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 - – there is backlash against globalization, technology disruption, geopolitical disruptions, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing commodity prices, 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 -
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Modak Analytics: Shaping the Future in Digital India? firm has clearly differentiated products in the market place. This has enabled Modak Analytics to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Modak Analytics to invest into research and development (R&D) and innovation.
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.
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.
Innovation driven organization
– Modak Analytics is one of the most innovative firm in sector. Manager in Modak Analytics: Shaping the Future in Digital India? 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)
– 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.
Training and development
– Modak Analytics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Modak Analytics: Shaping the Future in Digital India? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– 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.
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.
Learning organization
- Modak Analytics 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 Modak Analytics is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Modak Analytics: Shaping the Future in Digital India? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 -
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.
Lack of clear differentiation of Modak Analytics products
– To increase the profitability and margins on the products, Modak Analytics needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
High cash cycle compare to competitors
Modak Analytics 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.
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.
Skills based hiring
– The stress on hiring functional specialists at Modak Analytics 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Modak Analytics 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. Modak Analytics 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.
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 Modak Analytics supply chain. Even after few cautionary changes mentioned in the HBR case study - Modak Analytics: Shaping the Future in Digital India?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Modak Analytics vulnerable to further global disruptions in South East Asia.
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 -
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.
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.
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. Modak Analytics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Leveraging digital technologies
– Modak Analytics 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.
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.
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.
Buying journey improvements
– Modak Analytics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Modak Analytics: Shaping the Future in Digital India? suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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 Modak Analytics in the consumer business. Now Modak Analytics can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Modak Analytics 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, Modak Analytics: Shaping the Future in Digital India?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 -
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. Modak Analytics needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 .
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.
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. Modak Analytics 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.
High dependence on third party suppliers
– Modak Analytics 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.
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.
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.
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. Modak Analytics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Modak Analytics 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.
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.
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.
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.
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.