Normalize Innovation to Transform Your Firm SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Normalize Innovation to Transform Your Firm
Companies that organize their innovation efforts in systematic, well-managed ways are those whose efforts will be rewarded. So says Joaquim VilA?, based on the best practices of the world's most innovative firms, as well as on his own extensive experience of innovation management. In this article, VilA? presents a systematic model of innovation management, which links strategy, problem solving and cultural change, and which is custom-tailored to the needs of each firm. Implementing this model in phases allows for progressive development of an innovation culture. The goal is to change the way in which innovation is led and managed at all levels of the organization, so that the company can establish a set of values, principles and practices that will strengthen and nurture the innovation process on an ongoing basis. In short, it's about transforming the entire company through innovation.
Swot Analysis of "Normalize Innovation to Transform Your Firm" written by Joaquim Vila includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Innovation Vila facing as an external strategic factors. Some of the topics covered in Normalize Innovation to Transform Your Firm case study are - Strategic Management Strategies, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Normalize Innovation to Transform Your Firm casestudy better are - – there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing household debt because of falling income levels, geopolitical disruptions,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Normalize Innovation to Transform Your Firm
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Normalize Innovation to Transform Your Firm case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Innovation Vila, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Innovation Vila 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 Normalize Innovation to Transform Your Firm can be done for the following purposes –
1. Strategic planning using facts provided in Normalize Innovation to Transform Your Firm case study
2. Improving business portfolio management of Innovation Vila
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 Innovation Vila
Strengths Normalize Innovation to Transform Your Firm | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Innovation Vila in Normalize Innovation to Transform Your Firm Harvard Business Review case study are -
High brand equity
– Innovation Vila has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Innovation Vila to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Innovation Vila is one of the leading recruiters in the industry. Managers in the Normalize Innovation to Transform Your Firm are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Innovation Vila in the sector have low bargaining power. Normalize Innovation to Transform Your Firm has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Innovation Vila to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Innovation Vila 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 Innovation Vila is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Normalize Innovation to Transform Your Firm Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Normalize Innovation to Transform Your Firm 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.
Highly skilled collaborators
– Innovation Vila 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 Normalize Innovation to Transform Your Firm HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Organizational Development industry
– Normalize Innovation to Transform Your Firm firm has clearly differentiated products in the market place. This has enabled Innovation Vila to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Innovation Vila to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Innovation Vila in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Innovation Vila 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 Normalize Innovation to Transform Your Firm - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Innovation Vila has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Normalize Innovation to Transform Your Firm Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Innovation Vila has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Innovation Vila 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 Innovation Vila digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Innovation Vila 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.
Weaknesses Normalize Innovation to Transform Your Firm | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Normalize Innovation to Transform Your Firm are -
Interest costs
– Compare to the competition, Innovation Vila 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 Normalize Innovation to Transform Your Firm 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 Normalize Innovation to Transform Your Firm can leverage the sales team experience to cultivate customer relationships as Innovation Vila is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Normalize Innovation to Transform Your Firm HBR case study mentions - Innovation Vila 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.
Skills based hiring
– The stress on hiring functional specialists at Innovation Vila 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Joaquim Vila suggests that, Innovation Vila 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 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 Innovation Vila supply chain. Even after few cautionary changes mentioned in the HBR case study - Normalize Innovation to Transform Your Firm, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Innovation Vila vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Normalize Innovation to Transform Your Firm, is just above the industry average. Innovation Vila 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Normalize Innovation to Transform Your Firm 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 Innovation Vila has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Innovation Vila, firm in the HBR case study Normalize Innovation to Transform Your Firm needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Innovation Vila 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. Innovation Vila 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Normalize Innovation to Transform Your Firm, in the dynamic environment Innovation Vila has struggled to respond to the nimble upstart competition. Innovation Vila has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Normalize Innovation to Transform Your Firm | 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 Normalize Innovation to Transform Your Firm are -
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. Innovation Vila can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Innovation Vila 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Innovation Vila 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 Innovation Vila to hire the very best people irrespective of their geographical location.
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. Innovation Vila 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. Innovation Vila 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.
Manufacturing automation
– Innovation Vila 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, Innovation Vila is facing challenges because of the dominance of functional experts in the organization. Normalize Innovation to Transform Your Firm 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.
Building a culture of innovation
– managers at Innovation Vila 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.
Loyalty marketing
– Innovation Vila 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.
Buying journey improvements
– Innovation Vila can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Normalize Innovation to Transform Your Firm 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.
Creating value in data economy
– The success of analytics program of Innovation Vila has opened avenues for new revenue streams for the organization in the industry. This can help Innovation Vila to build a more holistic ecosystem as suggested in the Normalize Innovation to Transform Your Firm case study. Innovation Vila can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Innovation Vila 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 Normalize Innovation to Transform Your Firm - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Innovation Vila to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Innovation Vila 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.
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. Innovation Vila can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Normalize Innovation to Transform Your Firm External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Normalize Innovation to Transform Your Firm are -
High dependence on third party suppliers
– Innovation Vila 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.
Consumer confidence and its impact on Innovation Vila 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.
Technology acceleration in Forth Industrial Revolution
– Innovation Vila has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Innovation Vila 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.
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. Innovation Vila 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.
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 Innovation Vila business can come under increasing regulations regarding data privacy, data security, etc.
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. Innovation Vila needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Innovation Vila 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 Normalize Innovation to Transform Your Firm .
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.
Increasing wage structure of Innovation Vila
– 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 Innovation Vila.
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 Innovation Vila.
Stagnating economy with rate increase
– Innovation Vila 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Normalize Innovation to Transform Your Firm, Innovation Vila 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 .
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.
Weighted SWOT Analysis of Normalize Innovation to Transform Your Firm 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 Normalize Innovation to Transform Your Firm 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 Normalize Innovation to Transform Your Firm 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 Normalize Innovation to Transform Your Firm 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 Normalize Innovation to Transform Your Firm 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 Innovation Vila needs to make to build a sustainable competitive advantage.