Thriving in a Big Data World SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of Thriving in a Big Data World
This is an MIT Sloan Management Review article. The author reviews three recent books: Big Data: A Revolution That Will Transform How We Live, Work, and Think by Viktor Mayer-SchA?nberger and Kenneth Cukier; Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die by Eric Siegel; and Keeping Up with the Quants: Your Guide to Understanding and Using Analytics by Thomas H. Davenport and Jinho Kim. The first two books primarily focus on the power of big data and quantitative analytics, and the third advises how companies can tap into that power.Together, the combination of description and advice provide a good primer for executives seeking a better understanding of this emerging era of sophisticated number-crunching. According to Siegel's estimate, we are adding 2.5 quintillion bytes of data every single day. Words have become data; the physical states of our machinery have become data; our physical locations have become data; and even our interactions with each other have become data. "Data can frequently be collected passively, without much effort or even awareness on the part of those being recorded. And because the cost of storage has fallen so much, it is easier to justify keeping data than discarding it,"observe Mayer-SchA?nberger and Cukier. Indeed, we are awash in information, but what does it all mean? In their book, Mayer-SchA?nberger and Cukier explain three new imperatives: 1. Use all the data, not just a sample. In the past, businesses did not have the economical means to capture, store and analyze all the data from their operations, so they had to settle for a sample of it. But now a company like Amazon can economically capture and store data from every single customer transaction. 2. Accept messiness. Inaccuracies in measurements are less harmful than they once were because they can often be smoothed over by the sheer quantity of data. In the authors'words, "more trumps better." 3. Embrace correlation. For many purposes, correlation is sufficient and people don't need to know causality. Quantifying the likelihood that a particular person will do something -whether it is defaulting on a loan, upgrading to a higher level of cable service or seeking another job -is at the heart of Siegel's Predictive Analytics. The author describes how quantitative techniques can be deployed to find valuable patterns in data, enabling companies to predict the likely behavior of customers, employees and others. Even a modest increase in the accuracy of predictions can often result in substantial savings. Executives must go far beyond the "gee whiz"fascination with big data and quantitative techniques to learn how their businesses can profit best from this new era of computational sophistication. For that journey, Keeping Up with the Quants is a basic guide. Authors Davenport and Kim provide a logical approach for helping executives think more like quantitative analysts.
Swot Analysis of "Thriving in a Big Data World" written by Alden M. Hayashi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Data Cukier facing as an external strategic factors. Some of the topics covered in Thriving in a Big Data World case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Thriving in a Big Data World casestudy better are - – cloud computing is disrupting traditional business models, there is backlash against globalization, wage bills are increasing, increasing transportation and logistics costs, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, technology disruption, etc
Introduction to SWOT Analysis of Thriving in a Big Data World
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Thriving in a Big Data World case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Data Cukier, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Data Cukier 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 Thriving in a Big Data World can be done for the following purposes –
1. Strategic planning using facts provided in Thriving in a Big Data World case study
2. Improving business portfolio management of Data Cukier
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 Data Cukier
Strengths Thriving in a Big Data World | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Data Cukier in Thriving in a Big Data World Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Data Cukier in the sector have low bargaining power. Thriving in a Big Data World has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Data Cukier to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Data Cukier 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
– Data Cukier is one of the leading recruiters in the industry. Managers in the Thriving in a Big Data World are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Data Cukier has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Thriving in a Big Data World 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.
High switching costs
– The high switching costs that Data Cukier 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.
Learning organization
- Data Cukier 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 Data Cukier is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Thriving in a Big Data World Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Data Cukier 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 Thriving in a Big Data World - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Data Cukier 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 Thriving in a Big Data World HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Data Cukier is present in almost all the verticals within the industry. This has provided firm in Thriving in a Big Data World 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
– Data Cukier has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Data Cukier 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.
Analytics focus
– Data Cukier 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 Alden M. Hayashi 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.
Organizational Resilience of Data Cukier
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Data Cukier does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Thriving in a Big Data World | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Thriving in a Big Data World are -
High cash cycle compare to competitors
Data Cukier 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Alden M. Hayashi suggests that, Data Cukier 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 Data Cukier 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 - Thriving in a Big Data World should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Thriving in a Big Data World, it seems that the employees of Data Cukier 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Data Cukier 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Thriving in a Big Data World, in the dynamic environment Data Cukier has struggled to respond to the nimble upstart competition. Data Cukier has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Thriving in a Big Data World 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 Data Cukier has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Thriving in a Big Data World, is just above the industry average. Data Cukier 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.
Increasing silos among functional specialists
– The organizational structure of Data Cukier is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Data Cukier needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Data Cukier to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Thriving in a Big Data World 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 Thriving in a Big Data World can leverage the sales team experience to cultivate customer relationships as Data Cukier is planning to shift buying processes online.
Need for greater diversity
– Data Cukier 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.
Opportunities Thriving in a Big Data World | 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 Thriving in a Big Data World are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Data Cukier in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Data Cukier has opened avenues for new revenue streams for the organization in the industry. This can help Data Cukier to build a more holistic ecosystem as suggested in the Thriving in a Big Data World case study. Data Cukier can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Data Cukier can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Data Cukier 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, Thriving in a Big Data World, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Data Cukier can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Data Cukier 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
– Data Cukier 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 Thriving in a Big Data World - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Data Cukier to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Data Cukier in the consumer business. Now Data Cukier can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Data Cukier 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.
Developing new processes and practices
– Data Cukier 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.
Buying journey improvements
– Data Cukier can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Thriving in a Big Data World 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Data Cukier is facing challenges because of the dominance of functional experts in the organization. Thriving in a Big Data World 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, Data Cukier can use these opportunities to build new business models that can help the communities that Data Cukier operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Thriving in a Big Data World External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Thriving in a Big Data World are -
Increasing wage structure of Data Cukier
– 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 Data Cukier.
Technology acceleration in Forth Industrial Revolution
– Data Cukier has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Data Cukier 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.
Environmental challenges
– Data Cukier 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. Data Cukier 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. Data Cukier 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Thriving in a Big Data World, Data Cukier 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 .
Shortening product life cycle
– it is one of the major threat that Data Cukier is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Data Cukier 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.
Stagnating economy with rate increase
– Data Cukier 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.
Consumer confidence and its impact on Data Cukier 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.
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. Data Cukier needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Data Cukier 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.
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 Data Cukier.
Weighted SWOT Analysis of Thriving in a Big Data World 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 Thriving in a Big Data World 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 Thriving in a Big Data World 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 Thriving in a Big Data World 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 Thriving in a Big Data World 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 Data Cukier needs to make to build a sustainable competitive advantage.