Appropriation of Technology: Tata Power Delhi Distribution Limited SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Appropriation of Technology: Tata Power Delhi Distribution Limited
It was the peak of summer in Delhi. With the temperature soaring to 47 degrees Celsius, the city was facing power cuts. Amid the looming threat of a potential power crisis, the chief executive officer (CEO) of an electricity distribution company in the city was wondering how technology could help in providing reliable power to all while mitigating other key challenges. He needed to bring down the aggregate technical and commercial losses further so that the company could generate higher revenue with the same power input and still provide better satisfaction to the customers. Not satisfied with the company close to being a benchmark nationally on various parameters, the CEO aspired to meet international benchmarks in power distribution. Authors are affiliated with Birla Institute of Management Technology.
Swot Analysis of "Appropriation of Technology: Tata Power Delhi Distribution Limited" written by Nimisha Singh, Akhil Pandey, Arunaditya Sahay includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Power Delhi facing as an external strategic factors. Some of the topics covered in Appropriation of Technology: Tata Power Delhi Distribution Limited case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Appropriation of Technology: Tata Power Delhi Distribution Limited casestudy better are - – digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, there is backlash against globalization, technology disruption,
increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Appropriation of Technology: Tata Power Delhi Distribution Limited
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Appropriation of Technology: Tata Power Delhi Distribution Limited case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Power Delhi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Power Delhi 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 Appropriation of Technology: Tata Power Delhi Distribution Limited can be done for the following purposes –
1. Strategic planning using facts provided in Appropriation of Technology: Tata Power Delhi Distribution Limited case study
2. Improving business portfolio management of Power Delhi
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 Power Delhi
Strengths Appropriation of Technology: Tata Power Delhi Distribution Limited | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Power Delhi in Appropriation of Technology: Tata Power Delhi Distribution Limited Harvard Business Review case study are -
High switching costs
– The high switching costs that Power Delhi 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
- Power Delhi 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 Power Delhi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Appropriation of Technology: Tata Power Delhi Distribution Limited Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Power Delhi 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 Nimisha Singh, Akhil Pandey, Arunaditya Sahay 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Power Delhi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Power Delhi 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.
Organizational Resilience of Power Delhi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Power Delhi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Power Delhi is present in almost all the verticals within the industry. This has provided firm in Appropriation of Technology: Tata Power Delhi Distribution Limited 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
– Power Delhi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Power Delhi 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.
Innovation driven organization
– Power Delhi is one of the most innovative firm in sector. Manager in Appropriation of Technology: Tata Power Delhi Distribution Limited Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Power Delhi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Power Delhi 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Appropriation of Technology: Tata Power Delhi Distribution Limited firm has clearly differentiated products in the market place. This has enabled Power Delhi to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Power Delhi to invest into research and development (R&D) and innovation.
Strong track record of project management
– Power Delhi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Appropriation of Technology: Tata Power Delhi Distribution Limited | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Appropriation of Technology: Tata Power Delhi Distribution Limited are -
No frontier risks strategy
– After analyzing the HBR case study Appropriation of Technology: Tata Power Delhi Distribution Limited, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Appropriation of Technology: Tata Power Delhi Distribution Limited, is just above the industry average. Power Delhi 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.
Skills based hiring
– The stress on hiring functional specialists at Power Delhi 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.
Low market penetration in new markets
– Outside its home market of Power Delhi, firm in the HBR case study Appropriation of Technology: Tata Power Delhi Distribution Limited needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Power Delhi 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.
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 Power Delhi supply chain. Even after few cautionary changes mentioned in the HBR case study - Appropriation of Technology: Tata Power Delhi Distribution Limited, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Power Delhi vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Power Delhi is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Power Delhi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Power Delhi to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Nimisha Singh, Akhil Pandey, Arunaditya Sahay suggests that, Power Delhi 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Appropriation of Technology: Tata Power Delhi Distribution Limited, in the dynamic environment Power Delhi has struggled to respond to the nimble upstart competition. Power Delhi 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
Power Delhi 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 Power Delhi 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 - Appropriation of Technology: Tata Power Delhi Distribution Limited should strive to include more intangible value offerings along with its core products and services.
Opportunities Appropriation of Technology: Tata Power Delhi Distribution Limited | 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 Appropriation of Technology: Tata Power Delhi Distribution Limited are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Power Delhi 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 Power Delhi to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Power Delhi 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.
Creating value in data economy
– The success of analytics program of Power Delhi has opened avenues for new revenue streams for the organization in the industry. This can help Power Delhi to build a more holistic ecosystem as suggested in the Appropriation of Technology: Tata Power Delhi Distribution Limited case study. Power Delhi can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Power Delhi can use these opportunities to build new business models that can help the communities that Power Delhi operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Power Delhi 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.
Developing new processes and practices
– Power Delhi 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Power Delhi 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.
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. Power Delhi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Power Delhi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Appropriation of Technology: Tata Power Delhi Distribution Limited 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.
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. Power Delhi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Power Delhi 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.
Better consumer reach
– The expansion of the 5G network will help Power Delhi to increase its market reach. Power Delhi 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.
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. Power Delhi 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. Power Delhi 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.
Threats Appropriation of Technology: Tata Power Delhi Distribution Limited External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Appropriation of Technology: Tata Power Delhi Distribution Limited are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Power Delhi 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.
Consumer confidence and its impact on Power Delhi 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.
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 Power Delhi in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Appropriation of Technology: Tata Power Delhi Distribution Limited, Power Delhi 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 .
Regulatory challenges
– Power Delhi 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.
Shortening product life cycle
– it is one of the major threat that Power Delhi is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Power Delhi has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Power Delhi 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.
Stagnating economy with rate increase
– Power Delhi 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.
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. Power Delhi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Power Delhi needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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 Power Delhi business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Power Delhi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Appropriation of Technology: Tata Power Delhi Distribution Limited 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 Appropriation of Technology: Tata Power Delhi Distribution Limited 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 Appropriation of Technology: Tata Power Delhi Distribution Limited 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 Appropriation of Technology: Tata Power Delhi Distribution Limited 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 Appropriation of Technology: Tata Power Delhi Distribution Limited 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 Power Delhi needs to make to build a sustainable competitive advantage.