Client Co-Production in Knowledge-Intensive Business Services SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Client Co-Production in Knowledge-Intensive Business Services
A common characteristic of knowledge-intensive business service (KIBS) firms is that clients routinely play a critical role in co-producing the service solution along with the service provider. This can have a profound effect on both the quality of the service delivered as well as the client's ultimate satisfaction with the knowledge-based service solution. Based on research conducted with an IT consulting firm and work done with other knowledge-intensive business service providers, this article describes clients' key role responsibilities that are essential for effective client co-production in KIBS partnerships. It then presents strategies that service providers can use to manage clients so they perform their roles effectively. By strategically managing client co-production, service providers can improve operational efficiency, develop more optimal solutions, and generate a sustainable competitive advantage.
Authors :: Lance A. Bettencourt, Amy L. Ostrom, Stephen W. Brown, Robert I. Roundtree
Swot Analysis of "Client Co-Production in Knowledge-Intensive Business Services" written by Lance A. Bettencourt, Amy L. Ostrom, Stephen W. Brown, Robert I. Roundtree includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Service Kibs facing as an external strategic factors. Some of the topics covered in Client Co-Production in Knowledge-Intensive Business Services case study are - Strategic Management Strategies, Knowledge management, Manufacturing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Client Co-Production in Knowledge-Intensive Business Services casestudy better are - – there is increasing trade war between United States & China, there is backlash against globalization, increasing commodity prices, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Client Co-Production in Knowledge-Intensive Business Services
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Client Co-Production in Knowledge-Intensive Business Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Service Kibs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services can be done for the following purposes –
1. Strategic planning using facts provided in Client Co-Production in Knowledge-Intensive Business Services case study
2. Improving business portfolio management of Service Kibs
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 Service Kibs
Strengths Client Co-Production in Knowledge-Intensive Business Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Service Kibs in Client Co-Production in Knowledge-Intensive Business Services Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Client Co-Production in Knowledge-Intensive Business Services 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.
Innovation driven organization
– Service Kibs is one of the most innovative firm in sector. Manager in Client Co-Production in Knowledge-Intensive Business Services Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Service Kibs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Service Kibs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Client Co-Production in Knowledge-Intensive Business Services firm has clearly differentiated products in the market place. This has enabled Service Kibs to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Service Kibs to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Service Kibs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Service Kibs 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 Service Kibs 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Service Kibs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Service Kibs 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.
Effective Research and Development (R&D)
– Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Service Kibs in the sector have low bargaining power. Client Co-Production in Knowledge-Intensive Business Services has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Service Kibs to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Service Kibs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Client Co-Production in Knowledge-Intensive Business Services 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.
Analytics focus
– Service Kibs 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 Lance A. Bettencourt, Amy L. Ostrom, Stephen W. Brown, Robert I. Roundtree 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.
Weaknesses Client Co-Production in Knowledge-Intensive Business Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Client Co-Production in Knowledge-Intensive Business Services are -
Skills based hiring
– The stress on hiring functional specialists at Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services, it seems that the employees of Service Kibs 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.
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 Service Kibs supply chain. Even after few cautionary changes mentioned in the HBR case study - Client Co-Production in Knowledge-Intensive Business Services, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Service Kibs vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Service Kibs, firm in the HBR case study Client Co-Production in Knowledge-Intensive Business Services needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Service Kibs is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Service Kibs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Service Kibs to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Service Kibs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Client Co-Production in Knowledge-Intensive Business Services can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Service Kibs products
– To increase the profitability and margins on the products, Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services, 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.
Capital Spending Reduction
– Even during the low interest decade, Service Kibs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Client Co-Production in Knowledge-Intensive Business Services, is just above the industry average. Service Kibs 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, Service Kibs 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. Service Kibs 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.
Opportunities Client Co-Production in Knowledge-Intensive Business Services | 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 Client Co-Production in Knowledge-Intensive Business Services are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Service Kibs 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, Client Co-Production in Knowledge-Intensive Business Services, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Service Kibs 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, Service Kibs is facing challenges because of the dominance of functional experts in the organization. Client Co-Production in Knowledge-Intensive Business Services 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Service Kibs can use these opportunities to build new business models that can help the communities that Service Kibs operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Service Kibs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Service Kibs 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.
Using analytics as competitive advantage
– Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Service Kibs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Service Kibs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Service Kibs 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 Service Kibs to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Service Kibs 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Service Kibs 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. Service Kibs 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.
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 Service Kibs 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.
Loyalty marketing
– Service Kibs 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.
Threats Client Co-Production in Knowledge-Intensive Business Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Client Co-Production in Knowledge-Intensive Business Services are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Service Kibs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Service Kibs 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.
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. Service Kibs needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Service Kibs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
High dependence on third party suppliers
– Service Kibs 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 Client Co-Production in Knowledge-Intensive Business Services, Service Kibs 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 .
Stagnating economy with rate increase
– Service Kibs 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.
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. Service Kibs 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.
Technology acceleration in Forth Industrial Revolution
– Service Kibs has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Service Kibs 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.
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.
Shortening product life cycle
– it is one of the major threat that Service Kibs is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Service Kibs business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Client Co-Production in Knowledge-Intensive Business Services 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 Client Co-Production in Knowledge-Intensive Business Services 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 Client Co-Production in Knowledge-Intensive Business Services 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 Client Co-Production in Knowledge-Intensive Business Services 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 Client Co-Production in Knowledge-Intensive Business Services 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 Service Kibs needs to make to build a sustainable competitive advantage.
