Houston, We Have a Solution: NASA and Open Innovation (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Houston, We Have a Solution: NASA and Open Innovation (B)
Jeff Davis, director of Space Life Sciences Directorate at NASA, has been working for several years to raise awareness amongst scientists and researchers in his organizations of the benefits of open innovation as a successful and efficient way to collaborate on difficult research problems regarding health and space travel. Despite a number of initiatives, SLSD members have been skeptical about incorporating the approach into their day-to-day research and work, and have resisted Davis's and his strategy team's efforts. The (A) case outlines these efforts and the organization members' reactions. The (B) case details what Davis and the SLSD strategy team learned, and how they adapted their efforts to successfully incorporate open innovation as one of many tools used in collaborative research at NASA.
Authors :: Michael L. Tushman, Hila Lifshitz-Assaf, Kerry Herman
Swot Analysis of "Houston, We Have a Solution: NASA and Open Innovation (B)" written by Michael L. Tushman, Hila Lifshitz-Assaf, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nasa Slsd facing as an external strategic factors. Some of the topics covered in Houston, We Have a Solution: NASA and Open Innovation (B) case study are - Strategic Management Strategies, Technology and Organizational Development.
Some of the macro environment factors that can be used to understand the Houston, We Have a Solution: NASA and Open Innovation (B) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing energy prices,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of Houston, We Have a Solution: NASA and Open Innovation (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Houston, We Have a Solution: NASA and Open Innovation (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nasa Slsd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B) can be done for the following purposes –
1. Strategic planning using facts provided in Houston, We Have a Solution: NASA and Open Innovation (B) case study
2. Improving business portfolio management of Nasa Slsd
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 Nasa Slsd
Strengths Houston, We Have a Solution: NASA and Open Innovation (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nasa Slsd in Houston, We Have a Solution: NASA and Open Innovation (B) Harvard Business Review case study are -
Strong track record of project management
– Nasa Slsd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Nasa Slsd is one of the most innovative firm in sector. Manager in Houston, We Have a Solution: NASA and Open Innovation (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Nasa Slsd
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nasa Slsd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Nasa Slsd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nasa Slsd 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.
High switching costs
– The high switching costs that Nasa Slsd 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.
Sustainable margins compare to other players in Organizational Development industry
– Houston, We Have a Solution: NASA and Open Innovation (B) firm has clearly differentiated products in the market place. This has enabled Nasa Slsd to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Nasa Slsd to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Nasa Slsd in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Nasa Slsd is one of the leading recruiters in the industry. Managers in the Houston, We Have a Solution: NASA and Open Innovation (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Nasa Slsd has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Houston, We Have a Solution: NASA and Open Innovation (B) 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.
Operational resilience
– The operational resilience strategy in the Houston, We Have a Solution: NASA and Open Innovation (B) 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.
Cross disciplinary teams
– Horizontal connected teams at the Nasa Slsd 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.
Weaknesses Houston, We Have a Solution: NASA and Open Innovation (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Houston, We Have a Solution: NASA and Open Innovation (B) are -
High cash cycle compare to competitors
Nasa Slsd 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nasa Slsd needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Houston, We Have a Solution: NASA and Open Innovation (B), it seems that the employees of Nasa Slsd 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.
Interest costs
– Compare to the competition, Nasa Slsd 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael L. Tushman, Hila Lifshitz-Assaf, Kerry Herman suggests that, Nasa Slsd 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.
Lack of clear differentiation of Nasa Slsd products
– To increase the profitability and margins on the products, Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B), 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.
Need for greater diversity
– Nasa Slsd 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.
Slow to strategic competitive environment developments
– As Houston, We Have a Solution: NASA and Open Innovation (B) HBR case study mentions - Nasa Slsd 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Houston, We Have a Solution: NASA and Open Innovation (B) 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 Nasa Slsd has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B) | 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 Houston, We Have a Solution: NASA and Open Innovation (B) are -
Leveraging digital technologies
– Nasa Slsd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nasa Slsd is facing challenges because of the dominance of functional experts in the organization. Houston, We Have a Solution: NASA and Open Innovation (B) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nasa Slsd 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 Nasa Slsd to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nasa Slsd 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, Houston, We Have a Solution: NASA and Open Innovation (B), 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
– Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nasa Slsd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nasa Slsd 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.
Manufacturing automation
– Nasa Slsd 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.
Developing new processes and practices
– Nasa Slsd 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.
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 Nasa Slsd 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.
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. Nasa Slsd 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. Nasa Slsd 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.
Creating value in data economy
– The success of analytics program of Nasa Slsd has opened avenues for new revenue streams for the organization in the industry. This can help Nasa Slsd to build a more holistic ecosystem as suggested in the Houston, We Have a Solution: NASA and Open Innovation (B) case study. Nasa Slsd 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 Nasa Slsd in the consumer business. Now Nasa Slsd can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nasa Slsd can use these opportunities to build new business models that can help the communities that Nasa Slsd operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Threats Houston, We Have a Solution: NASA and Open Innovation (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Houston, We Have a Solution: NASA and Open Innovation (B) are -
Technology acceleration in Forth Industrial Revolution
– Nasa Slsd has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Nasa Slsd 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.
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 Nasa Slsd.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nasa Slsd 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nasa Slsd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Nasa Slsd 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.
Regulatory challenges
– Nasa Slsd 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nasa Slsd 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 Houston, We Have a Solution: NASA and Open Innovation (B) .
Environmental challenges
– Nasa Slsd 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. Nasa Slsd can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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. Nasa Slsd 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.
Consumer confidence and its impact on Nasa Slsd 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Houston, We Have a Solution: NASA and Open Innovation (B), Nasa Slsd 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 wage structure of Nasa Slsd
– 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 Nasa Slsd.
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 Nasa Slsd business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Houston, We Have a Solution: NASA and Open Innovation (B) 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 Houston, We Have a Solution: NASA and Open Innovation (B) 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 Houston, We Have a Solution: NASA and Open Innovation (B) 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 Houston, We Have a Solution: NASA and Open Innovation (B) 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 Houston, We Have a Solution: NASA and Open Innovation (B) 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 Nasa Slsd needs to make to build a sustainable competitive advantage.