case L-13. To successfully accomplish its goals, IHI enlisted a wide range of organizations, including hospitals, regulatory agencies, insurance companies, medical associations, and other Healthcare-related groups to work together toward the common objective of increasing patient safety. In December, IHI launched a follow-up campaign intended to prevent 5 million instances of medical harm over the next two years. This case describes the 5 Million Lives Campaign, how it built upon the previous campaign, and issues faced by IHI at the end of the effort.
Swot Analysis of "Institute for Healthcare Improvement: The 5 Million Lives Campaign" written by Hayagreeva Rao, David W. Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ihi Campaign facing as an external strategic factors. Some of the topics covered in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study are - Strategic Management Strategies, Motivating people, Product development and Organizational Development.
Some of the macro environment factors that can be used to understand the Institute for Healthcare Improvement: The 5 Million Lives Campaign casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ihi Campaign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ihi Campaign operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign can be done for the following purposes –
1. Strategic planning using facts provided in Institute for Healthcare Improvement: The 5 Million Lives Campaign case study
2. Improving business portfolio management of Ihi Campaign
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ihi Campaign
Strengths Institute for Healthcare Improvement: The 5 Million Lives Campaign | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ihi Campaign in Institute for Healthcare Improvement: The 5 Million Lives Campaign Harvard Business Review case study are -
Highly skilled collaborators
– Ihi Campaign has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Institute for Healthcare Improvement: The 5 Million Lives Campaign HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Ihi Campaign has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Institute for Healthcare Improvement: The 5 Million Lives Campaign - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Ihi Campaign has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Ihi Campaign has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ihi Campaign to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Organizational Development industry
– Institute for Healthcare Improvement: The 5 Million Lives Campaign firm has clearly differentiated products in the market place. This has enabled Ihi Campaign to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Ihi Campaign to invest into research and development (R&D) and innovation.
Organizational Resilience of Ihi Campaign
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ihi Campaign does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Ihi Campaign is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Ihi Campaign digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ihi Campaign has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Ihi Campaign is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Ihi Campaign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Institute for Healthcare Improvement: The 5 Million Lives Campaign Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Institute for Healthcare Improvement: The 5 Million Lives Campaign Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Analytics focus
– Ihi Campaign is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Hayagreeva Rao, David W. Hoyt can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Ihi Campaign in the sector have low bargaining power. Institute for Healthcare Improvement: The 5 Million Lives Campaign has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ihi Campaign to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Institute for Healthcare Improvement: The 5 Million Lives Campaign | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Institute for Healthcare Improvement: The 5 Million Lives Campaign HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Ihi Campaign has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Institute for Healthcare Improvement: The 5 Million Lives Campaign HBR case study mentions - Ihi Campaign takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Ihi Campaign has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign, it seems that the employees of Ihi Campaign don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Ihi Campaign has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Ihi Campaign has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ihi Campaign 's lucrative customers.
Lack of clear differentiation of Ihi Campaign products
– To increase the profitability and margins on the products, Ihi Campaign needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Ihi Campaign supply chain. Even after few cautionary changes mentioned in the HBR case study - Institute for Healthcare Improvement: The 5 Million Lives Campaign, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ihi Campaign vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Ihi Campaign has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study Institute for Healthcare Improvement: The 5 Million Lives Campaign that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Institute for Healthcare Improvement: The 5 Million Lives Campaign can leverage the sales team experience to cultivate customer relationships as Ihi Campaign is planning to shift buying processes online.
Opportunities Institute for Healthcare Improvement: The 5 Million Lives Campaign | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
Leveraging digital technologies
– Ihi Campaign can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ihi Campaign can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ihi Campaign can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Ihi Campaign to increase its market reach. Ihi Campaign will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Loyalty marketing
– Ihi Campaign has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ihi Campaign can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ihi Campaign can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Institute for Healthcare Improvement: The 5 Million Lives Campaign, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Ihi Campaign has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Institute for Healthcare Improvement: The 5 Million Lives Campaign - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ihi Campaign to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ihi Campaign can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Ihi Campaign has opened avenues for new revenue streams for the organization in the industry. This can help Ihi Campaign to build a more holistic ecosystem as suggested in the Institute for Healthcare Improvement: The 5 Million Lives Campaign case study. Ihi Campaign can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Ihi Campaign can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Ihi Campaign can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Learning at scale
– Online learning technologies has now opened space for Ihi Campaign to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Buying journey improvements
– Ihi Campaign can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Institute for Healthcare Improvement: The 5 Million Lives Campaign suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Institute for Healthcare Improvement: The 5 Million Lives Campaign External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign are -
High dependence on third party suppliers
– Ihi Campaign high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ihi Campaign can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ihi Campaign in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Ihi Campaign.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ihi Campaign with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Ihi Campaign needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Institute for Healthcare Improvement: The 5 Million Lives Campaign, Ihi Campaign may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Consumer confidence and its impact on Ihi Campaign demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Ihi Campaign is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Ihi Campaign business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Ihi Campaign will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Institute for Healthcare Improvement: The 5 Million Lives Campaign needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Institute for Healthcare Improvement: The 5 Million Lives Campaign is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Institute for Healthcare Improvement: The 5 Million Lives Campaign is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Institute for Healthcare Improvement: The 5 Million Lives Campaign is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Ihi Campaign needs to make to build a sustainable competitive advantage.
