Strategic IT Transformation at Accenture SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Strategic IT Transformation at Accenture
In 2001 Accenture took the bold step of separating from its parent, Arthur Andersen. The new firm that emerged had a bright future ahead, but it also faced the challenge of building a new IT infrastructure that could support a global organization that consults on leading-edge technology. Accenture's CIO at the time, Ed Schreck, knew that becoming a master of your own trade was not an easy task. Frank Modruson, Schreck's successor and the person responsible for carrying forward the IT transformation challenge from 2002 on, had ambitious plans for the new technology infrastructure that was to replace Arthur Andersen's legacy systems. Difficult decisions had to be made. Should the firm continue with a decentralized approach to managing technology platforms, in which each country chooses its own IT platforms and has autonomy to run them? Or should the firm take a mixed approach, in which the same standard applications would run throughout the enterprise but would be managed independently by individual offices? Or should Accenture espouse a "one-firm" approach and boldly shoot for a centralized implementation of its most critical systems, with all its offices interconnected on the same "instance" of a software platform? Furthermore, should the firm retain its traditional conception of IT as cost center, or should it migrate to a scheme that recognizes IT as a service provision center that generates measurable value for the organization? These questions and many others drove Accenture's CIO team to undertake one of the most remarkable IT transformations in a global organization in recent years.
Authors :: Mark Jeffery, Daniel Fisher, Mirron Granot, Anuj Kadyan
Swot Analysis of "Strategic IT Transformation at Accenture" written by Mark Jeffery, Daniel Fisher, Mirron Granot, Anuj Kadyan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Accenture Accenture's facing as an external strategic factors. Some of the topics covered in Strategic IT Transformation at Accenture case study are - Strategic Management Strategies, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Strategic IT Transformation at Accenture casestudy better are - – digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, central banks are concerned over increasing inflation, wage bills are increasing,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Strategic IT Transformation at Accenture
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategic IT Transformation at Accenture case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Accenture Accenture's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Accenture Accenture's 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 Strategic IT Transformation at Accenture can be done for the following purposes –
1. Strategic planning using facts provided in Strategic IT Transformation at Accenture case study
2. Improving business portfolio management of Accenture Accenture's
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 Accenture Accenture's
Strengths Strategic IT Transformation at Accenture | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Accenture Accenture's in Strategic IT Transformation at Accenture Harvard Business Review case study are -
Diverse revenue streams
– Accenture Accenture's is present in almost all the verticals within the industry. This has provided firm in Strategic IT Transformation at Accenture case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Accenture Accenture's 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 Accenture Accenture's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategic IT Transformation at Accenture Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Strategic IT Transformation at Accenture 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.
Organizational Resilience of Accenture Accenture's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Accenture Accenture's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Accenture Accenture's 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 Mark Jeffery, Daniel Fisher, Mirron Granot, Anuj Kadyan 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.
Ability to lead change in Organizational Development field
– Accenture Accenture's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Accenture Accenture's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Accenture Accenture's in the sector have low bargaining power. Strategic IT Transformation at Accenture has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Accenture Accenture's to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Accenture Accenture's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Organizational Development industry
– Strategic IT Transformation at Accenture firm has clearly differentiated products in the market place. This has enabled Accenture Accenture's to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Accenture Accenture's to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Accenture Accenture's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Accenture Accenture's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Accenture Accenture's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Accenture Accenture's 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.
Strong track record of project management
– Accenture Accenture's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Strategic IT Transformation at Accenture | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Strategic IT Transformation at Accenture are -
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Jeffery, Daniel Fisher, Mirron Granot, Anuj Kadyan suggests that, Accenture Accenture's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Strategic IT Transformation at Accenture 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 Accenture Accenture's has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Accenture Accenture's is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Accenture Accenture's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Accenture Accenture's to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Strategic IT Transformation at Accenture, it seems that the employees of Accenture Accenture's 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.
Slow decision making process
– As mentioned earlier in the report, Accenture Accenture's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Accenture Accenture's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Accenture Accenture's products
– To increase the profitability and margins on the products, Accenture Accenture's needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Strategic IT Transformation at Accenture, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Strategic IT Transformation at Accenture 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 Accenture Accenture's 's lucrative customers.
Interest costs
– Compare to the competition, Accenture Accenture's 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.
Low market penetration in new markets
– Outside its home market of Accenture Accenture's, firm in the HBR case study Strategic IT Transformation at Accenture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Accenture Accenture's 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.
Opportunities Strategic IT Transformation at Accenture | 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 Strategic IT Transformation at Accenture are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Accenture Accenture's 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.
Leveraging digital technologies
– Accenture Accenture's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Accenture Accenture's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Accenture Accenture's to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Accenture Accenture's to increase its market reach. Accenture Accenture's 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Accenture Accenture's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Accenture Accenture's has opened avenues for new revenue streams for the organization in the industry. This can help Accenture Accenture's to build a more holistic ecosystem as suggested in the Strategic IT Transformation at Accenture case study. Accenture Accenture's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Accenture Accenture's in the consumer business. Now Accenture Accenture's can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Accenture Accenture's 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Accenture Accenture's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Accenture Accenture's can use these opportunities to build new business models that can help the communities that Accenture Accenture's operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– Accenture Accenture's can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Accenture Accenture's is facing challenges because of the dominance of functional experts in the organization. Strategic IT Transformation at Accenture case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Accenture Accenture's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Strategic IT Transformation at Accenture External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Strategic IT Transformation at Accenture are -
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 Accenture Accenture's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Accenture Accenture's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Accenture Accenture's.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategic IT Transformation at Accenture, Accenture Accenture's 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 .
Environmental challenges
– Accenture Accenture's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Accenture Accenture's can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Shortening product life cycle
– it is one of the major threat that Accenture Accenture's is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Accenture Accenture's has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Accenture Accenture's needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Accenture Accenture's needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Accenture Accenture's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Accenture Accenture's in the Organizational Development sector and impact the bottomline of the organization.
Regulatory challenges
– Accenture Accenture's 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.
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 Accenture Accenture's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Accenture Accenture's 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.
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. Accenture Accenture's 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.
Weighted SWOT Analysis of Strategic IT Transformation at Accenture 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 Strategic IT Transformation at Accenture 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 Strategic IT Transformation at Accenture 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 Strategic IT Transformation at Accenture 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 Strategic IT Transformation at Accenture 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 Accenture Accenture's needs to make to build a sustainable competitive advantage.