Modak Analytics: Shaping the Future in Digital India? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Modak Analytics: Shaping the Future in Digital India?
In 2008, Aarti Joshi, founder and CEO of Modak Analytics, returned to India after working in the data analytics space in the US for seven years. At that time, India's SMEs were unaware of the benefits of using their POS data to differentiate themselves from competition. Hence, Modak Analytics was incorporated to serve these SMEs. However, soon the CEO realized the diminished potential of this target market, which was plagued by wafer thin profit margins, lack of long term strategy for their companies, and lack of awareness towards the benefits of big data analytics. Modak Analytics then started targeting the more attractive BFSI segment. The company soon developed advanced analytics products for this sector. Major ones included Enterprise Data Warehouse, RapidETL product, Master Data Management and Campaign Management System. Modak Analytics' MDM software could help banks to achieve desired differentiation in the marketplace. This was possible due to the unique customer and household profiles that MDM helped create for the bank. The next step in the company's growth ladder came when Modak Analytics was asked by a bank to create profiles of not only its current customers, but also its potential customers. The exercise that started as data collection within the city of Hyderabad in India soon converted into a mammoth exercise when a pan-India political party approached Modak Analytics to do the voter profile analysis for the whole country. This was a herculean task as it involved deciphering the PDFs collected from electoral commission, which were in various languages and very heterogeneous from one state to another. At the time of the case, Modak Analytics was at a crossroads with respect to its future business strategy. Modak Analytics can either specialize in data integration and target the big markets of Europe and the US or it can aim to become a leading data aggregating company in India, given its huge repository of Indian voter profiles.
Swot Analysis of "Modak Analytics: Shaping the Future in Digital India?" written by Naga Lakshmi Damaraju, Navneet Kaur Khangura includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Modak Analytics facing as an external strategic factors. Some of the topics covered in Modak Analytics: Shaping the Future in Digital India? case study are - Strategic Management Strategies, Data, Entrepreneurship, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Modak Analytics: Shaping the Future in Digital India? casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing,
supply chains are disrupted by pandemic , increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Modak Analytics: Shaping the Future in Digital India?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Modak Analytics: Shaping the Future in Digital India? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Modak Analytics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Modak Analytics 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 Modak Analytics: Shaping the Future in Digital India? can be done for the following purposes –
1. Strategic planning using facts provided in Modak Analytics: Shaping the Future in Digital India? case study
2. Improving business portfolio management of Modak Analytics
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 Modak Analytics
Strengths Modak Analytics: Shaping the Future in Digital India? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Modak Analytics in Modak Analytics: Shaping the Future in Digital India? Harvard Business Review case study are -
Effective Research and Development (R&D)
– Modak Analytics 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 Modak Analytics: Shaping the Future in Digital India? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Modak Analytics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Modak Analytics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Modak Analytics: Shaping the Future in Digital India? 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.
High brand equity
– Modak Analytics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Modak Analytics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Modak Analytics is present in almost all the verticals within the industry. This has provided firm in Modak Analytics: Shaping the Future in Digital India? 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.
Successful track record of launching new products
– Modak Analytics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Modak Analytics has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Modak Analytics in the sector have low bargaining power. Modak Analytics: Shaping the Future in Digital India? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Modak Analytics to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Modak Analytics 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 Modak Analytics: Shaping the Future in Digital India? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Modak Analytics 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.
Cross disciplinary teams
– Horizontal connected teams at the Modak Analytics 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.
Ability to recruit top talent
– Modak Analytics is one of the leading recruiters in the industry. Managers in the Modak Analytics: Shaping the Future in Digital India? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Modak Analytics: Shaping the Future in Digital India? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Modak Analytics: Shaping the Future in Digital India? are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Modak Analytics: Shaping the Future in Digital India?, in the dynamic environment Modak Analytics has struggled to respond to the nimble upstart competition. Modak Analytics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Modak Analytics 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.
Interest costs
– Compare to the competition, Modak Analytics 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.
Increasing silos among functional specialists
– The organizational structure of Modak Analytics is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Modak Analytics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Modak Analytics to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Modak Analytics: Shaping the Future in Digital India? has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Modak Analytics 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Modak Analytics 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Naga Lakshmi Damaraju, Navneet Kaur Khangura suggests that, Modak Analytics 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.
Products dominated business model
– Even though Modak Analytics has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Modak Analytics: Shaping the Future in Digital India? should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Modak Analytics: Shaping the Future in Digital India? HBR case study mentions - Modak Analytics 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Modak Analytics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Modak Analytics: Shaping the Future in Digital India? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics has relatively successful track record of launching new products.
Opportunities Modak Analytics: Shaping the Future in Digital India? | 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 Modak Analytics: Shaping the Future in Digital India? are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Modak Analytics 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 Modak Analytics to hire the very best people irrespective of their geographical location.
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. Modak Analytics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Modak Analytics 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.
Creating value in data economy
– The success of analytics program of Modak Analytics has opened avenues for new revenue streams for the organization in the industry. This can help Modak Analytics to build a more holistic ecosystem as suggested in the Modak Analytics: Shaping the Future in Digital India? case study. Modak Analytics 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 Modak Analytics can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Modak Analytics 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.
Using analytics as competitive advantage
– Modak Analytics 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 Modak Analytics: Shaping the Future in Digital India? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Modak Analytics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Modak Analytics 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.
Building a culture of innovation
– managers at Modak Analytics 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.
Learning at scale
– Online learning technologies has now opened space for Modak Analytics 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.
Better consumer reach
– The expansion of the 5G network will help Modak Analytics to increase its market reach. Modak Analytics 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Modak Analytics 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Modak Analytics can use these opportunities to build new business models that can help the communities that Modak Analytics operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Modak Analytics: Shaping the Future in Digital India? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Modak Analytics: Shaping the Future in Digital India? are -
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Modak Analytics 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 Modak Analytics: Shaping the Future in Digital India? .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Modak Analytics 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Modak Analytics: Shaping the Future in Digital India?, Modak Analytics 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 .
Consumer confidence and its impact on Modak Analytics 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Modak Analytics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Modak Analytics has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Modak Analytics 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.
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 Modak Analytics in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Modak Analytics is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Modak Analytics 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. Modak Analytics can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Modak Analytics 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.
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 Modak Analytics business can come under increasing regulations regarding data privacy, data security, etc.
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 Modak Analytics.
Weighted SWOT Analysis of Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics: Shaping the Future in Digital India? 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 Modak Analytics needs to make to build a sustainable competitive advantage.