Innovating for the Safety Net: Practical Considerations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Innovating for the Safety Net: Practical Considerations
"Safety net" providers play an essential role in delivering health care to underserved populations in states such as California. As the prominence of the safety net increases, medtech innovators seeking to make a difference have begun to design and develop new technologies to help these providers improve the quality and cost effectiveness of their care. This note introduces practical considerations that should be taken into account when developing technologies targeted at the safety net. Specifically, by looking downstream in the biodesign innovation process to anticipate issues related to safety net economics, reimbursement, technology assessment, and purchasing behavior, innovators can begin to understand how to adapt their approach and create new technologies that are not just meaningful, but feasible for adoption in the complex safety net system.
Authors :: Stefanos Zenios, Nathan T. Blair, Lyn Denend
Swot Analysis of "Innovating for the Safety Net: Practical Considerations" written by Stefanos Zenios, Nathan T. Blair, Lyn Denend includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Safety Net facing as an external strategic factors. Some of the topics covered in Innovating for the Safety Net: Practical Considerations case study are - Strategic Management Strategies, Personnel policies and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Innovating for the Safety Net: Practical Considerations casestudy better are - – increasing energy prices, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, geopolitical disruptions, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , technology disruption,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Innovating for the Safety Net: Practical Considerations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Innovating for the Safety Net: Practical Considerations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Safety Net, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Safety Net 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 Innovating for the Safety Net: Practical Considerations can be done for the following purposes –
1. Strategic planning using facts provided in Innovating for the Safety Net: Practical Considerations case study
2. Improving business portfolio management of Safety Net
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Safety Net
Strengths Innovating for the Safety Net: Practical Considerations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Safety Net in Innovating for the Safety Net: Practical Considerations Harvard Business Review case study are -
Strong track record of project management
– Safety Net is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Safety Net 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 Stefanos Zenios, Nathan T. Blair, Lyn Denend 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.
High switching costs
– The high switching costs that Safety Net 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.
Low bargaining power of suppliers
– Suppliers of Safety Net in the sector have low bargaining power. Innovating for the Safety Net: Practical Considerations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Safety Net to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– Innovating for the Safety Net: Practical Considerations firm has clearly differentiated products in the market place. This has enabled Safety Net to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Safety Net to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Safety Net in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Safety Net is one of the leading recruiters in the industry. Managers in the Innovating for the Safety Net: Practical Considerations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Safety Net 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.
Learning organization
- Safety Net 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 Safety Net is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Innovating for the Safety Net: Practical Considerations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Safety Net digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Safety Net 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.
Diverse revenue streams
– Safety Net is present in almost all the verticals within the industry. This has provided firm in Innovating for the Safety Net: Practical Considerations 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.
High brand equity
– Safety Net has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Safety Net to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Innovating for the Safety Net: Practical Considerations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Innovating for the Safety Net: Practical Considerations are -
Workers concerns about automation
– As automation is fast increasing in the segment, Safety Net 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.
Lack of clear differentiation of Safety Net products
– To increase the profitability and margins on the products, Safety Net needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Safety Net 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.
Low market penetration in new markets
– Outside its home market of Safety Net, firm in the HBR case study Innovating for the Safety Net: Practical Considerations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Innovating for the Safety Net: Practical Considerations, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Increasing silos among functional specialists
– The organizational structure of Safety Net is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Safety Net needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Safety Net to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Innovating for the Safety Net: Practical Considerations, is just above the industry average. Safety Net 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.
Slow decision making process
– As mentioned earlier in the report, Safety Net 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. Safety Net 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.
Aligning sales with marketing
– It come across in the case study Innovating for the Safety Net: Practical Considerations 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 Innovating for the Safety Net: Practical Considerations can leverage the sales team experience to cultivate customer relationships as Safety Net is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Innovating for the Safety Net: Practical Considerations HBR case study mentions - Safety Net 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 bargaining power of channel partners
– Because of the regulatory requirements, Stefanos Zenios, Nathan T. Blair, Lyn Denend suggests that, Safety Net 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.
Opportunities Innovating for the Safety Net: Practical Considerations | 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 Innovating for the Safety Net: Practical Considerations are -
Loyalty marketing
– Safety Net 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.
Creating value in data economy
– The success of analytics program of Safety Net has opened avenues for new revenue streams for the organization in the industry. This can help Safety Net to build a more holistic ecosystem as suggested in the Innovating for the Safety Net: Practical Considerations case study. Safety Net can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Safety Net can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Safety Net is facing challenges because of the dominance of functional experts in the organization. Innovating for the Safety Net: Practical Considerations 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.
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 Safety Net 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Safety Net 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, Innovating for the Safety Net: Practical Considerations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Safety Net can develop new processes and procedures in Strategy & Execution 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 Safety Net 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 Safety Net to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Safety Net can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Building a culture of innovation
– managers at Safety Net 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 Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Safety Net can use these opportunities to build new business models that can help the communities that Safety Net operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Safety Net 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.
Better consumer reach
– The expansion of the 5G network will help Safety Net to increase its market reach. Safety Net 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 Innovating for the Safety Net: Practical Considerations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Innovating for the Safety Net: Practical Considerations are -
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 Safety Net in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Safety Net 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.
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.
High dependence on third party suppliers
– Safety Net 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
– Safety Net 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 Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Safety Net 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 Innovating for the Safety Net: Practical Considerations .
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 Safety Net business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Safety Net
– 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 Safety Net.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Innovating for the Safety Net: Practical Considerations, Safety Net may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology acceleration in Forth Industrial Revolution
– Safety Net has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Safety Net needs to keep up with the evolution of technology in the Strategy & Execution 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.
Consumer confidence and its impact on Safety Net 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.
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 Safety Net.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Safety Net in the Strategy & Execution industry. The Strategy & Execution 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.
Weighted SWOT Analysis of Innovating for the Safety Net: Practical Considerations 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 Innovating for the Safety Net: Practical Considerations 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 Innovating for the Safety Net: Practical Considerations 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 Innovating for the Safety Net: Practical Considerations 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 Innovating for the Safety Net: Practical Considerations 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 Safety Net needs to make to build a sustainable competitive advantage.
