Case Study Description of Indian Overseas Bank: Triggering Change
Several experts had drawn attention to a peculiar problem existing in public-sector banks in India. There seemed to be two distinct generations: experienced employees who would be superannuated in the next four to five years; and newer employees who had come on board in the last four to five years. Though these young employees were academically sound, they lacked competence acquired through experience and thus were hesitant in taking on responsibilities. The older generation was slowly withdrawing. Management at Indian Overseas Bank (IOB) knew that in order to improve motivation and encourage higher productivity, the company had to trigger change and transform the mindsets of its employees.Harnessing the energies of young members of the marketing team, IOB ran a unique campaign involving all employees called Rang De Basanti. Initial results were encouraging. However, two problems continued to arise: the underperformance of one particular region and the problem of keeping up the momentum and sustaining the change. Shoma Mukherji and Neera Jain are affiliated with Management Development Institute (MDI).
Swot Analysis of "Indian Overseas Bank: Triggering Change" written by Shoma Mukherji, Neera Jain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iob Employees facing as an external strategic factors. Some of the topics covered in Indian Overseas Bank: Triggering Change case study are - Strategic Management Strategies, Collaboration, Communication, Influence and Organizational Development.
Some of the macro environment factors that can be used to understand the Indian Overseas Bank: Triggering Change casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Indian Overseas Bank: Triggering Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Indian Overseas Bank: Triggering Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iob Employees, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iob Employees 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 Indian Overseas Bank: Triggering Change can be done for the following purposes –
1. Strategic planning using facts provided in Indian Overseas Bank: Triggering Change case study
2. Improving business portfolio management of Iob Employees
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 Iob Employees
Strengths Indian Overseas Bank: Triggering Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iob Employees in Indian Overseas Bank: Triggering Change Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Iob Employees are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– Iob Employees is present in almost all the verticals within the industry. This has provided firm in Indian Overseas Bank: Triggering Change 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.
Sustainable margins compare to other players in Organizational Development industry
– Indian Overseas Bank: Triggering Change firm has clearly differentiated products in the market place. This has enabled Iob Employees to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Iob Employees to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Iob Employees in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Iob Employees 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.
Highly skilled collaborators
– Iob Employees 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 Indian Overseas Bank: Triggering Change HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Iob Employees has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iob Employees to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Iob Employees has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iob Employees 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.
Low bargaining power of suppliers
– Suppliers of Iob Employees in the sector have low bargaining power. Indian Overseas Bank: Triggering Change has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iob Employees to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Iob Employees 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 Iob Employees is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Indian Overseas Bank: Triggering Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Iob Employees is one of the leading recruiters in the industry. Managers in the Indian Overseas Bank: Triggering Change are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Iob Employees
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iob Employees does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Indian Overseas Bank: Triggering Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Indian Overseas Bank: Triggering Change are -
Low market penetration in new markets
– Outside its home market of Iob Employees, firm in the HBR case study Indian Overseas Bank: Triggering Change needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Iob Employees 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. Iob Employees 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.
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 Iob Employees supply chain. Even after few cautionary changes mentioned in the HBR case study - Indian Overseas Bank: Triggering Change, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iob Employees vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Iob Employees 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.
Skills based hiring
– The stress on hiring functional specialists at Iob Employees has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Indian Overseas Bank: Triggering Change, it seems that the employees of Iob Employees 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Iob Employees is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Indian Overseas Bank: Triggering Change can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Indian Overseas Bank: Triggering Change HBR case study mentions - Iob Employees 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Indian Overseas Bank: Triggering Change, is just above the industry average. Iob Employees needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Indian Overseas Bank: Triggering Change 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 Iob Employees 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Indian Overseas Bank: Triggering Change 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 Indian Overseas Bank: Triggering Change can leverage the sales team experience to cultivate customer relationships as Iob Employees is planning to shift buying processes online.
Opportunities Indian Overseas Bank: Triggering Change | 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 Indian Overseas Bank: Triggering Change are -
Learning at scale
– Online learning technologies has now opened space for Iob Employees 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.
Developing new processes and practices
– Iob Employees can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing 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. Iob Employees can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Iob Employees can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iob Employees 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 Iob Employees to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Iob Employees 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iob Employees in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Iob Employees 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.
Leveraging digital technologies
– Iob Employees 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.
Buying journey improvements
– Iob Employees can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Indian Overseas Bank: Triggering Change 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Iob Employees 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, Indian Overseas Bank: Triggering Change, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Iob Employees 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.
Better consumer reach
– The expansion of the 5G network will help Iob Employees to increase its market reach. Iob Employees 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.
Threats Indian Overseas Bank: Triggering Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Indian Overseas Bank: Triggering Change are -
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Iob Employees can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Iob Employees 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.
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. Iob Employees needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Iob Employees is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iob Employees 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.
High dependence on third party suppliers
– Iob Employees 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Indian Overseas Bank: Triggering Change, Iob Employees 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iob Employees 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 Indian Overseas Bank: Triggering Change .
Technology acceleration in Forth Industrial Revolution
– Iob Employees has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Iob Employees 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iob Employees with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Iob Employees in the Organizational Development sector and impact the bottomline of the organization.
Regulatory challenges
– Iob Employees 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.
Weighted SWOT Analysis of Indian Overseas Bank: Triggering Change 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 Indian Overseas Bank: Triggering Change 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 Indian Overseas Bank: Triggering Change 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 Indian Overseas Bank: Triggering Change 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 Indian Overseas Bank: Triggering Change 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 Iob Employees needs to make to build a sustainable competitive advantage.
